Procurement 4.0: Implementation, Benefits, and Future Implications

This report provides a comprehensive overview of Procurement 4.0, including its implementation, benefits, and future implications. The research methodology and literature review are discussed, along with examples of theory in practice. The report concludes with a discussion of the future of Procurement 4.0 and its potential impact on the field of purchasing and management.

Running Head: PROCUREMENT 4.0
Procurement 4.0
Name of the Student
Name of the University
Author Note

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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................2
Research and Discussion.................................................................................................................2
Research Methodology................................................................................................................3
Literature Review........................................................................................................................3
Examples of theory in practice........................................................................................................5
Implication of future use..................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Executive Summary
Implementation of Procurement 4.0 in the field of purchasing and management
requirement has been acting as a major advantage due to the fact that this process endeavors
optimization in business processing. Production of greatest value of the project is one of the
major advantage that is enjoyed in case Procurement 4.0 is applied in the business management.
This report will provide a brief background of Procurement 4.0 and define its terminologies.
Research methodology will be stated in this report. This report will also provide the literature
review of implementation of procurement 4.0 in the field of purchasing and management. This
report will also state an example of implementation of this theory in purchasing and management
development. This report also states the future benefits that an organization will enjoy in case
this implementation theory is applied.
Introduction
Procurement 4.0 is defined as a functional framework of an organization that deals with
the development of the specifications. Proper analysis of value of the entire project is also one of
the major fact that implementation of this process acts beneficial to the project. Negotiation of
the project regarding processing of projects are that the data that are gathered finds their used for
the completion of the project with an increased efficiency. Supplier market research allows
another major advantage that leads to the projection of better purchasing and management of the
product. Controlling inventory is also a major reason that the usage of purchasing and
management is increasing in a daily basis. Purchasing acts as one of the major activity that will
ensure the fact that the revenue that is to be earned by the organization is completely dependent
on purchasing of products that are manufactured by the organization.
Research and Discussion

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Research Methodology
Research methodology that is used for completion of the project consists of both
secondary data analysis as well as primary data analysis. Initially secondary research
methodology is used for processing of the data management with the help of procurement in
purchasing and management (Srai and Lorentz 2018). Scholarly literature is made use of in order
to get accustomed with the terminologies, which are required for completion of the project. This
ensures the fact that the data that are collected in this process will help in proper analyzing of the
entire process of procurement 4.0. Different authenticated journals will be taken into
consideration in order to gain in depth knowledge of Procurement 4.0 (Branger and Pang 2015).
This also ensures the fact that the data that are to be examined are gained by the journals that are
authorized in nature. After completion of the secondary research methodology, primary research
methodology will be conducted.
During conduction of the primary data analysis, survey will be conducted. People who
were a part of the procurement in the field of purchasing and management were the participants
of the project. After conducting the survey, proper evaluation of the data is made in order to take
proper decisions regarding the procurement 4.0 (Agus, Hairunnisa and Maharani 2017). After
conducting the survey, personal interviews are also taken, which helps in better understanding of
the concept of procurement 4.0. In person interview also helps in understanding of the
advantages that the organization enjoys on implementing Procurement 4.0 in the field of
purchasing and management (Saxena and Agarwal 2018).
Literature Review
According to Glas and Kleemann (2016), Procurement 4.0 focuses on 6 aspects of the
purchasing and management department. This ensures the fat that the data that are collected

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during the research of the organization are diversified in 6 brad categories. These 6 road
categories are as follows: -
New Procurement Value and proposition: According to Nicoletti (2018), despite the
organization performs formal procurement, the framework serves as the reference to goal
identification. This global identification leads to positioning of procurement 4.0, which is
implemented in the purchasing and management department. This procurement diversification
also helps in adjusting frameworks in an efficient manner. Thinking is one of the most important
procurement strategy that helps in increasing the efficiency of the process. Managers have been
focusing on the terminologies regarding the procurement and there focus has shifted from cost
reduction to better quality serving terminologies.
Digital category and service procurement: According to Uygun and Ilie (2018),
Procurement 4.0 application in the industry includes the fact that the data that are used for the
development of the industry will ensure that the data that are being gathered will be used for
analyzing the procedure. This data analyzing also helps in setting the data reference that acts as a
model of repurposing of data that are collected. In the case of procurement 4.0, sensors and
speakers are present in every location for enhancing better communication among the internal
stakeholders of the organization. Management of value network is also one of the major reason
that procurement 4.0 is adapted. Developing new skill set of the employees of the organization is
also a major part in the procurement 4.0 process. Value network is the major reason that leads to
developing of new skill sets of the employees of the organization. A bridge between the internal
stakeholders is built that ensures the fact that the communication between them remains healthy
in nature.
Digital Supply chain and digital management: According to Luthra and Mangla (2018),

