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Business Critique - You‘ll Never Walk Alone

Introduction to Supply Chain Practice View on Digital Procurement

This critical assessment will highlight the journal article - You‘ll never walk alone: Why we need a supply chain practice view on digital procurement. The paper conceptualizes digital procurement readiness and provides an understanding of digital readiness and supply chain partners. The article discusses the supply chain framework that is guidance for the future. It focuses on the need for interactions of supply chain partners for effective digital procurement. The author used case for dyadic supplier-buyer relationship and adaptation of readiness for digital procurement through empirical research. The rise of the SPCV model and why the firms are adopting the practice. The paper reflects on the advanced procurement practice that can be bought in the market. The digital procurement and the antecedents that affect new technologies as technological, organizational, and environmental set on the implication of digital procurement practice suggest an empirical theory for structural readiness. The digital readiness matrix highlights the mutual dependency and induction for co-evolution. SCPV provides a coherent and robust framework for digital procurement (Kosmol 2019). Due to the nascent stage of the field on the ongoing development of digitalization, this offers the initial starting stage. Inter organizational linkage are shown as holistic and interplay between buyer and suppliers. Digital procurement practice is an important shift in the supply chain network in the future. The relational performance level explores the impacts of the supply chain. The author uses digital procurement practice for practice performance link for the present study. This study adopts the dyadic perspective and accounts for the digital readiness of buses and suppliers and extends its focus on digital technology use in supply chain management.

Summary of The Key Aspects

Kosmol (2019) argued that advanced technologies such as the internet of things, could computing will change the supply frame network around the globe. The dimensions of readiness construct were highlighted in the field of operations and involvement of parties by explanatory variables, SCM practice, and performance. Kosmol (2019) pointed out that automated procure to pay process and real-time spend analytics help in buyer sillier dada and inter-organizational linkage digital procurement. The performance can expense the SPCV model for mediating to be considered. The author provides digital procurement through the supply chain practice view. The conceptual study of artificial intelligence and pay per model can be tapped for forecasting procedures. The application of SCPV in digital procurement practice can be applied for cloud-based risk analytics and inter-organizational network practice. The use of inter-organizational practice integrates the supply chain. The author illustrates the factors affecting the adoption of digital procurement at the organizational level with pre-requisite as technology. Digital procurement readiness is defined as a systematic and comparative analysis of digital maturity as a company s ability to embrace and new technologies in procurement (Montabon 2016). The technological readiness demonstrates in the study assessment shows the adoption of e-business, radio frequency technology, and ERP. The article describes the technological skills to implement digital procurement and IT human resources that create an impact on the transformation of procurement. The readiness for supplier side, cloud-based e-procurement evaluated through empirical evidence for digital procurement practice and company embeddedness

The organization's readiness is important as an adoption decision in the firm. The management support shows the degree of value potential and promote practice in personnel resources and facilitate change in culture and practice (Horn 2020). The organizational structure comprises of roles and responsibilities for the integration of digital procurement and vertical mechanism. The paper discusses the need for resources, firm size, and profitability. Supplier side digital readiness inhibits digitalization efforts. The moderating effects have placed a link on procurement readiness and relationship (Bromiley 2014) Collaborative relationships and transactional relationships are characterized by mutual gain and partner expectations. The environmental impacts on the market of the company are embedded. The author compares the digital procurement practice with inventory cost and infrastructure with empirical study and relational performance. The SCPV emphasize on performance as readiness for competitive advantage, it differentiates between the intra-organizational practices. The author establishes the digital procurement practice readiness by an exploratory case study on buying firms and analyzing the buyer and supplier relationship. The companies selected are IndustryCo and AutoseatsCo as the Chinese site is recognized as a digital factory model. Theoretical sampling principles show embracing digital transformation early to establish the roadmap for digital procurement. The selected companies provide positive and negative cases on six dyadic relationships. The data collection for the research was done through in-depth, semi-structured interviews with both companies and suppliers. The informant was based on the tile with factory managers, strategic procurement, and operational purchaser. Secondary data collection was gathered for the knowledge base through data triangulation through industry reports and annual reports. The cross-case analysis was to compare similarities and differences among six dyadic cases (Craig 2017).

The case analysis shows that the selected manufacturing site of the company industry has not fully established a digitally integrated supply chain. The company has state of art model factory for automation and the company is yet to establish EDI with key suppliers in China. The industry faced difficulties in implementing dyadic perspectives on digital procurement readiness. The management structure was high with top management support for digital integration with suppliers. The financial resources show a strong position in the level of digitalization.

