The road to sustainable procurement

The road to sustainable procurement

Procurement teams typically begin by identifying the goods or services that are needed, and then researching potential suppliers who can provide them. This research may include evaluating factors such as the supplier's reputation, price, delivery times, and compliance with relevant laws and regulations. Once a supplier is selected, they will work with them to establish the terms of the purchase, such as the price, delivery schedule, and any necessary specifications or certifications. After the purchase is made, the goods or services will be shipped to the organization. Depending on the size and complexity of the organization, they manage the logistics of getting the goods or services from the supplier to the organization's facilities, which may involve coordinating with freight forwarders, customs brokers, and transportation companies. 

Procurement teams also play a vital role in managing supplier relationships, monitoring supplier performance, and ensuring compliance with contracts and agreements. Procurement is a critical function that plays a key role in the success of an organization by ensuring that it has the goods and services it needs to operate at optimal efficiency, while also managing costs and risks effectively.

Indeed, accounting for sustainability in procurement can be challenging, especially when it comes to indirect emissions caused by contractors and suppliers in a company's value chain. One way to tackle this is by conducting sustainability assessments of suppliers and contractors, which can help identify areas where they may be able to improve their environmental or social performance.

Additionally, incorporating sustainability criteria into procurement decision-making, such as lifecycle analysis, supplier evaluation and performance monitoring, can also help to reduce the environmental impact of a company's value chain. Another approach is to establish sustainability goals and targets for suppliers and contractors, and to track their progress towards meeting those goals. This can be done through regular reporting and audits, which can help to identify areas where suppliers and contractors may be falling short and where additional support or guidance may be needed.

Another way is to encourage the development of sustainable products and services by specifying them in procurement processes.

Finally, companies can also collaborate with their peers and industry organizations to share best practices and encourage the development of more sustainable supply chains. It's important to note that, accounting for sustainability in procurement may not be easy but it's becoming more critical as society is increasingly demanding for more sustainable products and services, and laws and regulations are increasingly demanding for more transparency in the supply chain.