Wednesday, 14 May 2014

How to Implement Green Procurement in the Private Sector?

In order to make environmentally friendly changes in the company’s supply chain it’s necessary to fully understand the supplier relationship. Green procurement requires an excellent understanding of which suppliers have the most effect on the environment, the health and safety costs and the risks involve along with the effect they have on the reputation of the company. The need to have excellent communication with the suppliers is essential along with the need to track and measure the environmental performance of the supplier.

Here are some useful tips to make the transition to green procurement run smoothly:
  1. Create clear definitions of your terms
  2. Research the procurement policies of the company and discover the price preferences that are given to the environmentally friendly products or services
  3. Screen all suppliers and subcontractors using surveys to discover more about their environmental practices.
  4. Create a blacklist that includes all products, chemicals or materials you are not willing to associate the company with.
  5. Choose green products.
  6. Create ground rules and expectations and conduct performance reviews with your suppliers periodically.
  7. Buy in bulk.
  8. Involve suppliers in your action plan and involve the technical personnel within your company that are responsible for the day to day operations.
  9. Test products and evaluate the response before placing large orders.
  10. Don’t expect instant change, the change will be slow and incremental.
Resistance to change is to be expected, but with clear and open communication, reporting and education green procurement will be welcomed.

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