Ruile, Herbert

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Ruile, Herbert

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Towards PSM 4.0. An exploratory discussion on the impact of the Internet of Things on purchasing and supply management

2018, Henke, Michael, Legenvre, Hervé, Ruile, Herbert

Industry 4.0 and the Internet of Things (IoT) are transforming industry architectures, traditional business models and processes. This calls for significant adaptations of the Purchasing and Supply Management Function (PSM). The present article aims at timulating debates between practitioners and academic on this evolution. It first describes the context by exploring why and how the IoT changes industry architecture and favour some specific governance mechanisms. From this, building on three separate research investigations involving practitioners we explore a scenario where PSM is taking a more strategic role while being more digitized. This scenario aims to describe how PSM would evolve in this context and how PSM can manage this transformation. We conclude by suggesting future research areas.