Matching I4.0 technology and purchasing levers: Using Artificial Intelligence in strategic sourcing

Procurement plays a growing role in digital transformation, yet limited guidance exists on how category managers should integrate Industry 4.0 (I4.0) technologies into strategic sourcing. This study addresses this gap by characterizing key I4.0 technologies and mapping their functionalities to the seven sourcing levers that shape category strategy. Drawing on Dynamic Capabilities Theory and Socio-technical Systems Theory, we conceptualize technological potential as a moderator that amplifies the impact of sourcing levers on performance. A qualitative focus group with experienced procurement professionals identified high-impact technology–lever combinations across diverse categories. Supportive AI emerged as the most widely applicable technology, particularly for price evaluation, specification improvement, and process optimization. Based on these insights, we develop a Category Technology Strategy Guide that helps managers prioritize digital solutions according to category needs and expected benefits. The framework offers a practical, theory-informed approach for embedding I4.0 technologies into strategic sourcing decisions.