BellWether Blog


Sustainability And Green Sourcing Through Procurement

Green Sourcing has steadily become the buzzword in the corporate world. With increasing demands of having sustainable procurement owing to its implications in economic, social and environmental perspectives, more and more businesses are realizing the benefits of having a sustainable supply chain.

Procurement trends of 2015 and the first half of 2016 clearly indicate a paradigm shift towards green sourcing. Ideologically, green sourcing as a concept focuses on holistic development and benefits for all parties involved in the procurement process. Although there are some variations where businesses aim at their private profits and revenue growth , still the advantages of a sustainable supply chain can certainly be realized at various interdepartmental levels as well as across suppliers, vendors and companies.

Green Sourcing emphasizes the need to have standard practices of procurement that not only use avenues that are environment friendly but methods of procurement that transcend macroeconomics and corporate social responsibility. Green Sourcing through a sustainable supply chain has a plethora of benefits for the organizations as well as vendors. Every product in procurement needs a company’s business goals, company policies and the decision making body to be in complete sync to be able to make the best choices of procurement. This is exactly where Green Sourcing changes the entire dynamics of procurement.

Sustainability is of paramount significance in economics. With environmental benefits and convenience of using green sourcing for procurement, businesses have realized the potential rewards for all parties involved. There is still some time before green sourcing becomes a standard practice for businesses all across the globe. Presently, as per a recent study, 92% businesses identify procurement and its requirement to have a sustainable supply chain as one of the most significant aspects in a company’s modus operandi. Businesses are yet to completely switch over to green sourcing but there is a bright light at the end of the tunnel. Experts observing the situation are optimistic that we are set at the brink of depending entirely on green sourcing for all procurement requirements of a company.

Green sourcing not only promotes having a sustainable supply chain from the perspective of companies ordering the goods and products, but also for suppliers or vendors who themselves have a corporate social responsibility and a need to have optimum impacts on their business by driving revenue growth through sustainable procurement.

June 19, 2012
BY Bellwether

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