Lean Six Sigma and digitize procurement

Abstract

Purpose The purpose of this paper is to demonstrate how the lean Six Sigma method can be applied to procurement, processes where there is an extensive use of information technology and communication (ICT) systems. The paper defines a method to streamline, digitize and reduce waste in procurement processes by using the “lean Six Sigma and digitize” methodology. Design/methodology/approach A framework was developed and applied to the procurement processes, based on the analysis of best practices and on several implementations. Findings It was found that the digitization of a procurement process which is not streamlined can generate problems. A process must be mapped to highlight waste and low quality. Only when the new process is improved, taking into account also that it will be possible to use ICT supports, can it be digitized. The new process will digitize only value‐added activities recognized by the users and by the organization. Practical implications The paper should be of interest to the academic world, as well as to management working in all types of organizations. Originality/value Within the field of lean Six Sigma and information and telecommunication technology, there has been a continuous debate as to whether both approaches are complementary or contradictory. This paper fulfils an identified need to study the interactions between a modern example of information technology and its role within procurement, making a valid contribution within this field of research.

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