Professional Documents
Culture Documents
(CUSCM208)
Sustainable Supply Management
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Overview
Definitions
Characterists of Sustainable Purchasing
Aspects of Sustainability
Principles of Sustainability
Drivers of Sustainability
Benefits of Sustainability
Objectives of Sustainability
A framework for Policy development
3- Legged Stool
Conclusion
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Definitions
Sustainable Purchasing is an approach to
purchasing products and services that
takes into account the economic,
environmental and social impacts of an
organisation’s buying choices, at all times.
is about ensuring that the values that are
core to the business are transferred
through the organisation’s supply chain
into the lifecycle of the organisation’s
products and services.
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Definitions
“An acquisition process whereby
organisations meet their requirements for
goods, services, works and utilities in a way
that achieves value for money on a whole of
life basis in terms of generating benefits not
only to the Organisation, but also to society
and the economy, whilst minimising its
impact on the environment.” (United
Nations Environment Programme n.d.)7 To
view the full definition
http://www.unep.fr/scp/procurement/
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Definitions
the planning for a changing climate, a
resource and carbon constrained future
and a socially-beneficial, supportive and
inclusive society.
Its three dimensional namely; economic,
environmental and social
Sustainable production
Sustainable consumption
Sustainable procurement
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Characteristics of Sustainable
Products
less energy consumption and water
efficiency;
lowest hazardous material content
available;
longer life and greater upgradability;
reduced packaging and waste;
increased recycling capability.
lower running and disposal costs,
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SUSTAINABILITY
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SUSTAINABLE PRODUCTION
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Aspects of sustainability
Green procurement
Environmental procurement
Affirmative procurement
Responsible procurement
Social responsibility procurement
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Principles of Sustainability
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Drivers of sustainability
Values (environmental & social concerns)
Markets (competition)
Lifecycle technology (span on whole
business processes)
Partnerships (increased collaboration)
Corporate governance
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Internal drivers & enablers of
sustainability
The corporate mission, vision and objectives
Existing CSR and/or corporate citizenship
Senior management visionaries
Accountability and performance
management mechanisms
Robust risk management processes
Internal stakeholder demand for
sustainability
The availability of resources, capacity &
capabilities
The formulation of business sustainability
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Benefits of sustainability
Compliance
Reputational benefits
Brand proposition, differentiation &
competitive advantage
Workforce & supply base commitment
Supply continuity minimisation of failure cost
Cost management & efficiency
Improvement and innovation
Shareholder value
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Conflicts & trade-offs in
sustainability
Social and environmental responsibility
may conflict with economic performance
Cost is generally perceived as an issue
Pressures for quality and compliance may
conflict with cost and sustainable
development
There maybe need to realign business
processes
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Objectives of sustainable
procurement
To support and demonstrate an organization-
wide commitment
To promote sustainable issues throughout the
supply network
To comply with sustainability legislation
To define the potential contribution of
procurement
To ensure that sustainability factors are
considered in making procurement decisions
To define how procurement will support and
comply with CSR and sustainability objectives
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A framework for policy
development
Define the vision for sustainable procurement
Identify and prioritize key issues
Identify and define opportunities
Access available resources for improvement
Identify key principles for sustainable
procurement
Identify measurable objectives and targets
Identify roles and responsibilities
Document, launch, deploy and integrate the policy
Establish processes for ongoing management and
review of the policy’s acceptance by stakeholders
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Sustainability issues in SC
Globilisation
Competitive advantage through global
sourcing
Globalization and low-cost country
sourcing
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3-Legged Sustainability Stool
Economic Leg Environmental Leg
Good Jobs No Pollution & Waste
Fair wages Renewable Energy
Security Conservation
Infrastructure Restoration
Fair Trade
Social Leg
Working conditions
Health services
Education services
Community & Culture
Social justice
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Sustainability issues in SC
ECONOMIC ISSUES SOCIAL ISSUES ENVIRONMENTAL
ISSUES
Job creation Creating a diverse base of Emissions to air
competitive suppliers
Achieving VFM Fair employment practices Releases to water and land
Supporting SMEs Promoting workforce Sustainable use of resources
welfare
Reducing barriers to entry Supporting skilling and Energy and water
development conservation and mgt
Ensuring business viability to Community benefits Minimization of waste and
provide stable employment by-products
Ensuring supplier Fair trade and ethical Minimization of impacts (e.g.
agreements are competitive sourcing practices vibrations)
and fair
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Role of responsible purchasers
Language barriers • Be sensitive to language issues
• Seeks feedback & check
understanding
• Check that supplier understands
obejectives
Cultural factors • Learn about cross cultural issues
• Invest time in knowing suppliers
• Promote and enforce ethical
sustainability standards
• Use understanding
Labours standards • Assess whether minimum labour
standards are in place
• Work with suppliers who value workers
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Read Further on
Business Ethics and Purchasing Ethics
Corporate Social Responsibility
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