The power of sustainable procurement
Date: 26-06-2008
Source: Consultant News
For many corporations, much of the footprint -- and associated value -- relating to sustainability lies in the supply chain rather than in operations directly controlled by the corporation itself. As stakeholders become increasingly insistent that "promises made" by the CEO should be "promises delivered", business leaders will need to extract and manage increasing innovation from suppliers as well as employees to deliver on commitments to sustainable performance.
Management consultancy Arthur D. Little joined leading mainstream procurement executives at the Green Supply Chain Summit to launch a new white paper exploring how regulation, rising energy costs and increased consumer concern with ethical business are driving corporations across sectors to consider sustainable procurement to lower costs and build more valuable business practices. This paper, Green Purchasing Power, looks at how leading businesses are benefitting from a sustainable approach to procurement through reduced costs, lowered risk levels, increased stakeholder value and increased scope for innovative products and pricing.
However, key to achieving these benefits is correctly positioning sustainable procurement within an organization's wider management strategy; Arthur D. Little argues that this means buy-in from the top. In this latest paper, ADL examines the implications of green procurement on the CEO's accountability for the company's supply chain.
"Companies operating in this changing business landscape have three strategic choices in relation to sustainable procurement: react, adapt or anticipate," reflects Richard Clarke, Director and Global Leader of Arthur D. Little's Sustainability and Risk practice. "Businesses interested in reaping significant competitive benefits from sustainable procurement need a strategy of anticipation through systematic evaluation of the company's procurement options, followed by implementation of measures designed to maximize the business benefits delivered through procurement. In this white paper we offer companies specific advice about how best to implement these systems into their ongoing procurement processes."
Green Purchasing Power is now available for download here.
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