Essay on The Purchasing Process of Woolworths

Essay on The Purchasing Process of Woolworths

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Introduction
Environmental pressures have caused green supply chain management to emerge as an important corporate environmental strategy for organisations’ processes. Our discussion will describe, illustrate and critically evaluate the purchasing process of Woolworths. It will further identify the steps of the purchasing process, the effect of green purchasing and sustainable purchasing. Moreover, the essay will go on to look at the effort that Woolworths has made through their programmes and initiatives of green purchasing.

Background
Woolworths is a large retail business selling a wide range of products including clothing, food, and general merchandise in South Africa and Country Road in Australia. The company was founded in 1931 by Max Sonnenberg assisted by his sons Richard and Fred Kossuth. The purchasing structure is centralized having two main distribution centres, one located in Cape Town (Montague Gardens) and the other in the Midrand between Johannesburg and Pretoria. All Woolworths’ purchases go through these two main distribution centres. The company takes responsibility for the entire lifecycle of their products including the reduction of direct environmental impacts which requires it to take custodianship of the supply chain and at the same time to convince customers and suppliers in the network to reduce their environmental impact (Annual Report, 2010).

Purchasing Process
Purchasing process is the process of buying the right material, at the right quantity, at the right moment, at the right price and from the right supplier ( Heinritz et al, 1986). It can also be defined as the way an organisation behaves towards it suppliers, as suppliers are the pillar of strength for all organisations at large. According to We...


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... management ande-procurement: creating value added in the supply chain”,Industrial Marketing Management, Vol. 33 No. 2, pp. 219-26.
Svensson, G. and Wagner, B. (2012b), “Implementation of a sustainable business cycle: the case of a Swedish dairy producer”, Supply Chain Management: An International Journal, Vol. 17 No. 1, pp. 93-7
Woolworths (2009), Annual Report, pp. 1-192.
Woolworths Holdings Ltd (2010), Good Business Journey, pp. 1-60, Sustainability Report.
Živković, Snežana; Takić, Ljiljana; Živković, Nenad UNAPREĐENJE EKOLOŠKIH PERFORMANSI PRIMENOM STANDARDA ISO 14001 - STUDIJA SLUČAJ.. Chemical Industry & Chemical Engineering Quarterly. 2013, Vol. 19 Issue 4, p541-552. 12p. DOI: 10.2298/CICEQ120513088Z. ,
Zsidisin GA, Siferd SP. 2001. Environmental purchasing: a framework for theory development. European Journal of Purchasing and Supply Management 7(1): 61–73.

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