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ABSTRACT KEYWORDS
A profound digital transformation is now underway. As the implementation of digitalisation in Digitalisation in
supply chain processes has accelerated rapidly, coupled with an ever-increasing level of procurement; RPA; operation
competitiveness, traditional procurement is changing to adapt to this new paradigm. management; case studies
Research on RPA (Robotic Process Automation) in buyers’ practices is still in its infancy. The
aim of the paper is thus to explore the practical implications and impact of RPA in the
procurement function in order to improve our conceptual understanding of this recently
introduced practice. As first movers, seven case studies from various industries were selected
based on their significant successes and experiences in the field of digitalisation in the
procurement sector. The findings confirm the relevance of some recognised attributes of
procurement automation, while other attributes have also been explored. The study suggests
that RPA impacts on procurement in operational, organisational and relational terms.
Furthermore, we identify the motives and challenges when implementing this type of initiative
in the field of procurement.
CONTACT Laurence Viale laurenceviale@yahoo.fr HuManiS Humans and Management in Society, Academie De Strasbourg Ringgold Standard
Institution, Strasbourg, France
© 2020 Kedge Business School
186 L. VIALE AND D. ZOUARI
these tasks with RPA success factors found in the lit the drivers to adopt RPA as an advanced digital tech
erature, potential new uses can be found. nology in order to improve the procurement process
Secondly, we discuss RPA-related benefits. (Figure 1).
Investigating its benefits is important as it can explain
not only how, but also why RPA should be used. RPA as
Moving to digital procurement
a tool for process improvement is relatively new and
therefore needs more validation and visibility in terms of The emergence of new technologies alters traditional
its functionality. ways of working and creates disruption across Supply
We also investigate the difficulties and challenges Chain processes. In recent years, digitalisation in the
related to RPA. This section seeks to explain not only Supply Chain has attracted considerable attention from
why RPA should be used, but also why it should not be academic authors (Benzidia 2013; Bienhaus and Haddud
used and the problems and risks companies may face. 2018) and management practitioners. Indeed, the ‘Digital
When businesses look for new tools and solutions to Supply Chain’ (DSC) is considered as one of the hottest
improve their current process, it is always crucial to buzzwords in the industry (Büyüközkan and Göçer 2018).
examine the potential risks as well as the benefits of The technological disruption that has been observed
the chosen solution, especially when dealing with of late affects not only the production process (Smart
novel solutions with no prior knowledge, such as RPA. Manufacturing/industry 4.0) and logistics (Logistics 4.0),
but all other functional areas in a company, especially
procurement. The aim is to make procurement pro
Literature review cesses leaner, but also to take the opportunities offered
Theoretical background for purchasing and supply by process automation into consideration.
Global supply chains have deployed procurement
management literature
to engage with the global supply base, and the result
While it is true that research in the field of Purchasing ing globalisation is the main source of digitalisation.
and Supply Management (PSM) is increasing and The adoption of new technologies presumes that
growing importance and is gaining significant aca a company is ready ‘to embrace and use new technologi
demic interest (Harland et al. 2006; Bentahar 2018), cal assets’ (Richey, Daugherty, and Roath 2007). The digi
the field suffer from a lack of theoretical grounding talisation of procurement requires an information
robustness (e.g. Chicksand et al. 2012; Spina et al. technology system adapted to digital procurement, and
2016). Since this research deals with the integration human resources with the skills and knowledge required
of an advanced technology, here RPA, in the procure (Benzidia 2013) who are ready to get embedded in this
ment function, we therefore place procurement and kind of project (Venkatesh and Bala 2012).
digital procurement in their theoretical context. The information technology (IT) infrastructure avail
According to Barney (2012) purchasing, and supply able to organisations is one of the most important
chain management be sources of sustained competi issues in digital procurement. This differs according
tive advantage for a firm. Indeed, resource based view to the organisation due to various issues like their
(RBV) contribute de better understand the make or buy level of IT transformation and the company’s size
decision by distinguishing between critical activities (Kache and Seuring 2017).
and non-critical and their contribution to have compe Electronic data interchange (EDI) is an IT process
titive advantage. In this way, critical activities could be that helps to build a platform for digital procurement
maintained in-house, while non-critical activities are practices by allowing information transfer within and
outsourced to external supplier. From the perspective across the firm’s boundaries (Liu, Prajogo, and Oke
of the RBV, the supplier is therefore seen as a potential 2016).
source of a scarce resource (Barney 2012) and (Van Integrated systems, such as the ERP system and
Weele and Van Raaij 2014). In addition, it is well data warehousing system, provide the ‘nerve system’
known that Procurement is the discipline that is con for digital procurement by connecting separate sys
cerned with the management of external resources tems on shared platforms (Dong, Xu, and Zhu 2009).
