Conceptual design of a digital shadow for the procurement of stocked products

Abstract

Industrie 4.0 and the consequent necessity of digitalization has also implications to the field of procurement, resulting in the so-called term of Procurement 4.0. Digitalization can be a valuable tool to increase the efficiency of the procurement organization and to exploit new opportunities of growth. A mandatory requirement to perform the digital transformation is an increased transparency along the procurement process chain. This paper aims to conceptualize a digital shadow for the procurement process in manufacturing industry as a basis for advanced data analytics procedures. The term digital shadow stands for a sufficiently accurate, digital image of a company’s processes, information and data. This image is needed to create a real-time evaluable basis of all relevant data in order to finally derive recommendations for action. The formation of the Digital Shadow is thus a central field of action for Industrie 4.0 and forms the basis for all further activities.