Sustainable Procurement Strategy — Embracing Sustainability
Sustainable procurement strategy allows an organization to conduct its procurement processes that support its sustainability goals and objectives. However, how do you make one?
We will teach you in this article what a sustainable procurement strategy is. We will tell you its importance and how you can make your own sustainable procurement strategy.
Once you finish reading this article, you will know the importance of having your own sustainable procurement strategy in your procurement. Additionally, you will be able to create one that suits your sustainability goals and objectives.
Sustainability in Procurement Strategy: what is it?
Before we discuss what sustainable procurement strategy is, we will first define what sustainable procurement means.
Sustainable procurement refers to the acquisition of goods or services that have less environmental and social impacts. It involves selecting suppliers that meet the sustainable criteria or standards of your company to help you with your goal of achieving sustainability.
Now that you know what sustainable procurement is, it is time to move to define what sustainable procurement strategy is.
A sustainable procurement strategy is a document that directs the company to realize its sustainability vision or goals. It outlines the organization’s procurement objectives and directions will be carried out through a detailed action plan.
A sustainable procurement strategy considers the environmental, social, and economic impacts of purchased or created products and services throughout their entire lifecycle.
Furthermore, a sustainable procurement strategy ensures that the procurement processes support the organization’s goals and objectives in achieving sustainability.
What is The Importance of Sustainable Procurement Strategy?
A sustainable procurement strategy is crucial for every business wanting to achieve sustainability as it becomes their guide to whether their procurement process still complies with sustainability standards.
It allows them to push for sustainability while also ensuring that the company meets its goals and objectives, as well as increasing its profits.
Additionally, a sustainable procurement strategy allows businesses to ensure that the products and services that they will source have no negative environmental and social impacts.
A sustainable procurement strategy involves making your suppliers compliant with your sustainability standards. Thus, it will enable you to only engage with suppliers that adhere to ethical and fair labor practices.
Furthermore, a sustainable procurement strategy can lead to cost savings as you only procure materials that you need, and no materials are wasted.
Making your Own Sustainable Procurement Strategy
As we told you earlier, a sustainable procurement strategy enables businesses to align their procurement activities to their sustainability goals and objectives. Thus, ensuring that they are still on track toward sustainability.
In order to develop an effective Sustainable Procurement Strategy, it is crucial to ensure that all components of the final action plan align closely with your company’s overall strategy.
If you are a member of a procurement team that has its own strategy, it is also important to incorporate its strategic principles into your plan.
Typically, the process begins by identifying the requirements of your company. It is essential to have a clear understanding of your company’s specific needs in order to formulate a well-suited Sustainable Procurement Strategy. This involves reviewing the company’s strategy, documents, contracts, and other relevant information to gain insights into its procurement requirements.
Before you create your own sustainable procurement strategy, you should map your stakeholders in relation to sustainable procurement. The most important question for you to answer is, who are my most important stakeholders internally and externally?
By knowing this, your stakeholders will understand the different roles that they need to play to implement sustainability within the procurement processes.
What results from the feedback from internal stakeholders as well as the data you gathered from the business and procurement strategy is a clear understanding of what the procurement plan should aim to achieve.
Let us now go back to making your sustainable procurement strategy. It may sound like a big task in writing and developing a sustainable procurement strategy. However, if you have everything that is needed, then you should have no problems writing and building your strategy!
It is important to list down your goals, tactics to be used, data that was collected, and all other information that is needed. This will help you wrap up all the preparation work you have done. Just like in the other lessons, we will provide you with templates to help you out!
Your sustainable procurement plan outlines the steps you should take to ensure that your project has the greatest possible outcome. Your strategy should at least include the following:
- Key findings about sustainability risks and opportunities, needs, and the supply market
- The actions required to manage key sustainability risks
- The recommended demand-related approach (e.g. Elimination, reduction, reuse, recycling)
- How your sourcing approach delivers sustainability objectives
- How sustainability requirements are incorporated into the specification, including any go/no-go decisions
- The importance of sustainability in your evaluation criteria, carefully balancing it with other factors like cost or quality
- The anticipated sustainability benefits, such as cost savings over the course of the project
- The effects of the sustainability approach on your project’s schedule and budget
Once you have included this in your sustainable procurement strategy, the only thing that is left to do is to ask for feedback from your stakeholders, execute, and monitor the effectiveness of your strategy in your procurement process.
Do you want to learn more about creating your own sustainable procurement strategy? Then you are in the right place!
Our Sustainable Procurement Course is a good fit for procurement professionals that want to create a sustainable procurement strategy but do not know where and when to start. Our course ensures that you will have a sustainable procurement strategy that perfectly fits your company.
+ What is sustainable procurement?
It refers to the acquisition of goods or services that have less environmental and social impacts.
+ What is a sustainable procurement strategy?
It is a document that directs the company to realize its sustainability vision or goals.
+ Why is it important?
It is important as it becomes the guide of companies to whether their procurement process still complies with sustainability standards.
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