Digitalization of Procurement Processes: Application of Lean Methods to Improve Efficiency

This study investigates the application of lean methodologies in optimizing the internal material requisition process within a company, with a focus on waste reduction and operational efficiency. The subject of the study is a small to medium-sized enterprise (SME) based in Greater Lisbon, specializing in industrial machinery maintenance and repair, equipment rental, and accessory manufacturing. Several inefficiencies were identified, including redundancies in the current requisition process, resulting in excessive rework, resource consumption, and operational delays. These inefficiencies disrupt workflows, affect material requisition timelines, and create operational bottlenecks, ultimately hindering business opportunities and service delivery. To address these challenges, the following tasks were undertaken: (1) a detailed analysis of the existing procurement process was conducted, followed by the development of a simulation model to evaluate various improvement scenarios; (2) idle periods were identified and analyzed using Value Stream Mapping (VSM) to highlight areas with potential for efficiency gains; (3) a digitalized process simulation was created to compare against the existing process; (4) a feasibility study for implementing the digitalized process was performed. The results indicate that the proposed improvements will significantly enhance process efficiency, leading to positive impacts on the company’s overall operations.