The company rank in ERP and data warehouse shows a globally integrated system for technological readiness. The supply chain relationship between the Industry and Electronics SPL is negative. The buyer and supplier relationships are characterized as collaborative that indicates deep digital integration. The company has faced problems with purchase order and making order changes that have reflected in the stoppage of the EDI link. It showed the lack of support on supplier has impacted the implementation of digital technology. The lack of IT infrastructure and supplier need and system has hampered the key account manager. The supplier relationship between industry and packaging SPL was negative. The platform difference between the supplier and company due to the non-adoption of WebEDI had created a huge problem. The technological readiness and organizational readiness were shown as low with IT support being poor and led to postponed digital procurement technologies being postponed (Kosmol 2019). The supplier relationship with another supplier Plastic SPL shows supplier and buyer relationships as transactional. The leap of fair practice by the organization for collaborative behavior and implementation of WebEDI solution has reduced the IndustryCo’s workload. It shows the internal management process and dedicated order management had facilitated the adoption of WebEDI. The supplier relationship between Industry Co and Semicon SPL is positive that shoes joint improvement by the parties and natural trajectory in the buyer-supplier relationship. The company Auto seats is a global automotive seating manufacturer and have served digital initiatives to replace its legacy solutions. The company had a low and negative EBIT Margin that has been empathized with financial constraints. The company lacked an ERP system integration. The cross-case analysis for the in-depth understanding of suppliers and implementation of digital technologies showed that only basic technologies were being implemented at the case companies and they have still had a long way to develop procurement practices.

The practice performance link examined the adoption rate across the supplier portfolio (Brandon- Jones 2018). The author determined the relational performance by buyer and supplier in the qualitative analysis as difficult. The supplier chain practice view on digital procurement and co-evolutionary perspective showed interplay of supplier partners at the network level on how digital procurement unfolds and performance outcomes are derived on use. Saldanha (2015) argued digital readiness through the procurement process implies digital readiness over time. Managerial implications of the study show the digital procurement roadmap and digital readiness of supply chain partners. The author provides future research direction for individual characteristics and firm-level strategies for the pace of development of digitalization

Critique of The Literature

The author aims to establish the inter-organizational level analysis on digital readiness and examine the PSM digitalization. The author is successful in the analysis of digital procurement readiness and the need to use big data analytics to be brought on the market. The author demonstrates SCPV research on digital procurement and managerial utility. The case design reflects the firm adoption and transferability of digital procurement. Kosmol (2019) used a digital readiness matrix for sup chain partner readiness through qualitative measures for institutional context. Environmental factors and relationships play an important role in the adoption of technology. The study considered relational performance at the supplier level that will play important role in viability and efficiency in the supply network. The other literature in the field such as cloud computing, big data analysts have merged recently. Vlale (2020) address similar view on organizational motives and readiness with fear and financial constrain on adaptability and precise work environment for adoption by the procurement department. The involvement and leadership encourage use by the company. The supplier perception and involvement of procurement function show the involvement of the procurement function. Managing resistance and impact of attributes of procurement and automation are not completely highlighted describing the benefits. The supply chain practice-based view highlights organizational analysis and a broader network of firms in practice view (Bromiley 2014). The literature sheds light on organization factors and the firm's ability to embrace change as key reasons for the supply chain practice view on digital procurement. The paper used qualitative data as part of the case analysis from the literature review with the first empirical data to analyze the buyer-supplier relationship.

The research is based on case data from the literature that has bias due to sampling and selection of data that may not inference conformity to the entire population. The result is valid and develops a theoretical explanation of the digital management practice of dyad. The data was collected through semi-structured interviews by telephonic and onsite visits. The argument was consistent with SCPV understanding and questioning the barrier and enablers of digitalization. The author transforms the findings on a forward-looking agenda and considers the scope of digital procurement. The author sets on the implication of digital procurement practice suggest even system theory for structural readiness. The dyadic view on digital readiness presents the alignment and misalignments of the dyad. The dyad focused on efficiency performance that was based on qualitative data. The literature review process was thorough and used open-ended questions to understand client needs. The research provides influence to future actions as a nascent stage of the field for ongoing developments. The case evidence is a valid base on the supplier relationship examination between Auto seats and IndustryCo. Individual performance factors with financial constraint and acceptability are listed in the readiness matrix. The author classified digital procurement practice on financial resources, top management support, and classified them in overall readiness. The explanatory variables are emphasized on both structural and adopt as event system theory by neo-configurational perspective. The assumption on the digital readiness co-evolutionary perspective had not considered employee and organization size while comparing resistance factors. The empirical analysis on the readiness practice link clarifies transactional with cross-case annals to highlight the summaries and similarities that can serve a base for future research.

Glas (2016) in his research supported the necessity of a supply chain network for reducing complexity creating a modern digital network key supply partners based. The conversion and classification of qualitative data cannot be approved as highly efficient. The interview highlights by the supplier, key account manager highlights buyer-supplier relationships as positive and negative based on the user analysis on financial resources, top management support, and classified them in overall readiness. The writing style and flow of the article are simplified with sectional heading appropriated to the author's empirical analysis discussion and the conclusion drawn. The structured interview highlights “supplier EDI capability”, “adjustment to the business”, and mutual trust to give insights on supplier relationships and uncertainty on implementation and barrier in the organization and supplier relationships and Network analysis (Kosmol 2019). The organization of text addresses the dyadic supplier beer relationship through case analysis on the dynamism of SCPV on digital procurement and evolution. The author as not indicated and research on big data analytics block chain asserted on theoretically derived dimension. The digitalization experience on the process of digital procurement only focused on individual and relational performance (Liang 2007). The research design did not ask questions on supplier adoption on automation, optimization that presents an unbalanced perspective on the organizational outcome with case specified. Limitations on prior research for analysis provides resource based view and analysis. The theoretical perspective guides for assessing the reason for firms non-adaptive to the use of digital technologies in the network.

