THE IMPACT OF DIGITALIZATION ON THE EFFICIENCY OF CORPORATE PROCUREMENT IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

The article presents a comprehensive theoretical and methodological framework for analyzing the impact of digitalization on the efficiency of corporate procurement in the context of sustainable development. It defines the essence of digital transformation in procurement activities and outlines the evolution of digital solutions — from traditional eProcurement systems to the concept of Procurement 4.0, based on the principles of Industry 4.0. Procurement 4.0 implies the integration of autonomous, interconnected systems into procurement processes. The authors systematize key performance indicators KPIs that enable the quantitative evaluation of procurement function efficiency. Particular attention is paid to the Data Envelopment Analysis (DEA) method as a tool for assessing the effectiveness of resource utilization and benchmarking procurement performance across departments. It is established that a high level of procurement digitalization correlates with reduced administrative costs, minimization of manual tasks, enhanced analytical capacity of procurement professionals, and greater integration of internal and external business processes. The use of intelligent digital platforms, big data analytics, and process automation enhances decision-making quality, reduces transaction costs, and contributes to the resilience and agility of supply chains. Empirical data confirm that digital tools significantly improve the productivity of procurement departments and strengthen the strategic positioning of enterprises in dynamic market conditions. The article emphasizes that efficiency is a key criterion for the success of procurement digital transformation. It also highlights the need for continuous digital maturity assessment and targeted investment in procurement innovation. Conceptual recommendations are proposed for adapting procurement strategies to the challenges of the digital economy to ensure long-term value creation, sustainability, and competitive advantage. The findings may serve as a basis for further empirical research and the development of practical tools aimed at improving procurement performance in the digital age.

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Publication Details

Journal
Economic scope
Published
2025-04-14
DOI
https://doi.org/10.30838/ep.199.159-167
Primary Topic
Business and Economic Development
Type
article
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article

THE IMPACT OF DIGITALIZATION ON THE EFFICIENCY OF CORPORATE PROCUREMENT IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

Serhii Hushko, Artem Shabliy
Economic scope
Business and Economic Development
article

THE IMPACT OF DIGITALIZATION ON THE EFFICIENCY OF CORPORATE PROCUREMENT IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

Serhii Hushko, Artem Shabliy
article en

Abstract

The article presents a comprehensive theoretical and methodological framework for analyzing the impact of digitalization on the efficiency of corporate procurement in the context of sustainable development. It defines the essence of digital transformation in procurement activities and outlines the evolution of digital solutions — from traditional eProcurement systems to the concept of Procurement 4.0, based on the principles of Industry 4.0. Procurement 4.0 implies the integration of autonomous, interconnected systems into procurement processes. The authors systematize key performance indicators KPIs that enable the quantitative evaluation of procurement function efficiency. Particular attention is paid to the Data Envelopment Analysis (DEA) method as a tool for assessing the effectiveness of resource utilization and benchmarking procurement performance across departments. It is established that a high level of procurement digitalization correlates with reduced administrative costs, minimization of manual tasks, enhanced analytical capacity of procurement professionals, and greater integration of internal and external business processes. The use of intelligent digital platforms, big data analytics, and process automation enhances decision-making quality, reduces transaction costs, and contributes to the resilience and agility of supply chains. Empirical data confirm that digital tools significantly improve the productivity of procurement departments and strengthen the strategic positioning of enterprises in dynamic market conditions. The article emphasizes that efficiency is a key criterion for the success of procurement digital transformation. It also highlights the need for continuous digital maturity assessment and targeted investment in procurement innovation. Conceptual recommendations are proposed for adapting procurement strategies to the challenges of the digital economy to ensure long-term value creation, sustainability, and competitive advantage. The findings may serve as a basis for further empirical research and the development of practical tools aimed at improving procurement performance in the digital age.

Economic scope(199)
Openalex Percentile: Top 89%
Business and Economic Development
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