"Sustainable Procurement" Jane Warren, Portsmouth City CouncilPresentation Transcript
Sustainable Procurement within public sector organisations Jane Warren Procurement Professional Portsmouth City Council.
Lets get the definition out the way…
‘ Sustainable procurement is a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment’
PCC Sustainable procurement policy
PCC will actively pursue a policy of sustainable procurement, as a contribution wider aims. It is committed to minimising the environmental impacts and maximising the economic and social benefits of all purchases made through PCC. To achieve this goal, whilst maintaining cost effectiveness, PCC will (where practical):
Ensure that sustainability issues, including whole-life costing, are considered in all contracts.
Utilise PCC’s market power to encourage innovation and the development of more sustainable solutions to the members’ needs.
Stimulate customer demand for sustainable products and services.
Work with suppliers to increase sustainability throughout the supply chain.
Develop greater awareness and a better understanding within the organisation of the benefits of sustainable procurement and how these benefits can be obtained
Good Procurement is Sustainable Procurement
What’s in it for PCC?
Achievement of strategic objectives
Effective supply chains
Price and quality
Encourage diverse supply market
Collaboration with suppliers for greater efficiencies
Use of evaluation weighting
Use of resources
Support Local authority objectives
Regeneration of local area
Skills and training of those in the community
Voluntary and community sector, SME’s, Minority, Women owned business.
Corporate Social Responsibility ‘an approach by which a company recognises that its activities have a wider impact on the society in which it operates; and that developments in society in turn impact on its ability to pursue business successfully’ CIPS
Diversity and supplier diversity
Impact on society
Ethics and ethical trading
Supplier positioning Value of spend Sustainability Risk to Organisation Not all procurements are the same, all have different priorities Strategic Security Strategic Critical Tactical Acquisition Tactical Profit
Whole Life Cost
Whole-life cost , or Life-cycle cost , refers to the total cost of ownership over the life of an asset. Typical areas of expenditure which are included in calculating the whole-life cost are :
Financial (e.g. depreciation and cost of finance)
Replacement or disposal
Supplier appraisal and selection
Stimulate market attract competition.
Supplier appraisal questionnaire – PQQ
Tender process. OJEU regulations.
Supply chain concept
Ethics and corporate social responsibility
ISO / BS – BS8903 Standards in Sustainable Procurement
Supplier Contract Management
How can we improve supplier sustainability performance?