From the course: Supply Chain and Operations Management Tips

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Adopt formal purchasing ethics

Adopt formal purchasing ethics

From the course: Supply Chain and Operations Management Tips

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Adopt formal purchasing ethics

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- If you track news headlines, it's amazing how ethical scandals around the world can lead to supply chain crises. Let me show you how formalizing purchasing ethics can protect your company and keep it from becoming one of those headlines. A business makes money by converting input, like raw materials, into output, their finished products. We tend to define businesses by their output, but it's also important to think about the input and how companies procure the goods and services in their supply chain. When looking at input, leaders naturally focus on ways to lower costs but cost isn't the only thing that matters. By embracing an ethical purchasing approach, you can create additional value for your company. For example, ethical purchasing leads to improved quality, it can reduce the risk of counterfeiting and ensure the safety and reliability of the inputs you buy. Another benefit is sustainability and social responsibility. Purchasing ethics can help you avoid situations that could…

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