2. ‘Procurement’ refers to the acquisition and
management of (but not limited to) people,
buildings, land, transport, energy, water,
materials, food, waste and outsourced services.
3.
4. WHAT IS PURCHASING Vs. PROCUREMENT?
Purchasing focuses on short-term goals such as
fulfilling the five rights in a transaction (right
quality, right quantity, right cost, right time, and
right place), whereas procurement management
focuses on strategic, long-term goals like gaining a
competitive advantage or aligning itself with
corporate strategy.
5. What is Green Procurement?
Sustainable Procurement is an approach to
purchasing products and services that takes
into account the economic, environmental
and social impacts of an organization's
buying choices, at all times.
6. A green procurement or green purchasing is a
policy which put in place to guide businesses
when acquiring materials, supplies and
services and selecting such products based on
their impact on the environment and human
health. It can apply to both products bought to
run the business internally (Ex. office supplies
and equipment) as well as for producing the
goods and services of the business itself
(Ex. materials used in business products).
7. WHY GREEN PROCUREMENT
Conserve natural resources.
Minimize pollution.
Reduce water and energy use.
Avoid environmental health hazards on our work place and
within our community.
Improve the availability and use of environmentally
preferable product.
Encourage suppliers to reduce their environmental impact
and to send that message up their supply chain,
Support locally produced goods and services
Educate and inform ourselves, end users, and suppliers of
the best environmentally responsible procurement choices
8.
9. DRIVERS OF GREEN
PURCHASING
Internal Drivers
I. Corporate Strategy:
Corporate strategy is a unique plan or framework that is long-term in
nature, designed with an objective to gain a competitive advantage over other
market participants while delivering both on customer/client and stakeholder
promises.
Growth: To expand the business and increase profits.
Stability: To maintain current business operations.
Renewal: To revive an ailing business.
II.Organization’s Culture:
Organizational culture is the collection of values, expectations, and
practices that guide and inform the actions of all team members. Some
examples of organizational culture include philosophy, values, expectations,
and experiences.
10. III.Organization's Resources:
Organizational Resources are all assets that are available to a
firm for use during the production process. The four basic types
of organizational resources are human, monetary, raw materials and
Capital. Organizational resources are combined, used, and
transformed into finished products during the production process.
Importance of Resources and Capabilities
• Tangible – Physical and financial assets. Eg: Machinery, offices,
warehouses.
• Intangible – Skills, reputation and brand names. Eg: What's app,
Disney.
• Human Resources – Skilled Employees.
11. IV.Organization’s Characteristics:
Organizational characteristics are features originating both
from the management model adopted by the organization
• The following are the important characteristics of
organization:
• Specialization and division of work. The entire philosophy of
organization is centered on the concepts of specialization and
division of work.
• Orientation towards goals.
• Composition of individuals and groups.
• Continuity.
• Flexibility.
12. DRIVERS OF GREEN PURCHASING
External Drivers
I. Market Pressures:
Marketing pressure refers to the quantity, timing,
and pattern of a brand's interactions with its
customers.
MARKET PRESSURES: The Global Economy and Strong
Competition; The Changing Nature of the Workforce;
Powerful Customers.
13. II.Societal Pressures:
Societal pressures are expectations that affect
the entire community, or specific parts of it, like
the pressure to get married and have children.
III.Regulatory Pressures:
Regulatory pressure is often seen as a reaction to
rule violations. The pressure can be
multidimensional in nature and it will be described
further. A wide body of research exists to explain
rule violation and circumstances under which
employees violate the rules.
14. GREEN PURCHASING PERFORMANCE
MANAGEMNET
INTRODUCTION:
Green performance management consists of issues
related to environmental concerns and policies of the
company. It also concentrates on use of environmental
responsibilities. Using ISO 14000 for improved
organizational learning and environmental management or
Environmental Quality Management.
PPM Is the ongoing process of measuring the
efficiency and spend of procurement teams, with goals of
increasing visibility and enhancing the value of procurement
within an organization.
15. GREEN PURCHASING
PERFORMANCE MANAGEMNET
• Leadership.
• Procurement and its impact on firm
performance.
• Green procurement and organisation
performance.
• Firm performance.
17. Procurement and its impact on firm
performance.
• Procurement performance is a measure of
identifying the extent to which the
procurement function is able to reach the
objectives and goals with minimum costs.
• Identify inefficient processes.
• Consolidate your supplier lists.
• Educate your workforce.
• Establish clear expectations for your supply
base.
18. Green procurement and organisation
performance
Green procurement has impacted not only
performance of organizations, but also on the
brand reputation. It has become increasingly
significant for organizations facing competitive,
regulatory, and community pressures to balance
economic and environmental performance.
19. Firm performance
Firm Performance is the potential and ability of
a business to efficiently utilize the available
resources to achieve targets in line with the set
plans of the company.
• Right Quality.
• Right Quantity.
• Right Time.
• Right Source.
• Right Price.
• Right Place.
20. Green Procurement Practices
• Greater energy efficiency.
• Utilizing clean energy source or technology.
• Controlled use or absence of toxic substances.
• Improved recycling ability.
• Minimal packaging needs.
• Extended durability.
• Reduced water and other natural resource
consumption.
