Procurement is the act of obtaining and purchasing goods for your businesses needs. The procurement process is mainly associated with businesses as companies need to acquire services and purchase goods in order to run their company effectively. For a long period of time companies have used this process to run their business with the main objective being to obtain goods and services for their business flow in the most cost-effective way to ensure profit for the business.
This drive for profit has led businesses to neglect the harmful and wasteful effects on the planet through some of the goods and services they purchase. This is why Green Procurement has become a large topic of conversation among businesses. In this article we will discuss the topic “Green procurement” and how and why this procurement process is the way forward for businesses to better ensure success and profitability while still preserving the earth and its natural resources.
Green Procurement Practices
Green Procurement also known as sustainable procurement is the purchasing of goods and services while ensuring minimal damaging effects on the environment.
Due to government regulations and the increased focus by consumers on sustainability; businesses have had to adjust their business practices and supply chains to ensure a more sustainable way of running their business. There are many ways to ensure sustainability within the procurement supply chain, this includes:
- Finding suppliers who are environmentally friendly or have a low carbon footprint.
- Utilizing clean technology and fuels.
- Using responsibly sourced materials, goods, and services within the procurement supply chain.
- Procuring reusable materials so that those materials may be recycled.
- Providing a positive working environment so that employees do not “burn out” to ensure a sustainable working environment.
- Utilizing resources in a responsible and sustainable manner.
The above are just a few examples of how companies can practice green procurement within their business.
Benefits of Green Procurement
By ensuring that your business follows green procurement supply chains you are not only setting your business up for long term financial success but also ensuring the wellbeing of the earth as well as your clients and employees. By practicing green procurement your businesses brand reputation will improve tremendously which can provide a competitive advantage. People all over the world have become increasingly concerned over the products and services they use and the companies that supply them.
A company which prides itself in being eco-friendly and sustainable is way more likely to obtain new clients over a company that is not, thus further ensuring financial success of the said business. Not only through brand recognition can a company ensure financial success but also by implementing other eco-strategies, these include:
- IT Solutions which provide businesses with sustainable water and electricity sources e.g., wind turbines and recycled water plants ensures the lowering of business expenses resulting in a higher profit margin for the business while preserving the earth’s natural resources.
- Being compliant with government regulations ensures a business will not have to pay hefty fines and risk their brand reputation further ensuring financial sustainability.
- A Sustainable working environment which includes e.g., fair pay, safe working conditions and sustainable working hours ensures employees can work to the best of their ability so that work will be done correctly and timeously minimising the risk of upsets within a business which allows the business to run smoothly.