Supply chain management

Successful procurement processes should focus on the items with the most material impact on operating costs, carbon emissions and/or other environmental and social impacts. To create and implement a policy the organisation needs to understand and prioritise what products it purchases by volume and value.  

A review of purchasing reports is a good place to start, for this but they should be checked to make sure that consumption is properly reflected. For example, if fleet fuel costs appear as employee expenses not as fuel, the volume consumed by the organisation could be significantly underestimated. Once the key products and services are identified, a structured process can be developed for engaging providers around an iterative reduction strategy

Dependent on your corporate priorities you may choose Procurement Management Systems which are:
•    a carbon emissions based system
•    a life cycle analysis based tool
•    a waste-based tool

•    an economic, social and environmental responsibility based tool.

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