A Next-Generation Digital Procurement Workspace Focusing On Information Integration, Automation, Analytics, and Sustainability
A Next-Generation Digital Procurement Workspace Focusing On Information Integration, Automation, Analytics, and Sustainability
Abstract: Recent events such as wars, sanctions, pandemics, and climate change have shown the importance of proper
supply network management. A key step in managing supply networks is procurement. We present an ap-
proach for realizing a next-generation procurement workspace that aims to facilitate resilience and sustain-
ability. To achieve this, the approach encompasses a novel way of information integration, automation tools
as well as analytical techniques. As a result, the procurement can be viewed from the perspective of the envi-
ronmental impact, comprising and aggregating sustainability scores along the supply chain. We suggest and
present an implementation of our approach, which is meanwhile used in a global Fortune 500 company. We
further present the results of an empirical evaluation study, where we performed in-depth interviews with the
stakeholders of the novel procurement platform to validate its adequacy, usability, and innovativeness.
3.2 Implementation
Figure 1: Overview of open auctions of a purchaser and the
We implemented the requirements in an application total purchase order volumes in Euro.
that includes three main concepts: Procurement In-
formation Space, Procurement Analytics and Automa-
tion Space, and Sustainable Sourcing Space. To en- 3.2.1 Procurement Information Space
able these three spaces, the application consists of
multiple import jobs that fetch data from different The Procurement Information Space provides all
data silos. Those silos can also be from other depart- needed information regarding news, the latest posts,
ments and are not only maintained by the purchasing community updates, and announcements. It repre-
department. The imported raw data is aggregated, an-
alyzed, and interpreted before being stored in a single 4 A material group, e.g., screws and springs, categorizes
database. In this way, we can fetch data faster, and materials with the same attributes.
5 The team-view also shows data from team members.
reduce the number of on-the-fly calculations.
6 The alias-view allows seeing data from other users.
2. Supplier-relevant data like RfQs, auctions, and
contracts belonging to the selected supplier
3. Material group-relevant data like RfQs and auc-
tions for the selected material groups
The structured data is mainly displayed in a table
view, as can be seen in Figure 1 (widget names “Total
Purchase Order Volume” and “Supplier Auctions”),
but for a faster overview of some widgets, a chart view
is the default view, as can be seen in Figure 2 (“Total
Purchase Order Volume” and “Supplier RfQs”). The
chart view naturally cannot provide the same richness
of details as the table view, but highlights the most
important values, like statuses. In contrast, the ta-
ble view additionally provides further interaction. In
this way, procurement-relevant data is updatable from
the responsible user. Besides a graphical summariza-
tion of procurement-relevant data, users can also trig-
ger procurement-relevant bots in trivial and/or low-
risk tasks and processes. Those aim, for example, to
Figure 2: Overview of total purchase order volumes (top), reduce human-to-human interaction regarding nego-
and all RfQs related to the selected supplier (bottom).
tiating low-risk volumes of materials. Another use
sents a central point of information gathering and case is the bundling of RfQs across different depart-
aims to keep users up-to-date and well-educated in ments. Using these and other bots saves time and
their profession. Various structured and unstructured money since actual work is automatized and volumes
data sources are accessed to automatically collect, ag- measured in Euro are optimized. Other features of
gregate, and summarize their content to provide all the PAAS support the decision-making of purchasers
the user- and purchasing-relevant information. Af- since they provide, for example, a supplier rating
ter an automatic summarization, the information is based on different well-maintained characteristics, a
clustered and provided in natural language to a user. forecasting of purchasing volumes, and a material
Even though there can be different data sources with group share that indicates the share of each supplier
nearly the same content, those are considered and for the selected material groups. Improving trans-
handled the same way to ensure the validity of the parency is achieved by breaking down complex cross-
information so the PIS can act like a single point of department processes while highlighting the current
truth. Data sources for news, posts, community up- state of the processes and the actual task logged-in
dates, announcements, and drop-off points to other users have to fulfill.
