procurement

Posted: October 17th, 2013

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Answer 1: Sourcing refers to all the activities that a firm undertakes to manage the resources it gets externally. Sustainable sourcing is the ability to source while meeting the current needs of a supply chain and without tampering with the ability to meet future needs. I think sustainable sourcing is a good practice because it adheres to the social, economic and environmental aspects of a business. Some of its benefits include cost reduction in manufacturing, improvement of products, productivity, manufacturing and supply quality. Others are brand differentiation and gaining of customer loyalty.

Answer 2: E- procurement is also known as supplier exchange. It refers to purchasing and sale of supplies and services through the internet. All or part of the procurement process may be done through the internet. E-procurement can aid sustainability by helping to reduce overhead costs. This is largely because most if not all businesses have websites online, driven by the high number of people that use the internet on a daily basis. Consumer needs are also taken care of and safety measures improved because most transactions are not done physically. With regard to ethics, e-procurement e-procurement adheres to ethic principles of a business. This is aided by the internet providing a wide variety of suppliers who only get to advertise the goods that they have. In addition, and as an example, timelines for delivery of goods are met efficiently with consideration given to likely hazards, which may cause delays.

Answer 3: Outsourcing is not a completely negative activity. Outsourcing has a bad reputation, like that of insuring for various reasons. One of them is that is causes over-reliance on other people. A lot of work is done by other persons other than the business itself. This could lead to loss of control over the business. Another negative issue is that the suppliers one transacts with online may have faked their credentials, a fact that could make the business to incur losses.