Every Procurement Department should have a strategy to ensure a stable and sustainable supply of raw materials and mission-critical inputs. Procurement Functions are mandated to ensure cost-effective, continuous support of operational | strategic objectives. Procurement is also responsible for implementing robust risk management mechanisms to realize supply sustainability.

A supply sustainability strategy is the game plan or action of a procurement department to provide a responsive, reliable, agile, cost-effective, and eco-friendly response to organizational strategic goals, in accordance to its supply management mandate.

For a supply management or supply chain system to be truly sustainable it must be:

  1. Responsive
  2. Reliable
  3. Agile
  4. Cost-effective
  5. Efficient
  6. Eco-friendly

Table 1 below goes into more detail concerning the above dimensions. The Supply Sustainability Metrics Framework defines each of the dimensions and provides the metrics to measure the degree to which each of these dimensions is being accomplished. This framework is an important tool for measuring the degree of success of a Supply Sustainability Strategy.

Notes:

  1. Environmental Impact, (EI.1.3) Index of Supplier Environmental Sustainability has several sub-measures (EI.31 to E1.37)
  2. This framework is an important tool for measuring the degree of success of a Supply Sustainability Strategy
  3. A critical part of planning a Supply Sustainability Strategy is an effective metrics framework, as it sets the parameters for SMART goals

Table 1, Supply Sustainability Metrics Framework

Supply Sustainability Metrics

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David Millington

David Millington M.Sc.QSM, NPDP, CL6σBB, SPP, SPSM3®, CM® Director of Education (Next Level Purchasing Association) A Certified Strategic Planning Professional, David Millington brings over 18+ years experience in the Strategy Execution, Product / Service Development, Organizational and Supply Chain Excellence Arenas. He is a Certified Supply Chain Professional, Certified New Product Development Professional, Certified Strategic Planning Professional, and a Certified Lean Six Sigma Black Belt. David holds a master’s degree in Quality Systems Management, from The National Graduate School of Quality Management, Falmouth MA, USA. This equips him with mastery of vast bodies of knowledge and best practices. David Millington brings hands-on experience at VP, Director, and Manager Levels, guiding and facilitating the development of strategic and tactical solutions to intricate organizational, product, and service challenges.

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