New Paths to Business Value: Strategic Sourcing — Environment, Health, and Safety

The Global Environmental Management Initiative says that “skillful management of suppliers has become increasingly important to the bottom line.” How can procurement practices add business value? Faced with expanding liabilities and risks, increasing environmental and health regulations, and growing pressure from customers and shareholders to improve environmental practices, many companies are finding that informed procurement policies mean smarter, more cost-effective business. Supplier mishandling of EHS requirements can cost the companies that employ them money. Many companies end up paying to clean up sites of contract manufacturers that went bankrupt. And careful supply management can minimize the cost and impact of a product through its life cycle.

This guide, written by GEMI for procurement professionals, offers a number of solutions for strategic sourcing — purchasing with environmental and health issues in mind. The guide provides a thorough overview of trends that make EHS performance important and outlines a four-step process to help companies find value opportunities specific to their needs. It also gives guidance on assessing supplier performance and implementing EHS criteria through subcontracting and other methods. The report includes case studies and a list of recommended resources for further research.