Companies hoping to reduce the environmental impact of their purchasing should tailor relationships with suppliers to different types of products rather than relying on a single procurement strategy, according to research published in the International Journal of Procurement Management.
The study used interviews with procurement staff and suppliers in the international energy sector. The results were supported by internal company documents. The research argues that environmental targets can be undermined when organizations treat all supplier relationships alike, despite differences in supply risk and technical complexity.
Indeed, the research found that green procurement, the integration of environmental considerations into purchasing decisions, depends not only on how the products are sourced but also on how buyers and suppliers work together to reduce carbon emissions, resource use and overall environmental impact.
The researchers found that companies do not use the same approach for every purchase. Complex products require close collaboration with suppliers to improve environmental performance, while routine purchases are more likely to rely on suppliers meeting agreed environmental standards. Products that fall between these extremes require buyers to translate environmental goals into detailed technical specifications.
