The concept of meeting and fulfilling the needs and requirements of the business corporations in terms of materials, goods, utilities, and services required for operating the business and that too in an environmental-friendly, ethical and responsible way. The business firms that are dedicated towards the process of sustainable procurement are trying to develop effective and economical long-term decisions that will be proven advantageous for the entity, customers, clients, communities and the environment. The term sustainable procurement can simply define as the adoption and integration of CSR (corporate social responsibility) principles in the procurement process and decisions and side by side ensuring that they are also fulfilling the requirements of the enterprise and its stakeholders. This process makes integration of stipulations, needs, and criteria that are well-matched with the prevention of the environment and the society. Moreover, commitments in sustainable procurement ensure values that are one of the core elements for any of the business entity and these are integrated through the firm’s supply chain into the lifecycle of the products and services. There are some core drivers of the process of sustainable procurement and that are cost reduction, risk reduction and revenue growth The below-executed analysis has been summarized in the process of sustainable procurement for The Super-soft Corporation. The main objective of the report is the development of a sustainable procurement policy for the business entity for improving the performance of the business firm. The business entity is one of the world’s largest software companies and has developed a sustainable procurement policy and further needs help for the below-mentioned questions.
A sustainable purchasing policy of an organization comprises of USP’s which a company uses so as to work long term in a market, where it is operating. It is very important for every organization to stand out of a competitive market where there are a lot of chances of getting pirated. Likewise, Supersoft corporation despite being one of the best company in software technology works very exclusively on its sustainability purchasing policy so that its customer is retained for a long period of time. It provides services to its customer in such a way that the authenticity and reliability are maintained for the lifetime as a service to its customers. The organization works on some really incorporated ethics where its employees also follow the suit. The entity not only provides best services but also works on it’s after sale services where it gives complete adverse services of client secrecy and software’s are kept up to date so as to retain the customers for a longer period of time. Eventually, the company is making growth a part of its lifetime process where it is trying to keep some things unchanged so that its further customers are long-term manageable and existing consumers are satisfied with proper services.
The purchasing sustainability policy also works upon the strategy which a company makes in order to remain different from its customers. It also registers it legally so as t provide its exclusive branded services to its customer which is reliable and there is no substitute for it in the market. This is just like standing out of the crowd by your some qualities which no one else has. Every business entity has some of the other quality by which it attracts its customers likewise, Super Soft Corporation has its sustainability purchasing policy. This policy helps the company to have a unique identity to have its own monopolistic existence in the market.
Henceforth, this policy plays a very important part when it comes to growth and vulnerability of company to work long term in a market. The company for its long-term legacy maintains it so that it works in the market for a very long time as well as outgrows the field of software and technologies. The business entity has its own goals and scope for the policies and standards it has set for the employees and the services it provides. So, it is working upon these formal terms in the world of business where it is important to have sustainability purchasing policy to have a firm set of rules for the products it offers to the public as a whole for the existing as well as the upcoming customers.
Every business is operating in a dynamic structure where the competition is rising on its edge so there have to be certain standards which help to maintain the uniqueness of the operation a company is working upon. This helps to retain the customers for a longer period of time as there is no other substitute for the services it is providing in the market.
In the present era, the concept of sustainable procurement has been considered as one of the high profile matter for the business corporations. There is the varied range of benefits that can be experienced by a business firm such as saving or decline in expenses, reduction in wastes, improve competitiveness and develop the reputation of the firm. For instance, as a part of the sustainability programs, the super-soft corporation can make investments in providing transportation services and also provide jobs and by sourcing supplies locally aid in developing the economy. The term sustainability procurement has been considered as a good business practice. Lack of awareness is observed as one of the major challenges both in terms of procedures and outcomes. The increasing need for this concept is clear as the present era is more focused towards the organizational reputation and growing importance of the same and also instant communication means data around such practice is readily available.
The business entity cannot make the implementation of a sustainable strategy over-night and there are number of activities and implementation of the same will be providing number of benefits to the business corporation such as consolidation of suppliers for reduction of the orders and hence deliveries, and replacement in the paper-based payments processes, print and stationery expenses and more streamlined processes. These are some of the reasons due to which the super-soft corporation is required to make adoption of this process. Moreover, there are some of the specific reasons or benefits that can be attained by the business entity after making implementation of this procurement process:
On the basis of the above-presented benefits of sustainable procurement attained by the super-soft corporation, it has been analyzed that the process is an integral of the organization and also contributes in the success and prosperity by aiding the firm in various business practices. And hence there is a need for the development of sustainable policy in the business firm. The below is the description of the process of the development of the procurement policy for the super-soft corporation:
Development of a sustainable purchasing policy for the business organization is the initial step to aid ensuring that is sustainability is entrenched in the process of procurement. A sustainable policy signals buy-in at the highest level of organization and also communicates its ambition and intentions. This also provides some clear and mandatory actions by the budget holders. There is number of benefits of developing or establishing a procurement policy and the process for the same has been presented below:
Attaining the maximum level of success of implementing any of the business processes and procedures will require sponsorship and commitment from the senior authorities and sustainable procurement process are same. And by making adoption of strategic approach the procurement section in the organization can aid in aligning the resources for generating the greatest return on investment. The below presented are the 5 aspects that are required to be considered for the development of an effective policy:
The below-mentioned business practices are required to be adopted by the super-soft corporation:
Senior or management authorities are considered as an integral part and their commitment is just so as to ensure the same they must be involved from the initial stage. And also the team should ensure that the policy documents should be reviewed, approved and signed properly.
