You are hired to help improve purchasing, supplier and repor…
You are hired to help improve purchasing, supplier and reporting processes at 7-11 convenience stores. Store Managers determine the inventory to purchase by visual inspection of the inventory on hand and an inventory reorder report. Store Managers enter their inventory orders into the purchasing system. The purchasing system electronically places Purchase Orders (PO) with approved suppliers based on contracts. When the inventory is received, Store Managers enter quantities received in the purchasing system to close the POs. Since there is no interface between the purchasing system and the payables system, Accounts Payable staff extract purchasing and receiving information from the purchasing system to process supplier invoices (payables) and payments. For this scenario, answer the following questions: Some of the purchasing reports are printed by Head Office and distributed to the stores using 7-11’s internal mail distribution service. Explain two steps that 7-11 may take to maintain the confidentiality of the paper reports (2 marks). If supplier invoices are entered manually by Accounts Payable staff, explain how 7-11 may automate the entering of supplier invoices into the AP System and one risk of automation. (2 marks). What factor(s), other than cost/benefit analysis, may management take into consideration when deciding to adopt emerging technology such as cryptocurrency? (1 mark)
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