Sustainable Procurement Strategy

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Top companies understand that sustainable procurement has to cover all components of the supply chain management. Numbers and facts can help motivating suppliers. Companies need to quantify the benefits related to financial, reputation and risk management when a sustainable supply chain is integrated. As of now only 25% companies who are Carbon Disclosure Project (CDP) supply chain program member do so. The benefits of supply chain sustainability are immense, (Accenture.com, n.d.) There are top companies who are able to use dedicated strategy across the processes; system and governance are able to forge ahead of the competition. They are able to achieve supply chain sustainability by procurement strategy as explained below:
Evolving procurement
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It uses Nestle supplier code to encompass all of the companies’ suppliers, across the globe. It has formed an integral part of all purchases and supplies across all the businesses. With this code, Nestle has ensured best practices in procurement and has ensured a long-term supply of the safe, quality products from regulatory- complying businesses.
In addition to supplier code, the company has also initiated the response-induced sustainability evaluation. It evaluates sustainability across multiple dimensions like social, ecological, energy consumption, etc. Nestle directly interacts with farmers for discussing intervention points for improvement. RISE has not only contributed to reducing greenhouse gas emission but has also provided assessment feedback, to the farmers, which stimulates innovation and improvement. In china facility, their specialists are guiding farmers about waste management solutions. These initiatives show company’s actions toward sustainable
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sustainable procurement enablers
There are nine best practices which are possible only through e-Procurement.
Centralised procurement governance: e-procurement help by providing a centralised data storage about the best suppliers, materials which help in having visibility and control over the entire supply chain. It helps in reducing expenses and costs. By integrating best prices from preferred suppliers and sustainable products and by automation of all the approvals, e-procurement system will in enforcing sustainable procurement policy for the organisation.
Automated processes/workflow: Training every employee, involved in sustainable procurement is one of the biggest challenges an organisation faces. Trained people ensure that the preferred and best sustainable products are being purchased. Two key groups involved in any procurement process are the business units which request the purchases, and the procurement staff –people from these two groups are involved in the purchasing

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