What steps can companies take to include green strategies into their procurement process?

May 20th, 2009

Although many e-negotiation solution providers claim to have processes in place to support green sourcing

Although many e-negotiation solution providers claim to have processes in place to support green sourcing, how much of that is just green wash?

This author could have used the term best practices in the above paragraph instead of processes, but as you are already aware I do not believe there is such a thing. For companies that think outside of the box in order to offer solutions that improve and streamline processes, best practices cease to be just that as soon as they are established to begin with.

A first step for companies is to develop a process which evolves daily with which to evaluate your existing and potential new sources supply. A good way to begin this process is to author a GREEN RFI prior to all e-negotiation events. Eliminate the suppliers that don’t seem to have any process in place based on their RFI responses. Upon event completion hold low bid suppliers accountable by visiting those suppliers’ facilities prior to the actual award of business and base your final decision RFI result confirmation. During the RFI process make insure that the following types of questions are included with which to evaluate your existing and new sources supply.

1. Please list all of your companies CSR initiatives.
2. Does your company support TBL reporting?
3. What environmental permits and certifications are in place?
4. Do you have readily available audit results?
5. Please list all of your pollution prevention controls.
6. What are your hazardous materials handling process.
7. What is your waste management plan?
8. What do you do to insure clean air emissions?
9. Does your company maintain product formulas and content traceability?
10. Please list your product safety plans and certifications.

Once suppliers have been retained or selected, offer to train them on how to include this process with their own sources of supply and other business partners. This may include offering how your trace the overall benefits of being a green company to your bottom line (TBL) as well as other initiatives you have taken internally with associates and other stake holders to support your internal CSR initiatives.

We look forward to and appreciate your comments.

Ron Southard

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