How can a cost leader use e-business to reduce costs?
A) It could automate purchasing and payment systems so that customers have detailed status reports.
B) It could provide rapid online responses to service requests.
C) It could use Internet-based knowledge systems to shorten customer response times.
D) It could use Web-based inventory control systems that reduce storage costs.

Question

Quizplus · Accepted Answer

A cost leader can use web-based inventory control systems to reduce storage costs by tracking inventory levels in real-time and ensuring that there is no excess inventory. This helps in lowering the cost of inventory storage and management. Automating purchasing and payment systems (A) and providing rapid online responses to service requests (B) can improve customer satisfaction but may not necessarily reduce costs. Using Internet-based knowledge systems (C) can also reduce response times, but may not directly impact cost reduction.

How Can a Cost Leader Use E-Business to Reduce Costs