Green efforts continue despite the economy
By Paul Teague, Editor in Chief -- Purchasing, 2/12/2009 2:00:00 AM
Given the deadline realities of the publishing world, it's always a little risky writing commentary in a monthly magazine on current issues because the issues could change between the writing and the publication of the magazine. Nevertheless, it seems safe to say that, despite a challenging economy, business executives in general and procurement leaders in particular are still advocates of Green policies, products and practices.
The reason is that many see Green as an avenue to savings and, possibly, new business.
We'll let the experts argue the merits of the case. But as they do, we offer these news nuggets for consideration:
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Companies as diverse as Starbucks and Nike said in December that they were hoping Washington would enact Green legislation. Starbucks Vice President for Global Sustainability Ben Packard told the Harvard Business Review that addressing climate change would help the company reduce operating costs.
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Continental Airlines said last month it conducted the first biofuel-powered demonstration flight of a U.S. commercial airliner. Air New Zealand has also been experimenting with biofuels. Last year, Virgin Atlantic became the first airline to experiment with biofuel.
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China, a country whose name is on the lips of many business executives, is considering a range of environmental initiatives as part of its "Green Leap Forward."
These are just a few of the developments in the world of Green business. And more activities are likely to be forthcoming. The Corporate Executive Board reports that a recent Sustainability Forum study found that 56% of executives don't foresee the weak economy affecting their efforts to invest in cleaner technologies. Many business executives believe that Green initiatives are good for the bottom line. Some believe ferociously in that concept. Ray Anderson, president of Interface, a global carpet and tile manufacturer, told his major suppliers that if they didn't join his efforts to achieve zero environmental impact they wouldn't get his business.
As we have reported on these pages in the past, procurement and supply chain executives are in the thick of efforts to bring about Green business practices. You can read how by going to www.purchasing.com and scrolling down to the list of our special reports on how procurement is managing environmental demands. And, on Page 41 of this issue, you'll find a list of several companies with Green products, policies and practices in our first Green Directory.
As Rick Blasgen, CEO of the Council of Supply Chain Management Professionals, told Contributing Editor Dan Gottlieb, "Green is hard work, but it's good business."
Take a project manager to lunch
There are several functions within an organization that can learn a lot from purchasing. But there are important things purchasing can learn from others too. One skill that procurement professionals increasingly need to acquire, given the number and complexity of their responsibilities, is project management. And they can learn that skill from their colleagues in IT and engineering.
Professionals in those departments often head cross-functional teams with specific agendas, and they have the discipline, tools and best practices for sorting out the details of projects and making sense of them. "Buyers have to learn the same disciplines to manage projects," says Chris Sawchuck of The Hackett Group.
Getting closer to other departments where project management skills are strong also gives purchasing one more opportunity to spread its own gospel about strategic sourcing. It takes collaboration to a new level.
So, take an engineer or IT professional to lunch. The relationships you form will help you both.
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