Abstract
The fourth industrial revolution has significantly changed the traditional way of managing supply chains. The applications of Industry 4.0 (I4.0) technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) in different processes of supply chains have assisted companies to improve their performance. Procurement can be considered a critical process in supply chain management since it can provide novel opportunities for supply chains to improve their efficiency and effectiveness. However, I4.0 applications can be costly and may not be reasonably affordable. Therefore, the benefits of implementing these technologies should be clarified for procurement managers before investing in the digitalization of the procurement process. Despite the importance of this issue, few papers have attempted to address the effects of I4.0 technologies and smart systems in procurement. To fill this gap, a Systematic Literature Review (SLR) on the applications of I4.0 technologies in procurement has been used in this study. By reviewing 70 papers through appropriate keywords, a conceptual framework is developed to classify different value propositions provided by the different applications of I4.0 technologies in procurement processes. Results reveal nine value propositions that can provide a better understanding for the procurement department to analyze the benefits of implementing the related I4.0 technologies in different activities. Finally, findings and future study opportunities are concluded.
Highlights
Over the past decades, the traditional functions of the supply chain have evolved into broader and more modernized strategic approaches due to the emerging technologies [1].In other words, with the manifestation of the industrial revolution, a new area of digitalization has emerged, and the concept of smart manufacturing has been revealed
A contribution of these issues to I4.0 technology will be assessed and the possibility of adding values can be discussed. Applicable technologies such as Cyber-Physical Systems (CPS), Big Data Analytics (BDA), and Internet of Things (IoT) under the term P4.0 have represented substantial values in the supply chains. These added values consist of performance improvement in the operations associated with procurement management in supply chains such as pricing, supplier selection and evaluation, cost-efficacy, data gathering and analysis, and purchasing management
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]
Summary
The traditional functions of the supply chain have evolved into broader and more modernized strategic approaches due to the emerging technologies [1].In other words, with the manifestation of the industrial revolution, a new area of digitalization has emerged, and the concept of smart manufacturing has been revealed. The traditional functions of the supply chain have evolved into broader and more modernized strategic approaches due to the emerging technologies [1]. Notions such as smart factory, smart logistics, smart product, smart contract, etc., and in summary, “smart things” are developed, and companies have used digital technologies to transform their supply chain (SC) operating model [2]. These technological improvements are part of the Fourth Industrial Revolution named Industry 4.0 (I4.0). One of the most significant processes in the SC which directly affects its performance is the strategic management of procurement operations [6]
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