tools are configurable and provide even more infor-
3.2.3 Sustainable Sourcing Space
mation. While interacting with the features of the
PIS (for example, the news feed), the information Transparency regarding environmental and risk im-
gets more and more personalized but also considers pact, as well as fostering a sustainable supply chain,
purchasing-relevant news based on team members’ is the main subject of the SSS. Therefore, this space
suggestions and reading history. The PIS aims to im- monitors the environmental and climate impacts of
prove decision-making and time-saving as new infor- actual materials, products, and suppliers. In this way,
mation could lead to better and faster decisions. purchasers can directly see the impact of their sourc-
ing decision. The SSS automatically gathers informa-
3.2.2 Procurement Analytics and Automation
tion and data on suppliers and their products from in-
Space
ternal and external sources to calculate a transparent
The PAAS allows users to access, analyze and interact so-called sustainable score. As a result, we can re-
with procurement-relevant data like open RfQs, auc- duce manual research of purchasers and supply chain
tions, and many more. All that data is divided into experts. This sustainable score can trigger alerts since
three focus groups: a potential risk in the supply is detected or suggests
materials or products from different, more sustain-
1. User-relevant data like open RfQs, auctions, and able suppliers. Generally, the sustainable score ex-
contracts of the logged-in user ists in four stages but concentrates either on Corpo-
Procurement
Application
action related
Negotiation Bot
User Management | Role Management | Feature Handling | Alias Function | Panel Personalization | Context Help | Excel Export |
Search | Filter | Charts | Notifications
Figure 3: This figure illustrates the Digital Procurement Workspace. The left pillar represents the PIS, the three in the middle
the PAAS, and the right one the SSS. The top indicates the different views. The bottom lists all fundamental functionalities.
rate Carbon Footprint (CCF) or Product Carbon Foot- sions of current products can be reduced, the com-
print (PCF). The first stage is the monetary CCF ap- pany’s reputation can be increased, and, as Valbuena
proach. In this approach, the CO2 emissions are ob- and Mandojana (Valbuena-Hernandez and Ortiz-de
tained based on the responsible revenue of a sup- Mandojana, 2022) describe, effective and sustainable
plier. For example, if the Anonymous Company is strategic partnerships can be achieved.
responsible for 10% of a supplier’s revenue, it also
obtains 10% of its CO2 emissions. The second CCF
approach is based on the determined CO2 emissions 4 Evaluation
for different sectors done by a third party. So exter-
nal databases are accessed to retrieve data about the
We conducted several interviews to evaluate the de-
CO2 emissions if, e.g., steal-related products are pur-
veloped application. The interviews aimed to analyze
chased from a specific supplier. The third approach
whether the requirements and overall goals were ful-
is also based on third parties and external databases.
filled, and the expected benefits were obtained.
There, the determined emissions for specific products
are taken from such databases. In this third stage, the
PCF is calculated, which also applies to the last stage. 4.1 Study Design
There, the actual emissions measured by the supplier
are communicated and taken for further CO2 emis- To verify that the introduced requirements are cor-
sions reporting. In general, there is a focus only on rectly implemented in the application, qualitative and
CO2 emissions. Other environmental- and climate- quantitative analysis in the form of expert interviews
relevant values are represented in CO2 equivalents. has been done. The interviews were held after the
As a result of the sustainable score and the entire SSS, launch of the first version of the DPW. The experts
the supply chain should be more resilient, less prone have been asked about their experiences a purchaser
to stoppages, and more environment-friendly. This makes while interacting with the developed applica-
way, the goals for the overall purchasing strategy can tion that contains the described concepts. First, they
be achieved more quickly, and the time for finding are asked about the benefits of each concept. Then
a fitting supplier is reduced. Additionally, the emis- the interview changed to a quantitative manner, and
the experts could choose between different predefined
answers regarding the time savings for each concept.
The same has then been done regarding decision-
making support. After that, the interviews changed
again to a qualitative manner to summarize the main
benefits of the application and to give the experts a
chance to say anything about the DPW the interviewer
had not asked for.
4.2 Sample
In total, ten experts were interviewed. Two of them
are women, and eight are men. The experts are all
employed at Bosch and have different job roles like
product owner, department lead, sustainability expert, Figure 4: Number of answers regarding time saving.
junior and senior purchaser, and innovation manager.
The interview showed that most experts could answer
mostly without any counter questions. Nine of the
ten interviews were valid, and all interviewees had
the same interviewer and the same interview style,
and all interviews were conducted online, while nine
were held in German and one in English. One inter-
view could not be considered since the interviewee
struggled with answering the questions and wanted to
avoid the interview in general.
miss basic features regarding collaboration, experts participants were asked if the respective space (PIS,
mentioned collaboration as one of the main benefits PAAS, SSS) does not save time, saves some time,
of the application. In general, the main benefits are in- or saves much time. The same was done regard-
creased transparency and time saving, better decision- ing decision-making, while the predefined answers
making, an increased collaboration of purchasers and were no support in decision-making, some support
departments, and a higher purchasing experience in in decision-making, and much support in decision-
day-to-day work through personalizing the entire ap- making. As the evaluation in Figure 4 and Figure 5
plication containing the three spaces. shows, most time-saving can be achieved by imple-
The quantitative part of the interview focused on menting a feature-rich PAAS. Based on the experts,
decision-making and time-saving since those two can decision-making is supported almost equally while
be seen as the main advantages of business infor- implementing a PAAS and SSS. Nevertheless, PIS is
mation systems and are also mentioned as the main considered in both categories as some support.
