The Impact of Smart Digitalization Technologies on Mitigating Incremental Risks in Sustainable Sourcing Practices
Author
Okot, Tom
Jarquin, Marco
Abstract
This study explores the intersection between incremental risks introduced by sustainable sourcing practices in procurement and the role of Smart Digitalization Technologies (SDT) in mitigating these risks while enhancing operational efficiency, organizational effectiveness, and resilience. A mixed-methods approach was employed, combining a structured survey of procurement professionals with in-depth interviews with SDT providers. This methodology allowed for both quantitative validation of SDT's perceived effectiveness and qualitative insights into their strategic applications. Findings reveal that while SDT significantly contribute to risk identification and mitigation particularly through supply chain visibility, automation, and data-driven decision-making challenges remain. Poor data quality, unrealistic leadership expectations, and ineffective change management limit their full potential. Additionally, SDTs have yet to prove effective in managing crises, particularly unpredictable disruptions. This research highlights SDT as a catalyst for sustainable procurement maturity, reinforcing the relationship between sustainability and operational efficiency. However, successful implementation depends on organizational readiness and strategic alignment. A practical evaluation tool is provided to assess known risks and mitigation mechanisms.