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Organizations are increasingly recognizing the importance of sustainable procurement as a lever for positive environmental and social impact beyond cost savings. This video provides a step-by-step framework for implementing sustainable procurement practices as part of your sourcing and procurement process. We discuss how to define sustainability criteria relevant for your industry and needs, evaluate suppliers based on these criteria, engage with suppliers to enhance sustainability of offerings, and track and report on progress. Implementing sustainable procurement requires a holistic, cross-functional approach that engages stakeholders across the organization. But done right, it can significantly advance your organization’s sustainability objectives while also improving efficiency, resilience and innovation.
Compliance management is very critical as otherwise the procurement organization may run into a scenario where there is a huge gap between realized savings and reported savings. Many procurement functions estimate large savings numbers when contracts are signed. They also invest significant time and effort in negotiating contracts for necessary goods and services, only to have a third or more of their purchasing dollars flow outside those deals. Some of the obvious fall-outs of non-compliance and maverick purchases are:
As compared to the current contract that was finalized after the sourcing process, the tool helps in tracking:
The objective of this tool is to ensure that the orders are placed only with the vendors that were shortlisted after the sourcing process and at the same price that was agreed upon and negotiated during and after the strategic sourcing process.
