Complete Guide to Sustainability in Procurement
As per a study conducted by Mckinsey, only 20% of the CPOs surveyed said their companies used sustainability as a key criterion to make sourcing decisions. This is far from encouraging because sustainability is the future. Most industry leaders across the globe make the shift towards future-proofing their operations with sustainability at the core. Additionally, an increasing number of organizations are also driving their efforts toward tackling Environment, Social, and Governance (ESG) issues.
Against the backdrop of these developments, sustainability is the way forward for all facets of supply chain management, including procurement. Sustainable practices are crucial for procurement leaders who want to align their strategies with their organization’s overall principles.
With ‘sustainability’ being the buzzword here, let’s understand how MRO procurement can be transformed to accommodate this necessary principle.
Upgrade to Sustainable Procurement with 3 Simple Steps
Procurement is one of the most important functions in an organization’s supply chain. To implement end-to-end sustainability in your organization’s procurement function, it is pivotal to assess the status quo. Furthermore, you must detect the missing links and devise a comprehensive strategy to address these issues.
Here are the steps that you can adopt for a sustainable approach to all aspects of procurement, including MRO categories.
1. Take stock and ascertain the status quo/weigh up and mark the status quo: The first step is assessing where your supply chain stands and ascertaining its ESG impact. Once you have established the status quo, you must identify the elements of the supply chain which can be optimized. You may be faced with several bottlenecks in the process, for instance, the challenges in MRO procurement.
2. Develop a core strategy and plans to implement it: Having established the areas of improvement in the supply chain function, you must move on to the next step. Develop a strategy to incorporate sustainable practices and processes in procurement. This strategy should encompass all the elements of procurement, ranging from supplier selection to data management and visibility.
3. Drive a phased implementation of the sustainable procurement strategy: Implement an organization-wide sustainable approach to procurement in a phased manner, and make course corrections wherever necessary. It is critical to monitor every step of the transition and compare actual results with the planned ones. Subsequently, you must ensure that the necessary rectifications are implemented in a timely manner.
Switch To Sustainable Procurement Now!
Driving a shift from legacy systems in procurement to sustainable practices is a comprehensive undertaking. Therefore, assistance from experts can help streamline the transition. At Moglix, we can help you streamline your procurement function, including MRO procurement. Download our exclusive e-book to get your hands on an exclusive guide to help you nail the procurement game!
Are you looking to transform your procurement function? Send us your business queries at email@example.com.