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28.02.2020

Sustainable procurement impact on logistics

This post examines how buying resources, services and supplies in a more ethical and eco-consciousness manner will affect the flow of these things from their point of origin to the consumer. That is how sustainable procurement can impact logistics. Keep reading to find out more. 

What is sustainable procurement?

While you are likely to already be familiar with what logistics entails, the notion of sustainable procurement may be less evident in your mind. In a nutshell, sustainable procurement is ethically buying resources. 

That is not putting profit above the wellbeing of the planet or its population when sourcing products. In fact, this is the central tenet of sustainable procurement. 

In particular, sustainable procurement is concerned with actions such as reducing energy emissions, energy and water consumption, and waste. It includes taking a more responsible approach to the environment in which your business operates, both locally or globally. 

Additionally, an sustainable procurement approach is also one that is conscious of the social, ethical impact that buying the resources your business needs to function requires. That is, to work on the sustainable procurement model, you need to ensure that your practices are not just green but deliberately fight and avoid unacceptable social practices. Such as child labour, human trafficking, modern-day slavery and corruption. In fact, you could say that across all areas integrity is absolutely the name of the game when it comes to sustainable procurement. 

How does sustainable procurement apply to logistics? 

What with logistics being such a complicated business, it can help to first outline the areas that sustainable procurement will have the most impact. Of course, the most apparent way that you can align your logistics process with sustainable procurement is to source the resources you need sustainably. 

However, there are also other aspects of the logistics process in which this type of thinking can be applied. In particular, we are talking about areas such as the types of transportation you use. With electric vehicles powered from sustainable sources being the best option. 

Then there is the issue of the packaging that is used in your business's logistic process. Something that can be transformed by reducing pollutants in the production process, as well as looking for more sustainably sourced items. Oh and don't forget to recycle any waste instead of it ending up in landfill. 

Additionally the principles of sustainable procurement can also be followed concerning the facilities such as warehouses that you choose, as well as the location of these things. After all, even a small distance further than necessary from a logistic route can result in a considerable amount of wasted fuel for deliveries. 

Negative & positive impacts of sustainable procurement on logistics 

Many businesses worry that running their logistics operation in a way that adheres to sustainable procurement principles could result in a negative impact. With increases in costs, as well as delays that could get passed onto the consumer being of chief concern. 

In fact, some businesses worry so much about these issues that they avoid sustainable procurement as much as possible. 

However, in practice, these things can be dealt with actually resulting in the opposite. That is, using sustainable procurement practices can end up saving businesses money and time, and in some cases, can even improve productivity. Not to mention the fact that the PR value of being a business that works in with a sustainable procurement approach is enormous. Especially in a market where consumers are demanding a more ethical and sustainable approach everyday. 
Posted by: Extraman Recruitment