Procurement Function between Digitalization and Risk Management

Abstract

In the age of economic globalization when the market is becoming more challenging and pervasive, especially after Covid-19 and the Ukrainian war, businesses are working to strengthen their management systems and strategies. One of the most important functions to be considered is procurement, since it represents a key driver of the value chain that must enhance efficiency and effectiveness. Using emerging technologies to digitalize procurement function will help companies to provide more opportunities and gain a competitive edge by focusing more on customers’ requirement and supplier relationship. However, it is crucial to implement a procurement risk management system to avoid future potential issues and ensure leadership of companies. The main purpose of this research is to define the significant role of procurement 4.0 in providing greater flexibility and control over all aspects of the purchasing process. Moreover, it aims to bring light on the procurement risk management combined to digitalization. This paper is based on two real case studies related to: Food industry & Energy infrastructure industry.