Analysis of Sustainable Supply and Procurement in Business Development

This report delves into the critical role of sustainable supply and procurement in modern business, emphasizing its impact on company development and growth. It begins with an introduction to the concept of sustainability and its increasing importance, followed by global and national data relevant to the topic. The report then provides an overview of two leading companies, Marks & Spencer and Unilever, analyzing their sustainable purchasing practices, manufacturing processes, and product delivery methods. The performance of both companies is evaluated, with specific recommendations offered to enhance their sustainability efforts. The report highlights the importance of ethical practices, technological innovation, and stakeholder involvement in achieving sustainable supply chain goals. It also addresses challenges such as cost increases, cultural shifts, and environmental impact, concluding with a call for comprehensive understanding and proactive measures to promote sustainable business practices. The report underscores the need for companies to prioritize environmental and social responsibility to build a positive brand image and maintain a competitive edge.

SUSTAINABLE SUPPLY
AND PROCUREMENT
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Fact sheet ........................................................................................................................................3
Presentation of global and national data in the respect of given topic.........................................3
Overview of two companies with comparing their performance.................................................4
Evaluating the performance of companies and giving appropriate recommendations................7
Conclusion.......................................................................................................................................8
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INTRODUCTION
In today's competitive world, it is essential for organization to perform their practices in a
legal and ethical manner in order to gain success in business. Now days, the level of general
awareness has been increasing rapidly that influence the customers to get connected with
company which adopts the method of sustainability and environment friendly (Walker and Jones,
2012). In the modern era, suitability has been become one of the crucial criteria for the
judgement of industries and businesses. By considering this approach, organization can develop
their brand image among public as well as enhance their reputation.
Due to this aspect, the present report is focused on describing the impact of sustainable
supply and procurement on the development and growth of business. Along with this, it includes
description about the performance of two companies regarding the sustainable purchasing of raw
materials, manufacturing processes and delivering of products. For better understanding of this
report, Marks & Spencer and Unilever have been taken into consideration.
FACT SHEET
Presentation of global and national data in the respect of given topic
In order to gain success in this competitive world, it is mostly required for commercial
entity to adopt the concept of sustainability in their business practices because modern customers
are more aware about the safety and welfare of environment, society and human beings (Attaran
and Attaran, 2007). Due to this aspect, sustainable supply and procurement is necessary for the
organization to perform their business activities in a legal manner. Sustainable supply of
products and purchasing of raw materials is beneficial for the business entity to achieve its goals
and objectives. Along with that, it is helpful for customers by getting better quality of products.
In accordance to the concept of sustainability, management of company needs to focus on the
following factors such as economic, environmental and social at the time of buying and selling
products and services (Wagner and Svensson, 2010). Along with this, it is required for them to
consider the quality, quantity and price of goods and services which will be served to customers.
By considering the sustainable procurement, organization will be able to conduct better
relationship with suppliers in national and international level (De Brito, Carbone and Blanquart,
2008). In the global market, contract negotiation must be ethical in order to perform supply and
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procurement in a better way. As per the recent scenario, there are so many chances of fraud,
human trafficking, child labour, modern-day slavery and corruption. These all criminal offences
must be eliminated by the management of company for making their business legal and
sustainable (Khan, Christopher and Burnes, 2008). Along with this, it is needed for organization
to consider the following activities such as cost effectiveness, collaborative waste reduction and
environment friendly solutions for service and production problems as well as for the
environmental sound innovation.
In accordance the view points of Abbasi and Nilsson (2012), fulfilling the requirements
of customers is one of the major objectives of sustainable supply which can be achieved by
rendering better quality of products and services at the reasonable price. As per the study of
Walker and Brammer, 2009, it has been observed that there are following major issues in the
sustainable supply which are related to cost increase, challenging cultures and mindset,
operational of sustainable development, barriers in management and control of trade offs and
uncertainties etc. Availability of these challenges leads to decrease the effectiveness of
sustainable supply and procurement (Challenges in sustainable supply and procurement, 2015).
In the modern era, import and export in between countries have been increasing
continuously which is focused on enhancing the level of transportation. Transportation is the
major cause for enhancement in pollution which may have negative impact on the safety and
welfare of environment (Berry and McCarthy, 2011). Other than this, the wastage extracted from
industries also put their huge impact on the hygiene of environment. For ensuring the safety of
environment, organization needs to adopt the innovative method and technology along with
using the sustainable fuel, chemicals and other minerals.
Overview of two companies with comparing their performance
Marks & Spencer
Marks & Spencer is one of the leading multinational British companies which operates in
retail market and is headquartered in London. Main aim of this organization is to deliver high
quality of sustainable products to its customers such as home products, clothing and luxury food
products (Wagner and Svensson, 2010). In order to maintain the sustainability in their business
practices, management of company is focused on adopting new and innovative technology on
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regular basis. Availability of technology innovation is the best advantage for company to attract
more number of customers by enhancing their quality of services in an effectual manner.
