Cyber-physical systems with autonomous machine-to-machine communication: Industry 4.0 and its particular potential for purchasing and supply management
by Holger Schiele; Robbert-Jan Torn
International Journal of Procurement Management (IJPM), Vol. 13, No. 4, 2020

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.

Online publication date: Tue, 21-Jul-2020

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