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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
... 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.
... 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). ...
... For selecting the suppliers to undergo GSD programs, the buyer company sorts out all its purchased items into the categories based on Portfolio Model (Olsen and Ellram, 1997;Mello et al., 2017) as shown in Figure 1. Strategic (high-profit impact, high supply risk), bottleneck (low-profit impact, high supply risk), leverage (high-profit impact, low supply risk), and noncritical (low-profit impact, low supply risk) (Kraljic, 1983 Each category in the matrix requires distinct approach for purchasing company (Mortensen and Arlbjørn, 2012;Caniëls and Gelderman, 2005; Akman, 2015): ...
Purpose
The purpose of this paper is to develop a green supplier development (GSD) process model and validate the model with a case study in Indian automobile industry.
Design/methodology/approach
A literature survey of peer-reviewed journal articles, survey reports and paradigmatic books with managerial impact is done for the research. The process of GSD is modeled using stage-gate approach and KPIV and KPOV of the process are determined. The process model is implemented in an Indian automobile components manufacturing industry for validation.
Findings
The industry implemented the model with ten suppliers and was able to successfully convert seven of them into Green suppliers. Remaining three suppliers were asked to repeat the process again or terminate the contracts. Model implementation took around three years starting from planning of resources and finances to actual development of suppliers.
Research limitations/implications
The model implementation was done with a small automobile industry and hence the validation and implications may be generalized by taking the case study further in different industries. It would be beneficial to test the model with case studies of large-scale industries.
Practical implications
The process model for implementing GSD activities will help managers in taking complex investment decisions. The stages and process inputs and outputs are clearly defined which helps the managers to successfully develop the suppliers.
Originality/value
This paper puts forward the process model that should be implemented for the successful development of green suppliers. It might represent new opportunities for rigorous and relevant research in the area of green supply chain.
... Over the past decade or so, portfolio purchasing models have been incessant in the financial sector for the assessment of risk associated with assets and investments (Mello et al., 2017), they can be applied to procurement and supply chain management to study risk/return trade-offs aimed at the optimisation of purchasing strategies. The portfolio purchase models have been used to establish a rational connection between consumer market and supplier base segmentation, it is a two dimensional model which covers aspects dominating decisions which are both internal and external to a buyer firm i.e. impact of the supplied item on final product as well as number and bargaining power of suppliers (Arantes et al., 2014;Ferreira et al., 2015;Santos et al., 2017;Xu et al., 2017). ...
... PPM contemplates strategic impact which is further clarified by product cost, cost of services, profitability etc. and supply risk which is quantified by complexities, market conditions i.e. monopoly or oligopoly, number of available suppliers, possibility of innovation, entry barriers and logistics costs (Dubois & Pedersen, 2002;Gelderman & Van Weele, 2003;Ferreira et al., 2015;Luzzini & Ronchi, 2016;Ateş et al., 2017;Knight et al., 2017;Mello et al., 2017). The portofolio purchasing approach not only facillitates management to instigate better assimilation of bargaining power, but also helps to formulate strategies to reduce risks to which the organisation will be exposed to during project execution, thereby corroborating eqitable allocation of risks (Ahmed et al., 2017;Mello et al., 2017;Skora, 2017;Tchokogué et al., 2017a). ...
... PPM contemplates strategic impact which is further clarified by product cost, cost of services, profitability etc. and supply risk which is quantified by complexities, market conditions i.e. monopoly or oligopoly, number of available suppliers, possibility of innovation, entry barriers and logistics costs (Dubois & Pedersen, 2002;Gelderman & Van Weele, 2003;Ferreira et al., 2015;Luzzini & Ronchi, 2016;Ateş et al., 2017;Knight et al., 2017;Mello et al., 2017). The portofolio purchasing approach not only facillitates management to instigate better assimilation of bargaining power, but also helps to formulate strategies to reduce risks to which the organisation will be exposed to during project execution, thereby corroborating eqitable allocation of risks (Ahmed et al., 2017;Mello et al., 2017;Skora, 2017;Tchokogué et al., 2017a). Portfolio purchasing models are based on the assumptions of differences in power and dependence between client (buyer) and contractor (supplier) (Ateş et al., 2017). ...
Contracting parties are currently prone to working in silos. This results in communication blocks and confusion, complexity, and, sometimes, project failures. Trust is hard to fabricate and can in the end break down, prompting a negative and non-beneficial project environment. At least two organisations consent to cooperate recognizing advantages of collaboration which could be accomplished by consolidating their purchasing power and resources to deliver financial savings, efficiency and effectiveness with no impact on project execution and quality parameters. As of now collaboration in the construction industry is marred by numerous stereotypes e.g. trust, adversarialism, regionalism, partner reliability, lack of commitment. In this paper, the authors seek to establish through a literature review, how the application of portfolio purchasing models could increase the level of collaboration between contracting parties. The research described in this paper tackle’s a knowledge gap and articulates that the implementation of power and dependence attributes of the buyer-supplier relationships eliminates stereotypes of collaborative procurement.