(Van Weele and Van Raaij 2014).
From the perspective of digitalisation of purchasing
and supply management Srai and Lorentz (2019) have
proposed a framework for research on digital procure
ment. The framework proposes a grid with multiple Procurement process
Motives Digital improvement
dimensions for digital technologies include those that -Individual procurement -Individual
directly impact purchasing processes and changes to -Organisational RPA -Organisational
procurement items.
Based on these two theoretical backgrounds, we are
building a framework that permits us to show what are Figure 1. Research framework.
SUPPLY CHAIN FORUM: AN INTERNATIONAL JOURNAL 187
Some types of IT infrastructure used in digital procure ● Access to multiple systems: IT systems are faster
ment like the source-to-pay process are widely used in than humans when moving from one system to
centralised IT and ERP systems. another, so it reduces labour costs and time spent
Mature technologies also include cloud computing, on the process.
which is a virtualised IT resource and can take the form ● Known costs: evaluating the cost by considering
of software as a service (SaaS), infrastructure as the standard unit of ‘time/average’ handling time
a service (IaaS), and/or platform as a service (PaaS) it takes a human to achieve the process and
(Wu et al. 2013). resource costs (salary, wages, overheads, etc.)
Emerging technologies, like Artificial Intelligence, In order to move forward with the digital agenda of
Machine Learning, Chatbots, RPA and Blockchain are tools such as RPA, AI and Blockchain, Harthley et al.
only used in a small number of procurement processes, (2019) recommends that companies ensure their readi
mainly in large companies. However, as procurement ness to adopt and effectively use one or more of these
advances as a strategic function (Chick and Handfield technologies. The process would involve: (1) identify
2014), it is essential to get the correct and appropriate ing an SC technology visionary who can lead the way
information from the huge amount of data available to through the maze of technologies and the changing
support complex decision-making processes (Bienhaus digital landscape, (2) developing a digital technology
and Haddud 2018). roadmap for the SC processes, and (3) updating foun
Deloitte and Odgers Berndston (2018) identified key dation information systems.
challenges to the effective application of digital tech By applying these rules, it is possible to avoid failure
nology in procurement. In their global study, the in the rollout of RPA in procurement centres. However,
authors showed that the main drawbacks are another key reason for failure in the implementation of
a reduction in stakeholder endorsement and prioritisa RPA is that firms tend to overestimate the potential
tion, as well as difficulties in getting the right skills/ gains, and lack the organisation and skills needed to
capability of analytics resources. implement the tool Rutaganda et al. (2017).
RPA is increasingly used in procurement organisa
tions (Axcias 2019). Taking buyers away from low
RPA to improve procurement processes
value-added and often time-consuming tasks should
Robotic Process Automation (RPA) is defined as enable them to be more focused and efficient in more
‘a preconfigured software instance that uses business complex operations, spending more time working with
rules and predefined activity choreography to complete internal customers and suppliers. In concrete terms,
the autonomous execution of a combination of processes, thanks to RPA, buyers will be able to delegate order
activities, transactions, and tasks in one or more unrelated receipts to a software robot, or configure their software
software systems to deliver a result or service with human robot to place automatic orders based on stock levels,
exception management’ (IEEE Corporate Advisory Group for instance.
2017, cited by Huang and Vasarhelyi 2019, 3). Invoicing processes and supplier management are
RPA concerns tools ‘designed to be used by subject time-consuming activities for buyers. According to
matter experts to automate tasks that use rules to pro Wax Digital study (2019),1 corporate financial control
cess structured data, resulting in a single correct answer lers and buyers spend about 25% of their time trying to
and deterministic outcome’ (Lacity 2017). RPA is not solve billing problems. Buyers are especially involved
intended to disrupt existing information systems, but in this dispute resolution process as they are the first
replaces a manual process with an automated one point of contact for suppliers.
