Managing Sustainability in Supply Chain with the help of Procurement

by

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

This research has been conducted to explore the importance of procurement in creating sustainable supply chain management for an organisation. For conducting this research, the study provides fundamental ideas about sustainability sustainable development. It further explains the importance and integration of supply chain system within an organisation. Furthermore, the research provides a connection between procurement and sustainable supply chain. Developing strong relationship with their suppliers has become a means for the organisation to gain access to the resources of their suppliers in order to develop their activities. Purchasing firm needs to identify suppliers who, because of the capabilities and characteristics, might control their activities and resources and foster their capabilities for delivering superior value to their customers. The research also identified the concept of strategic procurement/ strategic sourcing of material. Strategic procurement is often viewed as using the capabilities of suppliers in the process of designing, manufacturing and engineering for achieving strategic objectives. Strategic sourcing is defined as a framework which helps the managers in making of the process of purchase decisions while considering some factors, which include: demand flexibility and competitive advantage as primary factor, and systematic risk and process maturity as secondary factors. Through qualitative research approach, this study will analyse how organisations can use procurements in order to achieve sustainable supply chain management.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Research Background1

Research Questions2

Research Aim and Objectives2

CHAPTER 2: LITERATURE REVIEW3

Sustainable Development3

Sustainability and its Impact on Business World5

Supply Chain Management6

Production8

Inventory8

Location9

Transportation9

Information9

Strategic Supplier Partnership10

Customer Relationship10

Internal Lean Practices10

Postponement11

Supply Chain Management in 21st century11

Integration of Sustainable Supply Chain Management12

Green Supply Chain Management14

Procurement15

From Procurement and Purchasing to Supply Network Management17

Impact of Sustainability Issues on Purchasing Practices18

Impact of Sustainability Issues on Supply Network19

Supplier Diversity20

Supplier Management20

Strategic Sourcing- important aspect of Procurement22

E-Procurement25

CHAPTER 3: METHODOLOGY28

Research Approach28

Rationale for Conducting the Study29

Data Collection Procedure29

Search Technique30

Literature Search30

Questionnaire Survey31

Data Sources32

Quantitative Data Analysis32

Sampling33

Validity33

Reliability35

Ethical Considerations36

CHAPTER 4: FINDINGS AND ANALYSIS38

Introduction38

Results and Findings38

Analysis of the Survey Results44

Discussion45

Importance of Supply Chain Integration45

Role of Procurement in Sustainability48

Buyer-Supplier Strong Relationship50

Time-based Procurement52

Procurement Management53

E-Procurement Role in Sustainable Supply Chain53

CHAPTER 5: CONCLUSION56

REFERENCES60

APPENDICES70

CHAPTER 1: INTRODUCTION

Research Background

Supply chain management processes involve management and coordination of a complicated network various activities performed in order to deliver finished goods the end user or consumers/ customers. All levels involved in the life cycle of a product highly influence the environment burden of supply chain management, starting from extraction of resources,, to the manufacturing procedure, to use and re-use of resources, moving to final recycling or disposing off.

The supply chain management procedure requires the coordination and integration of strategic alignment and business processes throughout the supply ...