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Strategic Procurement

Introduction to Supplier Quality Management

Managing the purchases and activities involved with the acquisition of third-party goods and services by mitigation and management of risks has been a concern since traditional procurement processes (Rejeb et al, 2018). The global digital revolution has been the evidence of the paradigm changes that have occurred in all fields of business and operations including the procurement. The evolution of procurement along with the decent ride of digital adoptions have observed acceleration from strategic procurement for a sophisticated approach in the management of procurement as it constitutes the evolution of third-party approaches to E-procurement where utilization of software aided tools assisted the procurement function and then the digital procurement stage involving the advanced analytics and data insights to drive the procurement process in a value-aided manner (Rejeb et al. 2018).

Digital procurement or supplier quality management as a component of business function and strategy intents the business-to-business or business-to-consumer typology in the receipt and trade of services, products, and other business supplies via the mode of internet and other digital technologies namely enterprise resource planning (ERP) or electronic data interchange for pacing up the flexible, convenient, and customer-centric serviceability.

This study takes into account the concept of digital procurement and various sides of digital procurement forwarding the global business transformation strategy by way of the effective deal in a third-party context. The article taken as the target subject of the study is focused on linking the business strategy to come up with the digital procurement solutions for robust management of corporate actions.

Summary: Digital Procurement

The advent of radical digital transformation and involvement in each corner of business practices has arrived as a boon inflexible management and handling of activities in a profitable sense (da Rosa and de Almeida 2018, p. 497). Procurement, also referred to as supplier exchange or supplier management, has also been into the effect of the digitalization processes and technological inputs in the same. The rise of digital procurement or supplier quality management, according to the article propounded by KPMG (2020) has been into the acceleration with the integration of robust technology and automated services as the invention of information technology and technology-aided applications in the services of value-creation in the digital procurement for the enhancement of productivity and expertise in the targeted arena.

Certain technological tools such as automation services, integration of technology and platforms, artificial intelligence, and other value-added services and applications, as derived by KPMG (2020), acts as the chain of technological events in the happening of procurement functions in the business contexts and applications. According to the propounded study, technology establishes the link between the data assimilated for procurement such as online identification of need of goods, products, and services of the customer or end-users, discovering suppliers in the way of successful accomplishment of customer needs investigating, negotiating the linked entities and activities in the digital flow of procurement activities, seeking arrangement for the receipt of products and services with the follow-up of quality assurance and finally the analysis of results and successful procurement management at the digital pace (Hogel et al. 2018).

In correspondence to this, the appliance of technology has not just proven to be the effective source of procurement function and success of the procurement chain at the digital level but has also credited the occupation of digital procurement by multiple benefits to the concerned organizations such as highlighted in the KPMG (2020) study. Digital procurement has not been an easy task of operation as it flows based on a standard yet non-manual implementational activity but has catered certain meritorious aids to the organizations and business outlooks by way of reduced costs as compared to the evolved traditional procurement acts by promotion and facilitation of leveraged volumes, systems, speed, and improved quality of services. In the likewise manner, the conduct of digital procurement has also benefitted the elimination and withdrawal of the need for manual works thus eventually leading to the minimization of human errors in the play.

In a likewise manner, the digitalization of processes by utilization of platforms such as Enterprise Resource Planning (ERP) and many more can be aided by a keep of the centralized track of actions and transactions in the activity like order processing, client proposals and acquisition, order management, digital inventory control, and overall procurement management (Kosmol 2019, p. 100553).

In the further detailing of the same, the study taken into analysis searches for the further beneficial range of the conceptual modeling of digital procurement of extraneous aspects of the digital procurement study in the inclusion of analytical facets and customer-centricity for flourishment of the supplier quality management practices. The digital innovation and spread have established the foundation of data and analytical insights in the effluent management of resources, strategies, inventory controls, order processing, variables, and factors of the association like suppliers, customers, etc. that have laid down the reactive and spontaneous approach of technology-driven procurement and supplier quality management businesses.

