Due to the development of corporate goals and increasingly complex compliancy requirements, more and more organizations are developing corporate responsibility objectives making sustainability or “green procurement” an integral strategy for modern supply chains.
But is it better to incorporate the sustainability objectives using incremental steps, rather than simply radically altering the supply chain in one go – just how should you go about it? The underlying requirement of a stable supply chain is still required no matter what the buying practices – so careful consideration of how to implement is a must.
1. Agree that sustainable objectives need to be incorporated into the supply chain. This may sound obvious, but it is critical that all stakeholders, including all senior management buy in and contribute to the objectives.
2. Once objectives have been declared at a senior level – ensure that the concept of sustainability objectives are embraced within the supply chain team. Consider your skill base and whether any changes/training are required in order to meet your goals – in particular pay close attention to commodities and how alternative products that meet requirements will be sourced.
3. Decide which objectives are achievable and in what timescales. For example if you want to ensure that you reduce the carbon footprint of the whole supply chain then this is a long term objective. If, on the other hand, you want to use more energy efficient means of transporting some items within the supply chain, then this can potentially be achieved within the short term.
4. You need to get the company to accept that the introduction of sustainable objectives will require a different culture throughout the company. There may be a change in the products you buy or the companies you use – buy in from internal stakeholders will be paramount. Sustainability is as much about change management as it is about procurement.
5. Baseline current practices and performance. In order to be able to demonstrate a change in environmental or social footprint through introducing sustainable objectives – you need to know where you are now through available and quantifiable measures and KPI’s.
6. You also need to know where your commodities/suppliers are at in terms of your aspirations are alternative products on the market? If your looking to meet compliancy requirements are your suppliers already configured to meet these needs or will work be required?
7. Plan your goals and sustainability objectives that you will be introducing. These need to be specific, they should also be measurable, attainable and of course, relevant and timely.
8. Now that the goals and objectives have been defined, construct a plan to see just what the organization needs to do to actually implement. Assign appropriate roles and responsibilities within your team and get going.
9. Once you have started to incorporate the sustainability objectives, then you need to start measuring the success of the objectives. After all, if you are including the objectives but they aren’t actually achieving anything, then you need to remove the objectives that you have included and come up with some others that will hopefully achieve their goals!
10. Now that the objectives are included and are being measured, then all that has to be done is communicating activity and successes throughout the organization, letting everyone know what the sustainability objectives are and how they are shaping the supply chain.
Obviously sustainability objectives are going to take time to settle in, but once they are in place and being measured then the transformation of the supply chain into one that is sustainable and therefore probably much less fragile, can begin! It will take time, but the effort is definitely worth it in the end!