The Role of Digitalization Towards a More Sustainable Procurement – A Case Study From Portugal

This study presents a systematic review of the impact of Industry 4.0, digitalization, and information systems on the procurement function with a focus on the Portuguese reality. Despite global trends emphasizing digital transformation and innovation, the procurement practices in Portugal seem to lag. The adoption of cutting-edge technologies and the comprehensive integration of digital solutions within the procurement and supply chain management sector are yet to materialize fully in the Portuguese SME context. The benefits and obstacles of these technologies in transitioning procurement into a more strategic role are analyzed. By examining existing literature, critical factors for organizations to consider when implementing these technologies and the potential benefits are identified. The results indicate that digitalization has resulted in a data-driven approach to procurement, with the aid of advanced analytics and artificial intelligence for decision-making. Industry 4.0 has facilitated smarter factories, warehouses, and logistics operations with a focus on automation, connectivity, and real-time data. Procurement can more efficiently manage suppliers, track contracts, identify cost-saving opportunities, and increase sustainability with the aid of information systems. The study also highlights potential challenges for organizations. Overall, this study provides insightful findings on the role of digitalization in transforming procurement and the challenges and opportunities that organizations may face.