The KPMG (2020) has, in the further assessment of supplier quality management businesses, has augmented its future lay-offs in the procurement functions and eased practices in the success and accomplishment of the same. The article explains that the modifiable and accessible yet permanence of the insights in the digital actions of the processes has the future scope of inventing a strategic and fluent management tactic in the procurement and supply industry leading to certain restructuring phases (Radell and Schannon 2018) that would yield more productivity and results in the similar domain by way of induced transparency, financial grace, and involution of analytical metrics in its nurture.

Critique of The Literature

The digital revolution in the global business and occupational regions have been n the effect of development and indulgence flexible interlinkage and connections between operative models to create a profound and holistic frame of business administration or parts of the business. As analyzed by Noshad and Awasthi (2018, p. 216), the digital procurement or supplier quality management has been accounted as one of the most crucial role play in the facet of business development whereas the involution of technology and digital gains have also leveraged the field by stabilizing it to deliver the suitable and most sustainable yet standardized outcomes of supply management with a keen focus on cost benefits, improved quality performance, and hence customer satisfaction and focus. Further, the supplier quality management approach has been discussed and analyzed in a detailed manner regarding its affluence and stages in the digital procurement or supplier management practice in a hierarchical proposition.

Chavhan, Mahajan, and Joshi (2018, p. 4078) have also spotlighted the critique on the supplier quality management and procurement in the digitalized era of business practices and conduct of the supplier development activities that seems to catalyze the working and flow of operations in the procurement processes. The analysis taken into place has been chalked on the layout of the concept that any sort of effort laid by the manufacturing entities that require the ultimate need for an effective supply of its products and services in a timely, flexible, customer-oriented, and convenient manner incorporates the supplier quality management perspectives and henceforth derives the supplier development program. These researches have eventually aided the critical analysis of the concept of supplier quality management i.e. digital procurement of services and products at the level of digital evolution and technological facilitation.

Furthermore, to clarify, the KPMG (2020) research study propounded reflects that certain technological appliances and methodologies have been a boon in the global digital development and formulation of digitalized and qualitative supplier management in the digital business range. Several technological aids and recent modernized digital innovations have cradled the authentication of the concept of digital procurement in the effect of automation and automation assisted applications and movements, technology integrated services, artificial intelligence, and machine learning, and even other value-added services.

Viale and Zouari (2020, p. 4) has recorded in its study the concept of robotics and automation and hence has put forth an analysis of robotic process automation and its influence on the radical supplier quality management at the digital platform levels. Viale and Zouari (2020, p. 5) have defined the robotic automation as a preconfigured digitally and technologically assisted design that aims to function and operate on the standard commands for the execution of supplier quality management processes inclusive of tasks, actions, and transactions in an interlinked manner that are associated with the digital procurement composition, developed and formulated with the objective of the deliverance of the services or results expected with its institution. Automation in the digital supplier quality management measures includes technical structures as supposed in the study of KPMG (2020) such as the structured layout of performance and execution, data processing studies, and stable outcome generative capabilities that analyze and thus prove the constructiveness in the digital procurement assistances.

In the likewise manner as that of the automation as the technological innovative application in the supplier quality management perspectives, Chopra (2019) argues that the automation as a unique or unilateral tool of technology and digitalized operations have been less prone in the robust development of supplier quality processes but inherits the other facets of technology services like artificial intelligence and machine learning, big data, etc. assisted the digital procurement derivatives also. The study has been eligibly conducted the analysis and prospects of the utilization of the digitalization the orbit of supplier management for the sake of smarter and flexible procurement processes, better bottom-line impacts, and organized, authentic, and flexible conduct of procurement services, which has finally concluded the technological upbringing as the proficient aid in the procurement processes as detailed by KPMG (2020).

