Certified Professional Public Buyer (CPPB) Practice Test

What is a primary benefit of using electronic commerce in procurement?

1. Decreased paperwork

2. Longer negotiation times

3. Increased face-to-face meetings

4. More reliance on manual processes

The correct answer is: Decreased paperwork

Using electronic commerce in procurement offers a significant benefit of decreased paperwork. This is because electronic commerce enables the digital management of procurement processes, such as order placements, invoicing, and record-keeping. By transitioning to electronic systems, organizations can streamline these processes, resulting in reduced reliance on physical documents and paperwork. This digital approach not only simplifies transactions but also enhances efficiency and reduces the likelihood of errors that can occur with manual paperwork. In addition, fewer physical documents contribute to environmental sustainability by minimizing paper usage. This shift towards electronic documentation can help organizations more easily manage their procurement records and reduce storage costs associated with physical file systems. While increased reliance on manual processes, longer negotiation times, and more face-to-face meetings would typically create inefficiencies in procurement operations, the adoption of electronic commerce directly counters these issues by automating and facilitating smoother transaction processes. Thus, the principal advantage remains the substantial reduction in paperwork required for procurement activities.