E-Procurement Quiz

What is the main characteristic of indirect spend?

• It is critical to business performance

• It is locally controlled and low priority

• It is the largest area of cost for the organization

• It directly affects core business operations

Which of the following is NOT a characteristic of the sell-side model in e-procurement?

• One supplier to many buyers

• The supplier controls terms and conditions

• The buyer performs all the work

• Buyer dictates terms and content

What is the main benefit of the buy-side e-procurement model?

• Buyer controls access to nominated suppliers

• High supplier overhead

• Low cost of installation

• Sellers dictate terms

In the reverse auction process, what happens to the price as the auction progresses?

• The price increases

• The price decreases

• The price remains constant

• The price fluctuates randomly

Which of the following is a key advantage of e-procurement in the Cisco example?

• Increased headcount

• Reduced visibility for the buyer

• Reduction in purchasing cost per order

• Increased reliance on manual processes

Which procurement model allows buyers and sellers to meet and transact business online through a third-party site?

• Sell-side model

• Buy-side model

• Marketplace model

• Auction model

What is a major limitation of the sell-side e-procurement model?

• High integration with buyer's systems

• Buyer has leverage over prices

• The buyer conforms to the supplier’s ordering processes and standards

• Easy to compare prices

What is the key feature of the auction model in e-procurement?

• Buyers and sellers negotiate prices on a fixed website

• Bidding happens in real-time

• Sellers dictate the auction conditions

• It involves a fixed price catalog

What is the goal of reverse auctions in procurement?

• To increase prices through competition

• To reduce prices through competition between suppliers

• To create fixed price contracts

• To establish long-term supplier relationships

Which of the following is a feature of the buy-side e-procurement model?

• One seller offers products to many buyers

• The buyer can negotiate directly with suppliers

• Suppliers control the access to purchasing systems

• The buying company controls the supplier access to the system