In addition to this, there has been an ongoing argument on the analysis of digital procurement and its reaction toward customer-centricity and other end-user benefits. Ulaga (2018, p. 81) has further analyzed the modern, digitalized affiliations in the procurement and supplier management roles in support of the customer-centric approach expected to be derived from the efficient allocation and utilization of procurement resources and functions at the digital level. The research conducted by Ulaga (2018, p. 82) finds that the holistic utilization of supplier quality management tools and procurement details at the digital level has the greater competency to generate customer engagement and hence attractive customer eccentricity towards the business and its products. The study has detailed few sectors of customer-centricity evolved from the business in the digital procurement context. Initially, the author has argued that the involution of new and dynamic upgradation in the supplier quality management in the effect of digital technology additions enhances the continuous evolving customer engagement and hence centricity, followed by the other comment that the distinct and routine evaluating utilization of technology-aided supplier management regarding quality drives the potential for increased customer experiences and hence awareness.

In the approval of Ulaga (2018), Fader (2020) has supported the ideologies made by the former in the scope of customer centricity and engagement leading as the major cause for business and product promotional and profitable outcomes to be entertained. Furthermore, the author states that the customer-based corporate value and position has a remarkable output for the suppler quality management in the power of digital technology and assisted tools, and its noticeable outcomes. Fader (2020) has made a wider focus on the proving of the customer-centric approach and its prospective qualities where it demonstrated that the organizations’ digital procurement utilization approach in the modern global digitalized and computerized era has a higher inclination towards the attainment of the strategic advantage as enormous and well-managed digital procurement application can enhance the grades for customer value, customer relationship management, and also framing of long-term customer value that overall benefits the inclination of its customers towards the enjoyment of the services for a longer-term. Thus, this analyzes and proves that the statement on customer-centricity proposed by KPMG (2020) has a valid platform of showcasing in the digital procurement areas.

Finally, the report of KPMG (2020) has elaborated that the rapid growth of digitalization and technological practices in the service of procurement and supplier management has been an aspiring acquisition of two distinct phases leading integrated towards the enhance future development of the digital procurement in the workforce dynamic environment. Bag et al. (2020) has described that the incoming eras of peak involvement of digitalized sources in each cell of the work tend to develop the overall digital procurement setting hence qualitative supplier management at the higher digital levels that could leverage the circular economy and hence the global workforce dynamism in the concentrated coverage of digitalized and technologically innovated supplier management tools. The author takes into consideration the workforce dynamics that these are the major pillar of the encouragement of digital procurement and supplier management functions.

Similarly, Buyukozkan and Gocer (2018, p. 157) have also discussed and approved that the proliferating and multiplying effect of digital and technological boundaries in the occupational or business context, especially the supplier management or procurement arena can be well fostered by the advanced utilization and acceptance for digitalized foundations that could provide the transformative and analytical approach of the procurement and supplier management services that could enable the convert into the higher competitive advantage by the involvement of robust future development and competitive edge for the digital business in procurement functions and enhanced workforce diversity propounded by the realization of dynamic visibility, agile methodologies, and analytical conducts in the digital framework. This thus justifies that the peak expansion of digital records in the business perspective and supplier management areas of occupation have been availed by a future stage for a competitive performance as stated in KPMG (2020) research as a result of a proactive approach in the digital procurement, automated executions, and other future analytics in place to foster the same. 

Conclusion on Supplier Quality Management

Supplier quality management (SQM) or digital procurement is a critical activity in any business context as it has a higher reliance on third-party consent for the effective fulfillment of the organizational outcomes and consumption of its product or services by the end-users. However, the placement of digital source and applications have catered as a boon to numerous business activities and also has furnished the procurement and supplier management services and activities by involution of a transparent, systematic, standard, flexible, and timely deliverance of services that has eventually reacted the prospective growth and engaging response from the customer point of view, eventually aiding towards the customer-centric acceleration and pacing of the procurement assistances by way of higher utilization and dependence on the digital facets of business procurement services.

Likewise, the continuous upbringing of the digital aspects in the supplier's management variable of a business context has further led to a higher reach of customers’ positive insights as it inherits the realized effect of digitalization in practice, and hence towards a further scope of future development of the supplier quality management processes in integration to the digital facets in the catalysis of workforce dynamism in the future digital arena.

