What are the advantages and drawbacks of e-purchasing systems and how do they compare to each other?

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farouk23 | College Teacher | (Level 1) Associate Educator

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E-purchasing is a way to manage the supply chain using automated and computerized tools and techniques. More specifically e-purchasing uses software and the internet to manage vendor relations and procurement activities. There are many e-purchasing systems available on the market which provide similar features and services, the selection of a particular system would be dependent on particular organizational needs and requirements. Some major advantages of e-purchasing systems are:

  1. Reduced procurement costs
  2. Increased productivity and efficiency
  3. Greater visibility and analytics
  4. Leverage of technology
  5. Greater controls over processes

Some of the major disadvantages that could arise from using an e-purchasing systems are:

  1. Steep learning curve for the software
  2. Incompatibility of software
  3. Slow adoption and implementation of technology across the supply chain
  4. lack of a paper trail

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