3 things the companies of tomorrow need to know on sustainable procurement today

Finally.

It's there.  

An international standard on sustainable procurement.

Sustainable sourcing, responsible buying, ethical supply chains, green procurement or social value?

Were you confused too?

And now?

A common vocabulary and definition has been created....

It is called ISO 20400, and it’s the first international standard on sustainable procurement.

So what's in it for you as a leading company doing global business?

Here are the 3 main drivers why you should start with sustainable procurement today

1/ Sustainable procurement positions procurement as a strategic function

Did you know that between 50% to 80% of an organization's budgets are related to procurement?

This is a major leverage to create impact, isn't it?

Procurement can create a positive double impact: value for your company and value for society.

Procurement changes from an operational to a strategic function and is shifting markets to create more responsible, climate proof and socially compliant businesses.

2/ Protect your brand's reputation

No one can forget the newspaper’s headlines of major companies being held responsible for the Rana Plaza drama. But can you prove compliance on risks such as human and labour rights in your supply chains today? Be pro-active by managing sustainability risks throughout your supply chains in order to stay in the game in the long run.

And finally....

3/ There's a business case for buying sustainable

This is the challenge: How can we change the procurers price-only mindset to a cost-over-the-life-cycle mindset? What if the price is only the tip of the iceberg and the real costs are hidden under the surface?

Procurers with a future proof mindset look beyond price and consider all the costs during the entire life cycle of a product or service. And if we consider those costs….we often promote sustainable solutions. In general they are more efficient and cost less....

Why is that?

Future proof procurers have a new way of thinking and they focus on:

• less materials,
• less energy,
• less transport and
• less packaging.

They try to close material loops by valorizing ever more scarce materials and resources at the end of their so called life. In fact, they create endless loops of material use trying to eliminate waste.

So what is the future of procurement?

It's about transparent supply chains that are compliant with international and national legislation

It's about creating positive impact for business and for society

It’s about future-proof business

So what about you? Are you ready for the future of procurement?