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Matrix Including Sustainability in the Categories of the Kraljic Model. Source: Krause et al. (2009).
Source publication
Sustainable procurement is a solution to integrate environmental and social considerations in all steps of procurement process, in order to reduce impacts on human health, environment, and human rights. Despite the existence of important works in this area, more studies for determining how the principles related to sustainable development can be in...
Contexts in source publication
Context 1
... suggest that sustainable development could be a new competitive priority, considered in conjunction with other traditional competitive priorities: quality, cost, reliability, timeliness, flexibility and innovation. The proposal is to include sustainability as a key criteria of performance in all four quadrants of the Kraljic (1983) model as shown in Figure 3. ...
Context 2
... final comments of Krause et al. (2009) from the construction of the model shown in Figure 3 indicate that organizations will require a level of sustainability of its suppliers according to the type of component/item required at time of procurement. At the same time, some companies will adopt sustainability in a unilateral way, as part of their business strategy, while others will be coerced to integrate sustainability by its customers, suppliers, or the law. ...
Citations
... Alabdali and Salam (2022) argued that companies must upgrade their procurement capabilities, including technology and partnerships, to achieve sustainability and gain a competitive advantage. De Mello et al. (2017) argue that sustainable procurement integrates environmental and social considerations into all procurement stages, reducing the negative impacts on human health and the environment. Anane et al. (2019) found a significant positive correlation between sustainable procurement and service delivery, indicating that organizations prioritizing sustainability in their procurement practices will likely achieve better outcomes. ...
This study investigates the impact of procurement strategies – Strategic Procurement (STRP), Supplier Relationship Management (SRM), Risk Management Practices (RMP), and Sustainable Procurement (SUSP) – on organizational performance among industrial firms in Ghana’s Greater Accra region. A structured questionnaire was administered to 500 participants from industrial companies, resulting in 437 valid responses (an 87.4% response rate). Data were analyzed using partial least squares structural equation modeling (SEM-PLS). We used non-probability and purposive sampling methods to select firms from a list provided by the Association of Ghana Industries. The results show that Strategic Procurement significantly enhances organizational performance. SRM positively influences Strategic Procurement but does not directly impact performance. RMP positively affects both strategic procurement and organizational performance, whereas sustainable procurement positively influences both. The mediation analysis reveals that Strategic Procurement partially mediates the effects of Sustainable Procurement and RMP on organizational performance. However, Strategic Procurement does not mediate the relationship between SRM and organizational performance, suggesting that other mechanisms may drive this relationship. This study highlights the central role of Strategic Procurement in linking sustainable procurement and RMP to improve performance. This emphasizes the need for a holistic approach to procurement strategy, integrating sustainable and risk management practices for optimal outcomes in Ghana’s industrial sector. Organizations should align procurement strategies with strategic goals, foster strong supplier relationships, embed risk management in procurement processes, and integrate sustainability for regulatory compliance and reputational benefits. In addition, organizations should implement performance metrics for continuous improvement. Sustainable Development Goals (SDGs): SDG 8: Decent Work and Economic Growth; SDG 9: Industry, Innovation and Infrastructure; SDG 12: Responsible Consumption and Production; SDG 17: Partnerships for the Goals
... Therefore, various organizations with the target of being sustainable must start with the supply chain while establishing various environmental and social standards with the suppliers within this chain [10,11] before the procurement chain is established. The application of the sustainability concept within the construction industry thus requires the active implementation of a sustainability concept within the procurement process [12]. Sustainable procurement awareness is important in four areas as it helps to reduce the influence of procured goods, services and works within the entire supply chain life cycle; it also aids in decreasing the funding used through purchase upgrades and enhancement, product re-use and recycling amongst others; it further aids and creates a growing need in the sustainability ecosystem and the sustainable procurement process; it finally enhances good purchasing and procurement of products and services ensuring that supply chain meets the required ethical and environmental standards [13,14]. ...
