Procurement

Procurement personnel can have an active role in increasing dialogue with suppliers to improve Life Cycle Management practices and communicate the benefits of environmentally responsible procurement within the organisation.

Profile
Procurement involves all aspects of the purchase of goods or services. Major procurement decisions usually take into account a range of qualitative and quantitative considerations such as: product performance, quality and availability: supplier experience, reliability and service; and cost.

Current Practice
Although there is a significant degree of variability in current procurement practices, it is generally true to say that if environmental considerations are included at all, it is usually in the form of a single criterion (e.g. a minimum percentage of recycled content or a percentage of green power).

Applying the LCM Framework to Procurement

THINK:
Develop a set of life cycle considerations for procurement decisions, and review these before buying. Consider, for example, the level of environmental management systems of the supplier, energy consumed to make and use the product or material; the toxicity of inputs used to make the item; the durability of the product or material; the quantity and type of packaging used; and the shipping distance.

ASK:
When a potentially significant life cycle issue(s) has been identified, but differences between competing products or services are unclear, ask suppliers for additional information. This information can be requested in the tender submission, or through a separate request.

ASSESS:
Undertake more detailed supplier assessments for decisions on major purchases with significant life cycle implications, or where long-term commitments are being made. Where issues are particularly significant, consider a detailed life cycle assessment of procurement options.

ACT:
Introduce the life cycle environmental considerations as a factor in procurement decision-making. Work with suppliers to help identify areas for improvement.

Moving Towards a Life Cycle Approach
The broadening of procurement decisions to include environmental considerations has been called 'environmentally responsible procurement' (ERP). Effective ERP requires consideration of key life cycle issues. ERP does not require compromises with respect to the quality and performance of the goods purchased, and need not cost more. In fact, ERP can reduce costs by reducing on-site environmental burdens and downstream wastes. It can also lead to identification of new business opportunities, by working with suppliers to develop new or modified materials, equipment, production techniques or products. Other actions include:

• Adopt a corporate position on environmentally responsible procurement;
• Use guides to identify environmentally preferable products such as green procurement guides. Some of these guides integrate life cycle considerations;
• Consider how you order - how often and in what quantities can influence the life cycle burdens associated with transportation, storage and packaging;
• Promote ERP within your company - provide your people with a list of preferred products so they have information at their fingertips;
• Engage your suppliers. Ask for information on environmental issues associated with their product or service. Work toward specific goals with them, and with your major suppliers there may be the opportunity to promote life cycle thinking in their design and development activitiesConsider ways to change your relationship with your supplier so that both you and your supplier receive better value, and a reduced environmental impact. These approaches also apply to social issues in your procurement.