Certified Professional Public Buyer (CPPB) Practice Test

What does electronic procurement refer to?

1. Conducting all procurement functions via face-to-face meetings

2. Conducting all or some of the procurement function over the internet

3. Using paper forms to manage transactions

4. Employing telephone communication for purchasing

The correct answer is: Conducting all or some of the procurement function over the internet

Electronic procurement, often referred to as e-procurement, involves conducting all or some of the procurement functions over the internet. This can include activities such as sourcing, purchasing, and supplier management. By leveraging web-based tools and platforms, organizations can streamline their procurement processes, enhance efficiency, reduce costs, and improve transaction speed. In contrast to face-to-face meetings, which limit communication to personal interactions, electronic procurement embraces a broader reach and accessibility, allowing for real-time collaboration and interactions regardless of geographical constraints. The reliance on paper forms and traditional methods, such as telephone communication, is increasingly being replaced by online systems that enable tracking, analyzing, and managing procurement activities digitally. This modern approach fosters transparency, reduces manual errors, and often leads to better decision-making through data analysis.