(Huang and Vasarhelyi 2019). In many organisations, tasks with low added value
According to a case study conducted in an energy are outsourced. In a context of business strategies
services company (Lacity and Willcocks 2015) before adopted to improve customer service, RPA helps orga
the rollout of RPA, an organisation is unsuited for nisations to save costs by no longer having to out
automation if the following attributes are not fulfilled: source (Lacity and Willcocks 2015; Lacity 2017).
A study conducted by PwC (2016)2 estimated that
● Unambiguous rules: as robots require precise 45% of business activities can potentially be auto
instructions, mated, resulting in a potential saving of 2 USD trillion
● Limited exception handling: exceptions mean the of global labour costs. For buyers, this means that
process is not worth automating and is better additional savings can be gained by using RPA instead
handled by humans. of outsourcing activities.
● High and predictable volumes: no need to be In addition to saving buyers’ time and company
stable, but predictable to control the average money, RPA minimises human error as, if a robot is
volume and performance properly configured, it will not be inattentive, tired or
● Operating in a stable environment: otherwise the subject to other errors (Asatiani and Penttinen, 2016;
robot needs to be reconfigured Alberth and Mattern 2017). In addition, Willcocks and
188 L. VIALE AND D. ZOUARI
Lacity 2016) argue that programming skills are not companies that differed in terms of size and diverse
necessary to implement RPA, and buyers and others products/services. Thus, we were able to compare and
involved in the procurement process can easily learn generalise the results obtained. We identified the main
how to use RP robots. actors in the digitalisation process, and the participants
Table 1, provides summary of extant research about in each function involved. For reasons of confidence,
motives and challenges that individuals and organisa the names of the companies in the cases will remain
tions could face in the context of RPA implementation. anonymous.
The data was gathered from primary and secondary
sources. Our approach enabled us to obtain multiple
Research methodology views (procurement manager, buyer, project manager
and leader, technical expert). It also provided us with
Digitalisation in procurement, particularly RPA, has
more objective responses to the questions and
been little studied in the literature. The aim of our
allowed us to compare answers from different
research paper is therefore to explore the practical
perspectives.
implications and roles of these tools within the pro
curement function to improve the conceptual under The secondary data came from the company web
standing of this contemporary issue. Case studies have sites as well as internal documents (project documenta
been adopted as the most appropriate approach to tion, examples of success stories/quick wins,
exploratory qualitative research (Yin 2009) as empirical digitalisation/RPA training materials). The data also cov
research examines issues in a real-life context. ered field observations of the companies we visited. In
Furthermore, we can justify the use of this qualitative addition, this process resulted in a verification study of
method in the same way as the main research ques the interviews. Secondary data can be helpful in the
tions in ‘how’ form (Yin 1994, 6). research design of subsequent primary research and
We examined multiple examples to select typical can provide a baseline with which the collected primary
cases within a certain domain (Eisenhardt 1989). This data results can be compared to. The combination of
research approach can make a useful contribution to the data collected enables us to assume internal validity.
both management practices and theory building in We conducted 7 semi-structured face-to-face inter
a relatively new research field (Seuring 2005). views and 10 interviews by phone with the main actors
We conducted our analysis in seven firms Table2, involved in digitalisation and RPA in the procurement
that were selected based on their significant interest process (Table 3). Semi-directive interviews are useful
and success stories on the impact of digitalisation in to ‘understand organizational reality from the point of
the procurement department. We organised the case view of the actors who experience it’ (Demers in
selection through a sampling approach using Giordano 2003, p. 174.). Each interview lasted an aver
a comparable source (companies based in France) to age of one hour. The interviews were recorded and
ensure a uniform exogenous setting. The selected fully transcribed. We followed the recommendations of
companies needed to have a recognised experience Miles and Huberman (2003) and decided to stop the
within digitalisation and more precisely RPA imple coding phase when we reached data saturation. The
mentation in procurement department. We chose data was then analysed using an inductive approach.
