Procurement 4.0: How the digital disruption supports cost-reduction in Procurement

Abstract Paper aims “Without purchasing, Industry 4.0 will not take place”. Procurement ensures supplies at the lowest level of costs. Those costs account for more than 50% of the gross production value. This paper analyses, explains and proves that digitization reduces cost even further. Originality This empirical examination as well as the explanatory approach are key supplements to previous survey-based studies on the effect of digitization on procurement costs. Research method The digitized procurement process and the application of technologies were analysed in detail by establishi...