Sustainable Procurement is no longer an optional activity for the modern procurement function: it is a staple requirement of buyers as well as being required by legislation in most countries. It is also greatly appealing to employees and investors alike.
Although some procurement teams are making fantastic strides towards an extremely sustainable procurement operation, with the majority of procurement functions being at the beginning of what’s possible in the sustainability sphere.
As the saying goes, ‘there is always room for improvement’, this rings true for almost every organisation on the planet.
The Procurious report, sponsored by Ivalua, examines the state of Sustainable Procurement looking at both how procurement leaders think and operate their functions. Building blocks for improving future performance in the sustainability field are laid out to help teams develop.
From the research conducted, it was shown that the concept that introducing sustainability means a ‘trade-off’ in another area such as cost is a fleeting one. Modern consumers preference for sustainably sourced products results in increased sales for the organisations with these credentials which is outweighing the additional cost incurred from sourcing sustainably resulting in a net positive for the organisation.
The report features some revealing figures from respondents, where 52% said technology helps improve information sharing and communication with suppliers and stakeholders. Our CEO Lance Younger contributed, believing procurement leaders should think practically and ‘define areas where you truly need to and can have visibility’, with a clear lenience towards the power of digital and data on the procurement function.
The motivation for increasing sustainable practices has shifted from a business performance based on a genuine interest to create a positive impact on society and the environment.