Green Supply Chain: Procurement

Supply Chain Management

Vivek SoodProcurement also known as purchasing is “Securing supplies, materials, and services of the right quality in the right quantity at the right time from the right place (source) at the right cost price”.

So the procurement in traditional supply chain could procure you the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location. However Green Procurement will require collaboration between suppliers / manufacturers / producers and requires suppliers to implement, and possibly certify, Environmental Management Systems.

“In turn therefore, Green Procurement provides education to suppliers about the use of efficient materials’ for pollution prevention. This also helps manufacturers to design for disassembly and develop with their own suppliers, new materials, parts or processes to address environmental concerns. Therefore Green Procurement represents an important aspect in the total end to end Green Supply Chain

The role of Green Procurement in Green Supply Chains will require the creation of a healthy relationship with the buyer’s first level of suppliers and to create a platform to build a model to align incentives for suppliers, manufacturers and other service providers; who in turn, will need to engage with their own supply chain through the second level of suppliers and so on up the supply chain back to the primary sector suppliers.

Green Procurement aims to reduce overall expenditure on organizations products and services by removing or minimize the usage of “hazardous to green initiatives” in the entire supply chain. This also reduces expenditure on waste treatment of end-of-life products and other by-products.”

Green Procurement emphasizes waste reduction at source and sets up the procedure to consider this before procuring any good and has a number of quantifiable benefits.
Learn more about these benefits and challenges of Green Procurement in Green Supply Chain – An action manifesto.

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  • Markus Sleranto says:

    This study investigates the procurement process affecting green-supply chain management in manufacturing industry in Thailand. Empirical data was collected from the sample group which consists of CEOs, sale managers, and procurement managers from 210 organizations in 4 manufacturing industries: electrical and electronics, auto parts, metal and aluminum, and plastics. Structural equation consists of; antecedent variables which involve top management commitment and customer pressure; dependent variables which concern business performance and environmental performance; and mediator variables which contain employee involvement, green regulations, and collaborative partners. The result of the investigation indicates that top management commitment affects employee involvement, green regulations, and collaborative partners. In addition, employee involvement affects business performance rather than environmental performance while green regulation solely affects environment performance. Ultimately, collaborative partners affect business and environmental performance significantly.

  • Joshua says:

    I read a lot about green supply chain. Is it any method to make a business network in the right way? or anything else? Do I get it in the right way?

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