UNIVERSITY OF CAPE COAST

COLLEGE OF HUMANITIES AND LEGAL STUDIES

SCHOOL OF BUSINESS

DEPARTMENT OF MARKETING AND SUPPLY CHAIN MANAGEMENT

COURSE CODE: PCM 804

COURSE TITLE: SUSTAINABLE SUPPLY CHAIN MANAGEMENT

QUESTION

Student groups are supposed to analyse one existing Supply Chain Risk Management case

NAME INDEX NUMBER

Phidelis Mawunyo Komla Ebledzi SB/PST/20/0001
Judith Quaicoe SB/PST/20/0010
Victoria Yaa Osei-Ahenkan SB/PST/20/0013
Zulaiha Hamidu SB/PST/20/0014
Alfred Yamoah SB/PST/20/0016

SUPPLYING SEASONAL AND DIVERSE ORGANIC FRUIT AND VEGETABLES

Introduction
 Nowadays, the fierce competition within the business environment has put undue

pressure on the supply chain and its participants. Supply chain refers to “all activities

associated with the flow and transformation of goods from the raw materials stage

(extraction), through to the end user, as well as the associated information flows”. Information

flow both up and down the supply chain (Ross, 2002; Kampelmann, Raufflet & Scialpi,

2021).

In furtherance of this supply chain management establishes this framework and aims

to link and coordinate the processes of various pipeline organizations. Essentially, supply

chain management is the management of upstream and downstream interactions with

suppliers and customers in order to provide higher customer value while lowering overall

supply chain costs (Christopher, 2012). Supply chain management is defined as “the

integration of these activities through improved supply chain relationships to achieve a

sustainable competitive advantage” (Ross, 2002; Kwak, Seo & Mason, 2018).

Sustainability refers to “the strategic, transparent integration and achievement of an

organization’s social, environmental, and economic goals in the systemic coordination of key

inter-organizational business processes for improving the long-term economic performance of

the individual organization and its supply chains” (Edwin Cheng, Kamble, Belhadi, Ndubisi,

Lai, & Kharat, 2021). Sustainable supply chain management, on the other hand, entails

incorporating environmentally and financially sound practices throughout the entire supply

chain lifecycle, from product design and development to material selection (including raw

material extraction or agricultural production), manufacturing, packaging, transportation,

warehousing, distribution, consumption, return, and disposal (Koberg & Longoni,

2019). Generally, supply chain sustainability focuses on the management of environmental,

social and economic impacts vis-à-vis the promotion of good governance practices throughout

the lifecycle of goods and services.

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Introduction to the case

In other parts of the world, the organic foods market is expanding faster, with a market

share predicted to have climbed from 3% in 2006 to 10% in 2016. (Willer & Lernoud, 2018).

Copenhagen is a Danish coastal metropolis that is setting the standard for sustainable

development. They present a paradigm for reducing human effect on the environment to the

rest of the world through innovative technologies and regulations. Copenhagen has been in

the forefront of attempts to grow its green economy. The city has made public-private

partnerships a central aspect of its eco-innovation strategy, collaborating with businesses,

universities, and civil society to build forums devoted to green growth and job creation.

Copenhagen aims to be carbon neutral by 2025 by integrating climate into energy supply,

greener transportation, energy efficient buildings, Copenhageners and climate, climate in

urban development, and adapting to the future climate, and the city has already achieved

significant reductions in carbon emissions since launching its first Climate Plan in 2009.

According to the case, since 2013, Copenhagen curbs the problems of negative

environmental impact by purchasing more seasonal food for their constituents. Because of the

more rigorous growing requirements, eating food out of season can have a significant

environmental impact. Copenhagen executes this policy by implementing significant supplier

engagement to guarantee vendors could respond to the €3 million tender, which helps to

obtain a variety of organic fruits and vegetables throughout the year.

A two-year contract was given to medium-sized firm BC Catering Roskilde in August

2014, with the option of a two-year extension. The extended market interaction resulted in

innovation in supply and delivery goods, increased sustainability of procured food, and

enhanced connections with suppliers.

