Sustainable good standards
Procurement is essentially how you manage the flow of goods and services among internal and external customers. The challenge is to be sure that procurement doesn‘t drain your business and some of the best standards include:
1. Improve the way you buy i.e. manage your acquisitions systematically through a clear administrative process that outlines the rules of buying.
2. Conduct a spend analysis. Have a detailed review of how you spend for the effective procurement. Ensure to look at all factors that affect price such as cost of raw materials, inventory costs, taxes, transport expenses (inbound & outbound), supplier charges,
payment terms and 3rd party cost.
3. Conduct a demand analysis i.e. that means that you will need to not only focus on costs but also quantity. Why stock items on inventory that you are not going to use for the next 6 month.
4. Reduce supply complexity by buying standard parts, goods and services. Establish strategic partnership with fewer suppliers. Your supply partners should be able to appreciate and value your business and be more flexible when it comes to adapting your
5. Evaluate your suppliers
6. Train your employees on procurement
7. Invest in technology
Sustainable good policies
The policies are meant to ensure however implement our environmental policies when processing work, goods and services. Supplier requires full consideration of environmental economic and social impact as well as financial and performance implications of procurement. Some principles/policies may include:
1. Best value
2. Legal implications- award of procurement must be non-discriminatory.
3. Environmental standards- consider the whole life and environmental impact of the product.
4. Reduce greenhouse gas emissions- explore opportunities for local sourcing of materials and use energy efficient goods.
5. Corporate Social Responsibility- this describes a wide range of obligations than an organisation has towards stakeholders. It is the commitment to systematic consideration of the environmental, social and cultural aspects of an organisation‘s operations.