采购40工业40循环经济外文翻译中英文.docx
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采购40工业40循环经济外文翻译中英文.docx
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采购40工业40循环经济外文翻译中英文
采购4.0、工业4.0循环经济中英文2020
英文
Procurement4.0anditsimplicationsonbusinessprocessperformanceinacirculareconomy
SurajitBag,LincolnC.Wood,
SachinK.Mangla,SunilLuthra
Abstract
ThepurposeofthisstudyistoidentifyhowProcurement4.0anddigitaltransformationsarerelatedandhowdigitaltransformationimpactstheintentiontooptimizetheprocurementprocessinthecirculareconomy.Themoderatingeffectofinformationprocessingcapabilityisalsoinvestigated.WesurveySouthAfricanmanufacturersandanalyzesurveyresultsusingthePartialLeastSquaresStructuralEquationModelling(PLS-SEM)approachtotesttheresearchhypothesesandourtheoreticalframework.Finally,asamplebusinessprocessissimulatedtoevaluatehowIndustry4.0automationcaninfluenceorganizationalprocurementprocessoptimizationandcirculareconomyperformance.ThefindingsofthisempiricalstudyindicatethatProcurement4.0strategypositivelyinfluencesbuyers’intentiontooptimizebusinessprocesses.Second,Procurement4.0performancereviewpositivelyinfluencesbuyers’intentiontooptimizebusinessprocesses.Third,informationprocessingcapabilitymoderatestheeffectofProcurement4.0performancereviewonbuyers’intentiontooptimizebusinessprocesses.Finally,buyers’intentiontooptimizebusinessprocessesplaysakeyroleinenhancingcirculareconomyperformance.Thesimulationresultsdemonstratethepotentialbenefitsfromindustry4.0applicationsintheprocurementfunctioninacirculareconomy.
Keywords:
Businessprocess,Circulareconomy,Dynamiccapabilityviewtheory,Optimization,Procurement4.0
1. Introduction
Increasingglobalcompetitionisimpactingmanufacturingbusinessesasintensecompetitioncreatesastrainonscarceresources,whichaffecttheiravailabilityandcostcompetitiveness(Feger,2014).Therefore,manyfirmshaveinvestigatedtheopportunitytodevelopacirculareconomy(CE)businessmodel.CEbusinessmodelscanminimizetheexcessutilizationofscarcenaturalresourcesandalsoreducethevolumeofwastegeneration(Schroederetal.,2018),andthereforesustainabledevelopment(SD)goalswouldbeachievedthroughCEprinciples(EllenMacArthurFoundation,2016).ThecurrentstudyfocusesontheCEasaconceptbecomingincreasinglyimportantduetointernationaleffortsandmarketreactionsthatfocusattentionandlawsonsustainabilityimprovements(Woodetal.,2018).
Thestudywill,therefore,providemanagerialleversorareasthatmanagerscandirectlyinfluencethatwillresultinimprovementsinCEperformance.WhileProcurement4.0canbringmanybenefits(BienhausandHaddud,2018),itisnotalwaysclearhowtotranslatethetechnologiesintoCEperformancegains.Thisstudyestablishesafoundationforexplainingtheseconnections,andmakestwoprimarycontributions.First,itexplorestheemergingphenomenonofProcurement4.0andprocurementprocessoptimizationintheCE.Second,itexaminesthemoderatingroleofinformationprocessingcapability.SinceresearchonProcurement4.0remainsnascent,andmostrelatedstudiesareconceptualandexploratory,thisempiricalstudyelaboratesonthegrowingtheoryinthisarea.
Thesubsequentsectionpresentsasynthesisofliteraturereviews,presentstheresearchpropositions,anddevelopsaconceptualresearchframework.Next,researchmethodsarepresented.Themanuscriptthenpresentstheresultsobtainedthroughtheempiricalsurvey,followedbysimulationresults.Thefinalsectiondiscussesmanagerialimplicationsandconclusions.
2. Literaturereview
Inthissection,wepresentareviewofProcurement4.0andCEtodevelopacommonunderstandingofhowthesesubjectsarerelated.
2.1. Procurement4.0
Managerstreattimeasacriticalelementseparatefromelementssuchasworkforceandworkingcapital.Cuttingdownwastageinmovementandmaterialhandlingcaneliminatedelaysandpotentiallyenhancecustomersatisfaction.Reductioninleadtimescanbeacompetitiveadvantageforfirms.Timemanagementisthemirrorimageofcostmanagementandyieldmanagement(TersineandHummingbird,1995).Therefore,firmscanreapbenefitsbyreducingtotalcycletimeinalloperationalactivitiessuchasdesigntimereduction,procurementcycletimereduction,manufacturingsetuptimereduction,manufacturingtimereductionandbetterdeliverytimes(Ngetal.,1997). Ngetal.(1997) reportedthatlessfocushadbeengivenbypastresearcherstowardsthereductionofcycletimesinprocurementactivities.