Background

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 From the case Copenhagen seeks to ensure that the total foods they serve are

comprised of 90% organic produce. Organic means that the foods they buy are supplied by

suppliers who comply with standards of organic farming. Organic farming is an agricultural

strategy that emphasizes crop rotation and companion planting while utilizing organic

fertilizers such as compost manure, green manure, and bone meal. Some of the standards

support resource recycling, ecological balance, and biodiversity conservation.

The organic food system is an example of a system that successfully integrates

sustainable food production and consumption practices. Consumers and producers of organic

products share distinct attitudes on food that are primarily focused toward health and the

environment, according to major findings from surveys and other research conducted around

the world. Organic foods help to preserve the environment by providing a long-term solution

that reduces soil and water pollution, reduces reliance on oil-based fertilizers and pesticides,

increases biodiversity, and reduces greenhouse gas emissions.

The efforts to strengthen biodiversity can be deduced from the commitment to

sourcing organic produce and ensuring an all-year-round availability of food in their

municipality. The extensive market engagement can be thought of as the means of achieving

transparency of their activities and involvement of their stakeholders (suppliers) in decision

making. This confirms the social sustainability perspective by Panigrahi et al. (2019) which

stated that organisations need to manage the goals, objective and perspectives of their

stakeholders for successful sustainable supply chain management.

It can be concluded that engaging in these practices offers economic benefits through

confidence in Copenhagen’s supply chain, improved reputation, avoidance of lawsuits among

others. The seasonality in Copenhagen’s supply chain also provides economic benefits since

procuring from international sources helps to control cost and avoid the opportunity cost of

waiting for another season.

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Procurement Approach

The procurement approach used by an organisation depicts the methods to be adopted

in conducting a procurement activity, and they include single sourcing, competitive tendering,

restricted tendering, and request for quotation (Lam, 2019). Market engagement was done by

contracting representatives of the suppliers who had a fair idea of the implementation of

sustainability standards such that its application into the business case achieves the

sustainability goals of Copenhagen. Market engagement also helped to ensure that each

supplier had equal access to the information that was disseminated in such meetings. Social

sustainability is ensured due to the equal access to information provided, fairness and

transparency was achieved through the constant market engagement with suppliers at each

stage of the procurement process.

The market engagement helped to clarify the thoughts and doubts of the suppliers.

This would help to achieve economic and environmental sustainability through the avoidance

of product returns due to defects. The process therefore helps to ensure that the items supplied

are fit for their intended purposes. In terms of social sustainability, it is deemed that the

confidence and assurance of suppliers in the procurement process is enhanced. This is evident

in the following; “Fairness and transparency were ensured through the use of a standard

questionnaire and taking comprehensive notes. Suppliers were also given the opportunity to

declare which responses they deemed commercial in confidence”. The implication of this

statement is that suppliers would feel part of Copenhagen’s activities, hence feeling part of

their sustainability goals would facilitate the achievement of Copenhagen’s goals in achieving

economic, social and environmental sustainability.

Competition creates the revenue, means and access to numerous options which can

lead to value for money and access to the best offer. Thus, economic sustainability and social

sustainability because equity is assured as well as no preferred supplier is used as is obvious

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in a restricted tendering. Since more bids would be received by Copenhagen, it is assumed

that using the criteria in the invitation to tender documents, only suppliers of organic products

would respond. Hence, environmental sustainability would be achieved.

Criteria used in the procurement process

Technical specifications

- Quality

Quality refers to the standard of something as measured against other things of a similar

kind or a distinctive attribute possessed by something (Beckford, 2016). Quality is thought to

be a good support for incorporating sustainability considerations into areas like product

development (Siva, Gremyr, Bergquist, Garvare, Zobel & Isaksson, 2016).

Quality management contributes to sustainable development (environmental

sustainability) through standards which were developed to cover auditing, labelling,

performance evaluations, life-cycle assessment and product standards. In this case, the

environmental sustainability contribution lies in Copenhagen’s sourcing of organic products

from suppliers by using sustainable logistics processes to deliver those items, thereby

protecting and enhancing biodiversity.

The quality dimension of Copenhagen’s specification is to ensure that what is supplied in

the end is not different from what (sample) they send after the first evaluation, as well as

ensure that the food items supplied are healthy (feature of premium quality) and would not

pose any health challenges to the people of the municipality. The quality dimension of the

specification also helps to ensure that the food items are not spoilt before their shelf life or

useful life.

