Increasing Resilience in Procurement in the Context of the Internet of Production

Abstract

Recent developments have demonstrated the challenges and impacts of disruptions in supply chains. Current disruptions especially affected procurement and have indicated a lack of resilience. Resilience aims at being prepared, decreasing the impact, and enabling fast reactions and adaption in case of disruptions. The systematic design of resilience in procurement is significantly influenced by proactive and strategic actions before disruptions occur. Thus, the procurement strategy plays a major role when increasing resilience. The procurement strategy is influenced by various factors. Thus, a data-based approach for its systematic design is required. Based on the vision of the Internet of Production (IoP), this paper presents a data-based approach for designing procurement strategies. The IoP is a framework that enables cross-domain collaboration by providing semantically adequate and contextual data from production, development, and usage in real-time at an appropriate granularity. The presented approach is structured along the action research cycle and uses CRISP-DM to further detail the different steps. Moreover, the paper aims at analyzing the state of the art regarding the design of procurement strategy in uncertain environments and the identification of success-critical purchased articles. The paper also introduces the textile industry and its supply chains as a use case for the presented approach.