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Which advantages come from exchanging information with suppliers electronically?
AHigher prices, fewer suppliers, and longer contracts
BLarger inventories, slower orders, and fixed schedules
CSpeed, accuracy, and lowered communication costs
DMore paperwork, more staff, and more meetings held
Answer & Solution
Correct answer: C. Speed, accuracy, and lowered communication costs
1. Electronic exchange removes the delay of posting or rekeying documents, so information moves faster.
2. It also removes the transcription errors that manual handling introduces, so it is more accurate.
3. It lowers communication costs at the same time.
4. Option D lists exactly the burdens that electronic exchange is designed to remove.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section E-Procurement, Electronic Data Interchange, and Blockchain_
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