Title: Cyber-physical systems with autonomous machine-to-machine communication: Industry 4.0 and its particular potential for purchasing and supply management

Authors: Holger Schiele; Robbert-Jan Torn

Addresses: Department Technology Management/Supply, Faculty of Behavioural, Management and Social Sciences, University of Twente, P.O. Box 217, 7500 AE Enschede, The Netherlands ' Department of Design, Production and Management, Faculty of Engineering Technology, University of Twente, P.O. Box 217, 7500 AE Enschede, The Netherlands

Abstract: The number of publications on the fourth industrial revolution (Industry 4.0, short: I4.0) has increased exponentially. Likewise, significant investments by firms are planned. However, the link between purchasing and I4.0 is largely lacking even though procurement managers have high expectations. The fourth industrial revolution - which refers to the use of cyber-physical systems (CPSs) with autonomous machine-to-machine communication - could have several implications for purchasing processes. Support systems for purchasers are been developed, such as contract analysis software, and the possibility of digital negotiations has emerged and could revitalise e-marketplaces. Operative processes can act autonomously, with automated demand identification in CPSs. To support the development of I4.0 strategies in purchasing, this paper contributes by clearly defining I4.0, distinguishing it from the third industrial revolution, structuring the potential development paths of I4.0 in purchasing and by presenting the result of a project to develop a I4.0 maturity model for purchasing.

Keywords: purchasing; procurement; Industry 4.0; maturity model; supply management; cyber-physical systems.

DOI: 10.1504/IJPM.2020.108617

International Journal of Procurement Management, 2020 Vol.13 No.4, pp.507 - 530

Received: 12 Apr 2019
Accepted: 20 Apr 2019

Published online: 21 Jul 2020 *

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