Sustainable procurement has emerged as a crucial strategy to address environmental and social challenges while promoting responsible sourcing and procurement practices. This research presents a comprehensive scientometric analysis and visualization of 1044 publications from 1997 to July 2023 through a co-author, co-word, and co-citation analysis on sustainable procurement from the Scopus core collection database using VOSviewer and Gephi software. Prominent research areas include green procurement, sustainable procurement, sustainability, procurement, and supply chain. Leading institutions are the University of Southern Denmark, European Business School (EBS) University, Germany and the University of Louvain, Belgium, with the United Kingdom, United States, and China as citation leaders. The Top sustainable procurement outlets are the Journal of Cleaner Production, the International Journal of Production Economics, the Journal of Business Ethics, Sustainability, and Supply Chain Management. By providing a holistic overview of the sustainable procurement research landscape, this study contributes to evidence-based decision-making and fosters a collaborative approach towards achieving a more sustainable and socially responsible world essential for facilitating sustainability efforts. The findings serve as a foundation for future research and policy development, facilitating knowledge exchange and driving positive change in procurement practices.
... In the construction industry, sustainable procurement is seen as a relationship process between a client and an engaging organization that results in the adaptation of particular design and development standards in such a way that value for money and product is consistently delivered over time, creating benefits for project participants, the economy, and the local society with little to no harm to the environment (Alkilani, 2012). Sustainable purchasing is viewed as a "solution to integrate environmental and social considerations in all steps of the procurement process, in order to reduce impacts on human health, the environment, and human rights" within the mining industry (Mello, Eckhardt & Leiras, 2017). In an effort to research and assess the factors to be taken into account for the implementation of sustainable procurement using the sustainability portfolio model, they offered their opinions. ...
The construction industry uses a lot of resources and contributes significantly to environmental damage. It is essential to use procurement methods to reduce the impact of construction operations. This study seeks to evaluate and promote the use of procurement in the construction sector, highlighting the value of increasing stakeholder knowledge, offering education, and encouraging teamwork. The research combined both survey and literature review to tackle the research objectives. Based on a survey of 414 respondents in the construction industry, reveals key insights into sustainable procurement practices were revealed, 92.8% had prior knowledge of sustainability, only 47.8% were familiar with sustainable procurement, Architects emerged as pivotal players (46.4%) responsible for sustainable procurement, emphasizing their role in material and supplier selection, and 97.1% opined they were interested in learning more about sustainable procurement. The study identified various benefits, including environmental conservation, economic efficiency, social responsibility, improved project management, and strategic advantages. It is crucial to integrate sustainable procurement into architectural educational curricula and implement policies to promote its practices. By incorporating sustainability considerations into procurement decisions, organizations can enhance their reputation, lower risks, and support the transition toward a more sustainable economy.
... As long as there is an alternative to the product, the criticality of this particular product becomes less. The variable was considered at different scope levels as a supply risk measurement variable; see, for example, [30,31,33,38,40,42,44,[72][73][74][75][76][77][78][79][80]. During the interview with NK05, who was talking about the availability of perfect substitutes for products in Saudi Arabia, he said, "running out of wheat is not an issue that could harm the society . . . ...
... However, what makes a product more critical is if there are a limited number of available sources all over the world. For this reason, the availability of suppliers was one of the variables found in the literature to measure the level of supply risk, such as [7,31,37,72,[78][79][80]82,83,85,86]. Additional to the literature review, semiconductors were mentioned by AM38 during the interview: "now that features are approaching the single nanometer sizes, only a handful of companies worldwide can produce these devices". ...
... The insurance itself is very pricy, especially with the political affairs". The variable was conserved in many studies to measure supply risk on the national and organizational level, such as [30,31,37,39,40,42,72,74,79,[81][82][83][93][94][95][96][97]. 16. ...
COVID-19, Brexit, war, and some other similar cases will leave/have left us with a lesson that has had an impact on the supply chains of almost all product types. Countries have now recognized that some products cannot be sustained in a situation of uncertainty. This research covers the gap in understanding and identifying the successful factors affecting the criticality level of supply required of intermediate and final products (IFP) at the national level. It investigates the relationship between two factors: the casual factor supply risk (independent factor); and the impacted (dependent factors) political, economic, sociocultural, and technological (PEST) factors in terms of identifying critical products using the principle of Resource Dependency Theory (RDT). A literature review was conducted, followed by a mixed-method approach. Semi-structured interviews with 23 Saudi experts were carried out initially; then, a questionnaire was shared with 152 Saudi experts in different sectors. The qualitative study identified 30 key measurement variables for both factors, in which 19 variables were confirmed using the factor analysis (FA) technique.