Theprocurementfunctionincludespurchasingandsupplymanagement,alongwithmanaginginboundandoutboundlogistics.Theseactivitiesconsumethemosttimeformanufacturingfirmswhileexecutingsalesordersand,therefore,canbeconsideredasasignificantaspectofthefirm’ssustainability.Supplierselectionultimatelyplaysakeyroleasitcaninfluencethedeliveryleadtimes.Also,theprocurementtransactionprocess(manual/semi-automated/automated)impactsthecycletime.Finally,theprocurementcycletimecanalsovarydependingonthenatureofcollaborativerelationshipswithsuppliers(Ngetal.,1997).Strategicpurchasingandthestrategicflexibilityofthefirmcansignificantlyimprovesupplychainagility(Chiangetal.,2012).
Ithasbeenestablishedthatprocurement’sconnectionwiththefirm’scorporatestrategyoncutting-edgeproductionvariesbetweencountrygroupsandovertime.InEurope-orU.S.-basedfirms,thereisevidenceofalinkbewteenprocurementstrategyandcorporatestrategy(Yangetal.,2013).Thenextgenerationofmanufacturingfocusesonsmartmanufacturingtechnologies(Kusiak,2018).Comparedtotraditionalmeasuressuchascostsandquality;modernmanufacturingdemandshighsupplysecurityandtheabilityofsupplynetworkstorestorenormaloperationsimmediatelyafterdisruptions(Brennanetal.,2015).
Toolsandguideshavebeenproposedtosupportmanagers’understandingofdigitalization,suchasagridprovidingtwocategoriesofdigitalizationtechnologiesusedbymodernmanufacturersintheprocurementfunction(SraiandLorentz,2018).Thefirstcategoryconsistsofbasictechnologies(Internet)andthesecondcategorycomprisesofadvancedtechnologies(e.g.,theuseofIoT,artificialintelligence(AI)andmachinelearning(ML),bigdataanalytics(BDA),blockchaintechnologies,andadvancedmanufacturingtechnologies).
Companiesareusingbasictechnologiesine-procurement(e.g.,e-orderingande-sourcingthatisoftenpoorlyintegratedwithe-tenderingande-informingapplications)whileadvancedtechnologiesareusedforburdenreduction(automatedprocuretopay,materialflow,automatedsupplierhelpdesk,virtualprocurementassistantandsmartmaintenance);internaldevelopment(real-timespendandotherKPIsthroughmobileapps,realisticTCOswithdata,AI-basedcategorymanagement,andsmartcontractmanagement)andbroadvaluecontribution(virtualsupplierroomwithscorecards,supplychaindashboards,blockchain-basedproductinformationrecord,virtualproductassessments,cloud-basedriskanalyticssystemsandvirtualsupplymarkets)andauditsthroughexternalresourcemanagementandsupplyknowledgegeneration(Nicoletti,2018).
Thevolumeofunstructureddatageneratingfromavarietyofsourcesinthissmartmanufacturingerahasgivenbirthtobigdataandpredictiveanalytics(BDPA)approaches.Thewide-spreaduseoftheinternetandotherinformationtechnology(IT)advanceshaveenabledmanufacturerstoextractinformationinreal-timeduetoimprovedcommunicationandflowofinformation(KacheandSuering,2017).
ThebenefitsderivedfromBDPAdrivemanufacturerstowardsincreasedadoptionandapplicationofdigitaltechnologies.BDPAplaysaninstrumentalroleinthemanagementofbusinessprocessesandfasterdecisionmaking(Brinch,2018).BDPAcanbeagame-changerintoday’scomplexsupplychainnetworkedenvironmentbyallowingmanufacturerstoarrangetimelysupply,reducebufferinventoriesandoperateinaleanway.BusinessescanimprovetheirsupplychainperformancebyimplementingBDPA(Bag,2017),andspecificperformanceimprovementscanbedeveloped,suchasimprovedleadtimes(KacheandSuering,2017).
DeBúrcaetal.(2006) foundthatITcomplexitymoderatestherelationshipbetweenservicepracticesandserviceperformance.Informationandcommunicationtechnologies(ICT)cantransformmanufacturinginthisdigitalage.ICTcanempowertopfloormanagementdecisionmakingtoshopfloorworkersintheirdaytodayoperations(Leyeretal.,2018).Data-drivendecisionsupportsystemscanbetterdrivesuccessthanolder,human-basedsystems(Woodetal.,2017).
Theintegrationofoperationswithsuppliersenablesfirmstocapturethebenefitsfromtheexchangeofinformation(Vanpouckeetal.,2017). Vanpouckeetal.(2017)additionallyreportedthatITuseisanimportantfoundationfortheintegrationofsuppliers.
Thegradualmovementoffirmstowardsdigitalizationearmarkstheeraofthefourthindustrialrevolution,popularlycalledI4.0.InanI4.0environment,firmscanincreasinglyconnectandintegratewithsuppliers(upstream)andcustomers(downstream)inthenetworkthroughthewirelessinternetofeverything.Secondly,transparencyofinformationcancreatevirtualcopiesofthephysicalplant.Thirdly,cyber-physicalsystemscanenabledecentralizeddecisionmaking,andlastly,decisionsupportsystems(usingmobileapps)canprovidetechnicalassistance.Theseprinciplescanbeusedasabasistodesignprinciplesfordigitalizingprocurementfunction(ThamandLuo,2013; KlötzerandPflaum,2015).
Thecombinationofdigitizationandprocurementisanemergingarea;inthisresearch,theterm‘Procurement4.0’(applicationofI
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