This ensures the accuracy of quality costs, as these costs assist management in

demonstrating the importance of quality-related activities: they demonstrate the cost of non-
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quality to an organization, track the causes and effects of the problem, and allow quality

improvement teams to work out solutions (Dale & Plunkett, 2017).

- Minimum requirements for food

EU marketing guidelines specify the minimal quality requirements for fresh horticulture

goods, i.e., what is safe, reasonable, and marketable. They are designed to ensure that fresh

produce sold to consumers is appropriately labelled, of acceptable quality, and that

undesirable produce is removed from the market. The following are the minimal quality

requirements for both particular and general marketing standards:

 Intact

 Sound (for example, not rotten, severely bruised or damaged)

 Clean

 Practically free from pests

 Practically free from damage caused by pests affecting the flesh.

 Free of abnormal external moisture

 Free of foreign smell or taste

 Sufficiently developed/ripe, but not overdeveloped/overripe

The EU marketing standards provide benefits for consumers, traders and the growers/farmers,

which include;

For the consumer: They guarantee that customers may make an informed decision

and pay a reasonable price. They ensure that the quality and presentation of for-sale produce

is consistent by providing correct labelling, so that consumers are informed and not mislead.

For instance, the complete and correct nation of origin must always be displayed. They

deliver value for money throughout the distribution chain by ensuring that all parties involved

receive a fair return, ensuring the long-term viability of the UK economy.

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 Complying with these standards ensures that the consumers of Copenhagen’s products

are protected in terms of organic products, standardisation of quality, and through the

enhancement of biodiversity. This helps to achieve social and environmental sustainability,

which value for money as a benefit also provides economic sustainability. Achieving value

for money throughout the distribution chain also achieves efficiency and effectiveness of

logistics processes of the supply chain.

For the trader: They increase distribution efficiency and international trade by

allowing consistent produce to be traded globally. This aids in the promotion of fair

competition across the marketing chain. They ensure constant quality, grading, and labelling,

making it possible to buy produce without seeing it. This also ensures the quality of the

produce when purchased over the phone or via the internet.

In terms of social sustainability, fair competition is achieved as standard processes are

adopted widely throughout the chain, in addition to providing consistent quality to consumers,

thereby providing value for money (economic sustainability).

For the grower: They ensure that produce is exchanged fairly, using a standardized

and thorough quality, grading, and labelling system. They assist growers in increasing their

returns by eliminating unfair competition from low-quality food or stuff that is erroneously

stated to be of higher quality than it is. They assist horticulture businesses in becoming more

sustainable by increasing the competitiveness of their products against other domestic and

international suppliers. The Horticultural Marketing Inspection Prices Unit gathers and

analyzes market data. This comprises the gathering of wholesale market prices for use by both

Defra and the EU statistics department, as well as the calculation of unit values for use at

customs clearance by HM Revenue & Customs.

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 The provision of food items that possess consistent quality ensures social sustainability

while promoting fair competition. Avoiding unfair competition also helps to improve the

grower’s returns, hence economic sustainability is achieved in the supply chain.

- Labelling

Labelling is a method of communicating with customers and providing them with

information that is supposed to be relevant to their specific buying decisions (Zander, Padel &

Zanoli, 2015). Labels are used to grow markets and promote specific production methods by

educating consumers and influencing their purchasing decisions. Consumers must be aware of

the topics being discussed, as well as have knowledge of and interest in the product

characteristics being considered.

Since the suppliers of Copenhagen are both local and international, Copenhagen stresses

that each supplier complies with the regulation for labelling items (organic food) applicable in

their country of jurisdiction. As a result, non-recyclable and non-biodegradable packaging

materials (e.g. PVC) would be avoided from the supply chain entirely.

EU has one certified organic label to legitimately differentiate their products. Food goods

advertised as organic in Denmark must bear the European Union's organic badge, as well as

logos approved by national and/or farmer organizations. Organic products imported from non-

EU nations can also bear the EU's organic label, as well as information regarding the source

of the agricultural raw material. It appears that alerting customers about the equivalence of

organic standards, especially when items from different nations are labeled with the same

organic logo, will impair consumers' ability to distinguish between organic products from

different countries (Thøgersen, Pedersen, & Aschemann-Witzel, 2019; Xie, Gao, Swisher, &

Zhao, 2016).

