Impact of digitalization on procurement: the case of robotic process automation

Abstract

A profound digital transformation is now underway. As the implementation of digitalisation in supply chain processes has accelerated rapidly, coupled with an ever-increasing level of competitiveness, traditional procurement is changing to adapt to this new paradigm. Research on RPA (Robotic Process Automation) in buyers’ practices is still in its infancy. The aim of the paper is thus to explore the practical implications and impact of RPA in the procurement function in order to improve our conceptual understanding of this recently introduced practice. As first movers, seven case studies from various industries were selected based on their significant successes and experiences in the field of digitalisation in the procurement sector. The findings confirm the relevance of some recognised attributes of procurement automation, while other attributes have also been explored. The study suggests that RPA impacts on procurement in operational, organisational and relational terms. Furthermore, we identify the motives and challenges when implementing this type of initiative in the field of procurement.