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Benefits of green procurement

Sustainable procurement remains a key objective for many businesses. But what are the benefits of green procurement for your business?

What is green procurement?

Green procurement involves evaluating your supply chain and looking at where the products come from, what they are made of and what happens to them once they have been used.

In today’s climate, the most important aspect is considering if the purchase needs to be made at all and – if it does – ensuring quantities are accurate and there is little wastage. 

What are the main benefits?

A common misconception is that green procurement is expensive and, given the state of the economy, employers therefore often think they should wait to adopt a green strategy. However, sustainable procurement can play a leading role in resource waste reduction, helping you better manage your resources and improve efficiency.

In addition to the long-term costs benefits, most customers now expect businesses to act responsibly and to look after the environment. Your reputation in the market, exposure to risk and your desire to do the right thing should also be key drivers.

Long-term sustainable strategies can help you make greater savings and enable you to forecast future costs more accurately. As an example, take the purchase of IT equipment – you could go for the short-term cost savings or you could buy the most efficient option that is green and delivers long term savings. 

Are you plannind wisely?

Green procurement involves evaluating your supply chain and looking at where the products come from, what they are made of and what happens to them once they have been used. 

As you will have a better idea of exact cost of a commodity, you will be able to accurately predict expenditure for the future. But while a long-term sustainable procurement approach will also allow you to have a much better idea of your long-term costs, planning is key to delivering green objectives.

You need to be able to accurately anticipate stock levels and equipment usage over a period of time. Suppliers and your own staff need to be well informed and trained about any changes you are making to your procurement procedures to maximise the benefits.

 

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