Thus, it can be analyzed that the KPMG (2020) study articulates a valid response of digital procurement concerning the enhanced use of technology and digital appliances that has an eventual cause in the customer-centricity and future engagements along with the future scope of enhanced workforce dynamism in the twist of digital procurement or supplier quality management services.

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Reference for Supplier Quality Management

Bag, S., Wood, L. C., Mangla, S. K., and Luthra, S. 2020. Procurement 4.0 and its implications in a circular economy. Resources, Conservation, and Recycling, vol. 152, p. 104502. <https://doi.org/10.1016/j.resconrec.2019.104502>.

Büyüközkan, G., and Göçer, F., 2018. Digital Supply Chain: Literature review and a proposed framework for future research. Computers in Industry, vol. 97, pp.157-177. <https://doi.org/10.1016/j.compind.2018.02.010>.

Chavhan, R., Mahajan, D. S. K., and Joshi, S. P. 2018. Supplier development success factor in Indian manufacturing practices. Materials Today: Proceedings, vol. 5, no. 2, pp. 4078-4096. <https://doi.org/10.1016/j.matpr.2017.11.669>.

Chopra, A. 2019. AI in supply & procurement. 2019 Amity International Conference on Artificial Intelligence (AICAI). <https://doi.org/10.1109/aicai.2019.8701357>.

da Rosa, I., and de Almeida, J. 2018. Digital transformation in the public sector: Electronic procurement in Portugal. In Digital Multimedia: Concepts, Methodologies, Tools, and Applications, pp. 497-518. IGI Global. <https://doi.org/10.4018/978-1-5225-3822-6.ch025>.

Fader, P., 2020. Customer centricity: Focus on the right customers for strategic advantage. Wharton digital press. Philadelphia.

Högel, M., Schnellbächer, W., Tevelson, R., and Weise, D., 2018. Delivering on Digital Procurement’s Promise. Boston Consulting Group Paper, viewed 15th September 2020, <https://image-src.bcg.com/Images/BCG-Delivering-on-Digital-Procurements-Promise-May-2018_tcm9-193785.pdf>.

Kosmol, T., Reimann, F., and Kaufmann, L., 2019. You'll never walk alone: Why we need a supply chain practice view on digital procurement. Journal of Purchasing and Supply Management, vol. 25, no. 4, p.100553. <https://doi.org/10.1016/j.pursup.2019.100553>.

KPMG. 2020. Future of Procurement, viewed14th September 2020, <https://assets.kpmg/content/dam/kpmg/ca/pdf/2020/03/the-future-of-procurement.pdf>.

Noshad, K., and Awasthi, A. 2018. Investigating critical criteria for supplier quality development. International Journal of Management Science and Engineering Management, vol. 13, no. 3, pp. 215-224. <https://doi.org/10.1080/17509653.2017.1387821>.

Radell, C., and Schannon, D., 2018. Digital Procurement: The Benefits Go Far Beyond Efficiency. Bain & Company, Inc., viewed 15th September 2020, <https://www.bain.com/contentassets/72e381c9155b467db6e8e4ac93ee6ac1/bain_brief_digital_procurement_the_benefits_go_far.pdf>.

Rejeb, A., Sule, E., Keogh, J. G. 2019. Exploring new technologies in procurement. Transport & Logistics: The International Journal, vol. 18, no. 45, viewed 14th September 2020, <https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3319424>.

Ulaga, W., 2018. The journey towards customer-centricity and service growth in B2B: a commentary and research directions. AMS Review, vol. 8, no. 1-2, pp. 80-83. https://doi.org/10.1007/s13162-018-0119-x>

Viale, L., and Zouari, D. 2020. Impact of digitalization on procurement: The case of robotic process automation. Supply Chain Forum: An International Journal, pp. 1-11. <https://doi.org/10.1080/16258312.2020.1776089>.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Management Assignment Help

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