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 Environmental and social sustainability is achieved since pollution is avoided, suppliers

and consumers are protected and the entire biodiversity is also protected. The application of

EU organic labelling lays the groundwork for the long-term growth of organic production

while also assuring the smooth operation of the internal market, ensuring fair competition,

boosting consumer confidence, and safeguarding consumer interests.

- Organic certification

Organic certification is a process that certifies organic food and other organic agricultural

products producers. Any firm directly involved in food production, such as seed providers,

farmers, food processors, merchants, and restaurants, can be certified.

Organic certification helps ensure public welfare as they are geared towards sustainable

development. When it comes to exporting fresh fruits and vegetables to Europe, you must

adhere to strict food safety and quality regulations. Responsible social and environmental

behavior has also become a requirement for doing business, and purchasers frequently want

certifications as proof.

According to the case, Products originating to and from Denmark must be in accordance with

the rules of the organic label in Denmark. Some of these rules are;

Limited use of pesticides: The European Union (EU) has set maximum residual

limits (MRLs) for pesticides in and on food products to avoid health and environmental

concerns. Pesticides having higher concentrations than allowed will be removed from the

European market. With new information from Europe's food safety agencies, MRLs may

grow tighter.

Avoiding contaminants: Contaminants are compounds that have not been purposely

added to food but may be present as a result of its production, packing, transportation, or

storage. The European Union has set limits for numerous pollutants, similar to the MRLs for

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pesticides. The pollution of lead, cadmium, and nitrate in fresh fruits and vegetables will be

your main concerns.

Microbiological criteria for pre-cut fruit: Microbiological dangers such as

Salmonella and E. coli must be considered while delivering pre-cut fruit and vegetables.

Salmonella must not be present in a freshly cut product for the duration of its shelf life.

During the manufacturing process, E.coli should be almost absent.

Plant health and phytosanitary regulations: Fruit and vegetables exported to the

European Union must adhere to European plant health regulations. To avoid the introduction

and spread of organisms detrimental to plants and plant products in Europe, the European

Union has established sanitary and phytosanitary criteria.

Marketing standards: European regulation establishes basic and specialized

marketing criteria for fresh fruit and vegetable quality. A marketing standard specifies the

qualities of "Extra Class," "Class I," and "Class II" products, as well as the minimum

maturity, distinct size codes, and quality and size limits. The marketing guidelines for fresh

fruit and vegetables have been harmonised with the UNECE criteria throughout time. These

guidelines serve as a guide for firms and rarely alter.

Labelling and packaging: Food that is sold in the EU must comply with food

labelling regulations. For members who are not from the EU, adhering to the EU organic

label's requirements means that the product is in complete compliance with the organic

farming sector's conditions and laws. Imported into the UK from a nation outside the EU

(third country), products covered by a specific marketing standard must be accompanied by a

"certificate of conformity." It signifies that at least 95% of agricultural ingredients in

processed foods are organic. When other quality cues, such as organic logos, are available, the

image of the origin country matters for customers' food selections. Consumers care about the

image of economic development and trust in the origin country's certification.

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 Third party sustainability certifications or a supplier’s ability to demonstrate an

equivalency are an important aspect of Sustainable Public Procurement and are helping

markets evolve towards a more sustainable vision of the future.

- Packaging

Because a well-packed product can ensure consumer safety (Orzan, Cruceru, Bălăceanu,

& Chivu, 2018), packaging is one of the most significant components of a food or non-food

product.

The usage of non-biodegradable and non-renewable materials (i.e., plastics, glass, and

metals) in packaging applications has created environmental concerns, necessitating the need

for proper waste management (Khalil, Davoudpour, Saurabh, Hossain, Adnan, Dungani, &

Haafiz, 2016). Packaging must have consumer benefits, be safe and healthy for individuals

and communities throughout its life cycle, be market-efficient and cost-effective, and be

obtained, produced, transported, and recycled using renewable energy sources, as well as

maximizing the use of renewable or recyclable materials; use clean production technologies

and best practices; and be designed to strategically optimize the materials and energy used.

