What term describes automation of non-strategic and transactional procurement activities such as RFI, RFP, and RFQ?

• A. eProcurement
• B. Strategic Sourcing
• C. Supplier Relationship Management
• D. Total Cost of Ownership

Answer: (A)

Automating routine, high-volume purchasing activities like issuing requests for information, proposals, and quotes falls under eProcurement. An electronic procurement system handles the entire workflow for these transactions: standardized templates for RFI/RFP/RFQ, online supplier submissions, automated evaluation and scoring, approval routing, and converting the chosen bid into a purchase order. This reduces manual data entry, speeds up cycle times, ensures policy compliance, and creates an auditable record of decisions. The other terms describe broader approaches or cost considerations rather than the automation of these transactional processes: strategic sourcing focuses on long-term supplier selection and contract optimization; supplier relationship management centers on ongoing collaboration and performance with suppliers; total cost of ownership is a cost framework used in decision making. Therefore, eProcurement best describes the automation of these transactional activities.