Digitization in Purchasing is the First Step to Purchasing 4.0

Digitalization and automation in purchasing, Media discontinuities in the information flow, organization of procurement processes, Big Data, etc. are current terms that management levels of industrial companies are dealing with. But how can set goals be achieved with the implementation of the Industry 4.0 era? There are a variety of possibilities and ways. Where does one start? How and where can one get support? What does one prefer to do oneself? How do we ensure the sustainability of the processes? How does it ultimately benefit purchasing? After all, the data gained only becomes really valuable and useful when we can evaluate it in a targeted and case-related manner. If we sort and condense the enormous amounts of data and information, we obtain a basis on which purchasing can then make decisions more quickly and, above all, in a more targeted manner.

The following article illustrates how important the avoidance of media discontinuities between technology and purchasing, technological know-how, and the internal and external networking of departments will be in the future. Digitalization represents a huge opportunity for purchasing to improve proven processes, even if current processes are still "old school".

Purchasing 4.0 - the complete digitalization of production systems - this also includes digitalization in purchasing.

Purchasing could be the driver of horizontal networking in the company. Purchasing should bring potential and added value to the company so that it can successfully master the fourth industrial revolution. Industry 4.0 offers to purchase in particular the opportunity to meet the demand for its strategic and operational role in the company.

Purchasing can adapt its processes to the possibilities of digitization in order to act quickly in the future instead of always just reacting. Purchasing often has to "pull the coals out of the fire" and straighten out processes that could have been corrected earlier elsewhere. Could have, must have, and should have. This is not the recommended course of action in purchasing. Lack of organization and automation make life unnecessarily difficult for those involved. Purchasing can optimize and monitor its processes with simple measures.

There are already various approaches to software solutions that support digitization in purchasing. But don't worry, the personal relationships will remain in the Purchasing 4.0 age of invaluable. This is exactly what purchasing should have more time for: Taking care of the essential issues in purchasing, supplier evaluation, negotiation, and keeping projects on schedule. So let's not look at the technological possibilities from the dark side of power: it does not pose risks, rather it offers new opportunities for companies.

A real challenge for purchasing

Nevertheless, purchasing must develop and position itself more than ever as a competent partner, both internally and externally, for its company. This requires the necessary freedom, a systematic concept with definable procedures and processes with which operational purchasing can position itself flexibly and transparently.

Optimize procurement for operational and strategic purchasing

As a result, operational purchasing and strategic purchasing are currently playing a much more important role in the company than in the past. Rising material costs, higher quality requirements, shorter delivery times, volatile markets, and much more are just some of the challenging conditions. The traditional image of purchasing and the demands placed on it will change significantly. One speaks of the so-called "Purchasing 4.0", in which the interdisciplinary, networked and systematic optimization of the entire supply chain is the focus. At the same time, operational purchasing and strategic purchasing must detach themselves from the technical constraints and devote themselves to the core issues. This can hardly be achieved without powerful and integrated smart IT solutions and process know-how.

The fourth industrial revolution, therefore, affects not only production - but also, and above all, purchasing

Digitization in purchasing presents us with completely new requirements in terms of changing tasks and processes. The tasks of purchasing will change due to new technological possibilities and software solutions. The responsibilities of the "buyer" are evolving. In the future, tasks such as monitoring, controlling, and steering will be on the work schedule. Because operational processes could soon run as completely autonomously as possible. Key figures, Big Data... everything is available in real time - already today. This access to mobilize the potential should not only be reserved for large companies.

The benefits of digitization in purchasinger Nutzen der Digitalisierung im Einkauf

Due to its position in the company and its importance in the supply chain, "Purchasing" has interfaces with almost all departments, which makes it enormously important. Purchasing should be aware of this. Through the digitalization of processes in purchasing, the introduction of Industry 4.0 and thus also "Purchasing 4.0", it should be able to identify potential savings along the value chain at an early stage, or rather, in good time. Having information available at the right time is crucial in order to avoid having to go through processes several times. The media break that often still exists between purchasing and technology in many companies must be overcome by simple means. The automatic linking of relevant data across system boundaries already enables robust solutions. In this way, purchasing repositions itself within the company and, at the same time, expands its possibilities and its scope of action. In this way, Purchasing 4.0 can also fulfill its function in the company as a driver of increasing networking as an innovator.

Through the digitalization in purchasing and the conversion of purchasing to the "4.0" era, the management positions of companies thus focused on the improvement of corporate processes with the goal - to save costs, acting more economically, and expanding the company's success in the long term.

Inventory optimization, automated support for keying by commodity groups, and sustainable quality assurance in the overall process represent feasible milestones for purchasing optimization.

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