... These programs can include initiatives such as education, healthcare, and infrastructure development. • Sustainable procurement: Mining companies can implement sustainable procurement practices (Tamires & al 2017), where they source materials and services from suppliers who meet environmental and social standards. This can help to promote responsible practices in the mining supply chain (Van, & al, 2019). ...
A license to operate (LTO) in the mining sector refers to a permit granted by a government agency to extract minerals and resources from the earth. The process of obtaining an LTO can vary by country but often includes environmental impact assessments, land use plans, financial guarantees, and ongoing compliance with regulations. The history of LTO in the mining sector has evolved, with countries implementing their own regulations and policies, including the integration of environmental and social considerations. Key stakeholders in the LTO process include the mining company, government agencies, local communities, environmental groups, other businesses, financial institutions, and investors. The LTO application process can be lengthy and complicated, and it is recommended to seek legal and environmental advice.
... Sustainable procurement practices have been adopted in several countries such as United Kingdom, Brazil, Portugal and Canada due to its benefits. In Portugal for example, sustainable procurement practices have put forward many benefits for organisations and companies such as risk reduction, image strengthening, stronger economy, healthier environment and increase in social welfare (De Mello et al., 2017). Due to the benefits associated with sustainable procurement, there is a clear need for implementation of the sustainable procurement practice in construction business; hence, an in-depth study is needed to understand the criteria for achieving sustainable procurement in construction projects. ...
... The practice of sustainable procurement in the construction industry includes deciding the raw materials, packaging of the product, transportation, handling of the product's use and its disposition or recycling, storage, removal of harmful materials and waste in the supply chain, thorough screening of suppliers for fair labour practices and conformity with environmental regulations (Ershadi et al., 2021b;Bidin et al., 2020;De Mello et al., 2017;Belfitt et al., 2011). Bidin et al. (2020) pointed out that environmental consideration must be incorporated all through the construction stages before execution of the project. ...
Purpose
This study aimed at determining the decisive factors for achieving sustainable procurement in construction projects.
Design/methodology/approach
Questionnaire survey of principal stakeholders involved in construction project delivery within client, consulting and contracting organisations in Nigeria were conducted to assess stakeholders' perspectives on the decisive factors for achieving sustainable procurement in construction projects using importance weights. A total of 243 questionnaires were distributed and a response rate of 51% (123 questionnaires were adequately filled and returned) was achieved. Descriptive and inferential statistics were utilised in analysing elicited data.
Findings
The results from data analysis showed that “satisfaction – including workforce satisfaction and user satisfaction”, “value for money” and “creating a healthy, nontoxic environment – including high indoor air quality” were the top most three decisive factors for achieving sustainable procurement in construction projects in Nigeria.
Originality/value
An understanding of these decisive factors can help principal stakeholders in the construction industry of developing countries to facilitate the development of methods required in supporting the adoption of sustainable procurement practice.
... In the last decades, more intensely since 1970, the greater international debate on the search for development models which reconcile economic growth, social justice, conservation and sustainable use of natural resources has resulted in several reports and conferences which have shown the tragic environmental situation in the planet (Mello et al., 2017;Siva et al., 2016). ...
Goal: Analyzing critical success factors (CSFs) for integrating sustainability and quality in a food and beverage company in Rio de Janeiro, Brazil.
Design/methodology/approach: This research relies on an exploratory method, applied on qualitative data collection based on a case study. The instrument for data collection is an interview with professionals who work in the areas of quality and sustainability in the company studied.
Results: Out of the seven critical success factors identified in an organization, six of them (leadership and commitment to strategy, management and monitoring of processes, training and communication, commitment to the three pillars of sustainability, product/service development and continuous improvement) are a result of the company’s strategic circumstances, achieved by continuously improving products and processes. On the other hand, there is a critical focus factor for stakeholder relations, since it is currently very concentrated on the interests of final consumers to the detriment of other stakeholders.
