Sustainable Procurement
Read this article, which highlights a novel strategy for procurement. Focus on sections 1, 2, and 5 and the opening paragraphs for sections 3 and 4. The model in the paper presents a new strategy to reduce procurement costs and enhance overall procurement flexibility.
Conclusion
In this paper, a new concept and an innovative
method is proposed to initiate sustainable procurement process (SPP) by
integrating the concept of sustainable supply chain and postponement
strategy. The proposed method has several advantages, including but not
limited to:
- 1 The proposed model is very simple and easy to apply.
- 2 It can be used for single item as well as multiple item of the assembly-to-order production system for stochastic and/ deterministic demand.
- 3 It considers reliability of supply to reduce inbound risk.
- 4 The proposed model also gives better supply chain visibility as it
integrates far downstream customers with manufacturer through active
co-operation of retailers. However, manufacturer should take appropriate
strategy to share limited information with its retailers to maintain
better security.
In addition to the above this innovative method
can reduce logistic lead time, chances of over stock or under stock and
the complexity of inventory. This proposed method is suitable for
manufacturing industries which particularly assembled different
components to develop complex products.