The organizations spend huge
money to deliver high quality, and achieve value for money, goods, services and
sustainable savings. The objectives stimulate the markets to develop strategies
and innovative processes which support triple‐bottom line outcomes. The triple
bottom line i.e. people, planet and profit was first explained by John
Elkington in his 1997 book "Cannibals With Forks: The Triple Bottom Line
of 21st Century Business". It's a bottom line that continues to measure
profits, but also measures the organization's impact on people and on the
planet. Triple Bottom line Procurement is a strategic approach to meet
organizational objectives through procurement as it involves using procurement
processes and purchasing power to generate positive TBL outcomes in addition to
the delivery of efficient goods and services. It is the right time to take
steps towards triple bottom line and ensure TBL Procurement readiness through
securing leadership support, building awareness and understanding across the
organization. At the same time organization’s procurement policies, frameworks
and process also needs to be reviewed to incorporate social outcomes and early
identification of TBL opportunities through strategic procurement.
Carter and Rogers (2008) state
that the triple bottom line is the intersection of social, environmental, and
financial performance. Therefore, for a company to pursue sustainability they
cannot pursue financial or social initiatives in a vacuum. Instead, it is
strongly recommended that supply chain managers link environmental, social, and
financial goals within a broader strategy to ensure the business pursues
sustainability rather than philanthropy. Applying the triple bottom line
concept across the supply chain can lead to significant benefits.
Triple bottom line (TBL) supply
chain sustainability (people, planet, and profit) intersects with supply chain
risk management. TBL supply chain sustainability helps ensure that there is a
long-term supply of people, natural resources, and profit. A research report by
American Production and Inventory Control Society reveals that Triple bottom
line supply chain sustainability tends to see differences in priority, but most
often people and profit are placed ahead of planet. So what is your opinion?
No comments:
Post a Comment