The fourth industrial revolution is characterized by technologies and machines that communicate with each other, and this will also impact the purchasing sector. This revolution is not necessarily linked to the birth of a new technological platform, but rather to a change in the organizational model caused by this technology. While these technologies are already available, the restructuring of companies is still in its infancy.
Platforms that combine artificial intelligence (AI), the Internet of Things (IoT and cloud computing), among others, are seen as essential for Purchasing 4.0 processes. This transformation is no longer operational and assumes a strategic role driven by disruptive technologies. Despite this, productivity, operations and cost reduction, among other benefits, can only be achieved when purchasing teams are trained to use them.
Industry 4.0 applications in purchasing
The role of the strategic buyer gains importance in Procurement 4.0 with the use of AI solutions, which make the procurement process more efficient. However, companies need to have a setup for cost and contract analysis before using AI. This change includes the implementation of e-sourcing and new purchase-to-pay setups. Digitalization has arrived in Procurement.
On the other hand, blockchain is still largely unexplored territory for companies. The technology protects transactions against fraud and allows suppliers and customers to verify data. Likewise, attacks and fraudulent actions have no effect, since the information is protected by strong encryption.
Another application is automated demand generation, which works with a sensor connected to the IoT that can recognize when a product is running out or has low stock and, automatically, autonomously issue a purchase order.
Operational Excellence
With automated processes, professionals in the sector need to seek further training to know how to use the tools more efficiently and generate more revenue for the company. Nowadays, it is possible to automate a large part of the processes in the area, with a direct impact on efficiency, compliance and better control and reduction of costs per transaction, in addition to improving relationships with suppliers.
A study published in the Journal of Business Research shows that supplier satisfaction is linked to operational excellence. And supplier satisfaction is one of the reasons for the success of the purchasing sector.
With automation and cognitive computing, the relationship between buyer and supplier becomes more collaborative, agile, effective and flexible, with demands met within deadlines, with quality and at lower cost.
Shopping 4.0
The biggest impacts will be on process integration and how this will affect those processes and people skills. Integrations require a new type of relationship with suppliers and customers, and IoT can play a big role in this.
Material management policies can also be revised so that business rules remain valid and can integrate information systems. This will make Purchasing 4.0 more focused on the individual consumer of information, which may be internal or external, and on playing a more strategic role in the supply chain.
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