Factor Influencing Sustainable Procurement

Table of Contents

Introduction. 3

Factor influencing sustainable procurement in SME’s in the United Kingdom.. 3

Conclusion. 8

Bibliography. 10

Introduction

The sustainable procurement is known as the meeting of business needs for different types of materials, utilities, goods and services in a responsible, environmental-friendly and ethical way. At the same time, sustainable procurement is known as investment and spending process that has been typically associated with public policy, and it is equally applicable within the private sectors (Meehan & Bryde, 2011). The organizations practising sustainable procurement to meet the needs and not work on own cost-benefit analysis, but it will be responsible for improving the net benefits for themselves as well as the more full world. This essay aims to provide an understanding of the factors which influence sustainable procurement in small and medium enterprises within the United Kingdom. Most of the companies always procure in a sustainable way which looks beyond the short term needs and considers the longer-term impact towards every purchase of the business. It mainly includes a high degree of collaboration as well as engagement between all types of parties in the supply chain.

Factor influencing sustainable procurement in SME’s in the United Kingdom

Sustainable procurement mainly aligns with the objectives and the principle of sustainable development for generating low-cost and eco-friendly products. Most of the organizations within the UK can have a strategically competitive position along with the accurate selection of the performance of suppliers to improve the performance of the buyer. On the other hand, most of the executives within the companies of the UK still feel that sustainability is considered as the cost of the business objectives. The essential factors of sustainable procurement, which make an impact on small and medium enterprises including leadership, measurement and tracking, strong technical expertise, strategic partnership and many more. The process of sustainable procurement within UK SME’s consistent along with the principles of sustainable development for ensuring healthy, strong, try to live within environmental limits and promotion to the excellent governance (Mukherjee, 2019). The analysis of sustainable procurement within SMEs in the UK provides an insight into the progress that made respect to the commitments of the UK government. With the help of this, the intervention, as well as policies, plays an important for the further development of sustainable procurement practices within the United Kingdom. The range of aspect related to sustainable procurement is mainly associated with the overall purchasing of small businesses and their local supplier that is well embedded within the United Kingdom. At the same time, most of the SME’s in the UK are highly responsible for developing the sustainable development procurement guidelines and procedures, when the organization comes to purchase products and services (Brammer & Walker, 2011).

Sustainable procurement mainly takes social and environmental factors into consideration and financial factors responsible for making procurement decisions. It primarily involves beyond the parameters of traditional economic and tries to make the decisions that are based on the cost of the whole life of the business, associated risks, try to measure success and implementation for the environment and society (Gounden, 2018). The small and medium enterprises have been affected because of the factors of sustainable procurement which provide value for money consideration such as availability, functionality, quality, and prices. It makes an impact on the entire life cycle of the products and service which are being provided by the company to their customers. At the same time, the environmental factor mainly affects the environment, which is assets and services that have over the whole life cycle period. On the other hand, the social element which pays an impact on the business is an issue related to education related to poverty, in equal distribution within resources, condition of labour, fair-trade and so on.

In support of this, there is various type of benefits which has been achieved by the small and medium organization within the UK. It improves long-term savings efficiency and tries to reduce the harmful impact of wastage and pollution (HSC business service organization, 2019). It will encourage a higher level of innovation, along with providing strong signals related to sustainable product markets. The sustainable procurement is helpful for the organization for analyzing the practical expression towards the higher level of commitments of the business for sustainable development. Along with this, sustainable supply has been played an important role to provide a promotion towards sustainable production as well as the consumption pattern of the customers of the product and service provided by the business to their customers. Sustainable procurement is a unique position that influences the overall industry with the help of encouraging the company and adopt policies to provide support to the precautionary approach in terms of environmental challenges.

(Walker & Spencer, 2012) stated that the process of social procurement is also used to address various types of issues related to social policies like inclusiveness, labour standards at the international level, diversity targets, integration and regeneration and many more. (Nijaki & Worrel, 2012) Stated that active collaboration with the suppliers can make a positive on the opportunities related to sustainable procurements. For example- the UK based small and medium organizations introduced sustainability within their local supply chain, and it will be progressively integrated with their global supply chain. It is highly helpful for the organization to address a higher level of unemployment, education, and poverty which mainly provide strength to economic sustainability. When the UK enterprises are having a high level of productivity within their sustainable supply chain which can be responsible for improving their collaboration with the supplier for enhancing the overall performance of the organization.

