Lessons from the Leaders in Green Procurement

Much of the popular press and literature out there today indicates that big business is beginning to shift its purchasing towards more sustainable or ‘green’ options. In our professional consulting practice, we find the procurement organizations of many of our large clients now placing an emphasis on environmental and social responsibility actions within in the supply chain. So what exactly are these large organizations doing and what can the rest of us learn from their actions?

Green procurement is more than just choosing recycled paper for the printers or chemical free cleaning products. A comprehensive business sustainability strategy goes far beyond simply bringing more responsible choices in the business’s front door.   While choosing a ‘greener’ option is always preferable, companies on the leading edge of sustainability are implementing ‘green’ decision process into all areas of their business, including their procurement and supply chain functions.

As a sustainability consultant working with clients in the supply chain, we find areas of improvement across all steps of the supply management process. Our small business resources find companies are focused on a few key broad areas: visibility, procurement governance, and supplier development.

To get started, our sustainability consultants often asks business and supply chain organizational leaders a few simple questions from a green procurement perspective:

•    Purchasing Visibility – What is the company buying and where the money is going?

•    Needs Assessment – What are the criteria and incentives that define purchase requests?

•    Supplier Identification – How are sources defined and evaluated?

•    Business Transactions – How are transactions tracked?

•    Performance Management – Are there defined performance measures?

•    Supplier Development – Do suppliers know what they need to be doing to improve their performance?

A common characteristic across best-in-class supply chain companies is visibility and the ability to measure internal and external performance. At Taiga Company, our sustainability consulting provides information and small business resources to clients of all sizes seeking to make incremental steps towards a sustainable supply chain.