Sustainable procurement is a process whereby organizations meet their needs for goods, services, works, and utilities in a way that achieves value for money on a life-cycle basis while addressing equity principles for sustainable development, therefore benefiting societies and the environment across time and geographies. Public procurement should help governments deliver on state strategies -be it presented as a vision, a policy, a program, or a state project, which may be underpinned by ‘development blocks’ such as economic facilities, social opportunities, protective security, political freedoms or transparency guarantees. As such, depending on the state strategy, certain ‘sustainability pillars’ can be more salient than others, such as intragenerational, intergenerational, interspecies, procedural, or geographical equity.
Strategic sourcing plays a key role in improving the bottom line of any business and has a direct impact on cost savings. A profitable procurement model entails the accurate assessment of supplier negotiations and current spending. Improving internal collaboration between key units will help in identifying existing gaps. Sourcing agencies can invest in e-sourcing technologies to identify leakages in sourcing projects. Using the supply base as a resource can significantly increase efficiency and reduce cost.
Strategic sourcing is moving ahead at a spectacular pace which demands the ability to link every business process with advanced technology. When a sourcing agency monitors every move across the organization, it can easily drive down the cost and improve customer management. Technology has the potential to provide a holistic view of every function to facilitate fair and timely value chain decisions. The technology eliminates the discontinuity created due to geographical boundaries and coordinates every department and function for improved productivity and ease of operation. Investing in sophisticated infrastructure makes it easy to track the movement of products and facilitates consistent communication for improved supplier relationships while reducing customer service constraints.