Abstract
Technological development and progress in digitization permeate all areas of life, of course not excluding companies and their activities and individual business processes. In this paper, we focus on the area of corporate procurement as one of the key areas for fulfilling corporate goals and its transformation in the age of digitalization. The paper aims to identify the changing function of procurement and possible opportunities of digitalization for the development of procurement and its role in organization. As the results shown, procurement is a value-creating process that is changed by the digitalization. It is moving from a traditional focus on cost reduction to value creation through dynamic cooperation and building relationships with business partners. Procurement is beginning to play an increasingly strategic role in organizations. It becomes a partner to support business efficiency and the creation of new business models.
Highlights
Procurement includes functions like as purchasing and supply management, along with managing inbound and outbound logistics [1]
One of the main topics addressed in the field of corporate procurement is the issue of cost reduction
Procurement is considered as the main cost driver for the organization [4] and cost reductions in the procurement process can have a high effect on the company’s profit [5]
Summary
Procurement includes functions like as purchasing and supply management, along with managing inbound and outbound logistics [1]. Capgemini [2] define procurement as a complete process from sourcing to accounts payable (known as Source-to-Pay). It is one of the key business areas that affects corporate profitability and the fulfilment of corporate goals. One of the main topics addressed in the field of corporate procurement is the issue of cost reduction. Procurement is considered as the main cost driver for the organization [4] and cost reductions in the procurement process can have a high effect on the company’s profit [5]. It is important to respond to the coming changes and think about new opportunities and possibilities for companies and procurement evolution
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