Green Purchasing and Procurement Strategies

Category: Sustainability
Last Updated: 28 Jan 2021
Pages: 3 Views: 43

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.

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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 delegate responsibility for making it happen in the Chief Procurement Officer. (Little, Green Purchasing & Procurement Strategies 3).

Three strategic choices for sustainable procurement are the following: Reactive- the company is forced to comply by regulation or loss of business; Compliant- allows revenue protection but fails to encourage new revenue generation; Anticipative- systematic evaluation of the company and procurement options followed by implementation of measures designed to maximize the business benefits delivered through procurement. (Little, Green Purchasing & Procurement Strategies 4).

The strength of the publication is that it tackled a lot of ideas regarding sustainable procurement and offered a comprehensive explanation based on research and survey conducted from Italian Utilities companies. Contact information for possible additional clarifications was cited. There were too many points for strategic procurement that the explanation of green purchasing is not explained fully. It is not explained in detail how an organization can implement green purchasing.

The publication stresses on the achievement of sustainable procurement through green purchasing power and the role of the CEO in the organization to realize this goal. To be able to effectively attain a more sustainable procurement is through the identification of: • The stakeholders’ expectations • The business ambition for the way of doing business • The barriers that prevent the company from adopting a sustainable procurement strategy • The comparison between the company and the other organizations’ performance in the field of sustainable procurement. Little, Green Purchasing & Procurement Strategies 7). Green purchasing is highly recommended by experts to be implemented in the company because it offers a lot of advantages in terms of cost reduction and also revenue generation which would result to sustainable procurement in the long run. [1] ----------------------- Works Cited Little, Arthur D. Green Purchasing Power Cost Reduction and Revenue Generation through Sustainable Procurement, 2008. Web

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Green Purchasing and Procurement Strategies. (2018, Feb 01). Retrieved from

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