The Impact of Digital Technologies on Procurement Infrastructure and Functions at Industrial Enterprises

Abstract

This Paper studies the impact of digital technologies on logistics business processes, organizational structure and functions of procurement management and its connection with other management functions at the industrial enterprises. The current trends are to centralize procurement management and to create a single logistics center at enterprises, which combine the management of supply chain: procurement, production and sales (distribution), have been determined based on analysis publications and the study of the experience of implementation integrating automated enterprises control systems and digitalization of logistics. It was concluded that this trend increases the efficiency and effectiveness of management and changes control functions, because most of the calculations and reports are performed by computers, and logistics specialists analyze the calculations, organize the execution of tasks, prepare data to correct or compile new tasks. The digitalization level of logistics processes has shown a significant impact on the organizational structure, functions, methods and information tools. For example, in flexible production systems, computer control commands using cyber-physical devices, the Internet of things, various sensors come into robots, manipulators, CNC machines, automatic warehouses, etc. This Paper examines some of these issues, poses problems that should attract the attention of specialists and expands on the research in this direction. Keywords-procurement management, digital technologies, infrastructure, business processes I. INTRODUCTION The modern ecosystem is based on the application of a wide number of digital technologies: cyber-physical systems, artificial intelligence, neural networks, the Internet of things, robotics, cloud computing technologies, 3D printing, artificial intelligence and others. These technologies promote the creation of new business models, emergence of digital platform services, digitalization of the movement of tangible and information assets, and the integration of the entire supply chain in the enterprise (supply, production, distribution). At the World Economic Forum (WEF) "The Future of Jobs" in Davos, German economist Professor Klaus Schwab noted that The Fourth Industrial Revolution is a combination of technologies of the physical, digital and biological world, creating new opportunities and influencing political, social and economic systems [1-3]. The main task of procurement management is a complex uninterrupted supply of the organization (production, design, trade, transport, service, etc.) with inventory in the required