SUPPLY CHAIN FORUM: AN INTERNATIONAL JOURNAL 189
The semi-structured interview guideline was devel ● What are different challenges faced by the team/
oped from the existing literature on digital procure company before and during the implementation
ment and included open-ended questions to enable journey
knowledgeable respondents to describe events and ● Major impacts of RPA implementation on pro
processes. Some aspects of this interview were more curement activities and process
or less developed depending on the interviewee
knowledge and his position. Closing Questions and summaries
The interview guide is structured as follows:
General overview Research findings
● Brief overview about the company We summarised the results of our research as three
● description of your role and your responsibilities main findings, in keeping with the key elements of the
interview guide.
Digital procurement/RPA project
Attributes for procurement automation
● Major attributes and enablers for the procure
ment process automation Preparing the ground for the implementation of the
● Company’s motives in adopting RPA in procure automation process is essential. We tried to under
ment process stand the necessary attributes prior to adoption of
Table 3. Respondents’ individual profiles listed including title, sectors, annual sales and interview duration.
Company Respondents’ positions/Title Sector/Firm Annual Sales 2018 Interview duration
Firm A Procurement manager (direct) Automotive/309 millions euros 1h
Firm A Project manager Leader in sustainable mobility/22.03 billion euros 1 h15
Firm A IT expert European MRO and business supplies dealer/774 millions euros 2h45 (2 interviews)
Firm B Global purchasing director Pharmaceuticals/3,1 billion euros 30 mins
Firm B Expert in digitalisation Energy/57 millions of euros 50 mins
Firm C Purchasing director Consulting in procurement/3,5 millions of euros 1 h15
Firm C Procurement project manager Strategic IT consulting/4,1 millions of euros 1h
Firm C Purchaser 45 mins
Firm D Head of site purchasing 1h15
Firm E Purchasing director 1h55 (2 interviews)
Firm F Procurement expert and owner 1h
Firm G Accounts director 1h30
Firm G IA project leader 2h30 (2 interviews)
Firm G National sales director 45 mins
14 respondents 17 interviews
190 L. VIALE AND D. ZOUARI
RPA in our interviews. The global purchasing director Contribution of RPA to the operational purchasing
and the digitalisation expert from Firm B indicated that process
the main attribute in the tool’s implementation was
The interviewees raised the importance of the role
the use of clear, well-defined and immutable
played by RPA to improve the operational activities
processes.
of procurement agents.
All the respondents from firms A, B, C and
D explained that their procurement department devel “RPA is like a digital staff member, it’s able to use the
oped a well-established digitalisation plan for the work environment.” Purchasing director, Firm E.
procurement function. “For me, process automation is part of a coherent strat
For example, Firm B created the position of Digital egy of operational excellence!” Strategic accounts con
Chief Transformer (DCT) who is in direct contact with sulting manager, Firm G.
the company’s management team and the developers.
● Time management and optimisation
In this way, the DCT has a clear vision of the company’s
objectives and can thus use its network of developers
to introduce digital tools best adapted to the com Management of non-productive tasks
pany’s needs. When observing the time saved by the implementa
Firm C also had a strong desire to digitalise. This was tion of a robot, we can suppose that this could have an
supported by the group’s purchasing director who impact not only on recruitment strategy but also on
created a department dedicated to digitalising some potential job losses in some companies. To our sur
procurement activities and process improvements. prise, this hypothesis has been strongly disproved by
Firm C shared some key documents from the project the interviewee.
and related internal communication with us. “The objective of the RPA implementation is really about
Many of the respondents emphasised the impor the improvement of the process and we have no plans to
tance of the involvement and leadership of the reduce resources and save full time equivalent (FTEs)”
head of procurement in the digitalisation project. Purchasing director, Firm E.
“The tools are already quite complex. For us, it’s important Processing times and flexibility
to get the user to enjoy the experience in order to accept it. The procurement manager described the problems
Buyers can spend a lot of time on tasks that don’t give
linked to the processing times of supplier invoices.
them any real gains” Accounts director, Firm G.