According to (Ghazilla & Musa, 2015), leadership skills are also considered as an essential factor that makes an impact on sustainable procurement in UK business. This type of skill is imperative in terms of ensuring a sustainable organizational strategy because it makes a positive impact on the organizations. Sustainable procurement factors related to leadership should have been supported with the help of long-term planning and strategy of the business but the majority of a manager within the UK is irrespective of their dependence in terms of public procurements. The next factor related to the planning of strategy and setting of goals. The government of the UK becomes more proactive in terms of addressing the challenges faced by a small and medium organization related to sustainability. For this, the resource allocation and innovative system of the business are considered as an important issue because the procurement budget of the government will make up for major companies (Ungm.org, 2018).  within small and medium enterprises in the manufacturing sector in UK said that manufacturers are mainly reluctant to make a respond for global trends and best practices that will responsibly pertain towards the higher level of sustainability within the company. It is mainly because of the high cost about and the no availability of potential second and third-tier for the green supplier to meet the unique level of specification. Most of the organizations within the UK need to develop stricter policies that make an alignment with the promotion of sustainable practices in between the value chain (CIPS.org, 2018). The factor related to the sustainable supplier will provide support to their business with the allocation of tangible resources, human resources, investment and support to the management.

The factors of sustainable procurement also provide various types of opportunities to the SME’s within the UK. Most of the normative drivers from the UK market can able to stimulate the companies to initiate the efforts related to sustainable efforts. It is helpful for the companies to create a sense of obligation with the help of improving the awareness of their customers towards the environment. At the same time, the current knowledge of the organization not so sufficient in terms of creating truly sustainable supply chains. Most of the customers who are directly and indirectly related to the organization are becoming selective towards the product which they procure in a sustainable way (Ghazilla & Musa, 2015). The business always tries to make an effective level of collaboration with their supplier that can positively impact the opportunities for effective and sustainable procurement. SMEs mainly improve their contribution to regional sustainable development. The sustainable procurement practices help the business to address social concerns like employment, education, and poverty, which provide a higher level of strength to economic sustainability.

According to (Walker & Brammer, 2007), the sustainable procurement within the organization is considered as the business by which the business will try to meet their needs for goods and services, work effectively. It is helpful for the business to achieve the value for their money and the whole life of the business to generate for the organization as well as a society while trying to minimize the damages of the environment. At the same time, the sustainable procurement factor always being responsible to achieve an effective and appropriate balance between their factors of sustainable developments like economic, social and environmental. Within the environmental factor, SME’s of the UK are always be responsible for the measurement of carbon footprints, try to supply food products, explores the recycled and renewable material in terms of energy efficiency and make an end of the life disposal. On the other hand, (Akenroye & Aju, 2013) stated that the economic factor of sustainable procurement will analysis the barrier of the local supplier within SME for submitting and winning the bids in terms of a different public contract. It also analysis the provision of guidance for their clients, supplier and winning the public contract. The sustainable procurement mainly involves the issues which will take time to address the issue within the complex supply chain of the organization.

At the same time, the higher cost of the sustainable product will make an impact on the financial performance which is considered as sustainable procurement. The sustainable procurement is mainly attributed to centralized purchasing, conflict priorities, lack of awareness and a strong level of leadership. The leadership is considered as the key factor for the successful implementation of sustainable procurement within the organization. Sometimes, the legal framework is implemented within the organization for the overall success of sustainable procurement (CIPS.org, 2018). It can favor fair trade as well as ethical practices and will always allow the extra investment to the channel within the UK. It offers the chance for economic redistribution and it has been viewed with the help of application of sustainable development criteria for investment and spending decisions. With the help of sustainable procurement, the small and medium organizations within the UK can mitigate the key issues like greenhouse emissions, try to improve the efficiency level of resources.

Conclusion

From the above discussion, the essay can be concluded that the sustainable procurement factor was affected the small and medium enterprises within UK. Additionally, sustainable development has been implemented within the organization to address and reduce the negative environmental impact. The factors of sustainable procurement improved working with their suppliers by improvement social and environmental criteria.  Sustainable procurement mainly aligned with the objectives of sustainable development for generating eco-friendly products. It was responsible to provide an insight into the progress which was made in terms of UK government. The factor of sustainable procurement has been provided value for money and a higher level of consideration towards prices, quality, and functionality and so on. It was mainly responsible to reduce the harmful impact because of the wastage and pollution and tried to encourage a higher level of innovation by providing strong signals within the market in terms of sustainable products. The factors of social procurement were helpful for SMEs in the UK to address various types of issues towards social policies like inclusiveness, international labor standards, diversity of targets and many more.