As highlighted in the last edition of the Green Procurement Blog, the framework was established showing the Purchasing is really a verb that, per the functions of a purchasing organization, identifies tactical activities such as the issuance of a purchase order. The framework also established that the term Procurement really implies the organization or result of the activities of Purchasing. Procurement is truly a higher level concept and therefore a concept that implies strategy.

The need for this framework is really meant to better deal with what it means to ‘go green.’ At the time of the writing of this blog edition, there is no real consensus on what Green Purchasing or Green Procurement actually means. If one were to conduct some basic research on those two terms, one would see a wide variety of concepts and efforts. Some of the concepts and efforts can also be questioned as to if they are truly ‘green’ or not [more on that in a future edition of this blog]. By identifying the fact that there are tactical issues and activities as well as strategic issues and activities to the act of buying green, then we can establish the differences of actions and issues and better reconcile them into a holistic approach. Without a holistic approach to the concept of green buying we will not be able to find the best known methods for success.

That is part of the overall goal of this blog and website. To establish the best known methods for developing a professional approach to Green Procurement and Green Purchasing.

Tactical issues. Every organization has tactical and strategic issues with which to deal. We can all identify some of these issues readily. For a typical buying organization tactical activities may include dealing with or issuing: RFIs, RFQs, RFPs, Purchase Orders, Purchase Requisitions, SOWs, Specifications, Receiving, Inventory Management, Reporting, etc. For an organization that is improving its environmental impact, there are some obvious elements to implement. First, there should be an overall goal, or goals, be which the effort can be measured. This goal should also be followed up with Standard Operating Procedures [SOPs] and Standard Work Instructions [SWIs]. While organizational goals, SOPs and SWIs are arguably strategic in that they impact the whole organization we are considering them be a foundation for tactical activity. These tools are the tools by which direction is given to the individual in their daily work.

In that daily work, there are also some easy-to-achieve elements for improving the organization’s green score. These elements will be listed to build out a body of knowledge, but, for most professionals, these easy-to-implement concepts are likely already in place. Such concepts include: use of recycled paper only, recycling printer cartridges, reduction of copies, use of eDocuments as opposed to printed documents [e.g., RFx, etc.], use of compact fluorescent bulbs, turning off lights and other readily implemented activities.

In this short list, you may already be wondering why some such activities are listed as Green Purchasing activities. You would be right to question this. As an organization, your group really has two roles:

i.) Providing service to your internal customers;
ii.) As an internal customer to others [e.g., Site Services].

In short, you group as two sets of responsibility. First, you must adapt environmental stewardship as part of your organization’s DNA. You must walk the talk by reducing your consumption, by turning off lights, by adopting those principles you would otherwise be advocating for your whole enterprise. The second element is your group as a Service Provider to internal customers. This is the real intent of your learning to improve Green Purchasing and the in depth topic of the next blog edition.

Think of your Buyers as the front line in your initiative to go green. They are the more junior people who hourly decision will impact the cadence and viability of your green program. They are also the future generation of your senior people. Inculcate your junior people today with green knowledge and develop them into Subject Matter Experts over the long term. To develop your junior people is another aspect of your green strategy for developing your Green Procurement function. As one can see, tactic ties to strategy and back to tactic.

Bringing together the act of Green Purchasing to the goal of Green Procurement requires an iterative approach. At the strategic level, your organization will need to set high expectations for success but provide for development of the organization to reach those expectations. The goal is to be successful, or best in class, but that goal is supported by a strategy that requires learning, the development of skills, the development of new tools, the development of new criteria.

Even after your group has ‘gone green’ and developed its strategy and implemented tactical level tools and reporting, one could argue that your group will still not be well suited for the future. Sure, you may have best known approaches and really smart contributors to make it all come together, but the remaining issue is a definitional one. The issue that remains, in this nascent period of time in which Green Procurement is still truly being defined, is the issue of the Green Supply Chain.

In sum, a simple mathematical formula will suffice: A + B ≠ C. Moreover, Green Purchasing + Green Procurement do not equal a Green Supply Chain. Why? How could this be true? As will be demonstrated in future blog editions, tactics will lead to better practices. Strategy will lead to more tactics that are more aligned and efficient. However, the rudimentary element of your buying organization is that: it buys. Most buying organizations speak to the concept of a supply chain but they do not actively work to manage that supply chain. There is a built-in disincentive for suppliers to allow that. For a Green Supply Chain, much additional work, both tactical and strategic, will be necessary.

[1] www.recyclechain.com