Procurement is the process of purchasing materials from a manufacturer through an outside source. These sources are known as procurement companies as they directly purchase the materials from the manufacturers and then resell them to the company that has hired them. This process saves the company time because most procurement specialists have ongoing relationships with the companies they purchase materials from. Sustainable procurement looks at the environmental and social impacts as well as the financial aspects of purchasing materials from particular companies. With more people focused on the environment as well as the economy, sustainable procurement has become very beneficial to companies around the world.
Why It Is Important
In recent years the focus of people and companies alike have began to look at the environmental impact of their actions. Simple actions such as replanting trees as you cut them down for paper or lumber can decrease the environmental impact the manufacturer has on the environment. Companies have realized that with the rise in social media, people are able to quickly speak about companies that do not employ environmentally friendly practices into their processes. These companies are now looking at social and environmental impacts as well the financial costs of the materials they need.
Hiring Procurement Companies
Companies such as Ardvik specialize in helping companies with sustainable procurement while saving them time. Verifying work conditions in the factories as well as the environmental impact of the manufacturing process itself can take time and effort on the part of the companies looking to purchase the materials. Procurement companies specialize in checking these aspects out prior to purchasing the materials. This allows the final company to obtain the goods from the procurement company without spending time they may not have. Essentially, a procurement company is the intermediary between the manufacturing company and the company looking to purchase the materials to create the finished product.
Ways to Increase Sustainability
Companies do not have to make big changes in their buildings, production or transportation to make an impact. By changing all of the light bulbs in your factory to energy efficient bulbs, you can decrease the carbon footprint your company has on the environment without spending a lot of money. Companies can also decrease their environmental impact by changing the way they transport materials as well as the materials they use to make them. Using recycled materials or planting trees to replace those they cut down can both help improve their environmental impact.
What Companies Are Doing
More companies are no longer focusing on the financial impact of their procurements as they did in the past. Most companies would focus on their expenses and profits while trying to keep costs down for consumers. As consumers began focusing their attention on the sustainability of the products they purchased, companies began to look at this as well. Companies are now looking to obtain materials from manufacturers that had good work environments and a smaller carbon footprint. Consumers are more likely to purchase products made from recycled materials even if they cost slightly more than the products that are less green. To insure they are purchasing the most sustainable materials these companies rely on sustainable procurement companies.
This article is brought to you by Ardvik.