A framework for procurement process re-engineering in Industry 4.0

Abstract

Purpose

Procurement is a crucial part of supply chain management, consistently becoming a strategic vantage point in global competition. The industry 4.0 paradigm is transforming supply chains to smarter systems, giving rise to the concept of procurement 4.0. A systematic framework to transform in current scenario is crucial.

Design/methodology/approach

This study brings together these current researches to propose a redesigned procurement process by combining several technologies. A BPR approach is taken to present the new process and its merits are discussed.

Findings

A re-designed procurement framework is proposed. Radical improvements of cost, cycle time, human effort, degree of automation, traceability, information availability and uncertainty are achievable with the proposed framework.

Practical implications

The proposed re-engineered process addresses the visualization barrier for managers. The proposed framework is grounded on BPR which provides a generic ground for developing redesign exercise along with the visualization of new process.

Originality/value

There is literature discussing implementation, impact and advantages of individual and combination of technologies on procurement process but lacks visualization of the transformed process combining these technologies.

Citation

Tripathi, S. and Gupta, M. (2021), "A framework for procurement process re-engineering in Industry 4.0", Business Process Management Journal, Vol. 27 No. 2, pp. 439-458. https://doi.org/10.1108/BPMJ-07-2020-0321