We welcome a guest post by Alis Sindbjerg Hemmingsen from Responsible Procurement Excellence.

Procurement plays a big role to support the company’s sustainable journey. Over a three-part blog series, I will explore the area of ‘Responsible Procurement’, why is it necessary? What is the impact? And where do we look for opportunities?

Your organization is part of a complex supply chain with a range of customers and suppliers of goods and services that influence the way you operate. While customers set specifications and standards that suppliers must meet, suppliers constantly strive to improve the efficiency and profitability of their operations, while seeking to delight their customers. Therefore, successful businesses must always be looking for ways to stay competitive.

Our economies motivate people and businesses to consume in such a degree, that the planet can not come, to regenerate itself. We have the opportunity to re-think the way we do business: It means that if a planet were a business, and we were the owners or shareholders, would we really watch as the company broke down its capacity by itself, as we do now?

Our lifestyles are threatened by our lifestyle. Something must change. Many natural resources are threatened. Some are more obvious than others and some we are more aware of. But they all have in common that they pose a threat to companies with supply chains.

Improving efficiency, reducing demand for materials and cutting wastes all reduce your costs and are good for the business and for the environment. Maximizing these benefits requires you to manage your supply chain and integrate business activities to create value for your customers.

Responsible Procurement is an approach that allows you to influence your supply chain. It can help you make informed purchasing choices by knowing more about where the products and services you purchase are made so that their environmental impact is minimized.

For instance, if you buy regularly from the same supplier why not do a bit of research into their environmental policies and practices? If every business did this, there would be demand for companies to green their practices in order to remain competitive.

The requirement to take responsibility for the society is not indicative of a fashion trend, but rather a cultural shift. It’s a backlash in the western world’s disposable culture and an expression of, that Milton Friedman’s phrase “The business of business is business” has changed to “The business of business is staying in business”.

Stay with us as I talk about the difference responsible procurement can make to your organization.

 The author Alis Sindbjerg Hemmingsen is a Responsible Procurement thought leader and owner of the company Responsible Procurement Excellence. They are specialized in helping companies around the world develop and integrate an actionable approach to Responsible Procurement. An actionable approach goes beyond compliance, has a positive effect on the reputation, cost and efficiency.