Question

Using examples, discuss how developing purchasing and supply strategies can be affected by the following concepts:

• Sustainability

• E-procurement

Answer 1

Purchasing and Supply chain strategies are affected by sustainability because of the following reasons:

1) Strategies are made for a longer duration and not having tie-up or partnership with a business which is sustainable defeats the entire purpose of having a strategy

2) In the era of sustainable business practices , it is imperative that the entire purchasing, procurement and supply chain strategy hinges on creating a sustainable business model which takes care of the environment, reduces wastes and ensures recycling or manages sustainable disposal/handling of wastes

E-procurement is again a very important aspect in today's era of technology advancements. E-procurement digitizes the process of procurement and enables the entire process of RFI, RFP, PO release, technical and commercial assessment, bidding, transportation and tracking through a mobile or digital interface thereby cutting down on the time taken to take decisions and ensuring single source of truth. This also reduces human errors and leads to a faster more productive supply chain strategies.