In 2020, as the world is living through a pandemic that has shut everyone in, procurement sustainability has become a major talking point. While the public sector was always heavily leaning towards sustainability, private businesses were hesitant in that approach. Studies have pointed out that sustainable procurement, which combines reliability, cost, procurement experts, innovation, and flexibility, will be a core factor in helping a business gain a competitive advantage.
Many businesses still don’t seem convinced. So let’s talk about the key benefits of sustainable procurement.
What are the major benefits of sustainable procurement?
The major benefit of shifting to sustainable procurement is that businesses will reduce their overall cost. Sustainable procurement carried out through experienced procurement agents will ensure that businesses can eliminate wastes. In the long run, it will allow brands to build a better public reputation. As such, the adoption of sustainable procurement methods will give companies tangible benefits.
Future proof the company
Sustainable procurement ensures that your business becomes more resilient in case there’s a supply scarcity. There’s no better example of such a situation than this current pandemic, which has left companies in a lurch and unable to fend for themselves. Adopting sustainable procurement methods will allow organizations to support demand, even during crises.
Get more customers
With changing times, your customer’s needs are likely changing as well. A survey carried out by Nielsen found that 66% of world consumers are ready to pay higher prices for sustainable brands. When it comes to millennials, this percentage goes up to 73. A report called “Sustainability in Supply Chains” by McKinsey even mentioned that failure to adopt sustainable procurement methods could slow down a company’s growth. So if you want your company to grow, it’s important to evolve under the current times.
Work with better suppliers
Once you begin implementing sustainable procurement methods, you will collaborate with experienced and qualified procurement experts and suppliers. After all, sustainable procurement takes diligence, effort, and focus from the supplier’s side too. So you will get to work with well-equipped people who are better prepared for any environmental or economic calamity. They will have backup channels that won’t get shut down easily and so your production levels will never drop drastically.
Better risk management
Note that your company will be better equipped to handle any situation with the help of sustainable management. As a result, you will be better prepared to take risks and take unconventional business decisions. With this, your company will set the direction for the future and open new pathways for business.
Qualify for loans
Adopting sustainable procurement methods will ensure that you can qualify for different kinds of business support, loans, and tax relief options. With this, your business will be able to flourish better. Know that winning such tax reliefs and business support will attract investors as well. So gradually, your business profile will improve.
Sustainable procurement is the future. Whether it is the public sector or the private one, sooner or later, businesses will have to opt for sustainable procurement to ensure better growth at lesser costs. With the help of suppliers, procurement agents, distributors, etc., your company will be able to flourish by taking more risks. Overall, it will give you more tools to work within an always shifting business world.