Supplier performance are important activities

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Reference no: EM132290295

Please give a brief opinion on discussion below about selecting the right supplier:

Supplier management and supplier performance are important activities for any business that want to have a healthier supply chain operation. One aspect that is being used by companies when selecting suppliers are greening and sustainability. This concept focus on green practices corporate social responsibility and responsible sourcing. This might not be a traditional criterion for supplier selection, but more and more business are adopting sustainability as part of their operations. Is important to mention that sustainability term has grown to more than just referring to an environmental aspect of not producing negative effects on present resources to provide for future generations (Er Kara, Merve & Yurtsever, Özlem & Firat, Seniye, 2016). There are also economic and social aspects to sustainability.

There is significance of sustainability when it comes to supplier selection. Customers and stakeholders are demanding companies to be sustainable, what this means for a company? to find suppliers that also can build alliances and bring their sustainable practices to match the company practices. For example, we now can see more products advertising that they get their raw materials from sustainable or organic sources, like a cereal manufacturer advertising they get their corn from organic farms, or coffee shops get their beans from sustainable farmers. Also, legislation and regulations demand this from companies. Some of the indicators part of the criteria selection are: green management strategies, green design/eco-design, resources and energy consumption, reverse logistics, use of harmful/hazardous materials, environmental competencies. (Er Kara et al., 2016).

Location is another common aspect when selecting suppliers. Lead time, transportation and logistics costs are affected by supplier’s location. For a company far for suppliers lead time can add up with possible delays that add extra costs. Now for a company in partnership with a supplier in the same region or local area, this can shorten lead times, avoid delays and have more flexibility with deliveries.

Reference no: EM132290295

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