Procurement 4.0 and the Fourth Industrial Revolution: The Opportunities and Challenges of a Digital

Table of Contents

1              Table of Contents  2

2              Abbreviations  6

1.            Introduction   11

2.            Industry 4.0 and Procurement 4.0  14

2.1          Introduction   14

2.2          Industry 4.0  16

2.3          Procurement 4.0  21

2.3.1      Before the Industrial Revolution. The Procurement 1.0  22

2.3.2      Second Industrial Revolution. The Procurement 2.0  23

2.3.3      Third Industrial Revolution. The Procurement 3.0  23

2.3.4      Fourth Industrial Revolution: The Procurement 4.0  24

2.4          Innovation in Procurement Processes  33

2.5          Technology Acceptance Model 36

2.6          Conclusions  38

2.7          Appendix: The Results of the Procurement Survey Digitization: Prospects and Opportunities  39

2.7.1      Introduction   39

2.7.2      What areas have been digitized within an organization, with reference to production processes?  40

2.7.3      What tools did you use?  40

2.7.4      What are the Benefits Obtained?  40

2.7.5      They are provided to the Procurement digitization plans, if you what processes?  41

2.7.6      Conclusions  41

3              Processes in Procurement 4.0  42

3.1          Introduction   42

3.2          Structure and Activities of the Procurement Processes  45

3.3          Logistics 4.0  46

3.4          Risk Management in Procurement  50

3.4.1      Risk Analysis  51

3.4.2      Risk Assessment  52

3.4.3      Mitigation of Risks  52

3.4.4      Monitoring of Risks and Lessons Learned   53

3.4.5      Digital Transformation and Risk Management in Procurement  53

3.4.6      Skills for Risk Management  54

3.4.7      Global Procurement and Risk Management  55

3.4.8      Resilience and Procurement 4.0  61

3.5          Procurement Finance 4.0  72

3.5.1      Fintech Finance and Procurement 4.0  74

3.5.2      Innovation and Technology in the Procurement of Financial Services  76

3.6          Conclusions  78

4              Platforms for Procurement 4.0  79

4.1          Introduction   79

4.2          E-Procurement  80

4.2.1      Cloud Computing  84

4.2.2      The Mobile   85

4.2.3      Procurement Process Intelligence   86

4.2.4      Collaboration   87

4.2.5      A Generalized Model for e-Procurement  87

4.2.6      Benefits and Challenges  90

4.3          IoT  91

4.3.1      IoT Architectures  92

4.3.2      Application areas  93

4.3.3      Efficiency Improvement with the IoT  95

4.3.4      Partnership with the Internet of Things  96

4.4          Blockchain   96

4.4.1      Blockchain in Procurement  98

4.5          Digitization of the Contracts Life Cycle   101

4.5.1      Introduction   101

4.5.2      Smart Contract  101

4.5.3      Basic Functions of Smart Contract  103

4.5.4      The CLM Software Applications  104

4.5.5      The Benefits of CLM    104

4.6          Procurement Support to the Procurement Process Intelligence   105

4.6.1      Digitize and Lean Procurement  105

4.6.2      Procurement Process Intelligence Components  108

4.6.3      Technology  112

4.7          Cognitive Procurement  113

4.8          Robotic Process Automation   115

4.9          Analytics and Big Data  117

4.10        Mobility and Procurement  118

4.11        Privacy and Security  120

4.12        Conclusions  121

5              People in Procurement 4.0  124

5.1          Introduction   124

5.2          Path of change   124

5.3          4.0 Training  125

5.3.1      Why  126

5.3.2      What  126

5.3.3      Who   127

5.3.4      When   127

5.3.5      Where   127

5.3.6      how    127

5.4          Conclusions  128

6              Partnership in Procurement 4.0  129

6.1          Introduction   129

6.2          Procurement in Team    129

6.2.1      People and Organization   129

6.2.2      Process  130

6.2.3      Platforms  130

6.2.4      Security  131

6.3          Rating Partners in Procurement 4.0  132

6.3.1      Internet of Things (IoT)  132

6.3.2      Big Data  133

6.3.3      Artificial intelligence   133

6.3.4      Mobility  133

6.3.5      Cloud Computing  133

6.4          Conclusions  134

7              Future of Procurement 4.0  135

7.1          Introduction   135

7.2          Scenario   135

7.3          Four Ps of Procurement Management  136

7.3.1      Platforms  136

7.3.2      Processes  139

7.3.3      People   140

7.3.4      Partnership   140

7.4          Green Procurement  141

7.4.1      Procurement Sustainability  141

7.4.2      New Technologies for the Green Procurement  142

7.5          Conclusions  145

8              Conclusions  146

Glossary  147

Reference   165

Siti Web   175