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Cyber Physical Security is one of the most important terminology that is used in the processing
of procurement 4.0 in the field of purchasing and management. Data analytics acts as a major
part of cyber physical security. This ensures the fact that the smart grid, autonomous and
autonomous mobiles are used in the terminology of the project. Inventory cost is reduced to a
huge extent after the introduction of cyber physical security.
Innovative procurement: According to Regulations (2016), this section of data analysis
includes the fact that the procurement is conducted in accord to the past analysis of the data. This
leads to the fact that the data that is to be processed can act as a learning outcome for the
organization. This leads to the fact that this procurement act 4.0 acts as a reference to the new
processing leading to the fact that the efficiency of the entire project is maintained.
Aforementioned strategy is used for the processing of the Procurement 4.0 in a better way and
this is the major reason of usage of Procurement 4.0 in the purchasing and management
department.
Examples of theory in practice
Procurement 4.0 has been an evolving technology that has been used in a regular day to
day life. One of the best example of implementation of procurement 4.0 is digitalized bidding.
In case of selling of a house or mansion, procurement 4.0 is used as the entire process of
selling and buying houses are done with the help of bidding. In this case, the entre processing
starts off with the processing of the data management and data collection of the mansion that is
to be sold. In that case the data that are collected by the project managers are used for estimating
price of the mansion. After estimating the price of the project, documentation of the project is
done. After proper documentation is completed, the major task is to promote the plot and invite
investors. This leads to the fact that the investors are also invited and then the buyers are

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embedded in the digital portal and the bidding starts. The investor with the highest bid gets the
mansion. In this process the buyer as well as the seller both gets benefitted.
Implication of future use
In the world of growing digitization, the major prospect is data collection for processing
of project planning and project completion. This leads to the fact that the data management is
one of the major reason that leads to the fact that the completion if the entire project is done with
the highest efficiency (Riel and Flatscher 2017). Creation of digital platform for selling and
buying projects with the ability of clients to register themselves as authenticated buyers and gain
the contact details of the sellers, leading to the fact that the cost incurred in the middle man
money can be cut off. This will increase the profit margins of the seller and will increase the cost
price of the buyer (Agus, Hairunnisa and Maharani 2017). This will help the buyer as well as the
seller to get proper projects sold and bought in a deserved price both the clients will be in a profit
making end.
Conclusion
From the above discussion, it can be concluded that the Procurement is one of the most
emerging strategies in the field of purchasing and management. This is due to the fact that both
the buyers and sellers are the profit makers in this phase. Due to the fact that this process uses
digital platform, the major advantage is that the marketing is easier using the digital platform.
This better marketing strategy will definitely increase the processing of the project management
quality. On performing proper marketing of the product, better transaction in between the buyer
and seller can be established. Other modernized techniques that are used will definitely help the
processing of data management in a more efficient way. The major issue in this processing is that

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privacy issue as the buying and selling of the project will be visible to the global audience.

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References
Agus, F., Hairunnisa, H. and Maharani, S., 2017. Comparative Analysis of Tsukamoto and
Sugeno Fuzzy Methods For Procurement Optimization. International Journal of Computing and
Informatics (IJCANDI), 1(4).
Branger, J. and Pang, Z., 2015. From automated home to sustainable, healthy and manufacturing
home: a new story enabled by the Internet-of-Things and Industry 4.0. Journal of Management
Analytics, 2(4), pp.314-332.
Glas, A.H. and Kleemann, F.C., 2016. The impact of industry 4.0 on procurement and supply
management: A conceptual and qualitative analysis. International Journal of Business and
Management Invention, 5(6), pp.55-66.
Luthra, S. and Mangla, S.K., 2018. Evaluating challenges to Industry 4.0 initiatives for supply
chain sustainability in emerging economies. Process Safety and Environmental Protection, 117,
pp.168-179.
Nicoletti, B., 2018. Conclusions for Agile Procurement Systems. In Agile Procurement (pp. 231-
234). Palgrave Macmillan, Cham.
Nicoletti, B., 2018. The Future: Procurement 4.0. In Agile Procurement (pp. 189-230). Palgrave
Macmillan, Cham.
Regulations, E.P., 2016. Procurement Policy Version 4.0 Category: Corporate. POLICY.
Riel, A. and Flatscher, M., 2017, September. A Design Process Approach to Strategic Production
Planning for Industry 4.0. In European Conference on Software Process Improvement (pp. 323-
333). Springer, Cham.
Saxena, S. and Agarwal, D., 2018. Confidentiality Assessment Model to Estimate Security
during Effective E-Procurement Process.

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Soto, M., 2016. Procurement and mobility during the Late Pleistocene: Characterising the stone-
tool assemblage of the Picamoixons site (Tarragona, NE Iberian Peninsula). Journal of Lithic
Studies, 3(2).
Srai, J.S. and Lorentz, H., 2018. Developing design principles for the digitalisation of purchasing
and supply management. Journal of Purchasing and Supply Management.
Uygun, Y. and Ilie, M., 2018. Autonomous Manufacturing-related Procurement in the Era of
Industry 4.0. In Digitalisierung im Einkauf (pp. 81-97). Springer Gabler, Wiesbaden.