Sustainability in businesses
Every business relies on sustainability to enjoy maximum advantages and benefits in a given market. Generally, sustainability is described as fulfilling present needs without affecting the capability of future generations to fulfil theirs. Hence, corporate responsibility is vital for any investment in achieving profitability. Consequently, sustainability will impact business processes, including supplier selection. Sustainability in the corporate world exists in three pillars; environmental, social and economic pillars.
The economic sustainability pillar elicits more confidence in businesses as compared to the other two. It implies that profitability is the key concern of any business. The pillar encompasses activities that include control and governance, compliance and risk management. Arguably, the pillar creates the possibility for corporations to develop and maintain sustainable strategies. On the other hand, the environmental pillar attracts the most focus on corporations. The critical ecological concerns such as waste management and carbon footprints continue to occupy most attention of companies that are working to mitigate environmental impacts which may affect business processes.
Social sustainability increases the importance of effective supplier selection due to the role of this pillar in creating and maintaining the support of key players in the cooperate worlds such as the communities, stakeholders and human resource of the company. Generally, how a company chose to handle the pillars of cooperating sustainability will significantly impact supplier selection as an essential business process. Incorporating the factors of these pillars in decisions of supplier selection have accelerated. This acceleration is because of the importance given to the reputation of companies in the cooperate world.
The supplier selection process aims at maximum positive results will often be tedious and time-consuming. The process will involve systematic and rigorous steps to ensure that a company not only selects suppliers based on merit but also on the best long-term performance strategies. However, this process does not necessarily need to be time-consuming for the best results.
Firstly, the time can be reduced by setting high standards for the quality of services and procurement items. The high quality will quickly determine the proper selection of suppliers who can meet the set standards. As such, the evaluation will be based on the best supplier performance. Secondly, communicating the specific need of a company will attract relevant suppliers and fasten the selection process. Similarly, the specificity of the requirement will simplify the evaluation process. Thirdly, stressing the need for financially stable suppliers will attract only the best suppliers who are capable of meeting demands and handling supply challenges.
Business processes exist within functional areas of organizations such as accounting, public relations, manufacturing and sales. As such, most methods will rely on each other through interconnected phases. Arguably, sales and communication are part of significant processes that exist within the functional departments of an organization. Profitability in sales become a challenge in attainability without prerequisite communication. For instance, successful billing and payment will require accurate contact with the accounting department of an organization. The collaboration between business processes will enable a company to achieve its set objectives maximumly.