Although digitalization or smart manufacturing might be considered a driving factor behind Procurement 4.0—the latest conceptualization of how modern companies procure goods and services—it is far too shortsighted to view Procurement 4.0 as simply a digitalized function. In Procurement 4.0, four leading experts on this revolutionary concept offer the first comprehensive framework to identify the interrelated opportunities and challenges it provides.

As the authors show, dynamic, interconnected value chains are key factors of sustainable business success, with procurement managed and steered by strategic purchasers in their new role as value chain managers. This evolving environment will be influenced by a variety of digitalization forces, including Industry 4.0, the Internet of Things, smart data and clouds, Enterprise 2.0, social media, and mobile computing. Integrating all network levels of procurement—from intra-company and inter-company relationships to global connectivity along value chains—and drawing on interviews with corporate heads of BMW, Lufthansa, Maersk, BP, and Allianz, the authors explore four dimensions of procurement that will address the business needs of the future: competing value chains, co-creation, leadership, and digital transformation.