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Application of Industry 4.0 in the Procurement Processes of Supply Chains: A Systematic Literature Review

Author

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  • Niloofar Jahani

    (School of Industrial Engineering, Iran University of Science and Technology, Tehran 13114-16846, Iran)

  • Arash Sepehri

    (School of Industrial Engineering, Iran University of Science and Technology, Tehran 13114-16846, Iran)

  • Hadi Rezaei Vandchali

    (Department of Maritime and Logistics Management, University of Tasmania, Launceston, TAS 7005, Australia)

  • Erfan Babaee Tirkolaee

    (Department of Industrial Engineering, Istinye University, Istanbul 34010, Turkey)

Abstract

The fourth industrial revolution has significantly changed the traditional way of managing supply chains. The applications of Industry 4.0 (I4.0) technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) in different processes of supply chains have assisted companies to improve their performance. Procurement can be considered a critical process in supply chain management since it can provide novel opportunities for supply chains to improve their efficiency and effectiveness. However, I4.0 applications can be costly and may not be reasonably affordable. Therefore, the benefits of implementing these technologies should be clarified for procurement managers before investing in the digitalization of the procurement process. Despite the importance of this issue, few papers have attempted to address the effects of I4.0 technologies and smart systems in procurement. To fill this gap, a Systematic Literature Review (SLR) on the applications of I4.0 technologies in procurement has been used in this study. By reviewing 70 papers through appropriate keywords, a conceptual framework is developed to classify different value propositions provided by the different applications of I4.0 technologies in procurement processes. Results reveal nine value propositions that can provide a better understanding for the procurement department to analyze the benefits of implementing the related I4.0 technologies in different activities. Finally, findings and future study opportunities are concluded.

Suggested Citation

  • Niloofar Jahani & Arash Sepehri & Hadi Rezaei Vandchali & Erfan Babaee Tirkolaee, 2021. "Application of Industry 4.0 in the Procurement Processes of Supply Chains: A Systematic Literature Review," Sustainability, MDPI, vol. 13(14), pages 1-25, July.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:14:p:7520-:d:589122
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    References listed on IDEAS

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    Cited by:

    1. Jan Rymarczyk, 2022. "Transformation of Transnational Corporations’ Supply Chains as a Result of the Fourth Industrial Revolution and the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(9), pages 1-15, May.
    2. Ardavan Babaei & Majid Khedmati & Mohammad Reza Akbari Jokar & Erfan Babaee Tirkolaee, 2022. "Performance Evaluation of Omni-Channel Distribution Network Configurations considering Green and Transparent Criteria under Uncertainty," Sustainability, MDPI, vol. 14(19), pages 1-15, October.
    3. Johannes Hangl & Viktoria Joy Behrens & Simon Krause, 2022. "Barriers, Drivers, and Social Considerations for AI Adoption in Supply Chain Management: A Tertiary Study," Logistics, MDPI, vol. 6(3), pages 1-22, September.
    4. Ecaterina Milica Dobrotă & Roxana Sârbu & Silvius Stanciu, 2022. "The Influencing Factors of Smes Participation in Public Procurement," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 61-69, September.
    5. Erfan Babaee Tirkolaee & Alireza Goli & Hêriş Golpîra & Ernesto D. R. Santibañez Gonzalez, 2023. "Sustainable Global Supply Chain Management from an International Perspective," Sustainability, MDPI, vol. 15(16), pages 1-2, August.

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