As part of the requirement, Excess packaging of goods was to be avoided. Incorporating

sustainable packaging will help in the implementation of sustainable consumption and

production, ensure the sustainable management and efficient use of natural resources, ensure

the environmentally sound management of chemicals and all wastes throughout the life cycle,

substantially reduce waste generation through prevention, reduction, recycling and reuse and

promote public procurement practices that are sustainable.

Alternative packaging materials have been developed after extensive research, with the

goal of lowering the environmental impact of petroleum-based packaging materials.

According to studies, the usage of bio-polymer-based products can reduce packaging waste

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creation and, as a result, help to solve the waste disposal problem to some extent (Khalil et al.,

2016).

From the case, Packaging could not contain PVC, and had to be recyclable. Packaging

should be done such that materials can be returned and recycled. Sustainable packaging is

done in a way that packaging waste can be collected, pelletizing and moulding new plastic

products such as school desks, chairs or other products.

- Vehicles

If diesel vehicles with an unladen weight of more than 3,500 kg are utilized, the provider

must be able to show that these vehicles have obtained a 'environmental zone certificate,'

which is necessary in Copenhagen. Environmental zones are created to safeguard land with

significant environmental significance.

According to the case, if vehicles weighing less than 3,500 kg are used, they must meet

the Euro 5 emissions criteria. A particle filter must be installed in the case of a diesel vehicle.

The Euro5 emissions standard establishes permissible limits for new light-duty cars marketed

in EU and EEA (European Economic Area) member states.

The Euro 5 emissions standard becomes mandatory for all new approvals on September 1,

2009, and all new registrations on January 1, 2011, with some limitations. Euro 5 petrol cars,

for example, are currently allowed to enter the London ULEZ (as of July 2019), while Euro 5

diesels will be charged. These charges will demotivate suppliers from using diesel cars which

is an initiative to improve on environmental sustainability.

Suppliers, knowing that the vehicle they use will have to be stated in the tender document,

will move away from diesel care and cars that do not comply with the standards and move

towards vehicles with little or no carbon emissions. Suppliers moving towards sustainable

vehicles will improve the environmental, social and economic sustainability.

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 Although the cost the investing in sustainable vehicles is expensive compared to diesel

vehicles, it will cost more to operate these non-sustainable vehicles and cost less to operate

these sustainable vehicles. It will also cost more trying to clean the city being polluted with

diesel vehicles which makes it prudent to use sustainable vehicles or vehicles that meets the

requirements of the city of Copenhagen.

Therefore, the economic impact of sustainable vehicles is the fact that it is lea costly to

operate and manage. Its environmental impact is less emission of hazardous chemicals and

carbons and the social impact is a safe and improved was of life for all.

- Idle vehicles

When a vehicle's engine isn't moving, such as when it's stopped at a red light or stalled in

traffic, it's referred to as "idling." Idling is an unavoidable component of driving a car, and

most drivers do it on a regular basis. Idling, on the other hand, may not be the best thing for

your automobile, fuel consumption, or the environment, as an idling vehicle can emit as much

pollution as a running vehicle. A simple key turn can help to keep the air cleaner while also

saving money and fuel. You will; every time you turn off your car engine instead of idle;

 Reduce harmful pollutants in your town or community to make the air healthier. Idle

tailpipes emit the same pollution as moving automobiles. Asthma, heart disease,

chronic bronchitis, and cancer have all been related to exposure to these contaminants.

 Make a difference for the environment. You will save one pound of carbon dioxide for

every ten minutes your engine is turned off (carbon dioxide is the primary contributor

to global warming). According to an EDF analysis, idling automobiles and trucks

produce 130,000 tons of carbon dioxide per year in New York City alone. To balance

this level of global warming pollution, we'd have to grow trees on an area the size of

Manhattan every year.

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  Keep your money in your wallet and save money on gas. An idling car consumes

between 1/5 and 7/10 gallon of gasoline every hour. An idling diesel truck consumes

about a gallon of fuel every hour. With diesel fuel rates averaging $2 per gallon1,

that's approximately $2 per hour wasted.

