Report: Sustainable Procurement Policy Development for Super-Soft Corp

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This report delves into the realm of sustainable procurement, focusing on its significance for modern businesses, particularly in the context of Super-Soft Corporation, a major software company. The report defines sustainable procurement as the integration of corporate social responsibility (CSR) principles into purchasing decisions, emphasizing environmental responsibility, ethical practices, and long-term value creation for stakeholders. It addresses the 'what, why, and how' of sustainable procurement policies, highlighting the benefits such as cost reduction, risk mitigation, and revenue growth. The report outlines the steps required to establish a sustainable procurement policy, including senior management commitment, team responsibilities, comprehensive analysis, and supplier evaluation. Furthermore, it explores methods for measuring the effectiveness of such policies, ensuring that the company's procurement practices align with its sustainability goals and contribute to its overall business performance. The report emphasizes the importance of a well-defined policy for long-term success and the continuous improvement of procurement processes to meet evolving business needs and societal expectations.
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Sustainable Procurement
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Contents
Introduction......................................................................................................................................3
What is sustainable purchasing policy?...........................................................................................3
Why should we have one?...............................................................................................................4
What do we need to do to establish one?.........................................................................................5
How do we measure its effectiveness?............................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9
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Introduction
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.
What is sustainable purchasing policy?
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
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Sustainable Procurement
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.
Why should we have one?
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
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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:
One of the biggest advantage s that can be attained by the business entity is the
minimization of risk in the business practices of the entity. And this can also consider as
one of the greatest reason due to which the business entity can think of adopting the
process of sustainable procurement. As risk is one of the barriers in the path of the
success and growth.
This concept is concerned with making adoption of approaches for eliminating waste.
The process of sustainable procurement will enable the super-soft corporation in bringing
reduction and elimination of wastes that may affect the environment. And will enable the
business corporation to make compliance with the environmental and social obligations
and legislation. This will be aiding the enterprise in carrying out operations and business
practices in a smooth manner with less government interference.
Less government interference will lead the business entity in developing a reputation in
the market and the goodwill will also be enhanced. Moreover, a good percentage of
goodwill will also aid the business firm in developing a huge pool of loyal clients and
customers and also their perception towards the brand will be positive.
A positive image of the brand will be aiding the business enterprise to make easy
expansions in the new regions and markets.
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Another biggest reason for which the entity can make adoption of this process is that it
eliminates waste and that will improve resource efficiency and optimum utilization of
resources will be done. This all will affect the efficiency and effectiveness of outcomes
and will be bringing an increase in productivity.
What do we need to do to establish one?
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:
This process ensures long-term savings through whole life-cycle expenses
Risk management will be improved
Communication and cooperation with stakeholders, supply chain, and clients. will also
be promoted
Advancing supplier diversity
Also aids and assists the workforce and raise awareness
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:
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The below-mentioned business practices are required to be adopted by the super-soft
corporation:
1. Support and commitment
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.
2. Responsibility
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.
3. Analysis
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
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severity of the expenses made on the development of the systems. And also the
reputational, strategic and operational insinuations should be considered as significant.
4. Objectives and KPI’s
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.
5. Communication and review
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.
How do we measure its effectiveness?
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
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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
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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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