Sustainable Procurement: Supplier Evaluation Criteria, COVID-19 Impact, and Technology Trends

Sustainable Procurement

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
a) Designing a list of supplier evaluation criteria for organization.............................................3
b) Explaining the effects of COVID-19 pandemic on the organization's and rise in the new
technology supplier selection......................................................................................................6
c) Organizations stakeholder relationships and institutional pressures effect supplier selection
.....................................................................................................................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Sustainable procurement plays a vital role in the company as it is the integration of
principles related to CSR which is in current trend. The CSR is important process used by
company in the processes and systems of procurement. The decisions have been taken by
companies to ensure that they meet the stakeholders needs. The present report will be based on
supplier evaluation criteria and it will provide detailed information about effects of COVID-19
pandemic on the firms' supplier selection. A study will be based on Nestle Nigeria plc which is a
manufacturing firm. Nestle is one of the largest food and beverage firm which provides food and
drinks to satisfy customers.
a) Designing a list of supplier evaluation criteria for organization
As we all know that in last few years the businesses are showing more interest and are
more attracted towards the systems of businesses who are using sustainable practices that can
reduce or eliminate the impact of environmental factors on society. Due to corona virus
pandemic, the suppliers' selection strategies have shifted from inquiries about price to fulfilment.
To be successful, nestle Nigeria plc aims to be a sustainable and eco-friendly company and wants
to be more responsible firm in order to satisfy customers and help to measure climate change and
changing environment trends. According to management team of this company, it is essential to
sign a code of conduct which can improve their sustainability system and eco-friendly practices.
According to Abdirad and Krishnan, (2021) there are majorly two different kinds of
supplier evaluation : performance based evaluations and process based evaluations. A
performance based evaluation is systematic assessment of the actual performance based of
supplier which includes cost and delivery reliability. While on the other side, process evaluation
is an assessment based on actual production service system and production practices which is
done by auditing the site of supplier. With the help of procurement management, the company
Nestle plc will be able to help themselves to evaluate potential suppliers which can enhance
supply chain management. with the help of following supplier evaluation criteria the firm can
find the best suppliers that will fit business needs and requirements.
Clean and communication-
Supplier criteria play an important role for organization as it is attribute that a buying
company values in its arrangement with the business suppliers. Hence, it is said that

sustainability and CSR is one of the major criteria of selecting a supplier to any organization in
the manufacturing industry (Goldsby and Zinn, 2016). The company must focus on commitment
of suppliers towards sustainability and ask them whether they are following laws related to
environment or not. On the communication side, the firm must know about how the suppliers
plans to keep in touch with the company and know about whether the suppliers will be able to
handle communication in the event of financial crisis such as recent crisis – Covid-19 pandemic.
Financial stability and cash
it is essential to look about the financial health of supplier to work effectively with them.
The company should choose an effective supplier along with healthy background having enough
money to work in better way. Hence, it is said that cash positive company's are the one who can
run business smoothly and in a much better way to achieve goals in the any kind of crisis. Nestle
plc show know about what information can the supplier provide in order to demonstrate their
financial health and background.
cost and consistency
The firm should keep track on cost of the services and goods that selected supplier offers
to them. As we all know that cost is the main key factor when choosing and selecting supplier. In
order to run business smoothly for long term the company must know about cost ability to affect
business. On the other side, while choosing supplier, the firm must focus on asking them about
their consistency, risk management to provide high quality products (Yazdani, and et.al., 2017).
They must ask them whether they have a strong track record about industry trends such as
technology approach and innovative methods. Nestle Nigeria plc is focusing on asking about
potential suppliers approaches to work with them in future for long term.
capacity
if company wants to select and finalize supplier they must ensure that suppliers is able to
manage and handle the needs of the business or not. While selecting the supplier, the company
must ask them about their abilities and interest (Muessigmann, von der Gracht and Hartmann,
2020). They should see how rapidly they will be able to answer to the preferences and
requirements of the firm and to market. They should also see whether they are able to respond to
supply fluctuations. In addition to this, the firm must see resources used by suppliers to find out
whether they have the means to meet orders of the firm.