In order to render benefits to society and environment, Plan A has been launched by the
management of company. Main aim of this plan is to enhance the number of jobs for thousands
of people by increasing their number of stores, programmes, customers and products. Working
with Plan A is one of the major steps of company to make their success more ethical and
sustainable (Sustainable practices adopted by Marks & Spencer, 2015). The plan includes three
international challenges such as raising pressure on our planet's limited resources, increment in
social inequality as well as demand of healthier and sustainable lifestyles. Adopting plan A was
one of the big opportunities for organization by which its brand image and number of customers
have been increased.
Marks & Spencer is focused on rendering the sustainable products to its customers.
Therefore, it purchases products from the producers that adopt the sustainable method and
growing standard at the time of production. The impact of palm oil on tropical forests is firstly
recognized by this organization which is the main example of sustainable practices that are
adopted by the management of company (Nikoloyuk, Burns and de Man, 2010). With producing
sustainable products, organization always focus to donate the available unsold food products to
the communities with the help of its charitable partners such as food cycle, fare share,
neighbourly and company shop. With the help of donation, business entity can deal effectively
with food poverty by fulfilling the food needs of poor people.
In order to get better clothing products, Marks & Spencer helps the farmers of India to
develop appropriate ways for producing cotton by using less pesticides and water. Availability of
fewer pesticides is beneficial for the health of community of cotton farming and for the safety of
environment (Walker and Brammer, 2009). Due to this aspect, better cotton initiatives (BCI) and
WWF techniques have been suggested to cotton farmers by which 70% of company's cotton
comes from the sustainable sources. Furthermore, business entity is planning to decrease the
volume of food wastage by 20% by 2020.
Unilever
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Unilever is one of the leading British multinational Companies headquartered in
Netherlands, Rotterdam, United Kingdom and London. This organization deals in consumer
products such as cosmetics, beverages, food and cleaning agents and works with around 190
countries in all over the world. In accordance to the total revenue, it got third rank among the
world's largest consumer goods companies (Berry and McCarthy, 2011). It is one of the oldest
firms in consumer goods which is focused on rendering better quality of products to its
customers by considering the methods of sustainability.
With providing better services, organization is focused on developing innovative
practices for the welfare of communities and for creating their brighter future. Along with this, it
always tries to meet people's desires by enhancing the availability of more sustainable products.
In accordance with the sustainable plan of Unilever, its aim is to achieve the vision of company
related to decrease its environmental footprint and to enhance its positive impact on society
(Khan, Christopher and Burnes, 2008). In order to create sustainable supply and procurement,
management of company is focused on developing better partnership with other businesses,
suppliers, society and government. With the help of expanding businesses through partnership, it
is beneficial for the growth of both company and communities.
For reducing the impact of business on environment, there are some performance
objectives that have been designed by the management of company. These are mentioned below
as:
 The main objective of organization is to deal effectively with climate changes by
eliminating the chances of deforestation.
 Maintaining the development of agriculture and growth of farmers in a sustainable
manner.
 Focusing on the welfare of consumers through using fewer energy, less water and by
including the concept of recycling in its production (Practices adopted by Unilever to
reduce the impact of business on environment, 2015).
 Adopting the methods of ozone-friendly and eco-friendly in production and distribution
of products.
 Promoting public policy at the time of tackling the changes of climate.
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Due to availability of these performance objectives, there are following changes that
came into the performance of business entity in the recent years. These changes are as follows:
 Using of sustainable sources for getting agriculture raw materials has been increased
from 14% to 55% in between the year from 2010 to 2014.
 Consuming quantity of water in consumer products has been decreased by 2% from 2010
to 2014.
 From 2010 to 2014, green house gas emission of Unilever products has been enhanced by
4% (Plambeck, 2012).
 Availability of wastage with the disposal of goods has been reduced by 12% at the end of
2014.
 From 2008 to recent year, Co2 emission extracted from energy has been decreased by
37% and water abstraction in manufacturing process has been reduced by 32%.
 Since 2008, the cost of company has been avoided by €400 million (Smith, 2008).
Evaluating the performance of companies and giving appropriate recommendations
In accordance with the plan A, Marks & Spencer is focusing on enhancing the knowledge
of farmers regarding better ways of cotton farming through using less pesticides and less water
for reducing the agriculture impact on environment (Marks & Spencer Plan A, 2015). With
suggesting better ways, it is also required for the management of company to render proper
training to them in order to deal effectively with environment safety and climate changes. In
order to enhance the success chances of plan A, management of company needs to involve the
stakeholders in their planning process by which they can get better suggestions and ideas for
them.
