Industry 4.0 technologies and public procurement nexus: An analysis of South African transformative opportunities towards modernisation

Abstract

Background: This study explores the integration of Industry 4.0 technologies within the South African public procurement system, addressing entrenched challenges such as fragmented processes, limited transparency and operational inefficiencies.
Objectives: This study examines how Industry 4.0 technologies can be strategically integrated into the South African public procurement system to enhance efficiency, transparency and accountability.
Method: The study followed a qualitative desktop research design which synthesises legal frameworks, policy documents and academic literature to assess how digital innovations, including artificial intelligence (AI), the Internet of Things (IoT), blockchain, big data analytics, and cloud computing, can enable more accountable and efficient procurement practices.
Results: Findings indicate that these technologies, when strategically embedded across key supply chain management (SCM) elements, namely demand management, acquisition, sourcing and supplier selection, evaluation and adjudication of bids, contract performance monitoring, and risk management, enhance predictive planning, reduce procedural bottlenecks and reinforce integrity in public procurement.
Conclusion: The research demonstrates that digital enablement can reposition procurement from a compliance-driven function to a dynamic governance mechanism responsive to service delivery needs.
Contribution: The study recommends the formulation of a national digital procurement strategy, investment in secure and interoperable infrastructure, capacity development for procurement officials, and the piloting of digital platforms in high-expenditure sectors. Managerial implications include the need for institutional agility, cross-functional innovation and leadership commitment to digital transformation. Through the alignment of technological adoption with constitutional values and developmental priorities, public procurement can serve as a strategic lever for inclusive governance and systemic reform.