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10 Tips for Greening Supply Chains
Here are ten ways that procurement can help spearhead corporate sustainability efforts while delivering bottom-line results.
To help companies quickly develop a greener approach to sourcing and
supply chain management with minimal investment,here are the following
best practices:
1. Know where you stand: Understanding
your organization's spend, supply chain and consumption patterns is the
first step because you can't affect what you can't see. A simple
assessment of your organization’s “green” status of a more detailed
carbon footprint study will provide you with the information you need
to determine how well your supply chain is positioned for the changes
on the horizon.
2. Have a plan: Once
you know where you stand, create a set of goals and, even more
important, metrics that can be used to track progress against these
goals.
3. Have a single point of accountability: Many
organizations have appointed "chief sustainability officers" to oversee
their green efforts. The appropriateness of this specific position will
depend on your organization and industry, but the key is to have a
single point of accountability empowered to effect change.
4. Market your progress internally and externally: Half
the battle is getting the word out and bringing people on board. Be
sure to communicate to all levels why green efforts are being
undertaken, what will be measured and how the company is going to get
there.
5. Incorporate "green" into your existing sourcing and procurement processes: Sourcing
and procurement have always been about more than just price. Be sure to
include green criteria in your requests for proposals (RFPs) and create
clear metrics for measuring them as part of supplier performance
management.
6. Communicate your goals and standards to your supplier community: By
setting clear expectations of your supply base during the sourcing
process and proactively monitoring compliance/progress, you can quickly
improve your sustainability performance. Outline what suppliers will be
expected to provide and how they will be measured to ensure that they
are delivering and putting in place the processes and procedures to
drive compliance.
7. Stay up-to-date with global regulations: Environmental
regulations such as the Restriction of Hazardous Substances (RoHS)
directive in the European Union will increasingly affect how your
supply chain functions regardless of your location. You need a method
for keeping up with changes in this rapidly evolving area to avoid
costly mistakes in your supply chain.
8. Keep up with new materials, technologies and processes: Significant
work is being done to develop new approaches that can cost-effectively
address the challenges and opportunities that green initiatives
present. Stay up-to-date in your industry, participate in trade groups
and do whatever it takes to maintain your competitive advantage and not
be left behind.
9. Do the "easy stuff" first: You
don't need to overhaul your supply chain to see gains from
sustainability efforts. Instead, identify "quick wins" such as simple
improvements in energy efficiency that can both deliver bottom-line
results and kick-start your green initiative.
10. Get everyone involved: As
with any broad initiative, it is nearly impossible for just one
functional area to have an impact on the entire organization through
its efforts alone. To be effective, get Engineering, Design, Sales,
Finance, Operations and everyone else involved
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