TITLE:
Smart Procurement in the Sports Industry: A Strategic Approach for Efficiency and Performance Enhancement
AUTHORS:
Prajkta Waditwar
KEYWORDS:
Smart Procurement, Sports Industry, AI in Procurement, Blockchain, Supply Chain Management, IoT, Sustainability, Digital Transformation, Cost Efficiency
JOURNAL NAME:
Open Journal of Business and Management,
Vol.13 No.3,
May
14,
2025
ABSTRACT: The global sports industry, valued at over $600 billion, encompasses a vast network of procurement activities, ranging from player equipment and stadium operations to event logistics and merchandising. Traditional procurement in sports has been plagued by inefficiencies, including fragmented supplier networks, manual processes, and inconsistent pricing models. As the sports industry continues its digital transformation, smart procurement is no longer an option but a necessity. The integration of AI, blockchain, IoT, and sustainable sourcing practices is set to redefine sports procurement, ensuring greater efficiency, cost-effectiveness, and long-term resilience. This research examines the role of smart procurement technologies in revolutionizing procurement strategies for sports teams, stadiums, and major sporting events. AI-driven procurement platforms leverage machine learning models for supplier selection, demand forecasting, and automated contract negotiation. Empirical evidence demonstrates that smart procurement adoption in sports can reduce procurement cycle times by 40% (industry report), achieve cost savings of up to 20% (industry report), and improve overall supply chain resilience (industry report). Real-world case studies, such as PUMA’s AI-driven merchandising optimization, Tokyo 2020’s sustainable procurement framework, and Mercedes-Benz Stadium’s IoT-powered beverage tracking, highlight the measurable impact of digital procurement strategies. Despite its advantages, challenges such as high initial investment costs, data security risks, AI bias in supplier selection, and regulatory compliance pose barriers to widespread adoption. This paper also provides actionable insights into overcoming the challenges and explores future trends, including AI-powered predictive analytics, robotics in stadium operations, circular economy initiatives, and blockchain-integrated fan engagement strategies.