DIGITAL TRANSFORMATION IN PROCUREMENT IN SUPPLY CHAINS: DEVELOPING A MATURITY MODEL FOR INDUSTRY 4.0 ADOPTION

Abstract

Procurement has been tremendously transforming currently due to the integration of digital, data-centric, and interconnected supply chains within organizations. The advent of Industry 4.0 technologies, including the Internet of Things (IoT), artificial intelligence (AI), big data analytics, and blockchain, has transformed procurement from a primarily transactional process into a strategic function that is critical for maintaining both competitiveness and operational resilience. However, despite this fundamental shift, traditional procurement maturity models are often fragmented, inflexible, and inadequate for evaluating digital readiness in the context of Procurement 4.0. However, resolving this gap is essential since digital maturity has become the key driver of cost savings, reduced supply chain risks, simplified complex compliance processes, and enhanced service delivery performance to provide a competitive advantage. To address this gap, this research aims to address the issue by developing an adaptable, fuzzy-logic-based digital maturity model to assess the readiness of organizations in different sectors for digital procurement transformation. The study involves three primary steps: first, conducting a systematic literature review to identify the primary digital enablers; second, developing and using a fuzzy rule-based digital maturity model based on expert surveys; and third, developing a sector-specific digital procurement roadmap based on the findings of this research study. To ensure rigor, the research methodology uses a comprehensive multi-database literature search with pre-defined eligibility criteria to provide a clear and exhaustive evidence base. The existing literature shows considerable deficiencies in technology integration, human-centric capabilities, resilience, and sectoral preparedness. To address these, the maturity assessment was conducted by combining key indicators from the literature with multi-disciplinary expert insights, employing a Fuzzy Analytic Hierarchy Process (F-AHP) to assess meticulously the relative importance of each dimension before validating the model’s practical utility through empirical case studies across diverse industrial sectors. The fuzzy maturity assessment demonstrates heterogeneous levels of readiness, spanning from “Quantitatively Managed” in the energy and healthcare sectors to “Optimising” in manufacturing, concurrently highlighting limitations within defense and banking. Consequently, the developed roadmap offers a structured framework for facilitating the advancement of digital procurement adoption. Managerial recommendations underscore the significance of strategic alignment, investment in digital competencies, human-centric change management, and the selective adoption of high-impact technologies. Broadly, this study considers procurement as a measurable strategic asset, producing several project deliverables, including a validated taxonomy of digital enablers, a fuzzy-logic maturity model, a digital procurement roadmap, and a cross-sector maturity benchmark. In addition, the study provides high-level strategic value by addressing the “how-to” problem of digital transformation. Moreover, the results also suggest that the maturity of procurement is more dependent on the agility and integration of the organization rather than the scale of financial resources invested. The results show that a fuzzy logic-based approach provides a robust and flexible platform for assessing the readiness of Procurement 4.0 and thus the digital transformation of the organization. The model and roadmap together provide practical insights to organizations for achieving efficiency, integration, and resilience in the digital era.

Date of Award	2026
Original language	American English
Awarding Institution	HBKU College of Science and Engineering