Beyond compliance with Lifecycle Efficiency in Procurement

Procurement should support the business in delivering more sustainable products, reduce cost and enhance the brand.

Though, procurement continuously seems to be challenged with how to make it actionable in their organization.

The question is: how can procurement work with this aspect in a structured way?

LIFECYCLE EFFICIENCY
What they need is a value adding sustainable initiative which I call: Lifecycle Efficiency. This initiative will help visualize the hot spots in the products, develop product design scenarios and support the organization in engaging and collaborating with key stakeholders, to ensure improvements are implemented.

BENEFITS OF A LIFECYCLE VIEW
Taking a lifecycle view means finding the “sweet innovation spot” where consumer needs, environmental impact and technical and business capabilities converge.

Taking a life cycle view also ensures, that improvements made in design actually do translate into measurable improvements in environmental performance.

The shared understanding is that the product, its packaging and the related supply chain has to be viewed as a single solution, not a sum of disconnected parts when it comes to reducing its impact on the environment.

A lifecycle view can ensure, that the environmental burden is not inadvertently increased elsewhere in the life cycle.

THE BURNING PLATFORM IS THERE
Economies are beginning to recover from the depths of the financial downturn in late 2008. Volatility has become a feature of the economic climate, which is pushing up energy and commodity prices.

These bursts of inflation have made cost control difficult for business, pushed up consumer prices. Consumers tend to look for the best value for money and for products that perform well. They are not willing to pay a premium for greener products.

COLLABORATION IS KEY
Collaboration up and down the supply chain is the way forward, with technology and innovation being the crucial components of progress. There is a need for more open and informed dialogue between supplier and buyer.

Would you like to know more about Lifecycle Efficiency and how you can benefit as a company? Please do contact me directly.

Responsible Procurement Excellence is 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, raises efficiency and generates revenue. Stay connected, sign up for the newsletter.

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