This week Shaz shares his insights on the impact procurement software can have on sustainability, and how sustainability is shaping the future of procurement. Sustainability is playing a major role in how businesses make purchasing decisions, and procurement solutions make it possible for companies to make better decisions.
How does the increased focus on sustainability influence procurement?
“That’s a great question! This area, by far, is one of the most exciting areas of procurement, because if you look at sustainability, there are so many different directions that sustainability can go to.
“If you look at what companies are trying to do – they are trying to find ways to reduce their carbon footprint, and they are trying to find ways to become more efficient.
“That could be something like going through a strategic sourcing process to find new light bulbs that can go to a chain of restaurants that can make them last longer, become more efficient, and save on energy bills. It’s not as simple as – oh hey, let’s change the light bulbs. You have to do a thorough financial analysis on how this will work and what the cost benefit is.
Innovative, Sustainable Solutions
“When you look at sustainability, procurement is one of the most innovative areas. It’s not only about, I’m just going to go buy some LED light bulbs, or energy-efficient servers. It has to be about truly understanding shelf life, truly understanding economic impact of what you are buying in totality with your corporate finance and IT objectives.
“So procurement is going to have a seat at the table in identifying and coming up with cohesive business plans beyond just the transactional elements of buying those light bulbs or buying those products. They are going to be part of the planning committee and say this is how we are actually create the program and actually execute it.
“It’s interesting. My good friend’s business is exploding; he works with the bank and helps their portfolio of businesses assess their sustainability. For example, he is involved with a major restaurant line, and his firm has been tasked with helping them become more sustainable. So, they’re asking, “How will that affect us economically and financially, if we make certain decisions?”
Come back next week to get more from procurement expert, Shaz Khan.