The Definition and Benefits of Procurement 4.0

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 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).   

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 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.

Research Methodology Used for the Project

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), 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.

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 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.

The Six Aspects of Procurement 4.0

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

References

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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.

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.