How a digital platform transforms the value proposition in purchasing and buyer-supplier relationship management

Abstract

Purpose: The role of the purchasing function is evolving towards the business area of strategic leadership, which is currently gaining particular importance in innovation management. However, the application of Industry 4.0 technologies in the purchasing processes of supply chains is in the early stages of its development. The main purpose of the paper is to explore how a digital platform transforms the value proposition in purchasing and buyer-supplier relationship management. Design/Methodology/Approach: The study is explorative in its nature, hence, a qualitative research method was applied. The empirical research process was based on the model for conducting case study research and included five stages, the formulation of research questions, instrument development, data gathering, data analysis and dissemination. Findings: The research findings led to the exploration of the value proposition in purchasing and buyer-supplier relationship management that might be achieved through the implementation of a digital platform in the abovementioned management fields on the supply side. The value proposition covers the main benefits in accelerating collaboration as well as enhancing innovation and performance management. Originality/value: Despite the increasingly advanced technological transformation of business processes and relations within supply chain management, the knowledge of the impact of digital technologies on the value proposition in purchasing and buyer-supplier relationship management is surprisingly narrow. The presented case study contributes to the literature and business practice uncovering best value hidden in the potential effects of digital transformation and digital technology applications within these management areas.