SCM

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GREEN
PURCHASING
JONAH G. BANTINGAN
BSIE 4B

2. Outline
• Green Purchasing definition
• Benefits of Green Purchasing
• Practices
• Example companies that
practices green purchasing
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GREEN
PURCHASIN
G
The procurement of
products and services that
have a lesser or reduced
effect on human health
and the environment
when compared with
competing products or
services that serve the
same purpose.

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BENEFITS OF
GREEN
PURCHASING

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Advantages of Green
Purchasing
Reduces Cost Positive Public Image

6. Advantages of Green
Purchasing
Improves employees
Health and Safety
Environmental and
climate protection benefits

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Practices that can be
Used to Minimize
Environmental Impact

8. Practices that can be used to minimize
environmental impact:
• Working with Suppliers
that have Obtained
Environmental
Certificates such as ISO
14001 and
Environmental
Management System
(EMS)

9. Practices that can be used to minimize
environmental impact:
• Auditing the
Supplier
• Identifying the environmental legislation that is in force.
• Developing standard control checklists for environmental
suitability.
• Forming an audit team.
• Keeping records about transportation, storage, usage and
disposal of wastes.
• Evaluating the responsibility and the degree and nature of
possible violations.
• Developing corrective action plans and following the progress.
(Min & Galle, 1997)

10. Practices that can be used to minimize
environmental impact:
• Purchasing Products with Eco-
Labels

11. Practices that can be used to minimize
environmental impact:
• Taking Environmental Criteria into
Consideration in the Supplier Evaluation
System
Factors such as evaluation of the supplier’s impact on
natural resources and suitability to legal
arrangements are taken into consideration in supplier
selection (Noci, 1997)

12. Practices that can be used to minimize
environmental impact:
• Cooperating with the Supplier in
Environmental Issues
Environmental cooperation activities are more
proactive practices compared to the environmental
performance evaluation.

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Example Companies
who were able to
Optimize their Supply
Chain.

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Wal-Mart:
“Sustainability 360”
A company-wide emphasis on taking
sustainability beyond reducing the company’s
direct environmental footprint to engaging Wal-
Mart’s associates, suppliers, communities and
customers.

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Wal-mart’s packaging Scorecard:

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Ford Motor Company, Strengthening Value Chain:
“Material recovery starts and ends with great design!”
Ford Motor Co. has
certainly been a
leader in green
supply chain, and its
use of recycled
materials for its car
interiors.

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IKEA
Implemented a code of conduct for its 2,000
suppliers.
• Waste and emission
reductions
• handling, storage and
disposal of hazardous
chemicals,
• recycling
• Use of chemical
compounds and
substances banned or
restricted by Ikea and
source of wood)
MUSTS: MUST NOTS:

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References:
• MBA Skool Team.(2016, July 26).Green Supply Chain –
Examples of Companies.https://www.mbaskool.com/business-
articles/operations/16360-green-supply-chain-examples-of-
companies.html
• Sezen, B., & Cancaya, S.Y. Ethics and Sustainability in Global
Supply Chain Management:Green Supply Chain Management
Theory. United States of America:IGI Global.
• Green Purchasing and the Supply
Chain.https://louisville.edu/purchasing/sustainability/greenpurcha
singsupplychain
•

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Thank you..