The 2008 LME law obliges companies to pay their
The complexity of tools is clearly viewed as a potential suppliers within 60 days to avert business failures.
barrier to their use, even if they can be a source of “We set up a robot that could mimic the manual process
added value for buyers. of a person copying and pasting data from one source to
another. With this technology, the processing time for
“Much more information is available just in time, and the supplier invoice payments was reduced from 24 hours to
head of procurement wants to deal with it instantly and 1 hour.” Secondary data: testimonial of the purchasing
be sure of getting the right data as well!” Procurement director from project documentation and communica
director, Firm A. tion, Firm C.
SUPPLY CHAIN FORUM: AN INTERNATIONAL JOURNAL 191
The respondents also explained that companies some more professional.” Procurement expert and owner,
times have difficulty speeding up the processing of Firm F.
supplier invoices, not because of unwillingness, but The respondents highlighted some of the positive
because of excessively long reception times (arrival effects on supplier relationship management due to
time of letters via the post or because suppliers send the operational efficiency (data accuracy and integrity,
their invoices too late) and the lack of technical and just in time information . . .).
human resources.
Thus, financial transactions are time-consuming and “It helps to develop a trust-based relationship with our
expensive as they often require several intermediaries. key strategic suppliers, particularly given the accuracy of
the information we share.” Procurement project man
Respondents from firms A, B and C felt that there is still
ager, Firm A.
a lot of progress to be made in this area.
Back-end management of invoices can be done by
the robot, thereby accelerating the process. This
improvement would also impact on the procurement Motivations to adopt RPA
agent’s time management. Moreover, robots can oper During the interview, the respondents noted that the
ate 24 hours a day, 7 days a week, and adapt to high motives behind RPA adoption are clear enough for
workloads. companies. These motives differ from one organisation
to another, depending on each one’s need.
● Improvement/automation of internal
processes ● Return on investment: Cost improvement
Main difficulties encountered Our results are also closely linked to recent work on
RPA implementation by Rutaganda et al. (2017). The main
The interviewees pointed to the challenges regarding
reason for the failure of RPA input is that organisations
changing employees’ habits and convincing them that
overestimate the potential gains. Indeed, management is
robots would help them to do their job better. Also,
sometimes disappointed with the mismatch between the
most of the time, the business processes were partially
gains they expected and the actual gains. The second
described but not stable enough.
obstacle to the successful introduction of RPA, which we
“But, we’ve always done it this way . . . ” Purchaser, Firm C.
highlight in our research, is the need for clear and well-
defined business processes. Further research on the
The fact that automation for the purchasing process is upstream involvement of the procurement function in
not applicable in all purchasing categories was men digitalisation is therefore required.
tioned. Some buying categories are complex due to The procurement manager highlighted the issues
the large number of suppliers. Most of the time, the linked to the processing times of supplier invoices. The
focus is on strategic suppliers rather than suppliers respondents also explained that companies sometimes
that are often replaced. have difficulty speeding up the processing of supplier
invoices, not because of unwillingness, but because of
“It works less well on indirect purchases because there excessively long reception times and a lack of technical
are too many suppliers, it’s a much more complex pro and human resources.
cess.” IT expert, Firm A. This issue of payment delay is rarely raised in literature.
However, professionals point to one of the problems that
they believe impacts on their ability to pay on time.
The findings from the case studies reveal that RPA
Discussion
frees the buyer from non-value added tasks and
We remind that most studies are only beginning to improves their operational efficiency, but also their
explore the effects of advanced digital technologies on legitimacy. The following processes in the procurement
procurement field (e.g., Kache and Seuring 2017). The function can be automated, such as, contract deploy
attributes, motives and difficulties inherent in RPA ment, invoicing management or updating supplier data
adoption emerged from our case studies of companies such as bank or address data. The RPA made it possible
using this process for procurement purposes. to formalise the process and keep the knowledge.