The writing style was academic and the author has listed case examples as part of empirical analysis. The conclusion drawn on explanatory variable support digital procurement practice cannot be used for firm-level strategies. The case context is helpful for both academic ad non-academic readers. The author suggests the use of supplier status and key supply chain partners for digital readiness of key supply partners based on the case analysis for co-evolution as indicative for digital readiness between buyer-supplier to engage digital procurement practice

Conclusion on Supply Chain Practice View on Digital Procurement

The SCPV provides guiding research on digital procurement that provides explanatory like between inter-organizational digital procurement practices through case analysis. The relational performance at the dyadic level can be used further research for the digital supply network. The global supply chain can utilize new technologies for projects through a research-based perspective. The ERP can be used for decision making by supplier management and improving individual capabilities through digitalization commitment for cost improvement and flexibility of operations. The author highlights the absence of specific performance measurement on digital initiates by the company. Auto seats and IndustryCo. As case examples shows individual performance factors with financial constraint and acceptability as part of the readiness matrix. The author classified digital procurement practice on financial resources, top management support, and classified them in overall readiness. The explanatory variables are emphasized on both structural and adopt as event system theory by neo-configurational perspective. The involvement and leadership encourage digital readiness impacted by the organizational structure in adoption. The supplier perception and involvement of procurement function show the buyer dyadic procurement function. Managing resistance and impact of attributes of procurement and automation are not completely highlighted describing the benefits. They factor is considered through business relationship and internal amazement process for adoption of EDI solution. The macro level behavior of that provides influence in organizational characteristics on firm readiness. The case analysis supports the procurement readiness by positive and negative relationships or networks between the companies specified in the case. In the literature review process, the Neo-configurational perspective can be utilized for firm-level outcomes. The paper highlights the importance of inter-organizational networks as key variables in digital procurement. The study contributes to empirical evidence related to a relational and buyer-supplier perspective. Recommendation on longitudinal analysis of the study. The maturity level within the industry can provide empirical insights achieved performance on intermediate variables that can evaluate the competitive advantage of the relational view.

References for Supply Chain Practice View on Digital Procurement

Brandon-Jones, A. and Kauppi, K. 2018. Examining the antecedents of the technology acceptance model within e-procurement. International Journal of Operations Production Management. 38(1), pp. 22-42. https://doi.org/10.1108/IJOPM-06-2015-0346

Bromiley, P. and Rau, D. 2014. Towards a practice-based view of strategy. Strategic Management Journal, 35(8), pp. 1249–1256.

Craig R. Carter, Tobias Kosmol and Lutz Kaufmann .2017. “Towards a Supply Chain Practice View,” Journal of Supply Chain Management, 53 (1).

Glas, A.H. and Kleemann, C., F. 2016. The impact of Industry 4.0 on procurement and supply management: A conceptual and qualitative analysis. International Journal of Business and Management Invention, 6(6), pp. 55-66.

Horn, S, H., Hueren, S., Scheffler, P. and Scheile, H. 2020. Artificial Intelligence in purchasing: Facilitating mechanism design-based negotiations. Applied Artificial Journal. 34(8), pp. 34-45. DOI: https://doi.org/10.1080/08839514.2020.1749337

Kosmol, T., Reimann, F., and Kaufmann, L., 2019. You'll never walk alone: Why we need a supply chain practice view on digital procurement. Journal of Purchasing and Supply Management. 25(1), pp. 6-14

 Liang, H., Saraf, N., Hu, Q and Xue, Y., 2007. Assimilation of enterprise systems: The effect of institutional pressures and the mediating role of top management. MIS Quarterly, 31(1), pp. 59-87. DOI: 10.2307/25148781

Montabon, F., Pagell, M., Wu, Z. (2016). Making sustainability sustainable. Journal of Supply Chain Management, 52(2), pp.11–27. DOI: https://doi.org/10.1111/jscm.12103

Saldanha, J., Mello, J.E., Knemeyer, A.M. and Vijayaraghavan, T.A.S. 2015. Implementing

Supply chain technologies in emerging markets: an institutional theory perspective. Supply Chain Management. 51 (1), 5–26. DOI: https://doi.org/10.1111/jscm.12065

Vlale, L., and Zouari, D. 2020. Impact of digitalization on procurement: the case of robotic process automation. Supply Chain Forum: An International Journal, pp. 1-11. DOI: 10.1080/16258312.2020.1776089

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