The Importance of Sustainable Procurement for Your Business
With a world increasingly focused on the value of sustainability and ethical practices, as a business owner it’s important that your company reflects this. Consumers want to know where their products are coming from and how they’re sourced, and they’re increasing finding this information out before they decide to support certain businesses.
This means that company’s need to demonstrate their commitment to these values and be open and honest about their business practices. Sustainable procurement is a fantastic way for businesses to make a positive impact on the environment and reduce their carbon footprint for good.
Sustainable procurement involves a business minimising the environmental impact of its supply chains. This includes taking into account social and economic factors as well as environmental ones, in addition to the standard price, quality and quantity concerns. Some of the best ways to go about achieving sustainable procurement are:
- Reusing packing materials and minimising the use of single-use packaging, in an effort to reduce waste
- Working to find and develop relationships with suppliers who follow sustainable practices, are fair trade and have a minimal environmental impact
- When possible, using production materials that are responsibly sourced and recycled
- Creating a safe, healthy work environment in which employees feel valued and receive good pay and benefits
- Working with sourcing services companies that value responsible and ethical sourcing
In addition to being environmentally responsible, there are many reasons for businesses to focus on finding sustainable procurement methods. Below, we’ll explore these reasons and how they can help your business find continued success.
By reducing the waste and energy consumption of your business, you can save some serious money in the long run. Reusable packing materials means less product used, and less money spent on ordering and getting them shipped to you. Lower energy consumption will give you lower energy bills, increasing your profit margins and giving you more money to invest back into your business.
By taking an ethical approach to your business model and communicating this to your customers, you can help attract more customers to your business and retain your current ones. Most customers who value sustainability and transparency are also willing to pay more for goods or services that meet these values, attracting the ideal type of clientele to your business.
With strong ethics and transparency more important to consumers than ever, a failure to meet these high standards can result in a significant backlash to a business. A company that’s associated with environmentally destructive behaviours or unethical treatment of their employees can struggle to recover from these allegations. To continue to draw new customers in and retain your old ones, avoid any shady business practices that could damage your company’s reputation in the long run.
By putting sustainable procurement practices for your business, you can help future-proof it against possible challenges in the future, such as supply shortages. It can also help protect you from changes to the economical, environmental and societal factors that can impact your business. As sustainable procurement methods have the potential to save you money and make you less reliant on wasteful procedures, you will be prepared for the changes that the future may hold.
Sustainable procurement is one of the best things any business can do to reduce its environmental impact and reflect the modern demands of customers. Even though industry is one of the biggest contributors to global warming, if you’re a small business it can be easy to dismiss the power of your footprint. But the truth is that every business has the power to make a difference and lead by example, so consider how you can improve your procurement practices and be innovators in your industry.