Risk mitigation strategy to eliminate risks associated with claim management in operational procurement through automation

Abstract

Proper claim management has always been a challenging task for any organisation. Digital technologies and automation are influencing every sector of business. The digital revolution is having a great impact on the supply chain and procurement industry and is making it more complex and prone to risks. The terms ‘Procurement 4.0’ and ‘Industry 4.0’ are top priorities for companies today. The purpose of this research paper is to describe the operational procurement process in detail and identify the risks associated with manual claim management processes. The focus is further narrowed down to show how these risks of claim management can be mitigated and the benefits this could bring to any organisation in terms of cost savings, supplier management, spend transparency and supplier performance improvements. Emerging literature, practical experiences, interviews, case studies, blogs, expert opinions and citations are used to fulfil this task. This research opens up further avenues of research for improvements of supplier management processes.