Page 7 - Logistics News - August 2021

TH O UGHT LEAD ERS HIP

Three keys to making

procurement greener

Courtesy Supply Chain Digest

A recent report released by Procurious provides strategies for improving your company’s green
supply chain performance.

oing green and improving sustainability have 3. Leveraging technology to monitor sustainability risks,
been near the top of the procurement priority news and events that may impact the supply chain (32
Glist for some companies for some time now, percent).
but with no clear roadmap to get there for many other
companies, and many late to the green party. Th e report says it is impossible to drive positive
sustainability outcomes without monitoring and engaging
A recent report released by Procurious, a networking with the supply base. Th e survey also found that only
group for procurement and supply chain professionals, 15 percent of companies were monitoring sustainability
says that the top strategy for improving a company’s performance for more than 75 percent of their tier one
green supply chain performance is simply to directly suppliers, and 55 percent were monitoring 25 percent or less.
collaborate with suppliers to change and improve
sustainability practices. Fewer than 5 percent were monitoring suppliers below
tier 1, while the lack of visibility was cited by 66 percent as
Beyond that basic strategy, the report recommends three the biggest challenge in managing suppliers, followed by an
other practices to accelerate the move to green. According to over emphasis on costs and the inability to collaborate.
the SupplyManagement.com website, these are:
1. Increasing the weight put behind sustainability Th e survey also found companies that were the greenest
criteria in supplier selection decisions, cited by had the best fi nancial results as well. Companies with
45 percent in a survey of 470 procurement advanced sustainable procurement programmes were twice
professionals as having had a meaningful impact. as likely to report increasing sales and improved product and
2. Adjusting procurement KPIs to place greater weight on service quality as those with less mature programmes.
sustainability (42 percent).
Th e most advanced
green company also
achieved greater return
on investment in
many areas, including
increased sales, lower
supply chain costs, more
innovation and reduced
supply chain risk.

Th e full report is
L O GI S T I CS NEWS
available here:

www .l o g ist i csn e w s .c o .z a A U GU S T 2021 5