Keeping a close eye on prices, deadlines and quality in a sustainable purchasing process can seem complex. In a previous article, we discussed the difficulties and benefits of adopting sustainable purchasing management and the importance of digital platforms to put this into practice. Now, in this content, we present three essential steps to achieve these goals.
The World Economic Forum recently published a report indicating that half of global GDP – more than US$40 trillion – depends on stable ecosystems. Initiating or strengthening a sustainable purchasing process not only strengthens a business’ presence and survival in the market, but also serves as a support for the entire chain of green efforts around the world.
One of the many tasks we face is the issue of plastic. A report on the circular economy published by the Ellen MacArthur Foundation highlighted that companies must eliminate single-use plastic packaging in order to meet the established targets. Recycling, which would be a viable option, is practically non-existent on a global level. So how can we respond to this and other challenges?
We have prepared three basic steps for a sustainable purchasing process. Check out below how to plan, what to do and how to deal with supplier registration to establish your company's path.
Steps towards a sustainable purchasing process
Incorporate sustainability into the Planning stage
For an efficient purchasing process, planning committed to sustainable issues is necessary as a starting point. At this stage, review the actions already taken by the company and consider the need to research and analyze new movements. All of this can be done with the help of Sustainability specialists for the Purchasing Department, to align the next steps according to the company's strategies and potential contribution.
Analyze the external impact of each Purchasing category
Carrying out in-depth research into the impacts of each Purchasing category allows for mapping the social and environmental aspects involved in each practice. Since accounting for all the consequences involved in each of them is quite challenging, we have listed some actions that help in this regard. shopping process sustainable:
- Promote debates with the presence or collaboration of Sustainability experts on the social and environmental effects involved
- Generate reports based on these discussions for access by the entire Purchasing Department and all C-levels
- Study the adoption of alternative practices, materials and services to those already tried
- Monitor and support external impact mitigation initiatives
Invest in ACV
Life Cycle Assessment (LCA) in the sustainable purchasing process allows us to identify the impacts of goods and services, including their strengths and weaknesses. The method quantifies everything from the extraction of natural resources and the entire product transformation chain to use, recycling and disposal. Many companies use LCA as a first step towards more sustainable management.
Review the way you register suppliers
Adopting new criteria for supplier registration information is the next step in the sustainable purchasing process. All the material acquired in the previous stages serves as a basis for this structuring, with the specification of mandatory minimum standards for norms, practices and technologies. A more complete registration facilitates the decision-making process and negotiations.
The help of digital tools
To be successful in the ESG Agenda (an acronym in English that refers to environmental, social and corporate governance issues), it is worth integrate social, ethical and environmental performance metrics into the supplier search process.
The COSTDRIVERS platform offers tools for budgets and contracts and data metrics that allow the generation of insights for a more assertive decision-making process, optimizing time and resources throughout the supply chain. Get in touch and book a demo to find out how we can facilitate your sustainable purchasing process.