5 Trends in Sustainable Procurement

5 Trends in Sustainable Procurement

Today’s customer base demands not only the best but also the most ethical products, so transparency and sustainability in procurement is more important than ever. 
1) Corporate Commitment to Transparency
Global organizations have become increasingly concerned with investing in circular supply chains, and this appears to be a part of a broader trend of corporate commitment to supply chain transparency | https://spendmatters.com/2019/01/31/the-state-of-sustainable-procurement-what-to-expect-in-2019/ |.
Corporate transparency is important for ensuring sustainable production and for concerns about the social impact and ethics of production. International awareness of human trafficking and enslaved labor means that it will be increasingly important to ensure transparency throughout the supply chain, so that an organization can guarantee that none of its products were made with slave labor. 
2) Increased Focus on Government Officials Compromising Legal Protections 
Historically, customers have had a high degree of concern for large corporations bribing government officials, but the winds have shifted: the focus of international customer concern is now on governmental representatives and entire governments relaxing legal protections for the environment and/or for workers in order to attract businesses to their countries.
At present, the country that is dominating international concern in this regard is Brazil. The government is presently expected to undertake a great deal of deregulation with regard to the Amazon in order to convince major companies to do business there. 
However, given the significance of the pressure of international consumer concern, it is likely that many sustainability-minded companies will prioritize the environment and the wellbeing of workers above an easy opportunity for business in an ethically compromised regulatory regime. 
3) Digital Strategy  
The rise of digital technology is having a positive impact | https://www.zycus.com/blog/procurement-technology/7-procurement-trends-2019.html | on procurement. Some aspects of this trend include automating redundant procurement tasks and empowering C-Suite in decision-making. These developments will help organizations make better and smarter decisions about procurement, and this will make it easier for them to choose sustainability. 
Increasingly, sustainability-minded organizations are expected to engage in positive, proactive digital strategies to encourage sustainability and productivity. 
4) Fostering A Talent Pool to Embrace Digital Technologies 
Procurement is increasingly strategic for the organization, a departure from older conceptions of it as a means to deliver cost savings. For an organization to build a holistic supply chain and then use it to drive reductions in cost across the enterprise, they will need not only the best strategies but also the best digitally-oriented people to enact them and carry them out. 
The trend, therefore, will be in the direction of selecting and training the right digitally-oriented talent pool to embrace the digital technologies and use them to foster more sustainably-minded procurement. This will increasingly be necessary for gaining a competitive edge, given the importance of procurement in the contemporary strategic landscape.
Conclusion 
With a contemporary international consumer base that is more focused than ever on sustainability issues, strategic procurement must emphasis not only quality and efficiency but also sustainability. The companies with winning procurement will be those that can demonstrate quality and transparency to their customers, who will demand nothing less. 

Leave a Reply

Your email address will not be published. Required fields are marked *