Procurement 4.0 to the rescue: catalysing its adoption by modelling the challenges

Abstract

Purpose

The pandemic crisis has resulted in global chaos that had caused massive disruption to the supply chain. The pharmaceutical industry, in particular, has been working tirelessly to ensure that they can cater to the people who need them. With restrictions being imposed to prevent the spread of the COVID-19 virus, the movement of raw materials required has been affected, thus creating the need for the procurement function to be innovative. This study proposes the application of Industry 4.0 concepts into the procurement activities of an organization to make it more resilient and efficient.

Design/methodology/approach

To study the intensity of the challenges, Total Interpretive Structural Modelling is used alongside the “Matrice des Impacts Croises Multiplication Appliquee a un Classement” (MICMAC) technique.

Findings

Resilience can be achieved through the collaboration between the organization and its network of suppliers. This is however easier said than done. High and unclear investments have been identified as the challenge that is taking a toll on all technological investments in the pandemic era. The study also shows that organizational inertia which is present in established and structured firms are a deterrent as well.

Originality/value

This study is based on the application of procurement 4.0 to ensure that pharmaceutical supply chains stay least affected since they are essentials. This study using a multi-criteria decision-making approach to prioritize the challenges. This will help practitioners make decisions faster.

Citation

Joseph Jerome, J.J., Saxena, D., Sonwaney, V. and Foropon, C. (2022), "Procurement 4.0 to the rescue: catalysing its adoption by modelling the challenges", Benchmarking: An International Journal, Vol. 29 No. 1, pp. 217-254. https://doi.org/10.1108/BIJ-01-2021-0030