The interviewees pointed to the importance of the Beyond a function that can be seen as administrative,
preparation stage of RPA adoption, identifying certain the Purchasing department plays the role of intermedi
factors that ensure successful procurement automa ary with suppliers, ensuring the conformity of offers with
tion before RPA implementation. All the cases indicate the initial specifications, negotiating and supervising the
that companies must have a certain degree of flexibil implementation of contracts (Van Weele 2010). Many of
ity, but also an infrastructure that allows for the imple the cases concur that RPA contributes to stakeholder
mentation of such tools. The potential of all their IT satisfaction and the quality of the buyer-supplier rela
tool functions is not fully exploited, especially in RPA tionship. As the respondents noted, in order to be stra
and IA in procurement. tegic, procurement activities must include an analysis of
Our findings show that process maturity is one of market trends, providing an opportunity for procure
the key factors in the adoption of RPA. Procurement ment managers to act ahead of time and anticipate
maturity is referred to as ‘the professionalism levels of future innovations produced by suppliers.
the procurement function’ Rozemeijer et al., (2003). The However, it is well known that the quality of the
procurement director’s involvement in the upstream buyer-supplier relationship is a crucial factor in meet
process of project implementation is a sign of the ing this challenging goal. The procurement depart
function’s maturity in the company and appears to ment is particularly well positioned to identify new
be a key requirement. Moreover, in order to succeed market ideas (Servajean-Hilst and Calvi 2018) through
in this area, organisations need to provide training and their frequent interactions with the supplier base.
define a common mindset towards the digital transfor When a relationship of trust is established between
mation (Bienhaus and Haddud 2018). This helps to buyers and suppliers, and thanks to a recognised legiti
overcome individual challenges (trust in technology . . macy, the latter are more likely to develop new ideas
.) for the adoption of these digital tools Boughzala, with the buyer (Homfeldt et al. 2017).
Bouzid, and Boughzala (2012). Through this study we expand to Srai and Lorenz
Table 4. below demonstrates and summarises the (2019) research, which suggesting an approach to
main results concerning individual motives and diffi designing digitalisation interventions in Purchasing
culties from a purchasing manager’s perspective as and supply management functions, by defining why
well as the organisational motives and challenges (here the motives) and how companies proceed to set
related to RPA implementation. up RPA in the procurement function.
SUPPLY CHAIN FORUM: AN INTERNATIONAL JOURNAL 193
Conclusion, limitations and future avenue new roles) and relational (stakeholder satisfaction and
quality of the buyer-supplier relationship) perspective.
In order to summarise the findings of our research
Finally, the study offers clearer insights into the
paper and move towards a future research agenda,
motives for adopting RPA through important, newly
we first identify the implications from this study on
observed aspects of the procurement process, such as:
digital procurement and then consider its limitations.
With the emergence of new technologies, the
-Allowing procurement agents to focus on value-
buyer’s activity is changing rapidly as a result of digi added tasks and increase their legitimacy,
talisation. This led us to examine how digitisation, and
RPA in particular, can help buyers to provide added -Helping and relieving the procurement agent in terms
of workload,
value for their companies.
The study makes several contributions. First, it pro -RPA does not necessarily lead to job cut (FTE),
vides empirical evidence of the attributes for procure
ment automation. Some attributes found in the We also explored the difficulties encountered by the
literature have been confirmed (like unambiguous project members:
rules, limited exception handling, high and predictable -Some procurement agents are afraid of changing
volumes, stable environment, accessed multiple sys their working habits,
tems), while other attributes have been explored below: -Need to launch a change management program,
-Maturity and recognition of the procurement func
-The project needs to be led by the procurement tion is needed as a prerequisite.
director, However, the potential of all the tool functions has
-A well-established digitalization plan is required for not been fully exploited, especially in RPA and IA in the
the procurement function. procurement sector. O’Neal (1993) considers procure
ment agents as ‘informants’ of potential innovative
Second, we outline some of the major impacts of RPA on supplier projects. ‘Marketing scans the environment in
traditional procurement activities. The study suggests search of unfulfilled needs, R&D develops new techni
that RPA has an impact on procurement from an opera ques/technologies and Purchasing acquires, assimilates,
tional (time management and optimisation, processing digests and shares information on new and potential
flexibility and improvement/automation of internal pro supplier developments’ O’Neal (1993, 6). RPA and IA
cesses), organisational (impact on the procurement team, could help procurement agents to address this
194 L. VIALE AND D. ZOUARI
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