Industry 4.0 technologies in the purchasing process

Abstract

Purpose

The aim of the study is to explore the possible practical impact of big data/business intelligence and Internet of Things on the purchasing process of premium automotive manufacturers, and to evaluate its theoretical impact with a transaction cost economics approach.

Design/methodology/approach

An exploratory multiple-case study was carried out, using qualitative content analysis and cross-case synthesis.

Findings

Collaborative platforms and a new purchaser role were found to impact the entire process. In the strategic purchasing 4.0 process, co-creation of specifications, automated prequalification, and parameter-based negotiations are some expected changes. The operative purchasing 4.0 process is shaped by, for example, interactive call-offs. Transaction cost is expected to decrease by reduced uncertainty and supplier specificity, as well as by lowered information search, negotiation, and monitoring costs.

Research limitations/implications

The description of a potential purchasing 4.0 process for premium automotive manufacturers is given.

Practical implications

Premium automotive manufacturers can develop strategies to push the existing standards of purchasing. Suppliers can create scenarios to allow for future compliance at the purchasing–sales interface.

Social implications

New technologies' effects on the workforce are considered.

Originality/value

No identified study focused on the impact of Industry 4.0 technologies on the purchasing process of premium automotive manufacturers.

Citation

Gottge, S., Menzel, T. and Forslund, H. (2020), "Industry 4.0 technologies in the purchasing process", Industrial Management & Data Systems, Vol. 120 No. 4, pp. 730-748. https://doi.org/10.1108/IMDS-05-2019-0304