More than 50% of large businesses reap benefits from sustainable procurement tools
- Lizzie Black
- June 10, 2022
Sustainability and resilience go hand in hand.
Procurement is increasingly delivering successful value creation for many companies, with even more potential ahead.
Many parameters exist when it comes to measuring companies’ commitment to supply chain sustainability and assessing ROI. Through managing sustainability correctly, companies can drive the value chain to new performance levels.
Procurement as the key to sustainable value creation
Investing in the right sustainable tools improves brand reputation and procurement teams get the tools they need to help make supply chains more efficient. It acts as the enabler between internal and external stakeholders, resulting in sustainable practices coming into effect within the supply chain.
‘90% of a company’s sustainability impact may be caused by the supply chain – a lot occurs in the upstream process eg in selection of raw materials.’
Rethinking business models provides companies with the opportunity to create value from sustainability and look beyond savings, where they can focus on environmental, social and economic benefits. Teams need to adopt more sustainable procurement programs which need time, diligence and investment – and the right tools for streamlining data.
‘78% of businesses across 62 countries suffered a supply chain disruption in the 12 months prior to being surveyed in 2021.’
Strategic leadership pays off. 59% of leaders see the benefit of new sustainable products, nearly double compared to non-leaders. 48% of sustainable procurement leaders revealed their organization’s procurement metrics have improved thanks to their responsible purchasing practices. More than 50% of large businesses and 25% of their suppliers have also seen cost savings throughout their operations to aid their sustainable practices.
‘50% of sustainable procurement leaders saw increased sales revenue, even when they choose to pay more for ethical and environmentally friendly products and services.’
Ultimately, sustainability wins.
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