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Thursday 23 February 2012
M&H In Focus
Rachel Madan: Dispelling the green procurement myth

Green procurement is an often misunderstood phrase. But in plain terms it is simply a policy to purchase wherever possible, products and services that minimise environmental impacts, products that are more sustainable environmentally, economically and socially, says Rachel Madan of Greener Museums.

Rachel Madan of Greener Museums.While it is far from an easy fix, it is not as complicated as some might believe. But regardless to how easily green procurement can be implemented; the main barrier is often the misconception that the green option is the more expensive option.

To dispel this myth, let’s consider the rationale behind greening your supply chain, and understand the benefits that can be achieved with green procurement.

Lifetime Cost

Green procurement is more often a cost reduction exercise. The trouble is people rarely compare apples for apples when sourcing new equipment. When deciding which product to buy, and which the greener option is, it is vital to consider the full cost of the item, across its whole life. This includes the upfront purchasing costs, as well as the usage costs for its whole lifetime and disposal costs at the end of its life, and indeed how long its life-span actually is. These factors are especially important when the usage costs are by far the main bulk of the total costs, so things like IT equipment, and lighting.

For example, an energy efficient printer may cost more money up front, but if you are able to save 75% on energy consumption over a 5 year lifetime, then it actually becomes by far the cheaper option in the long run.

Price parity

Day-to-day items such as paper and other stationary are often thought to be more expensive. But the reality is that these products are the same price, or more often than not, cheaper than the non-sustainable alternative. So if your current supplier is charging more for recycled paper, it’s time to look around for one that isn’t!

Reputation

For a museum, nothing is more valuable than your reputation, and green procurement helps this in two ways.

Firstly it protects your existing reputation. By ensuring you have a sustainable supply chain, you are ensuring there are no nasty surprises that could damage your reputation if discovered. Consider the damage the reputations of Nike or Nestle suffered as a result of problems discovered in their supply chain. Each company has spent many millions of dollars simply fire fighting, in order to win their reputations back. And it is not that easy, many would argue that their reputations will be damaged for a very long time, if not forever.  I realise that this is a slightly different scale to many of you, but it serves to prove a point; your reputations are valuable, and if you damage it, then fixing it is an expensive, and often impossible task. So look after it.


As well as protecting your reputation, a sustainable policy can enhance it. The green consumer is no longer a niche market. Over 75% of people actively consider the environmental impact of the products and services they consume at least some of the time, and this number is increasing at a rate. Tap in to this market and shout about your green purchasing policies to them. Let people know what you are doing to be green and your reputation will quickly benefit from this.

A green supply chain is no longer the luxury of the cash rich organisation. Far from being a financial burden, if done properly it will reduce your costs both in the short term and in the long term, as well as protecting and enhancing your valuable reputation.

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