eProcurement and Sustainable Supply Chains
The growing public awareness of ethical and sustainable practices has forced organisations to reassess their supply chains. 82% of FTSE 100 companies have now committed to achieving net zero scope 3 emissions by 2050. Therefore, it is imperative for organisations to develop innovative strategy to achieve this commitment. However, all too often, organisations can be too concerned with the ‘bottom line’, meaning ethical and sustainable sourcing activity can be left by the wayside.
However, it is important that procurement takes a “set by example” approach, rather than “do as I say, not as I do”. Sustainable supply chains must start with sustainable procurement practices if they are to have any chance of success. Far too many organisations are still guilty of printing, sending, and storing large paper contracts, which not only have an environmental impact, but impact on organisational efficiency. eProcurement systems offer an opportunity to improve organisational effectiveness through their contract management capabilities. This also offers a way for procurement departments to strategically analyse their pipeline.
As the last few years have proven, the supply chains not only need to be resilient, but flexible also. The pandemic, Brexit, and the war in the Ukraine have all been contributing factors to surging prices and major supply disruption over the last few years. Therefore, it is important for procurement teams to streamline their operations, to become more proactive rather than reactive. eProcurement systems enable procurement teams to strategically source quickly and explore alternative supply solutions with more visibility on sustainability ratings and carbon usage.