How e-procurement tools help companies support sustainable purchasing goals
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THE ARTICLES ON THESE PAGES ARE PRODUCED BY BUSINESS REPORTER, WHICH TAKES SOLE RESPONSIBILITY FOR THE CONTENTS. Amazon Business is a Business Reporter client. Procurement teams are under pressure to make more sustainable purchasing decisions – and new tech means they can now take advantage of smart business buying.
Sustainable sourcing is becoming increasingly important in how businesses procure goods and services, as the drive towards reducing carbon emissions and adopting more responsible business practices heats up. This is now starting to impact how organisations assess and monitor suppliers. More than a third (34 per cent) now look at sustainable practices such as energy or packaging when evaluating potential providers. This makes it the fifth most common assessment method, behind quality, cost, on-time delivery and supply continuity or stability.
Of those businesses which have mandated goals for certified sellers – which accounts for four in five respondents – the most common metric on which to assess suppliers is sustainable practices, chosen by 61 per cent. Other goals in the survey include purchasing from local, small, diversity-owned and socially/economically disadvantaged businesses.
But achieving progress in this area is proving difficult. Environmental, social and governance (ESG) and corporate social responsibility (CSR) mandates are seen as the biggest external challenge to procurement operations for leaders, with 43 per cent pointing to this. This has increased by 8 per cent from a year ago, and now ranks ahead of other metrics such as unexpected economic changes, rising costs and suppliers that are unable to support digital needs. Decision-makers also see it as a challenge, with 37 per cent pointing to this – second only to rising costs.