Identifications of the potential and capable individuals within the business corporation should be done so for implanting sustainability and for the procurement process. This should also comprise of designing and developing a team of individuals that should include procurement experts and professionals. Provision of sufficient time and support should be should be done while allocating the task so as to ensure the completion of the obligations effectively. Moreover, identification of the internal sustainable procurement training requirements should be done in order to enhance the capability of procurement teams.
There is number of aspects on which analysis is required to be done and the same are described as follows:
The policy should be developed and designed in such a manner that it should be able to depict and reflect the values of the business corporation and should also be able to provide commitment to continual commitment. It should also be ensured that the policy should operate effectively and does not oppose the other policies of the organization. Regular monitoring and audit should be executed over the existing practices and mechanisms for identifying the areas of good and ethical business practices and areas for further advancements. Suppliers are considered as the empirical components as they provide required resources for operating the business and hence the super-soft corporation should make the regular evaluation of the existing suppliers. Moreover, the determination of the social, environmental and economic impacts of the products and services offered by the business firm should be done. For instance, the super-soft corporation can conduct a risk assessment looking at the likelihood of the impact and severity of the expenses made on the development of the systems. And also the reputational, strategic and operational insinuations should be considered as significant.
Establishing objectives has been considered as one of the base steps for any of the project. The objectives provide directions to the efforts made by the workforce. The objectives are the milestones or the targets that are determined so as to attain and generate desired revenues. For instance, the super-soft corporation can develop and establish the objective of adopting paper-less documentation policy so as to eliminate the wastage. And the next is the development of KPI’s for measuring the success of the policy. The performance indications will enable the business firm with the current position of the entity and that will aid in the development of strategies for assisting the procurement policy.
This stage has been considered as the last and one of the integral stages in the development of the procurement policy. The policy and all the associated aspects and terms are required to be communicated to the staff. The procurement development team should make sure that the policy is practical and accessible to all the staff. Transparency should be maintained regarding the terms and components of the policy and the same should be shared with all the stakeholders and with the staff of the organization. The policy should also be able in providing a clear statement of the intent regarding the corporation’s current position on procurement and sustainability. The communication process between the origination and the stakeholders should be very clear and consistent. Moreover, the business entity can aid them-selves in adopting sustainable sourcing strategies by engaging and working with the supply chain. This will be enhancing the effectiveness of the policy and will also ensure the success for long-run.
Measuring the effectiveness of any of the process or policy is one of the crucial and integral tasks for the business corporation as it will depict the current status of the operations executed and also the current position of the corporation. And for doing so the super-soft corporation can make adoption of various approaches to measuring the effectiveness of sustainable procurement policy. One of the best mechanisms for measuring performance is the adoption of KPI’s (knowledge performance indicator).
Procurement KPI is recognized as the management tools that are developed and designed for monitoring the performance of the procurement department and also aid them in attaining the desired strategies, targets and objectives. On the basis of the research, it has been inferred that the KPI’s will be proven beneficial for the business firm in analyzing the effectiveness of the procurement policy. The primary goal of the procurement policy within an organization is maintaining procurement sustainable and constantly searching for the methods of advancing and improving the procurement processes. And here the KPI’s will assist the entity towards a direction that will bring improvements in the performance levels, will make identification of breakdowns in processes, and also considered as the constant drivers of improvements for efficient and sustainable procurement processes.
Characteristics of KPI’s
The below mentioned are the characteristics that are required to be considered as a significant part of the process as the organization should be aware of the KPI’s that will be adopted by the firm:
The KPI’s developed for measuring the performance should be relevant to the business or the procurement department.
KPI should not only about collecting the data
A process of establishing KPI’s
The first step of establishing the KPI’s is figuring out what are the requirements of the stakeholders and the strategies of the business entity and the targets for future Searching for the ways through which the procurement department can aid in attaining them and look for the metrics that will disclose the progress towards the accomplishment of the determined goals.
Groups of KPI’s
The goals of KPI can be segmented into three major sections according to their purpose that is the receive savings increase quality and advancing delivery. All the mentioned groups are closely connected. The below presented are the KPI’s that can be considered in the company.
Quality KPI’s
Delivery KPI’s
Cost saving KPI’s
Conclusion
In the limelight of the above-executed analysis, it has been executed that the process of sustainable procurement has been recognized as the process of accomplishing the requirements of the business corporation. These needs can comprise of the materials, goods, and services and attainment of these needs should be done in an environmental-friendly, responsible and ethical manner. The above-presented report has been focused on the development of sustainable procurement policy for the super-soft corporation. The business entity is involved in developing and designing software programs and is also recognized as one of the world’s largest software company. After analyzing the above-presented report it has been concluded that the process of sustainable procurement policy will be proven beneficial for the entity as it will bring the reduction in waste and for the entity, customers, clients, communities and the environment. The report is focused on the development of the sustainable procurement policy and the process that is made concerned about the integration of stipulations, needs, and criteria that are well-matched with the prevention of the environment and the society. The task also comprises of the process for development of the procurement policy for the super-soft corporation. Furthermore, the report also comprises of the reasons for establishing the procurement policy for the business organization. And at last the measurement of the effectiveness of the developed policy has been done and for which KPI’s have been used.
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