goals of the domain experts interviewed while set-
ting up the application requirements (Mesároš et al.,
2021). During the evaluating expert interviews, the
5 Discussion decision-making. Besides a company’s performance,
climate change and the goal of reaching the set goals
One of the goals of this work is to evaluate the appli- of the Paris Agreement for 2050 are additionally rele-
cation against the set requirements. The expert inter- vant. Since the experts mentioned that the enrollment
views were designed to verify the requirements. of the DPW improves the company’s performance but
also fosters procurement regarding sustainability and
5.1 Verification of the Set Requirements resilience, the overall goals can be seen as achieved,
even though not all relations of the found benefits and
All requirements introduced in subsection 3.1 are ful- the created requirements are described here in detail.
filled due to the implementing of the concepts.
User-relevant information is displayed via the PIS, 5.2 General Findings
and tasks can be assigned inside the PAAS. The ex-
perts also mentioned as a benefit that due to these Besides verifying the set requirements, other mean-
spaces, users are more informed, and the workflow ingful new insights are found, like dependencies of
is considered more optimized. Thus, the first require- benefits, some risks of the application, and sugges-
ment is fulfilled. Assigning tasks to others and com- tions for potential enablers of such a DPW.
menting on processes or RfQs leads to increased and In general, it is recommended to focus more on
optimized collaboration. This was indicated by the the PAAS and SSS. Figure 4 shows that according to
experts directly and is seen as an overall benefit of the interviewed experts, the most time can be saved
the developed application while fulfilling requirement by implementing the PAAS concept, while SSS could
three. On the other hand, requirements one and seven become more and more relevant in the future. On the
are fulfilled by favoring suppliers, selecting the news, other hand, Figure 5 shows that SSS leads to better
and adjusting the application’s layout. That leads to decision-making. Due to the increased impact of pur-
time savings and a personalizable application. Fur- chasers’ daily business regarding sustainability and
thermore, the implementation of the PAAS provides the environment and studies that have already shown
the interaction (filtering, searching, adjusting) of ag- that green digital procurement applications foster Big
gregated data from different data sources. Those data Data analysis competencies, it is recommended to set
sources are partially maintained by different depart- fundamentals for SSS early in development (AlNu-
ments. The aggregated and analyzed data allows fur- aimi et al., 2021). Concretely it is recommended to
ther evaluations and visual representations. Accord- start with centralizing information and allow as well
ing to the experts, this results in an optimized appli- as support personalization features from the begin-
cation that improves decision-making, increases effi- ning of development since they influence time-saving
ciency, and saves time. Thus requirements one, two, and decision-making and are independent of other
five, six, nine, and ten are fulfilled. In some cases, categories. After centralizing and during the develop-
processes that were not digital before are automatable ment of new features, keep in mind that the new fea-
using bots. Besides, some triggerable bots can also tures should either improve or support transparency
automate low-risk processes and thus reduce human- (e.g., showing the supplier’s responsible), collabora-
to-human interaction. Those bots save time and are tion (allowing assigning tasks), or optimization (ag-
responsible for fulfilling requirements four and ten. gregate data). As a result, new insights should occur,
The SSS offers to break down the supply chain and and the possibility to adapt the purchasing strategy
provides further insights regarding the sustainability, based on the new insights is given. To sum it up, if
risk, and environmental impact of single materials and done right, a centralized and personalizable applica-
products. According to the experts, that leads to in- tion leads to the mentioned time-saving, higher effi-
creased transparency and new insights, fulfilling re- ciency, and improved decision-making but enables, in
quirements two, eight, and nine. Furthermore, the general, all other benefits presented in Table 1.
increased transparency and the new insights can also The DPW generally provides more features than
lead to strategy adjustments, which can directly re- the presented competitors from subsection 2.2. Espe-
flect carbon emissions. cially SSS- and PIS-related features are entirely miss-
Among others, most business information systems ing in those applications. While introduced function-
have the goal of reducing costs and time (Mesároš ality of PAAS also lacks in those applications. The
et al., 2021). Either while saving time for employees found benefits of the DPW are also not transmittable
or improving decision-making so the company can to the earlier described applications. Moreover, it is
reach a better result in Euros. By implementing the in- doubtful that the found and introduced benefits can
troduced concepts, the DPW saves time and improves also be achieved in those applications. Therefore, im-
5.4 Future Work
The evaluation of the developed application focuses
mainly on the benefits for the company itself and its
positive impact on the users. Future work should also
consider the disadvantages of such an application.
