SUSTAINABLE PROCUREMENT
A PRACTICAL GUIDE TO:
SUSTAINABLE PROCUREMENT
Kathryn Bretton, MCIPS, supplier account manager,
likely to be followed through. Understanding the
looks at the implementation of the programme at
total value chain, (i.e. a series of activities that
Premier Farnell. With a Master Black Belt in Six Sigma,
will create and build value) will enable us to offer
a differentiating service to customer.
and a strong interest in Sustainable Procurement, Kath
For instance, considering energy self-
generation is worthwhile to the business not only
has initiated and driven through the sustainable
because it can reduce energy bills, but also
procurement programme within Farnell, and is now
because it mitigates the risks of future carbon
emissions taxation. Actions such as verifying
planning the roll-out across the group globally.
suppliers’ labour standards are the morally right
thing to do and larger customers are starting to
S
ustainability is one of the hot topics to be made through market forces alone. For demand this. Taken in this light, it is clear that
in procurement today. Purchasing instance Action Sustainability has found that over sustainable procurement cannot be a “bolt-on”
professionals are increasingly 350 companies have completed self-assessment activity. It must become part of the DNA of the
recognising that they can play a key with the average level of attainment being only organisation: and sustainability must be
role in the wider move towards Level 1 out of 5. In addition in a CIPS surveys of embedded within the procurement and supply
business sustainability, delivering procurement professionals, the majority say they chain process as part of a sustainable value
more value both to the companies they work for, don’t have the skills to deal with it. Premier chain.
and the communities of which they are a part. Farnell is one of only six funded projects with
At Premier Farnell, the principle of the major blue chip companies including aerospace, ENSURE COMMITMENT FROM THE TOP
sustainable development of our business, retail and the construction industries which are Like most major projects, implementing
balancing our responsibilities to our intended to provide evidence of the business sustainable procurement requires commitment
shareholders, the environment and society has benefits of the sustainable procurement from the top. That’s the only way people can
long been a part of the company’s culture: we approach. be clear that the organisation itself is committed.
have been a member of the FTSE4Good Index But what is sustainable procurement? At its Premier Farnell has an established track record
of Corporate Social Responsibility since the simplest, it means using procurement policies in developing a sustainable business, and so
Indices’ instigation in 2001. In April 2007, with and processes to support wider social, economic our current efforts did not require a cultural re-
funding from DEFRA and consultancy assistance and environmental objectives, in ways that offer education: our people already understand the
from a not-for-profit organisation called Action real long-term benefits. The aim is to use the importance of sustainability, but required
Sustainability, we commenced a move to company’s buying power and influence with guidance in understanding the principles and
sustainable procurement that has rapidly borne suppliers to make a positive impact on society their application in the value chain.
fruit. We have now built sustainability into our and reduce negative impacts on the Nevertheless, the backing of our CEO
procurement processes; all of our relevant environment. Almost invariably, it needs to Harriet Green has been vital. The whole
employees be undergoing a training schedule to include not only direct suppliers - those whose organisation is clear that a contribution to our
help them understand our new ways of working, products a company sells on or remanufactures sustainability programme is a valuable
and have had sustainability incorporated in their - but also indirect suppliers such as distribution contribution to the success of the business - not
job descriptions and personal development (freight services), catering and utilities. just a “nice-to-do” or, worse, a token effort.
plans. A full roll-out plan is being developed to Our project at Premier Farnell, though still in Even more importantly, senior level support has
ensure adoption of these principles throughout progress, has already taught us many things, not allowed sustainability criteria to be built into
the Premier Farnell group. least that sustainable procurement is not about people’s job descriptions and objectives; and
Our understanding is that DEFRA is funding isolated one-off initiatives; nor can it be our existing procurement processes.
sustainable procurement projects like this implemented via a “cookie-cutter” approach
because there are signs that progress is unlikely that assumes that the same methods and ENGAGE YOUR COLLEAGUES
solutions apply to every business. Most From the outset it became clear to us that a
importantly, it requires a practical, realistic sustainable procurement strategy is not simply
approach: we identify seven key vital factors for about the procurement department. We
success. needed help and information from our
colleagues in operations and human resources
TAKE A BUSINESS DECISION FOR (HR), from our internal product teams and from
SUSTAINABILITY sales and marketing, to name just a few.
The key to any successful sustainability Putting together a multi-disciplinary team
implementation - and the procurement aspects was the only way we could identify the key
are no exception - is to focus on the issues that external impacts of our business. It was also the
bring benefits both to the individual business and only way we could reliably work out which of
to society as a whole. In this way the corporate these issues we were actually in a position to
motivation and justification for a particular address, and how. It was the only way in which
course of action is clear, and decisions are more we could assess which of the activities would
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SUSTAINABLE FM | NOVEMBER 2007
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