Understanding Stakeholders

Stakeholders: These are people or groups who have an interest in the way a business operates. They can impact or be impacted by the business actions and decisions.
Internal stakeholders: These stakeholders are part of the organisation. Examples include employees, managers, and owners.
External stakeholders: These stakeholders are not part of the business, but are affected by its operations. They include suppliers, customers, and the local community.

Role of Stakeholders in Procurement and Supply

Influence on decision-making: Stakeholders have a say in decisions related to procurement and supply, from selecting suppliers to approving purchases.
Setting priorities: Different stakeholders might have different priorities. For example, while a manager might focus on cost-effectiveness, employees might be more concerned with quality and reliability.

Managing Stakeholder Relationships

Communication: Regular, honest communication helps maintain good relationships with stakeholders. This ensures that everyone is aware of what’s happening and why.
Managing expectations: It’s important to ensure that stakeholders’ expectations are realistic and aligned with what the organisation can deliver.
Resolving conflicts: Conflicts can arise between stakeholders with different interests. Effective conflict resolution is crucial to keep operations smooth and relationships positive.

Stakeholder Impact on Organisational Performance

Supply chain management: Stakeholders such as suppliers and logistics partners can impact the performance of the supply chain, affecting the organisation’s ability to deliver products or services.
Reputation: Investors, customers, and the local community can influence the business reputation based on their perception of its operations.
Productivity: Employees, as stakeholders, can affect an organisation’s productivity. For example, motivated employees often lead to higher productivity.

Remember, stakeholder management is a key aspect of procurement and supply in business, as stakeholders can significantly influence business operations and outcomes.