Limits of the investigation: Results reflect the Brazilian headquarters of a multinational company of the food and beverage sector and, therefore, cannot necessarily be applied to other companies of the same sector.
Practical implications: Diagnosing seven critical success factors of the studied food and beverage company raises the opportunity to seek mechanisms to strengthen the focus on stakeholders, a critical factor identified as incipient in the research.
Originality/value: Findings confirm the relevance of looking into the critical success factors identified by the literature about integrating sustainability and quality in the practice of industries.
... The current concept of sustainable development considers at least three key components: economic growth, environmental protection and social equality (Mello et al., 2017). The issue of sustainability in global supply chain management, as focused on these components, has drawn significant attention from various researchers. ...
Paper aims
The paper proposes an enhancement to a focal company in the dairy supply chain, in order to support sustainable performance.
Originality
The authors conclude that previous life cycle assessment (LCA) studies did not recommend for dairy supply chain or use this approach to assess the environmental impacts in this chain.
Research method
A cradle-to-gate attributional life cycle assessment (LCA) study performed in a focal company and considering its transport and processing stages, and three scenarios were proposed as suitable.
Main findings
The impacts derive from energy use and transportation of feedstocks, and the use of cleaning products and certain types of packaging materials. A decrease of 46.5% of the impact in the photochemical oxidant formation category was achieved.
Implications for theory and practice
The results can identify the different impacts throughout the dairy chain associated with the main product’s life cycle, and the possibility of mitigating them.
... To distinguish SSRM from SRM research, it is important to consider the definitions of sustainable development across the papers. The typical conceptualization has three balanced components: economic, environmental and social (Mello et al., 2017). Using only environmental and social factors as a basic definition for SSRM leads to the exclusion of articles on SRM that deal solely with economic issues (assuming no differentiation between economic sustainability and conventional economic performance measures). ...
This article conducts a literature review that finds three dominant topics; supplier selection, supplier development and supplier evaluation for sustainability-related supplier risk management (SSRM). It also brings together rationalist decision models with behavioral models. The main contributions and discoveries of our review are: (a) we propose a four stage typology combining a number of decision making frameworksapplied for the first time to understanding SSRM; (b) we found that multi-criteria decision models (MCDM) as the most prevalent, but with an increasing use of fuzzy heuristics; (c) a significant quantity of articles had an approach on sustainability risk centered on ethical business conduct issues, and corporate social responsibility (CSR) is employed can be considered an emerging topic. We therefore propose a future research agenda targeted at enriching a prescriptive decision analysis where both ramifications - rationalist and behavioral - are blended to encapsulate both psychological and political sources of behavioral bias and distortion, in order to better define the complex contexts of and ambiguities in problem formulation in rationalist models.
... This is a limiting factor for its application in industry, because raw material price and quality cannot be neglected in selecting a supplier for a main raw material. In line with this work, Mello et al. (2017) present a case study in a mining company to evaluate the elements that should be considered for the implementation of TBL concept in the tendering of services through the application of Kraljic Model. This research work proposes to go further by developing a methodology, and applying it to a case study in the chemical sector. ...
With a growing awareness of environmental protection, supplier selection becomes an important issue for almost every manufacturer and will determine the characteristics of the final product. Therefore, a performance evaluation system for suppliers is necessary to determine the suitability of the final product. In the framework of the Green Supply Chain Management (GSCM), the evaluation of the suppliers should consider simultaneously the classical evaluation criteria such as quality and price, as well as a sustainable development approach: including social, ecological and economical criteria. Therefore, in this study, a green procurement methodology for evaluating suppliers is proposed. Based on the model of purchasing management proposed by Kraljic in 1983, it proposes the inclusion of all the green attributes. The model enables the firm buyer to choose among several criteria, classify them and select weight-based attributes for each of them. The result is a graphical output that gives the buyer the opportunity to evaluate suppliers easily showing the price, the quality and the impact of his choice in terms of green supply chain management. An industrial application of this methodology has been realized through a case study from the chemical sector.
