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

Abstract

PurposeThe 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/approachTo 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.FindingsResilience 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/valueThis 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.

Supply chain resilience during the COVID-19: empirical evidence from an emerging economy

“…SCR refers to a set of actions and capabilities that firms employ to resist environmental disruptions to promote recovery and restore their operations (Ivanov, 2021a). Taking into account an unprecedented huge disruption like the COVID-19, scholars and practitioners are being challenged to understand and provide directions about the impacts and strategies to support the resilience of the firms and the supply chains (Choi, 2021a; Delloite, 2020; El Baz and Ruel, 2021; Ivanov and Dolgui, 2020b; Sarkis et al , 2020; Joseph Jerome et al , 2021; World Economic Forum - WEF, 2020b).…”

Application of Industry 4.0 in the Procurement Processes of Supply Chains: A Systematic Literature Review

“…Adoption of P4.0 results in autonomy, flexibility, and transparency of operations associated with procurement management to optimize pricing, supplier management, and purchasing management decisions or elaborate sustainability and data-sharing security [142,143]. The outcomes of this paper are original and novel in comparison with the relevant papers that studied P4.0 in the literature [28,95,121,144,145]. Whereas, previous papers had a focus on comprehensive models [95], reviewing the impact of P4.0 on business functions of a supply chain [28,[146][147][148][149][150], manufacturing modeling to optimize organizational procurement processes [121,151], developing resiliency in supply chains against disruptions [144], and resource planning to develop productivity in remanufacturing operations [145], this paper is the first contribution to the subject that employs a systematic literature review to emphasize the values obtained from the adoption of P4.0 into supply chains.…”

“…The outcomes of this paper are original and novel in comparison with the relevant papers that studied P4.0 in the literature [28,95,121,144,145]. Whereas, previous papers had a focus on comprehensive models [95], reviewing the impact of P4.0 on business functions of a supply chain [28,[146][147][148][149][150], manufacturing modeling to optimize organizational procurement processes [121,151], developing resiliency in supply chains against disruptions [144], and resource planning to develop productivity in remanufacturing operations [145], this paper is the first contribution to the subject that employs a systematic literature review to emphasize the values obtained from the adoption of P4.0 into supply chains. Despite the sprouting literature in this field, it is obvious that there is a lack of comprehensive and systematic frameworks, strategies, and approaches for the implementation of I4.0 in the procurement processes of SCs.…”

How a Digital Platform Transforms the Value Proposition in Purchasing and Buyer-Supplier Relationship Management

“…On the one hand, digital technologies are on pace to automate most routine purchasing processes within three to five years; on the other hand, digitalisation unleashes new sources of value (Jahani et al, 2021) and gives purchasing a larger strategic role (Easton and Epstein, 2018). The significance of Industry 4.0 technologies for the efficiency and resilience of procurement activities has been especially clear during the COVID-19 pandemic (Jerome et al, 2021).…”