Sustainable Procurement And Sustainable Supply Chain Management: Literature Review
Essence of sustainability has grown to a large extent during the last ten twenty years. It is no more a new approach but in fact it is a wide spread concept that is having plenty of dimensions. Efficient strategies are adopted by organizations so that they can meet the requirement of today and tomorrow (Ciegis & Ramanauskiene2, 2009). Sustainability procurement and sustainable supply chain management are listed among the sustainability approaches that are applied in the industries today. There is a need to adopt policies and strategies in the industries that have the concept of sustainability development. In this way the industrial and economic sector can lead the economy to the phase of growth and development. Many developed nations of the world especially UK have incorporated sustainability policies in every department so that every sector can contribute to sustain future (M. Porter, 1995). This review of literature sums the perspectives of different authors regarding two approaches or dimensions of sustainability. Both of these are helpful for the industrialist of public and private sector to maximize their profits keeping the sustain future of not only themselves but also economy and environment. These can help the business organizations to improve their systems and tackle down the risk factor that may exist in the industry or business organization (Lele, 1991).
Sustainability procurement is a wide spread phenomenon that is present in many companies and industries around the globe. It is basically a way in which acquiring commodities are brought into account of different impact on individuals around. The impact may be socialistic, economic and environmental. All these three are interlinked with each other. Economically the quality and price of a good or service has impact on people (CHIN, 2014). One can expand the concept and indicate it as a way of blending the effect of social, economic and environmental influence in the procurement. This may be of public sector or private sector. Basically the concept of sustainability is not new. Many societies and communities have adapted it into their lives to secure future with the fulfillment of today’s needs. To know about sustainability procurement one needs to know the concept of sustainability that can only be attained by setting the goals for betterment of communities and nature (Neto, 2009).
Mostly the sustainability concept is important in economics study. Companies and industries try to adopt sustainability strategy so that they can secure present and future along with attainment of profits (Kuhlman, 2010). Now a day’s world has become more of an industrialized one. Sustainability procurement is playing a key role in expansion of organizations and industries. Public and private sector organization are using sustainability procurement not only for themselves but also for their consumers (Group, 2014).
Sustainability procurement can help the industry or organization to reach the level of satisfaction of commodities so that they can achieve profits in a way that it is not only beneficial to the organization but also to the world around. People refer it a way through which not only profits are generated but also sustainability concept is emerged in the industry or organization (Maloe Bosch, 2012). Although it seems easy but the process of sustainability procurement is far complicated. As there is an aim while applying this strategy that less or no harm is to be done to things around especially the nature (Jones, 2010).
The growing completion of the world market is making it pretty difficult to maintain the pace or temperament of the organization. The emerging of private sector has also increased the thrust of the preexisting industries. So efficient sustainability procurement is required for the industry to work through and maintain the customer ship (M.Kalubanga, 2012). Study of Walker (H.Walker.S, 2009)has shown that private sector is more influenced by sustainability procurement. Private industries are more focused as they are more indulged in profit attainment and the public sector main thing is the welfare of community. So the private industries work on procurement to avoid the risk factor and increase their compatibility for a sustain space in future market. Along with this they have to keep the environment less effected due to them as this is the key aim of sustainability procurement.
Policies and strategies of the developed nations have incorporated methodologies that help in maximizing profits along with benefits to the customers. Many developed countries have adopted sustainability procurement among which United Kingdom is a prominent nation. Every sector in UK sustainability techniques are adopted. The working sector, public or private, sustainability procurement perspectives is adopted to reach the level they aim (Halcrow, 2008) .
In this way UK is able to give a quality of sustain life to the economy. The UK organizations have used sustainability procurement framework to gain persistent continuing growth (j.Teal, 2005). Due to strong position people rely on UK industries. It can be avoided if the industries adopt sustainability procurement into them. This leads to the development phase. UK chartered companies have provided framework to different industries that can help in application of sustainability principles. They have outlined the mechanism that can help in identification of criteria that result in profit making along with beneficial to society and environment (Preuss, 2009).
. The relationship between the business industry and shareholders should be healthy. Involving them in sustainable initiatives taken by industry is important. The problems that may arise can be sort out easily with collaboration of shareholders and other people involved directly and indirectly in the industry. Sustainable procurement takes together the aims of industry along with taking three dimensions of sustainability together.(Halcrow, 2008)Industries with procurement are more involved in sustainable performs. The management of the organizations set the goals and aims with involvement of sustainability as a key target to achieve .In every activity involved in their organization sustainability is the main focus. Innovation in the technology used result in decrease in the overall cost of the output. Procurement maintains the supply chain of the company for every individual connected to industry. The shareholders of the industry are also benefited on the long term bases
It may look easy to incorporate sustainable criteria in industry but in reality many technicalities may arise. For sustainability procurement to be implemented in the business industry effective strategies are to be required. A proper management team is maintained to serve sustainability purpose. Corporation among all members is necessary otherwise it remains a barrier. Financial setup is important as sustainable approach require it on big scale. Lack of funds can become hurdle in the setup. If the main heads of industry having root concerns with sustain future of industry and indulge the workforce in procurement only then the main essence of sustainability procurement can be attained (Stephen Brammer, 2011).
Government should take initiative to incorporate sustainability procurement within the stratagem that is presented for business industries and organization of both the sectors. The step on large scale can result to be more fruitful and expand the dimension of sustainability procurement. The interest of private sector has also increased that makes sustainability procurement currently spread phenomena especially in European nation’s industries setup. New perspectives are brought into the dimension to remove the gap that may exist (Thomas E, 2012).