Copenhagen Municipality issued a restriction in March 1990 as part of their technical

specification to promote sustainability, prohibiting keeping a vehicle's engine running when

idle for more than one minute. Rules violations are a police matter that will result in a fine. In

Copenhagen, the provider was required to follow the current idle regulations. Businesses will

be forced to comply with this requirement in order not to have any legal issues and also to

save money that will be used for fines. Businesses will also comply with this less idle vehicle

clause because they want to continue to be on the suppliers list of Copenhagen. Therefore,

Copenhagen is achieving environmental sustainability by ensuring less emission of carbon,

social sustainability by helping make the environment and air a safe and healthy place for

people to leave through the reduction of this carbon emissions and economic sustainability by

saving money.

- Fuel consumption

The amount of fuel utilized when driving a certain distance is referred to as fuel

consumption. In Europe and other parts of the world, it is measured in liters per 100

kilometers. Fuel consumption is a basic engineering metric that is directly proportional to the

amount of fuel spent per 100 miles and is useful because it can be used to calculate volumetric

fuel savings.

Copenhagen has approved a Climate Plan that includes a number of projects aimed at

reducing CO2 emissions from city operations, such as traffic. These are some of the plans:

The city is doing car-related lab tests on hydrogen, energy, and biofuels. By 2015, 85 percent

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of city passenger automobiles should be electric or hydrogen-powered. With five hydrogen

fueling stations in the Greater Copenhagen area, the goal is for 20-30% of all passenger cars

in the city to utilize hydrogen, electricity, or biofuels by 2025. Increased use of Fuel Cell

Electric Vehicles (FCEV) will result in a number of benefits, including improved air quality

and less noise, as well as the utilization of surplus wind power. FCEVs will be integrated into

the municipal carpooling system, with workers receiving training on how to operate them.

The supplier was obliged to document their fuel consumption, and be able to provide this

information on request. This was done to ensure that all their suppliers comply with the

climate plan to help reduce carbon emissions and make the city a sustainable city.

This initiative by Copenhagen is to develop a city where social, economic and

environmental spheres is combined to improve the quality of life for citizens who live and

work there.

Award criteria

The award criteria must be established, set in advance, and related to the contract's

subject matter so that contracting organizations can evaluate and compare the various bids

received based only on price or on price and quality.

The award criteria are used by the contracting organization to ensure that the three

pillars of sustainable development – economic, social, and environmental – are appropriately

balanced when acquiring goods, services, or works at all stages of the project. The award

criteria also serve as a reference for contracting authorities in mapping and monitoring their

supply chains for risks of environmental and social violations, including human rights

violations. The EU takes such violations seriously, requiring that individuals found in

violation be excluded from award procedures and that appropriate corrective actions be taken

in the event of infringement during contract performance. The EU also makes it easy for

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contracting authorities to learn about economic operators who have violated environmental

and social regulations, including human rights rules.

The contracting organisation use the award criteria to drive positive change.

According to the award criteria, the lowest price is used as an award criterion in

approximately 40% of procurement procedures. According to studies, the emphasis on price

has hampered the adoption of sustainable practices in many Member States, owing to the

widespread belief that buying responsibly is more expensive. Nonetheless, an increasing

number of reports comparing the prices of sustainably produced and conventional products

show that the vast majority of green products, for example, are cheaper or competitive (at the

same price level) with conventional products, with only a small number significantly more

expensive.

The majority of contracting authorities do not consider the quality of the goods and

services procured, let alone sustainability issues. This has caused more suppliers to ignore the

sustainable development initiative. However, Copenhagen as part of its award criteria has

established that supplier’s ability to be shortlisted will be based on an estimate of meeting

35% quality requirement.

Range of offered goods was awarded 25% of the criteria. In addition to the price and

quality, a distinction regarding the range of goods offered of the intended effects of

sustainability considerations in public procurement was made. According to the case, the

Municipality awarded the supplier points according to how many different varieties of

common products (i.e. apples, pears, plums, potatoes, etc.) the suppliers could offer to the

Municipality during a year.

