Is the process of finding, agreeing on terms and acquiring goods, services or works from an external source, often via a tendering or competitive bidding process. It is used to ensure the buyer receives goods, services or works at the best possible price when aspects such as quality, quantity, time, and location are compared.
Published in Chapter:
Procurement Strategies for Digital Supply Chains: Concepts and Best Practices
Varun Gupta (Pennsylvania State University – Erie, USA)
Copyright: © 2019
|Pages: 22
DOI: 10.4018/978-1-5225-7700-3.ch002
Abstract
The purpose of this chapter is to provide the basic concepts and the best practices for procurement in the context of digital supply chains. This chapter consists of three sections. In the first two sections, a review of digital supply chain procurement literature and theories is presented, followed by a detailed discussion of the best practices in procurement strategies comprising of the six-step framework for procurement strategies digitalization. Finally, the chapter concludes with future trends in procurement strategies. The chapter consists of case studies from different industries such as manufacturing (Apple, Beta products, IBM), fast food (Chipotle), and logistics/pharmaceutical (DHL). EVA (economic value added) model is discussed in the chapter, which is useful to evaluate the value of digitalization. This chapter is intended for all practitioners and academics who are interested in learning about the current best practices and the challenges associated with procurement for digital goods.