PRaPM - Unit5
PRaPM - Unit5
PRaPM - Unit5
Management
Unit 5
Sustainable
Procurement Processes
Sustainability
Emissions
Hazardous substances
Energy use
Nuclear radiation
Ozone depletion
Global warming
Ethical Issues
Labour practices
– child labour
– discrimination (race, sex, religion)
– wage (fair pay)
– unions (the right to collective bargaining)
– working hours
– workplace health and safety issues
– employee privacy
Continual Improvement
Management review
Environmental policy
Planning
Checking and
Implementation
corrective action and operation
Fairtrade
Fairtrade is a system monitored and operated by the Fairtrade
Labelling Organisation, which sets working and social standards
that must be complied with before companies are awarded a
Fairtrade mark. It aims to change the way we trade, creating
fairer working conditions, greater opportunities in the
marketplace and social development for producer partners.
Sourcing principles from Fair Trade are:
• Engage with stakeholders.
• Understand the supplier country context.
• Transparent communication.
• Price to cover cost of labour and capital employed.
• Develop partnering relationships.
• Integrate social objectives with other buying functions.
Contract management
Contract management can be defined as:
‘The activities of a buyer during a contract period to ensure that
all parties to the contract fulfill their contractual obligations.’
An important aspect of this is managing the relationships
between all parties in the most effective way so as to ensure
the contract meets the optimum combination of cost, time and
quality. Contract activities can be split into two distinct but
interdependent phases: ‘upstream’ (pre-award), ‘downstream’
(post-award). Contract management is a downstream activity
but can only be effective if upstream activities are properly
carried out.
Contract management applies to the whole of procurements
from a simple order to a complex construction or service
contract.
Table 19.2 Some commonly used measures of operational procurement performance
Figure 10.1 The basic phases of negotiation
Figure 10.4 Ranges of possibility