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Green Procurement May Be Simpler Than You Think
Often
the most highly visible aspect of a green
business plan includes purchasing and the supply
chain. Suppliers are being held to a higher
standard, subjected to greater scrutiny and
expected to respond to these challenges.
Procurement
solutions to the environmental question can be
achieved using business models already in place.
These types of systems and processes are already
applied to cover non-green issues when firms are
dealing with their suppliers. Supplier audits
already include checks for compliance with other
regulations governing workforce diversity,
workplace conditions, etc, so that the same
model can be applied to cover environmental
standards. Requesting environmental information
is asking suppliers to become more accountable
and then this information can be put into a
balance scorecard to measure their performance,
creating an incentive for them to improve.
By
involving suppliers early and often in product,
process, and strategic decisions that impact
them, it is possible to reduce the potential
negative fall-out from any changes. Add
suppliers to planning teams to implement design
for environment initiatives and, within your own
company, seek to collaborate at multiple levels,
involving the technical personnel that plan and
manage day-to-day operations.
Sustainable Procurement refers to
‘policy-through-procurement’ issues where
purchasing choices are seen as a lever to
achieve wider objectives. These lofty goals may
seem to pose a difficult challenge, but it all
comes down to procurement having a key rôle in
the business, together with the ability to
assess suppliers correctly. Implementing
environmental procurement may require a larger
initial investment of time and effort, but it
can pay lasting dividends in terms of reduced
product life-cycle cost, overall cost
efficiency, and minimized environmental risk.
A
growing number of suppliers now recognize that
the environmental qualities of their products
can be a competitive advantaged in courting and
maintaining relationships with corporate
customers – while poor environmental performance
can put them at a disadvantage. Companies can
team environmental managers with their
procurement departments to leverage suppliers
towards green practices as well as benefiting
from increased accountability and the
relationships that result.
Richard
Hatton is Managing Director of Adjust PS, a UK
company specializing in delivering procurement
consulting. Visit Adjust PS at www.adjustps.com |
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