Procurement

Greening the supply chain involves a forward thinking company working with its suppliers to improve the environmental performance of their products and services. 

Implementing sustainability initiatives throughout the supply chain not only achieves regulatory compliance, but also improves brand image, customer satisfaction and improved relationships with your suppliers.  Greening your supply chain can also streamline your purchasing process, reduce overall costs, and improve your environmental footprint.

The most effective way to green your purchasing is to review your inbound supply chain to select and purchase goods and services that are affordable, but also have the least possible environmental impact throughout the course of their lifecycle including manufacturing, shipping/transportation, use, and recycling or disposal.

Improving the Environmental Performance of your Supply Chain

Firstly you need to conduct a detailed review of the resource efficiency of each business in the supply chain.  Concentrate on ways to reduce waste, improve efficiency of water and energy use.

In some cases you may be able to put pressure on your suppliers to develop an environmental management system by establishing a purchasing policy that requires suppliers to have an environmental policy as a key criterion.  You can insist that your suppliers have policies in place to reduce waste, energy and water and use renewable energy sources where possible.  Your suppliers should also set key performance indicators to measure and maintain continual improvement.

You can devise your own environmental policy that is agreed by your suppliers which sets out the requirements for both parties to reduce waste and improve efficiency. 

A Supplier with Good Environmental Credentials

As a supplier it is important to look at your own environmental performance.  By committing to maintain and improve your environmental awareness and impact you will improve your competitive edge.  An increasing number of businesses, government departments and public bodies have environmental standards as a key requirement in their procurement policies.  If you don’t match the environmental standards you may not even be considered as a potential supplier, irrespective of the performance of your product or services. 

As a minimum you must have a written environmental policy with action points and key performance indicators. Regular environmental reporting, staff training and performance monitoring should also be carried out.  By making your environmental policy you can demonstrate to other suppliers and consumers that your business is taking actions to protect the environment. 

You may also encourage other organisations further up the supply chain to improve their environmental performance.  

Other Sources of information

Business Link provides guidance and advice on improving the environmental performance of the supply chain, including its benefits, key areas to focus upon, forming a partnership with your suppliers and a case study of how Business Link work with their supply chain.