Digital Version Few leaders have shaped the procurement and supply chain landscape as extensively as Bernardo Nicoletti, whose work seamlessly integrates Lean Six Sigma principles with cutting-edge digital innovation. Nicoletti has played a key role in advancing procurement and supply chain management for years, serving as a professor, consultant, and author. He has provided guidance to international businesses and shared his expertise with aspiring leaders at universities such as Temple University Rome and the University of Rome Tor Vergata. In this exclusive feature for Visionary Leaders Transforming Procurement and Supply Chain Strategy – 2025, Bernardo Nicoletti reflects on the evolution of the field, the role of innovation, and the strategic mindset required for lasting success in a complex, digital-first world. I believe in transforming procurement from a cost-driven function into a strategic force – where lean thinking, digital innovation, and human insight work together to deliver lasting value. The Power of Lean Six Sigma and Digitalization Nicoletti’s extensive background in Lean Six Sigma and process digitization has fundamentally reshaped procurement practices across industries. “The procurement and supply chain management field has been profoundly transformed in recent decades,” he explains, “driven by the strong synergy between Lean Six Sigma methodologies and digital technologies.” Lean Six Sigma—rooted in the Toyota Production System—focuses on improving value to the customer, minimizing waste and reducing variation. These principles, when applied to procurement, optimize sourcing, streamline supplier interactions, and shorten lead times. But Nicoletti points out that digitalization has exponentially amplified these benefits. “Technologies such as AI, IoT, and robotic process automation are no longer just add-ons—they are integral to creating agile, responsive, and resilient systems,” he says. For instance, AI can now accurately predict demand, optimize supplier choices, and analyze risks in real-time. IoT devices track inventory and transportation, while RPA removes bottlenecks in administrative workflows. Yet, Nicoletti is pragmatic: “Only a limited number of companies have fully embraced this convergence. Where it has been implemented, the impact has been transformational—from cost savings and efficiency to enhanced service quality and customer delight.” The Challenges Behind the Transformation Many organizations still encounter substantial challenges, despite the obvious benefits of digital integration. “Siloed structures and outdated ERP systems are often at the root of the problem,” Nicoletti notes. These legacy technologies create friction when integrating modern tools like AI or blockchain. Talent scarcity—especially in data science, cybersecurity, and AI—adds another layer of difficulty. Geopolitical instability, climate disruptions, and increased scrutiny around data privacy further complicate supply chain strategies. According to Nicoletti, success hinges on a comprehensive approach, encompassing technological investment, organizational redesign, change management, and talent development. This approach requires a Total Procurement approach similar to Total Quality which involves all the parties in the improvement projects. On this respect, also the involvement of the main vendors is essential to optimize the full chain. “He emphasizes the crucial role of strong cybersecurity and efficient data governance. “As data is the foundation of contemporary supply chains, cleaning and protecting it is vital,” he explains.” Why Digital Innovation Is No Longer Optional Nicoletti views digital innovation as the cornerstone of modern supply chains. “AI, blockchain, automation, IoT—these are not trends. They are the drivers of operational excellence,” he asserts. They should apply to procurement which includes from 50% to 80% of the operating costs of an organization, be it private or public. Artificial intelligence and machine learning are transforming the ways demand forecasting, vendor selection and evaluation, risk management, and warehouse automation are approached. RPA handles repetitive tasks such as purchase order creation or invoice matching, freeing teams for more strategic work. Blockchain introduces traceability, fraud prevention, and secure recordkeeping, especially in complex, multi-tier supply networks. IoT delivers real-time tracking, while cloud platforms ensure scalable, agile operations. But Nicoletti also highlights a critical balancing act. “Technology cannot replace human judgment. The organizations that succeed will be those that combine digital tools with human insight, ethical leadership, and lean thinking.” Real-World Results Through Lean + Digitize Nicoletti’s consulting experience spans 10 countries and clients such as General Electric, Deutsche Bank, Generali, Santander Nordic, and Intesa Sanpaolo. One case, he recalls, illustrates the power of an integrated strategy. “A multinational manufacturing company was struggling with fragmented procurement,” he says. “By centralizing indirect spend, consolidating vendors, and introducing an eProcurement platform based on lean principles, they cut indirect costs by 15% and slashed order lead times by 50%.” This company is now investing in AI and expects an additional saving of at least 20%. The transformation also standardized processes, reduced waste, and fostered stronger vendor partnerships. “This is the kind of holistic approach that delivers measurable, sustainable results,” Nicoletti adds. Lean in Bureaucratic Environments: A Pragmatic Approach One of the more challenging aspects of Nicoletti’s work involves applying lean methodologies in complex, bureaucratic environments—often in public institutions or heavily regulated sectors. “You have to start with a clear-eyed assessment of where waste exists,” he says. “Then prioritize areas with the greatest potential for quick wins.” These might include digitizing vendor onboarding, reducing redundant approval loops, preparing effective contracts,  or standardizing documentation. . Generative AI can help a lot in this respect. Commercial solutions are already available and will transform the work of the buyers. Tools like Kanban boards, visual dashboards, and just-in-time inventory systems can be remarkably effective. But perhaps most important, Nicoletti says, is cultivating a culture where frontline employees are empowered to identify and eliminate inefficiencies. “It’s not just about technology or process—it’s about mindset and collaboration,” he notes, especially when working with legal and finance departments to streamline workflows. The Academic Lens: Educating the Next Generation Nicoletti plays a significant role in shaping the future of procurement and supply chain professionals through his work as an educator. At the University of Rome Tor Vergata and other institutions, he connects theoretical knowledge with real-world application. “Academic institutions play a critical role in equipping students with the tools to manage real-world complexity,” he says. From case studies and simulations to industry partnerships and research, universities are evolving to reflect modern challenges. Nicoletti himself is