Green Purchasing and Procurement Strategies
The publication mainly discussed sustainable procurement by applying a highly effective and long-term investment strategy which is called green purchasing. This is defined as the approach to purchasing products and services that considers the economical, environmental and social impacts of buying choices (Little, Green Purchasing & Procurement Strategies 1). It includes best value-for-money considerations; applying the price, quality, availability and functionality of a required product or service.
The thrust for green purchasing in the company is spearheaded by regulation which is mainly the European Union and national government policies.; through the expectation of the customers, consumers and other legitimate stakeholders; and most importantly the tangible and beneficial effect of sustainable procurement in the business which are the cost reduction, lowered risk to business, provides options through innovation and preferences by potential customers, insurers, credit sources and others. (Little, Green Purchasing & Procurement Strategies 2). This conclusion is generated from the survey conducted from major Italian utility companies by Arthur D. Little. The companies perceived the three most valuable benefits of a sustainable procurement system to be: protection from environmental risk or disruption; attraction of environmentally sensitive customers; reinforcement of brand reputation. (Little, Green Purchasing & Procurement Strategies 2).
The approach to sustainable procurement was also tackled as well as the influence of the CEO’s overall accountability which can be used as wider strategic choice of a company. The role of the CEO and his accountability to the overall performance of the business, the overall response of the stake holder’s expectations and his duty to build the value of the company through cost reduction, minimizing risks and protection of revenue. The CEO cannot transfer the accountability for sustainable procurements but can typically
The thrust for green purchasing in the company is spearheaded by regulation which is mainly the European Union and national government policies.; through the expectation of the customers, consumers and other legitimate stakeholders; and most importantly the tangible and beneficial effect of sustainable procurement in the business which are the cost reduction, lowered risk to business, provides options through innovation and preferences by potential customers, insurers, credit sources and others. (Little, Green Purchasing & Procurement Strategies 2). This conclusion is generated from the survey conducted from major Italian utility companies by Arthur D. Little. The companies perceived the three most valuable benefits of a sustainable procurement system to be: protection from environmental risk or disruption; attraction of environmentally sensitive customers; reinforcement of brand reputation. (Little, Green Purchasing & Procurement Strategies 2).
The approach to sustainable procurement was also tackled as well as the influence of the CEO’s overall accountability which can be used as wider strategic choice of a company. The role of the CEO and his accountability to the overall performance of the business, the overall response of the stake holder’s expectations and his duty to build the value of the company through cost reduction, minimizing risks and protection of revenue. The CEO cannot transfer the accountability for sustainable procurements but can typically
Cited: Little, Arthur D. Green Purchasing Power Cost Reduction and Revenue Generation through Sustainable Procurement, 2008. Web