3 steps to elevate your procurement with responsible purchasing
Procurement is about more than just cutting costs. It has become a pivotal part of achieving broader organizational goals, particularly those related to responsible purchasing. For procurement professionals, the focus has shifted towards building a more sustainable supply chain. By integrating responsible purchasing into procurement strategies, organizations can achieve improved financial performance and foster a meaningful impact on society and the environment. Let's explore how you can effectively elevate your procurement strategy by incorporating responsible purchasing for smart business buying.
1. Start with your data and tidy up supplier lists
Before making any changes, it's important to understand your current supplier landscape. Conduct a comprehensive audit of your suppliers to evaluate their sustainability credentials, compliance, and impact. This step not only identifies areas for improvement but also ensures you have a clear view of your starting point, allowing for more strategic decision-making moving forward. By taking the time to understand your suppliers' practices, you can align your procurement strategy with your organization's sustainability goals and values.
Example: The Amazon Business 2024 State of Procurement report found that 85% of decision-makers need more transparency to source sustainable suppliers. By tidying up supplier lists, you create a foundation for more informed decision-making.
2. Bring in stakeholders early and offer training
Successful integration of responsible purchasing requires buy-in from all levels of the organization. Engage stakeholders early in the process to align goals and expectations; this builds trust and helps everyone stay focused on the organization's commitment to responsible purchasing goals. Offering comprehensive training sessions is a key part of this process, as it equips employees with the necessary knowledge and tools to understand their specific roles in meeting responsible purchasing objectives.
Tip: According to Gartner, 80% of executives agree that sustainability initiatives have reduced costs during disruptions. Incorporating training helps sustain these efforts by empowering employees with the necessary knowledge and skills.
“We’ve increased our diversity spend approximately 25%. We love that we have the ability to support our local vendors or other small businesses. I don’t have to go out and do the research myself. It’s all right there provided by Amazon Business."
— Jack McCarty, Senior VP of Sales and Marketing for Pacifica Senior Living
3. Build strong relationships with suppliers
Eighty-six percent of executives see sustainability as an investment which protects their organization from disruptions. Incorporating training helps sustain these efforts by empowering employees with the necessary knowledge and skills.
Data Insight: 81% of survey respondents reported having internal or external mandates to purchase from different types of certified sellers. Building strong partnerships can enhance supplier diversity and boost your organization's social impact.
“At Union Pacific, we’re proud of our commitment to sustainable procurement, which is making a real difference in our operations and the communities we serve. By prioritizing supplier diversity and actively tracking our cost savings, we've unlocked incredible benefits that extend far beyond just our bottom line.”
— Andrea Oswald, General Director of Procurement Operations and Supplier Diversity, Union Pacific
Integrating responsible purchasing strategies into procurement practices has become an important element for organizations striving to succeed in today’s competitive landscape. By tackling challenges head-on, engaging stakeholders early, and cultivating strong supplier relationships, procurement professionals can create a substantial responsible purchasing impact. To enhance your organization’s responsible purchasing efforts, begin by organizing supplier lists, establishing measurable goals, and nurturing partnerships. This approach will enable you to make a meaningful difference within your organization and beyond.
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