Even though centralization and the lack of proper UX
are mentioned, experts can deliver even more possible
disadvantages if they are specifically asked for them.
Today the entire application does not use a knowl-
Figure 6: Influences of the different categories. The arrow edge graph architecture. Currently, all the data is
direction indicates the influence direction. imported from different sources and stored in a cen-
tral database. Ma and Molnár (Ma and Molnár, 2019)
plementing a customized DPW is a good solution. suggest using ontologies and a knowledge graph
because that is considered an effective technology to
5.3 Dependencies and Risks integrate data from multiple heterogeneous sources.
Therefore, future work should use a knowledge graph
While evaluating the results, we discovered some de- as the underlying technology while implementing the
pendencies of the found benefits presented in Table 1. presented concepts and features. Even if an appli-
In fact, some benefits act as a prerequisite for oth- cation implements the presented features based on
ers. For example, Centralization is considered and knowledge graphs (or any other underlying technol-
also actually mentioned as the prerequisite for en- ogy), there is still a risk left. Poor UX could lead to
abling Transparency and Collaboration. That, on the unsatisfied users, and as Magnus and Rudra (Magnus
other hand, leads to new insights, which further leads and Rudra, 2019) claim, dashboards built based on
then to improved decision-making and time-saving. principles of cognition enhance decision-making in
Another example, according to the experts, is that a supply chain. Therefore, future work should focus
personalization regarding news, blog posts, and an- more on UX-related topics.
nouncements lead to more up-to-date users, resulting
in better decisions. All of those dependencies are out-
lined and contextualized in Figure 6.
While centralization is considered a prerequisite 6 Conclusion
for most other benefits, as seen in Figure 6, it is also
mentioned as a risk for the company since a central Due to the urge to accomplish carbon neutrality, wars,
application could lead to a single point of failure. Be- sanctions, the pandemic, and catastrophes, sustain-
sides that, increased feature richness could lead to able SCM has become even more important for com-
complex maintenance, which results in higher costs panies. As a global Fortune 500 company, we have
that purchasers must balance with a more efficient developed an application that encompasses a novel
procurement. Nevertheless, initial high costs and the way of information integration, automation tools as
maintenance for developing applications and new fea- well as analytical techniques. All developed fea-
tures inside the application are generally known is- tures can be categorized into one of the three intro-
sues in service-oriented software applications. duced concepts - the Procurement Information Space,
Due to too many powerless features with a poor the Procurement Analytics and Automation Space,
User Experience (UX), users could start to work less and the Sustainable Sourcing Space. In-depth ex-
efficiently or, worst case, avoid the application. To pert interviews were conducted to verify that the im-
prevent unsatisfied users, it is helpful to educate them, plemented spaces perform as expected. The results
either with software or through personal training. An- of the interviews show that the set requirements are
other suggestion is to allow user inputs as early as met. Besides that, the interviews revealed increased
possible because if that is not the case, users must time-saving and support in decision-making, espe-
use different additional tools for updating data, which cially due to the Procurement Analytics and Automa-
leads to decreased user acceptance and satisfaction. tion Space and the Sustainable Sourcing Space. In-
creased transparency, efficiency, and decision-making
support are mentioned most as a benefit, but they may
not be the most important ones. This work encour-
ages other purchasing departments to build their own
DPW and provides valuable suggestions on what con- Igarashi, M., de Boer, L., and Michelsen, O. (2015). Inves-
cepts and features a DPW should implement. Exist- tigating the Anatomy of Supplier Selection in Green
ing applications can also profit from this work since Public Procurement. Journal of Cleaner Production,
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the benefits could lead to strategy adjustments. Such Ilie-Zudor, E., Kemény, Z., Ekárt, A., Buckingham, C. D.,
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ACKNOWLEDGEMENTS SCITEPRESS.
Masudin, I., Umamy, S. Z., Al-Imron, C. N., and Restupu-
We thank all participants from the Robert Bosch tri, D. P. (2022). Green Procurement Implementation
GmbH who were, in whatever case, involved with the Through Supplier Selection: A Bibliometric Review.
Digital Procurement Workspace and this work. Cogent Engineering, 9(1).
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