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Procurement technology and its impact on the economy: harnessing the power of sustainable procurement

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  • Zhang, Shoucheng

Abstract

Generally speaking, sustainable procurement means buying supplies that the company needs to manufacture and/or sell products in a sustainable manner, while maintaining a balance between management efficiency and the adoption of sustainable practices to reduce the company's environmental footprint. When it comes to complying with the environmental and social legislations and regulations relevant to their industry, an organization can leverage technology to enable compliance management to help them address a number of issues. In case of socially responsible, environmentally friendly suppliers that are certified by sustainable rating organizations and have green compliance certifications, the system will be able to assist suppliers in quickly identifying them. A close eye should be kept on the reputation of our suppliers, especially if it comes to any unethical practices that they may engage in, such as child labor, raising our carbon footprint, producing hazardous wastes, etc., that they might be engaging in. A key point that should be taken into account is that it is more likely that for many corporations, the footprint and the value associated with it related to sustainability will be found in the supply chain rather than in any operations that are controlled directly by the corporation itself. Increasingly, the public is demanding that the promises made by the government should be kept. In order to ensure that the company is able to deliver on its commitments to sustainable performance, leaders must be able to extract and manage the increased innovation coming from suppliers as well as employees. In this paper, we explore how regulations, rising energy costs, and consumer concerns about ethical business practices are driving corporations in many sectors to look at sustainable procurement as a way to reduce costs and increase the value they are putting into their business practices as a whole. According to this research, leading countries and businesses are benefiting from sustainable procurement practices as a result of a more sustainable approach to procurement. The reason for this is that a sustainable approach to procurement can lead to lower costs, reduced risk levels, and increased stakeholder value, as well as a wider range of innovative products and pricing options.

Suggested Citation

  • Zhang, Shoucheng, 2022. "Procurement technology and its impact on the economy: harnessing the power of sustainable procurement," MPRA Paper 115840, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:115840
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    File URL: https://mpra.ub.uni-muenchen.de/115840/1/MPRA_paper_115840.pdf
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    References listed on IDEAS

    as
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    5. Tiwari, Siddhartha Paul, 2022. "Re-emergence of Asia in the New Industrial Era," SocArXiv g9tv5, Center for Open Science.
    6. Siddhartha Paul Tiwari, 2022. "Re-emergence of Asia in the New Industrial Era," Technium Social Sciences Journal, Technium Science, vol. 29(1), pages 471-480, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    procurement technology and economic impact; procurement and sustainable development; impact of technologies on procurement and economy: power of sustainable procurement;
    All these keywords.

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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