TECHNOLOGY

&
GREEN PROCUREMENT INITIATIVES

ANURAG SHARMA ACHUAT DEO

18020741007 18020741067
 WHAT IS GREEN PROCUREMENT?
• Environmentally responsible or 'green' procurement is the selection of
products and services that minimize environmental impacts

• Procurement needs to consider both the environmental aspects, potential

social impacts and also carefully evaluate the life-cycle assessment of goods
and services

• This means considering the costs of securing raw materials, and

manufacturing, transporting, storing, handling, using and disposing of the
product

• Involves assessing the supply chain, going back to third- or fourth-tier

vendors, to check the origins of the components being used
• Obtain Organizational support
• Self assessment of procurement requirements
• Set priorities and targets
• Assess whole life cycle cost
• Development of implementation strategy
• Implement green procurement program
• Systematic review to assess sustainment
 E-PROCUREMENT & E-SOURCING
• Good procurement processes rely on information
exchange
• It is up to the procurement teams to ensure the
catalogs are always updated with green ratings and
product component information
• Preferred and green suppliers need to be
automatically suggested to the requester, in case no
catalog is present
• It is vital to choose an effective solution partner for
implementation of such a strategy
• Companies, during the evaluation of suppliers of
any key commodity, are progressively engaging
in developing scorecards to identify and
investigate suppliers that use green technologies
to benefit the environment
• The modern sourcing solutions come with built-
in processes and project management
capabilities, which ensure proper due diligence
and approvals at each step of evaluation in each
product category.
 E-PROCUREMENT SYSTEMS
• Good procurement processes rely on information exchange

• It is up to the procurement teams to ensure the catalogs are always

updated with green ratings and product component information

• Preferred and green suppliers need to be automatically suggested to the

requester, in case no catalog is present

• It is vital to choose an effective solution partner for implementation of

such a strategy
 CONTRACT MANAGEMENT
• Using a contract management solution helps implement mandatory eco-
friendly clauses during the authoring of the contract

• Ikea, a furniture and household goods retailer has

implemented a code of conduct for its 2,000 suppliers

• This code of conduct focuses on environmental impact of the materials

the suppliers provide and on working conditions.

• The supplier’s information is verified by an external body

 ARTIFICIAL INTELLIGENCE & GREEN
PROCUREMENT:
• As per the reports, 50% of organizations showed readiness to make
investment in Artificial Intelligence.
• Smarter Procurement:
– AI may have impact in alerting the company and suppliers when it
found disruptions in Supply chain.
– AI can identify and raise supplier compliance issue.
– AI can help in safeguarding supply chain from the frauds happening at
3rd and 4th tier suppliers.
 INDUSTRY 4.0 AND SUSTAINABILITY
• A paradigm Industry 4.0 will be step forward towards more sustainable
value creation.
• The allocation of resources i.e. Raw Material , Energy and Water can be
done in more efficient way on the basis of intelligent cross linked value
creation modules.
• Industry 4.0 holds great opportunity for sustainable value creation on all 3
dimensions:
– Economic
– Environmental
– Social
 CHALLENGES AHEAD:
• Potential Game changer but cost implications during initial period

• Non uniformity of Environmental norms from country to country

• Lack of knowledge of legal as well as technical aspects of Green

procurement among suppliers
 CONCLUSION
Cost Cutting Innovation
Reduction in Total Cost of Ownership Design for Environment
Decrease in Energy wastage and Sustainable Supply chain management
packing material
Improved relationship with supplier

Statutory Regulation Consumer and Society

Compliance to regulatory requirements
Socially responsible procurement
and ISO14000
Delivery Excellence
Reduction in Carbon Footprint