With the development and competition in every sector the supplier and the consumers are very particular in choices and it is necessary to fuse sustainability into the supply chain in industries for long term profits. As mentioned above that sustainability has different dimensions so another approach out of sustainability is the sustainable supply chain management. For achievement of goals economic social and environment factors are to be kept in mind. For the industries to flourish proper allocation of resources is to be managed. As the world is growing so fast especially the world market, it is necessary to have long term initiatives are required. The competition has grown to a large extent and the industries are working on changing the outline of supply chain (Carter, 2008). Supply chain management is doing the task in assisting sustainability in business organizations and industries. This is not easy as it sounds. It takes loads of effort and effective planning to get the two things go together. Schemes and procedure are created so that supply chains get tingled along sustainability (Choit.Y, 2013).
Supply chain management is basically a way that induces the industry to work keeping the customers wants in mind. The work force needs to break the pressure and work with zest to maintain the consumers’ taste they have for the industry products. With all the work and competition pressure the business industry needs to give vital importance to the social and environmental factor. These factor constitute the sustainability in the supply chain and the life of industry gets on the long term scale (Holt, 2005) .
Many definitions of sustainability in supply chain management were presented over time. All summed the idea that corporation of sustainability in supply chain management can result to be back bone of long term benefits to the organization. Industries now a day consider it essential to mingle the important criteria of sustainability into the supply chain management. Originally the concept of sustainability in supply chain management started in 1997. It was said that supply chain management should have the three factors of sustainability. That will be fruitful for not only the industry but also for the customers (Vishal Gupta, 2013).
The magnitude of accomplishment in supply chain management is not judged by the profit attained. In fact it is judged by the impact it had on the social system (Jenning, 1995). Searcy gave the important notion that explains the collective effort of worker to gain sustain future of industry or organization (Searcy, 2013). Definition by Muller expanded the economic factor linked with supply management. All the three factor of sustainability are important to get together with the supply chain in the industry. When the work of Muller got into papers, the concept of sustainability supply chain management got much highlighted. It was helpful for the industries, especially for the newly formed industries (Seuring, 2008). So this means that sustainability supply chain management is a two way interpretation. Firstly what matters is the growth and development of industry. And second point to matter is the betterment not only socially but also on environment level (Pagell, 2009).
When long term things are visualized risk is the most occurring factor that can simply be not ignored. There occur so many fluctuations that proper and effective sustainable strategies are required. The risks in the sustainable supply chain management are not only economical but also social and environment sector related (Louis, 2011). The risks related to economic factor may be the cost that is to be covered for the production and other industry development cost for long term life of industry. Talking of environmental risk, the impact the industry may cause to the natural habitat comes into its account. An industry may contribute to the damage to the nearby area like river where it may pollute by its waste. This will emerge as a risk on long term bases (Martin Christopher, 2005).
Along with these risk uncertainty factor is also present that can effect negatively on supply chain. All these risk can appear to be barrier in the development of business industry. Due to this convolution appears in supply chain management. All these risks are inter related and need to be minimized so that industry remains sustained. Systematic strategies are required to overcome these risk and difficulties. The triple bottom line concept that depicts that three goals of sustainability that are social, economic and environmental, can help the industry or organization from multi point of view (Elkington, 1998). This turnout profitable not only for organization but also for the society. Many researchers have taken forward this perspective and incorporated Triple Bottom line in their systems. This can explain how much the industry is giving out and contributing positively to the society and environment. Different models are also formulated on the basic criteria of triple bottom line. This improves the situation of sustainability in organization and also increases sustainability activities in communities.
Profits earned throughout the time annually or quarterly can depict how much growth occurred in industry and that can define what can be done for sustainability in the supply chain dimension (Abbasi, 2012). Innovational steps in sustainability strategies can be helpful in supply chain. Betterment in technology can reduce excessive cost that had to be bared by the industry. Pollution to a great extent is controlled due to innovation in technology used in industrial sector. The supply chain utilizes the innovated means of technology for beneficial output. It is important to do innovation in social and economic sector. This leads to sustainable development in the supply chain. Involving the three factors of sustainability can actually help in supply chain in an effective manner. Incorporating experienced is necessary as the risk can be estimated easily this way. Policies adopted by nations like UK, Spain etc. can be brought into account for profitable output from industries. Proper diffusing of the worthless scrap and environmental friendly mechanism can act to be solution to many problems (Power, 2007).
The acts of the industry should be appealing for the customers. Positively contributing to natural habitat is step to development to sustainability sector. Due to planned sustainable supply chain the price of outputs can decrease to an extent that is beneficial to the industry on long term bases. Appropriate management plays a role in proper utilizing of raw material and generates output. Innovation in technology that is used in manufacturing can decrease the cost and time. Both public and private sector commodities can be produces keeping these small things into account so that socially and economically every person is benefitted.
Now a day more focus is diverted to green ecology. Government and organizations are presenting criteria to save nature and also get some profitable for the future. Sustainability procurement and supply chain management both are contributing in sustenance of environment along with effort in social sector (Sarki., 2007). Policy makers are creating policies that are putting part of green sustainability with in economic goals. Strategies to avoid or in some way decrease pollution are brought into light. These are not only followed by public sector but also in private sector. In this way the economy leads to sustained future. In the competitive world of today there are occurring so many innovations and researches that bring more and more of pressure between the industries in world market (Srivastava, 2008).
Many studies are still conducted that are working to remove the limitations and the gap that exist between the studies regarding sustainability. Every industry is taking steps and adopting policies and strategies of well-developed industries. Preferences of customers are taken as priority by the industries. Reduction in cost and innovation in means of production gets the track of industry towards sustainability. Government and the management of industrial sector try to make the efforts to save the nature and reduce the issues that involve environment. Controlling of environment related problems removes economic barriers to a great extent and also over comes social problems.
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