Digital Subversion of Traditional Procurement Model

Digital technology went through rapid development in recent years, and is subverting the traditional procurement business model. Most of the leading domestic companies have begun to embrace digital procurement transformation, many companies have begun to develop implementation roadmap for digital transformation; meanwhile, leading digital solution providers are devoting tremendous resources to developing digital procurement products and solutions. Deloitte Consulting believes that by 2020, procurement will fully enter the digital age, when more domestic enterprises will accelerate the pace of digital procurement transformation. Traditional procurement must be transformed, and the transition is imperative.

In this paper, the author deducts that through the application of artificial intelligence, Internet of Things, robotic automation, collaborative networks and other technologies, digital procurement will create predictable strategic sources, automate procurement implementation, and perform forward-looking supplier management, in support of enterprises to reduce costs and control risks, as well as explore new sources of value.