The sustainable procurement process does not differ greatly from the traditional procurement process. It incorporates an initial stage to determine the effect of the procurement action in terms of a desired outcome that is both environmentally and socially benign, as well as an additional stage at the end of the process to monitor and assess, and if need be adjust the net effect of the desired outcome. Procurement is changing, which means the way organisations engage with their suppliers, manage their supplier relationships, and make their purchasing decisions is changing. In this 3-part series, we will be introducing sustainable procurement, and how organisations can integrate sustainability into their procurement processes.
The examples and perspective in this article may not represent a of the subject. You may, discuss the issue on the, or, as appropriate. ( January 2010) is the process of finding, acquiring, buying goods, services or works from an external source, often via a or competitive process. The process is used to ensure the buyer receives goods, services or works the best possible price, when aspects such as quality, quantity, time, and location are compared. Procurement is considered sustainable when organizations broadens this framework by meeting their needs for goods, services, works, and utilities in a way that achieves value for money and promotes positive outcomes not only for the organization itself but for the economy, environment, and society. This framework is also known as the.Sustainable procurement is a spending and investment process typically associated with, although it is equally applicable to the. Organizations practicing sustainable procurement meet their needs for goods, services, utilities and works not on a private, but with a view to maximizing net benefits for themselves and the wider world.
In doing so they must incorporate extrinsic cost considerations into decisions alongside the conventional criteria of price and quality, although in practice the sustainable impacts of a potential supplier's approach are often assessed as a form of quality consideration. These considerations are typically divided thus: environmental, economic and social. To procure in a sustainable way involves looking beyond short-term needs and considering the longer term impacts of each purchase. Sustainable procurement is used to ensure that purchasing reflects broader goals linked to resource efficiency, climate change, social responsibility and economic resilience, for example.Sustainable procurement involves a higher degree of collaboration and engagement between all parties in a supply chain. Many businesses have adopted a broad interpretation of sustainable procurement and have developed tools and techniques to support this engagement and collaboration.
Retrieved November 16, 2016. ^ Betiol, Luciana Stocco; Uehara, Thiago Hector Kanashiro; Laloe, Florence Karine; Appugliese, Gabriela Alem; Adeodato, Sergio; Ramos, Ligia; Neto, Mario Prestes Monzoni (December 15, 2015). Public Administration and Citizenship Program. ^ Procura+ Manual 3rd Edition. ICLEI Europe - Local Governments for Sustainability. 2016.
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The Landmark Project - Success Stories in Socially Responsible Procurement. The LANDMARK consortium. Retrieved November 16, 2016. ^ Sustainable Public Procurement Implementation Guidelines, Introducing UNEP’S Approach (2012). United Nations Environment Programme.
^ The Impacts of Sustainable Public Procurement, Eight Case Studies (2012). United Nations Environment Programme.
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REMARKOR: RELATIONSHIP MARKETING ORIENTATION ON LOCAL GOVERNMENT PERFORMANCE. Journal of Services Research, 15(1), p.97. Gillett, A.G. MULTIPLE RELATIONSHIPS WITH MULTIPLE STAKEHOLDERS: THE SCOPE OF RELATIONSHIP MARKETING FOR PUBLIC SERVICES. Journal of Services Research, 16(2), pp. 1-28., Received October 28, 2010. Retrieved December 18, 2018.
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The rise of multi-tier, flexible distribution processes has made it easy for enterprises to grow lax when it comes to exercising sustainable practices.Keeping an eye on 1,000 suppliers or more certainly isn't easy, but there are four ways organizations can develop a more efficient, eco-friendly procurement process.1. Hit the breaks, evaluateInstead of panicking over possible negative public perception and frantically opening communications with multiple vendors at once, take a step back and figure out how to make strategic sourcing as manageable as possible.
CRedit360 Business Development Director Matt Scott noted that one at a time is a solid first step.In this respect, it's in an enterprise's best interest to start at the finish line to trace its way back to the original equipment manufacturers and raw material producers. Scrutinizing companies operating at the beginning of the distribution chain will help businesses answer the following questions:.Do they operate in countries notorious for corruption?.What are the primary energy resources they use?.Do their labor practices reflect government standards?2. Proactively engage with supplier relationship managementIn addition to observing from the outside, Scott acknowledged the importance of speaking with all organizations contributing to the procurement process.
Not only should sourcing specialists ask about environmental policies, but also about how OEMs and other business plan on implementing eco-friendly practices. Don't be afraid to push some buttons.3. Spawn a culture that favors sustainabilityThe mantra 'lead by example' works well here. While an enterprise participates in the corporate arena, focusing on environmental best practices and positive labor operations will encourage those around it to take the same measures.Companies want to establish relationships with profitable, socially cognizant entities because it helps them develop a positive public image.
Gaining consumer favor is difficult in the current landscape, especially when contending with global competitors.4. Connect with nonprofitsNumerous societal issues have incited the creation of multiple charities and nonprofit organizations dedicated to improving worker conditions and discouraging negative corporate environmental impact.GreenBiz, general counsel and chief of governance and social sustainability at the U.N. Global Compact, who noted that connecting with such entities will help foster sustainable strategic sourcing.By following the aforementioned steps, enterprises will be well on their way to fostering best practices. A part of remaining competitive involves being aware of the consequences private entities have on global sourcing. The key is to make those repercussions positive.This originally appeared on the blog and is reprinted with permission.
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