E-Business: Questions And Answers

Student’s NameProfessorCourseDateE-businessOutline the two main methods by which companies purchase supplies and the two broad divisions of supplies needed.For a business to flourish, it needs supplies and raw materials. Businesses also need to formalize themselves regarding the different methods they will use to purchase these supplies. There are various methods by which companies procure their supplies:Formalize purchase orders. A business may want to use a purchase order for larger purchases and regular deliveries. In most cases, this purchasing method establishes a formal request and agreement between the supplier and the business regarding prices.On-demand purchasing. Businesses can engage in on-demand purchasing, also known as the zero inventory method. This method is efficient for companies that do not wish to house inventory. In this case, items are only purchased when they are needed and in controlled quantities. Maintenance, repair, and operation goods or MRO goods and raw materials are the two broad divisions of supply required by a business. These supplies are essential as they are core to the operation of a business.What are the organizational implications of introducing e-procurement?Electronic procurement is critical in today's commerce; however, it may impact a business differently. Substantial cost saving. E-procurement leads to