“You can get anything you want at Alexa’s restaurant”
Emerging digital technologies foreshadow a future where you can “get anything you want.”
“You can get anything you want at Alice’s restaurant,” the opening line of Arlo Guthrie’s Alice’s Restaurant Masacree, really had nothing to do with Alice’s restaurant or unlimited potential; however, today’s emerging digital technologies, of which Amazon’s Alexa is but one example, do foreshadow a future where you can “get anything you want.”
The emergence of procurement 4.0
In the last 25 years, procurement has undergone a steady and dramatic transformation in both processes and scope. Procurement 1.0 (transactional era) focused purely on the transactional execution of requests. Procurement 2.0 (strategic sourcing era) introduced the globalization of supply, calling for more sophisticated approaches to managing third party relationships, and more sophisticated approaches to procurement (e.g., 7-step sourcing). The dawn of the 21st century revealed Procurement 3.0 (“e” era), with the emergence of software tools designed to computerize one or multiple functions such as eAuctions and eRFPs. With software tools facilitating the creation, storage and processing of procurement related data, strategic sourcing took on additional power and the role of procurement, while still largely focused on cost management, began to elevate.
Today’s new technologies herald the arrival of the 4th Industrial Revolution and the emergence of Procurement 4.0, the digital era. This era will be characterized by data-driven optimization of cross-domain/value chain interactions enabled by analytics and artificial intelligence. Down-stream/transactional procurement activities will be rapidly transformed by Robotic Process Automation (RPA) and other automation tools that drastically improve efficiencies. In this era, procurement takes a central role in value creation by connecting the organization with a network of external partners to innovate new business models.
This complete article is available to subscribers only.
Log in now for full access or start your PLUS+ subscription for instant access.
Latest News
Port of Baltimore May Not Reopen Until Summer Sales & Operations Planning (S&OP) Mastery A New Priority Greets Procurement Professionals in 2024 Cargo Shipping Remains on Hold in Baltimore Following Bridge Collapse Maximizing the Bottom Line: The Power of Procurement More NewsLatest Resource
Sales & Operations Planning (S&OP) Mastery In this Special Digital Edition of Supply Chain Management Review, you will find insights on the importance of sales and operations planning (S&OP) to an organization’s bottom line.All Resources
“You can get anything you want at Alice’s restaurant,” the opening line of Arlo Guthrie’s Alice’s Restaurant Masacree, really had nothing to do with Alice’s restaurant or unlimited potential; however, today’s emerging digital technologies, of which Amazon’s Alexa is but one example, do foreshadow a future where you can “get anything you want.”
The emergence of procurement 4.0
In the last 25 years, procurement has undergone a steady and dramatic transformation in both processes and scope. Procurement 1.0 (transactional era) focused purely on the transactional execution of requests. Procurement 2.0 (strategic sourcing era) introduced the globalization of supply, calling for more sophisticated approaches to managing third party relationships, and more sophisticated approaches to procurement (e.g., 7-step sourcing). The dawn of the 21st century revealed Procurement 3.0 (“e” era), with the emergence of software tools designed to computerize one or multiple functions such as eAuctions and eRFPs. With software tools facilitating the creation, storage and processing of procurement related data, strategic sourcing took on additional power and the role of procurement, while still largely focused on cost management, began to elevate.
Today’s new technologies herald the arrival of the 4th Industrial Revolution and the emergence of Procurement 4.0, the digital era. This era will be characterized by data-driven optimization of cross-domain/value chain interactions enabled by analytics and artificial intelligence. Down-stream/transactional procurement activities will be rapidly transformed by Robotic Process Automation (RPA) and other automation tools that drastically improve efficiencies. In this era, procurement takes a central role in value creation by connecting the organization with a network of external partners to innovate new business models.
Subscribe to Supply Chain Management Review Magazine!
Subscribe today. Don't Miss Out!Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!
It’s high time to go beyond visibility Driving supply chain flexibility in an uncertain and volatile world View More From this Issue