Industry 4.0 technologies in the purchasing process

Purpose The aim of the study is to explore the possible practical impact of big data/business intelligence and Internet of Things on the purchasing process of premium automotive manufacturers, and to evaluate its theoretical impact with a transaction cost economics approach. Design/methodology/approach An exploratory multiple-case study was carried out, using qualitative content analysis and cross-case synthesis. Findings Collaborative platforms and a new purchaser role were found to impact the entire process. In the strategic purchasing 4.0 process, co-creation of specifications, automated prequalification, and parameter-based negotiations are some expected changes. The operative purchasing 4.0 process is shaped by, for example, interactive call-offs. Transaction cost is expected to decrease by reduced uncertainty and supplier specificity, as well as by lowered information search, negotiation, and monitoring costs. Research limitations/implications - The description of a potential purchasing 4.0 process for premium automotive manufacturers is given. Practical implications - Premium automotive manufacturers can develop strategies to push the existing standards of purchasing. Suppliers can create scenarios to allow for future compliance at the purchasing-sales interface. Social implications New technologies' effects on the workforce are considered. Originality/value No identified study focused on the impact of Industry 4.0 technologies on the purchasing process of premium automotive manufacturers.