Answer to Question #180972 in Management for Shaun

Question

Q.1.3 Explain the factors “information technology” and “sustainability” as a reason for increasing the importance of the purchasing and supply function. Justify your answer with the aid of an practical example. 

Answer 1

Information technology contributes immensely towards purchasing and supply function since it reduces the cost of production enabling a firm to produce effectively at a lower cost. Besides, technolpogical platforms allow customers to purchase commodities conveniently without straining. In this regard, IT serves both firms and customers enabling them to co-exist sustainably as they conduct their operations. IT provides sustainable services to firms, enabling them to spend less in production and achieve greater quantities. It also increases the sustainability of the market as customers can access commodities they want conveniently, making them to spend less compared to a scenario where no IT is applied. For instance, in a health institution, IT appliances enable faster transfer of information from one department to another, enabling the staff to attend to many clients within a shorter time. Similarly, patients can book healthcare services using their smart phones, which reduce time and financial wastage; this enables them to receive the services and products they deserve sustainably.