If only suppliers who comply with the strictly sustainable initiative are awarded the

contract, or ‘if the most advantageous tender is selected, there is a high probability that all

other suppliers will also include or adhere to the strict sustainable development practice.
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Contract performance clauses

Monitoring

As a means of assessing the conformance of the requirements to their specification,

checks were put in place to ensure that suppliers who do not meet the stipulated technical

specifications bore the costs of monitoring. The monitoring system also ensured that the

required transportation modes and means complied and were in line with the stipulations of

the specification.

The usage of the stated transportation mode helps to achieve environmental

sustainability by reducing greenhouse gas emissions through the carbon footprint. By securing

the suppliers’ compliance, the social sustainability dimension is also achieved when the

suppliers utilise ethical means to produce the product. Economic sustainability is further

achieved by avoiding non-conformance to specification and products returns. Compliance

with the transport requirements of Copenhagen achieves efficiency and effectiveness of the

logistics and sourcing elements of the supply chain.

Results

The bids submitted for the contract contained errors due to some of the following possible

reasons;

 Limitedness in time for preparing the bids due to the urgency of need by Copenhagen

 Lack of experience of the suppliers in engaging in sustainable procurement activities

 Suppliers not paying attention to details

 Suppliers’ lacking understanding of the content of the invitation document.

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 The contract re-issue was also successful due to further clarifications by Copenhagen after

the initial phase of the contract issue failed. The market engagement (market dialogue) also

helped Copenhagen in the second stage to realise their sustainability goals.

Suppliers demonstrated greater innovation, through transportation, when delivering

Copenhagen’s products. This could be adoption of a transport means that consolidated orders

and reduced the transport routing, mileage and transport time, as well as defects due to transit.

The dialogues moreover facilitated relationships between Copenhagen and the

suppliers. The collaboration helped to secure benefits such as information sharing, resource

integration, early supplier involvement, access to supplier’s technology, and avoidance of

unnecessary risks. Sustainability of the food products was also achieved when Copenhagen

sources for organic food items, thereby ensuring the enhancement of biodiversity

(environmental and social sustainability and the controlling of costs by securing an all-year-

round availability of organic foods.

Sustainability impacts

The general contribution of Copenhagen lies in the following;

“While it is difficult to calculate the direct impact of this contract on the seasonal fruit

and vegetable market, at a more general level it can be inferred that Copenhagen's activities

are contributing to the professionalization of organic supply lines and the increasing ease at

which environmentally-sound, nutritious food can be sourced. The organic food service

market in Denmark has grown significantly in recent years with, and organic food service

sales have increased 33% between 2013 and 2014.3 Copenhagen's large market share, plus

political signalling via the 90% organic target has arguably played an important role in this

growth”.

However, using the triple bottom line;

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 Environmental sustainability is achieved through Copenhagen’s initiative to reduce

carbon emissions by enforcing a Climate plan in addition to ensuring that engines are

not kept running when the vehicles remain idle. Sourcing from organic suppliers

implies that the City of Copenhagen has the potential of reducing the percentage of

greenhouse gas emissions from 10% to zero. This is because the suppliers who

account for the 10% are not organic farmers but adopt the heating of greenhouses with

fossil fuels to grow crops out-of-season. The environmental contribution to

sustainability follows the reduced: soil erosion, forest destruction and loss of

biodiversity caused by agriculture, intense animal production and fishing, and

aquaculture practices; high water consumption and pollution in manufactured food

production; packaging waste; and transport impacts in the carrying out of catering

service.

 Social sustainability is achieved through the all-year-round availability of food

(seasonal food) and also through the eradication of hunger as is the case in the second

goal of the Sustainable Development Goals (SDGs). The social contribution to

sustainability follows the reduced: eutrophication, acidification and toxic impacts on

human health and the environment (plants and animals) due to the bioaccumulation

and biomagnification of pesticides and fertilisers present in water, air, soil and food;

animal cruelty due to a lack of respect for animal welfare; negative impact on the

occupational health of farmers due to the handling and use of certain pesticides and

fertilisers;

 Economic sustainability realisation lies in the fact that efficient transportation means

and modes are used to move the organic foods across the city of Copenhagen and

Denmark in general. The economic contribution to sustainability follows the reduced:

high energy consumption in food production and processing; packaging waste; and

transport impacts in the carrying out of catering service.

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