Procurement transformation - a thematic review
Uusitalo, Juho (2024)
2024
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024051713015
https://urn.fi/URN:NBN:fi:amk-2024051713015
Tiivistelmä
Procurement transformation has been relatively unexplored as a field of study, even though the function is viewed as fundamental in increasing the profitability and efficiency of an organisation. This master’s thesis explores the transformative shifts occurring within procurement, examining how the transition from traditional, operational roles to strategic, value-generating functions impacts the organisation. The study dives into the complexities of modern procurement strategies through a thematic analysis of qualitative data derived from academic journals and industry reports.
The research identifies six major themes that encapsulate the current trends and challenges in procurement: evolution of procurement, strategic sourcing and supplier relationship management, digital transformation and technological integration, impact on competitiveness and profitability, adaptability and flexibility in uncertainty, and alignment with business objectives and sustainability. These themes reflect a significant shift procurement practice, emphasizes the need for digital agility, strategic alignment, and enhanced supplier collaboration in achieving long-term business success. Missing or less relevant were identified in the areas of the role of procurement in circular economy, practical utilization of advanced technologies such as AI, and the impact of current greater disruptions on supply chains for procurement and its transformation.
Through rigid analysis, the study highlights how the overarching themes are all connected to the evolution of procurement. The critical role of digital technologies in enabling this transformation, showcasing how certain technologies such as e-procurement systems and AI can streamline operations and foster strategic decisions. The research also underscores the importance of sustainability and ethical sourcing in procurement processes, aligning with global corporate responsibility initiatives.
Implications for managers are identified, as they must steer the challenges of talent management, technology integration, sustainability, and supplier collaboration - as procurement progresses grow from a back-office function to a strategic partner.
Limitations of study revolve around the chosen research methodology, where thematic analysis is quite subjective format of research. Future research is promoted in the area of practical usages of technology, the role of procurement in circular economy standards, and how recent uncertain and volatile times have shaped the field.
The research identifies six major themes that encapsulate the current trends and challenges in procurement: evolution of procurement, strategic sourcing and supplier relationship management, digital transformation and technological integration, impact on competitiveness and profitability, adaptability and flexibility in uncertainty, and alignment with business objectives and sustainability. These themes reflect a significant shift procurement practice, emphasizes the need for digital agility, strategic alignment, and enhanced supplier collaboration in achieving long-term business success. Missing or less relevant were identified in the areas of the role of procurement in circular economy, practical utilization of advanced technologies such as AI, and the impact of current greater disruptions on supply chains for procurement and its transformation.
Through rigid analysis, the study highlights how the overarching themes are all connected to the evolution of procurement. The critical role of digital technologies in enabling this transformation, showcasing how certain technologies such as e-procurement systems and AI can streamline operations and foster strategic decisions. The research also underscores the importance of sustainability and ethical sourcing in procurement processes, aligning with global corporate responsibility initiatives.
Implications for managers are identified, as they must steer the challenges of talent management, technology integration, sustainability, and supplier collaboration - as procurement progresses grow from a back-office function to a strategic partner.
Limitations of study revolve around the chosen research methodology, where thematic analysis is quite subjective format of research. Future research is promoted in the area of practical usages of technology, the role of procurement in circular economy standards, and how recent uncertain and volatile times have shaped the field.