Which of the following is a disadvantage of e-sourcing and e-procurement?

Which of the following is a disadvantage of e-sourcing and e-procurement?

• A. Low operating costs
• B. Improved control over inventory and spending
• C. Reduced procurement price
• D. Security

Answer: (D)

Digital procurement uses online platforms to manage sourcing, contracts, and purchasing, and it brings clear benefits like lower operating costs, better visibility into spend and inventory, and the potential for lower prices through competitive bidding. However, these systems centralize sensitive information, so they introduce security risks. Data such as supplier details, pricing, contracts, and payment information can be vulnerable to breaches, unauthorized access, or tampering if proper protections aren’t in place. Outages or cyber-attacks can disrupt purchasing and erode trust. Therefore, security concerns are a notable drawback that organizations must actively mitigate with strong encryption, access controls, authentication, regular security audits, and robust incident response planning.

Digital procurement uses online platforms to manage sourcing, contracts, and purchasing, and it brings clear benefits like lower operating costs, better visibility into spend and inventory, and the potential for lower prices through competitive bidding. However, these systems centralize sensitive information, so they introduce security risks. Data such as supplier details, pricing, contracts, and payment information can be vulnerable to breaches, unauthorized access, or tampering if proper protections aren’t in place. Outages or cyber-attacks can disrupt purchasing and erode trust. Therefore, security concerns are a notable drawback that organizations must actively mitigate with strong encryption, access controls, authentication, regular security audits, and robust incident response planning.