Did you know that your sustainability choices could directly impact your company’s top line? That’s because 83% of consumers and 91% of business leaders believe companies must prioritize ESG practices. An increasing segment of the global customer base is also leaning toward businesses that put sustainability at the forefront of their decisions.
It wouldn’t be a stretch to say that if you want to stay in the game in the coming years, you will need a solid ESG framework in your company. That said, some areas may be given more weightage than others in the race to sustainability. For example, as Deloitte reports, around 66% of companies focus on energy efficiency, 57% on educating their workforce about climate change, and 55% on reducing air travel.
But one area could often be left behind in the journey towards building a more sustainable ecosystem in your business. We’re talking about procurement and the supply chain, of course.
Decoding sustainable procurement: What is it and why does it matter?
Sustainable procurement involves sourcing and purchase processes designed around essential ESG criteria. It is environmentally friendly, reduces waste, and promotes fair trade. Here’s why you need to include procurement as a part of your organization’s ESG strategy.
- It lowers costs:
Sustainable practices minimize energy usage and wastage, eventually helping you save costs significantly.
- It could lead to better revenue:
With more buyers prioritizing ESG factors, you will find attracting and retaining customers easier if you adopt sustainable procurement practices.
- It improves brand reputation:
Consistently embracing sustainability across various verticals in business procurement can bolster your brand value and future-proof your supply chain.
3 easy ways to give your procurement strategy an ESG upgrade
Here is what you can do to adopt sustainable practices for sourcing raw materials, components, and MRO in procurement strategies.
- Identify suppliers who prioritize ESG.
If you partner with suppliers who also give more significant weightage to ESG criteria, it becomes easier for you to keep your procurement strategy sustainable.
- Be prepared for adjustment pains.
Implementing a sustainable procurement system may have hurdles like knowledge gaps, lack of support from suppliers, or trouble finding the right solutions. Have a plan in place to work around these issues.
- Create an ESG-oriented procurement strategy that works for you
There is no one-size-fits-all sustainable strategy for all businesses. Instead, you must find the areas in your procurement plan that need to be revised and aligned with your ESG goals and draw up a strategy accordingly.
Accelerate ESG adoption in procurement in 2023
In the coming year, the time is ripe to set new sustainable goals for your procurement strategy and streamline sourcing and purchases for your business. If you’re eager to transform your MRO procurement, Moglix may be the partner you need. Please send us your business query at info@moglixbusiness.com.
