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Procurement 4.0: What influences the digitalisation of procurement and supply chains?

Kronos Group helps you seamlessly merge the latest solutions in procurement and supply chain operations with your business using the Procurement 4.0 framework.

 Implement procurement 4.0

Why is digitalisation the driving force behind the evolution of business?

Digitalisation is the future of any business. No modern industry, process or operation is complete without some semblance of technology involved. 

This is especially true for more vulnerable, central functions like procurement and supply chains.

The best way to strengthen procurement and supply chain operations is to turn to digitalisation. Procurement 4.0 ensures that this change is felt through every business operation, moving your business forward into the future of procurement and supply chain operations.   

Implementing the best, most up-to-date solutions requires a shift towards Procurement 4.0. This shift is not always simple because while there are plenty of digital solutions available on the market, not all solutions will help you reach your specific business objectives. 

Leverage Procurement 4.0 for greater business success today with targeted insights from industry professionals.

Explore Kronos Group procurement 4.0 solutions today.

Uncover the latest Procurement 4.0 framework

Whether it’s called digitalisation or the next industrial revolution, the combination of emerging technologies is revolutionising how businesses operate in the modern world.

With these changes, industries around the world are contemplating how these digital innovations are impacting their organisations and how they can add value to their supply chains and stakeholders.

This is where the new Procurement 4.0 framework is helping organisations take a 21st-Century approach to procurement.

The new Procurement 4.0 framework consists of 6 key areas:

New procurement value proposition

Digital category and service procurement

Digital supply chain and supplier management

Innovative procurement data utilisation

Digital processes
and tools

Organisation and capabilities

The new Procurement 4.0 framework aims to meet emerging business requirements, develop value propositions, and integrate data across functions, resulting in the proactive and intelligent usage of data.

Our approach to Procurement 4.0

Enhance the efficiency of your procurement operations by adopting a future-focused procurement strategy with Procurement 4.0. 

Industry 4.0 is all about ushering in the future of modern business practices. Procurement 4.0 is the purchasing and supply chain aspect of these efforts to modernise the procurement industry. 

There is no single way to achieve Procurement 4.0 because each business has its own goals and, as a result, has its own framework through which these goals can be achieved. Our Procurement 4.0 framework is designed to complement your current processes and the goals you have set for yourself.

Discover how Kronos Group can help you implement cutting-edge Procurement 4.0 for sustainable growth and development through:

Category strategy and innovation

Strategic sourcing

SRM: audit, performance management, contract management, and risk management

Performance monitoring

Procurement business partnering

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Explore our latest insights on the procurement, finance and project management fields.

FAQs

What does Industry 4.0 mean for the supply chain?

The fourth industrial revolution is enabled by the increasing rate of adoption of technological solutions—industrial IoT devices in particular—across all aspects of the business environment, including the supply chain.

For the supply chain, Industry 4.0 promises a global network of smart processes and machines that exchange information, operate autonomously and increase collaboration and transparency between suppliers, manufacturers, and customers across the product life cycle; from the moment the order is placed to the moment it is delivered to the end-user.

What are Industry 4.0 concepts?

While Industry 4.0 spans many different concepts, the 12 foundational concepts are:

  • Enterprise resource planning (ERP)
  • Internet of Things (IoT)
  • Industrial Internet of Things (IIoT)
  • Big data
  • Artificial intelligence
  • M2M communication
  • Digitisation
  • Smart factories
  • Machine learning
  • Cloud computing
  • Real-time data processing
  • Ecosystems
  • Cyber-physical systems

What is the impact of Industry 4.0 on the supply chain?

While supply chain management has traditionally been a human-intensive function, Industry 4.0 has prompted many industries to adopt digital technologies to digitise the supply chain and make it more efficient through greater collaboration and transparency.

According to certain studies, organisations that leverage digitised supply chains are experiencing a reduction in operational costs by 30%, lost sales opportunities by 60%, and inventory requirements by 70% while becoming more agile, efficient, and accurate.