(Supply chain management) Your employer, Southeast Industrial, imple¬ mented an e-procurement system last year for purchasing nonoperating in¬ puts. The installation has been such a success that the firm is now considering using the same system to acquire operating inputs (e.g., direct material and product components).

However, some executives in the firm are reluctant to implement such a system for operating inputs because it does not support the rich collabora¬ tion that is necessary for effective supply chain cost management. Current systems support exchange of only basic transactional information: price, product availability, shipping terms and dates; and routine transaction pro¬ cessing including electronic ordering and electronic payments.

a. Assume that you are the firm’s controller. Would you support the use of the e-procurement system for purchasing operating inputs? Why or why not?

b. Assume that you are vice president of product development. Would you support installation of the e-procurement system? Why or why not?

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