Megatrends Base for successful digital procurement Digital procurement

Megatrends base for successful digital procurement

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Megatrends Base for successful digital procurement Digital procurement evolution Digital procurement revolution
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7 Strategy& procured, as well as the alternatives on offer, including emerging innovations. All of this knowledge represents an asset that is gaining tremendous value in today’s market. In addition, procurement can use its valuable customer data to better manage transportation flows, inventories, warehouse requirements, quality inspections, and other parts of the supply chain. Capable procurement organizations can provide this value not only internally, to other functions, but also externally, to suppliers and customers. They might also monetize their field application and customer use data by selling it back to suppliers. These suppliers could, in turn, use this additional information about their products to generate more target- oriented specifications and applications, ultimately leading to the design of more cost- and function-efficient products. 2. Digital category and service procurement New technologies will lead to new business needs, which will be reflected in new requirements for the procurement department. One of these requirements will be capturing, analyzing, and acting on real-time data, an activity at the heart of Industry 4.0. Increasingly, key data will be registered using sensors, analyzed in real time, and transformed into actions by actuators and other devices, all the while being made available in real time to value chain partners. Additionally, people, objects, and systems will be increasingly connected through data communications, transforming value chains into larger “value networks” — sets of connections between organizations and individuals interacting with each other to benefit the entire group. For procurement, this will primarily mean that certain items, such as intelligent sensors, communicating actuators, and associated controllers and software, will be sourced much more frequently than before. Certain categories of items such as electronics will grow, while others may shrink and even disappear. Not only will companies change what they buy as they incorporate Procurement 4.0, but importantly, they will also change the ways in which they buy. The purchasing of services will increase dramatically, for example, leading to a need for many new and different contracting approaches to ensure that companies receive the best value for their money. In addition, there will be many intellectual property implications — not to mention regulatory issues — around ownership of the data collected by sensors when the end products are sold and in use. Who owns the rights to this data? The sensor supplier? The control system and software provider? The product integrator that sold the product to the customer? Or the customer itself?
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8 Strategy& 3. Digital supply chain and supplier management It is a manufacturing dream for the ages: the ability to integrate all of the data from customers, distributors, captive production, and suppliers
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