Sustainability efforts boost procurement’s status, value
By Paul E. Teague -- Purchasing, 10/10/2007 8:23:00 AM
Purchasing professionals looking for ways to get more time with C-level executives will find those opportunities in so-called “sustainability” programs that incorporate environmentally friendly sourcing activities.
That was the advice Wesley Gibson, managing partner of VMG Consulting, gave to attendees at the Empower 2007 Conference sponsored by Procuri this week in Atlanta.
CEOs are very interested in sustainability, he says, because of the potential for savings. “There are lots of opportunities for savings here,” Gibson said. “For example, the right strategies could result in 20-25% reductions in electricity usage.”
Beyond the hard savings, however, is the boost sustainability gives a company’s image. “In fact,” he said, “80% of the benefit is image and brand enhancement, and 80% of that drives perception of your share value.”
Gibson says purchasing can take a leadership position in developing and pushing sustainability programs. All you have to do, he said, is look at a balance sheet to see where the company is spending large sums of money. “You’ll find lots of money going to energy, recycling and waste management in general.” The best strategy, he says, is to broaden your perspective. “Don’t just think like a purchasing person,” he advised.
Also at the conference, in a special breakout session on manufacturing directions, Hal Finley, business process entitlement manager in Texas Instruments’ worldwide procurement and logistics group, told attendees they should expand the data they have on their suppliers to effectively manage them.
TI, he said, instructs its purchasing staff on what supply management activities they must conduct and where they can get more information on suppliers. The company even has a quarterly newsletter for employees on supply-management issues.
“Customers tell us they want us to manage more of our supply base,” he said. He added that purchasing is working with the company’s quality control staff to improve and expand its supplier audits.
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