On the other hand, it is necessary for the management of Unilever to set their
performance objectives in such a manner which must be realistic, feasible, time bound, specific
and attentive (Practices adopted by Unilever to reduce the impact of business on environment,
2015). These objectives must be measured by company after a fixed period of time. By
evaluating, organization can understand the availability of loopholes that exist in their
performance. In accordance to my observation, both companies are performing their supply and
procurement practices in more sustainable manner. But there are some recommendations for
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them that can be used at the time of performing their purchasing and supplying activities. Due to
aspect of sustainability, it is mostly needed for company to maintain their quality of services by
adopting better technology as per the recent trends. With maintaining quality, it is also required
to set reasonable prices for delivering products to customers in an ethical manner.
According to my perception, there must be comprehensive understanding of the impact of
sustainability on business. Better enhancement of sustainability in business practices leads to
enhance the reputation of company among general public. In the earlier stage of sustainable
supply, there must be non-availability of corruption and bribery at the time of developing
relationship with suppliers, partners and government. Along with this, discrimination should be
avoided at the time of delivering products and services. Further, management of company needs
to follow the laws and regulations of government regarding supply and procurement. By
considering the regulation of UK government, it is needed for both companies to consider the
principles of globally recognized standard named BS 8903:2010. This standard is focused on
assisting the management of organization in their sustainable procurement and supply of
products.
In order to improve sustainability and for adopting other changes throughout the supply
chain, transferring knowledge and information across the whole supply chain is an effective way.
In order to exchange knowledge, management can use the methods of conferences, online
training, capacity building campaigns and case studies.
CONCLUSION
In accordance to the above study, it can be concluded that sustainability is one of the crucial
aspects of business development which is focused on conducting business practices in a legal and
ethical manner. Adopting the concept of sustainability is beneficial for business entity by
maintaining strong relationship with customers, employees, suppliers, partners and government.
As per the recent scenario, sustainable supply and procurement is necessary for commercial
entity to gain competitive advantage along with developing their positive image in the
population. By considering the aspect of sustainability, organization can maintain their quality of
products and services which is the key factor for success of business.
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REFERENCES
Books and journals
Abbasi, M. and Nilsson, F., 2012. Themes and challenges in making supply chains
environmentally sustainable. Supply Chain Management: An International Journal. Vol.
17(5). pp. 517-530.
Attaran, M. and Attaran, S., 2007. Collaborative supply chain management: the most promising
practice for building efficient and sustainable supply chains. Business Process
Management Journal. 13(3). pp. 390-404.
Berry, C. and McCarthy, S., 2011. Guide to sustainable procurement in construction. London:
CIRIA.
De Brito, M. P., Carbone, V. and Blanquart, C. M., 2008. Towards a sustainable fashion retail
supply chain in Europe: Organisation and performance. International Journal of
Production Economics. 114(2). pp. 534-553.
Khan, O., Christopher, M. and Burnes, B., 2008. The impact of product design on supply chain
risk: a case study. International Journal of Physical Distribution & Logistics
Management. 38(5). pp. 412-432.
Nikoloyuk, J., Burns, T. R. and de Man, R., 2010. The promise and limitations of partnered
governance: The case of sustainable palm oil. Corporate Governance: The international
journal of business in society. 10(1). pp. 59-72.
Plambeck, E. L., 2012. Reducing greenhouse gas emissions through operations and supply chain
management. Energy Economics. 34. pp. S64-S74.
Smith, B. G., 2008. Developing sustainable food supply chains. Philosophical Transactions of
the Royal Society B: Biological Sciences. 363(1492). pp. 849-861.
Wagner, B. and Svensson, G., 2010. Sustainable supply chain practices: research propositions for
the future. International Journal of Logistics Economics and Globalisation. 2(2). pp.
176-186.
Walker, H. and Brammer, S., 2009. Sustainable procurement in the United Kingdom public
sector. Supply Chain Management: An International Journal. 14(2). pp. 128-137.
Walker, H. and Jones, N., 2012. Sustainable supply chain management across the UK private
sector. Supply Chain Management: An International Journal. 17(1). pp. 15-28.
Online
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Challenges in sustainable supply and procurement. 2015. [Pdf]. Available through:
<http://www.diva-portal.org/smash/get/diva2:690851/FULLTEXT01.pdf>. [Accessed
on 13 October 2015].
Practices adopted by Unilever to reduce the impact of business on environment. 2015. [Online].
Available through: <http://www.unilever.com/sustainability/>. [Accessed on 13
October 2015].
Sustainable practices adopted by Marks & Spencer. 2015. [Online]. Available through:
<http://corporate.marksandspencer.com/>. [Accessed on 13 October 2015].
Marks & Spencer Plan A. 2015. [Online]. Available through:
<http://corporate.marksandspencer.com/plan-a/>. [Accessed on 13 October 2015].
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