Supply chain and sustainable procurement

After decades in which energy has been cheap and plentiful, and in which food has become  progressively cheaper, the world is now confronted with the prospect of severe shortages in staple items that were previously taken for granted. The unpalatable but unavoidable fact is that consumption of scarce resources is occurring at a far greater rate than the planet can withstand.

The answer will not be to ask people to consume less, it will be to deliver the same or better customer experience using significantly fewer resources. While obvious improvements such as reducing waste and excess packaging will be important, the true competitive advantage will come from innovative thinking about new products, processes, sourcing models and services. Securing sustainable sources of key raw materials will also be critical to business continuity, cost and reputation management.
 

Strategy sourcing and sustainability

PwC helps clients identify, understand and manage the risks posed by the ‘perfect storm’ of climate change, water scarcity and increasing pressures on natural resources. We then work to develop practical strategies to address them. Whether it’s a business wanting to investigate new sustainable sourcing models or a cross-industry group looking to set new standards in sustainable raw material sourcing, we have the experience and insight to add value to their sourcing strategy.


Case study

Greenhouse gas emission reduction – Walmart

By the end of 2015, Walmart plans to eliminate 20 million metric tons of GHG emissions from its global supply chain, the companies which are thought to be responsible for 90 percent of the retailer’s total emissions. PwC is part of a team formed by Walmart to advise the company on its complex GHG reduction programme and perform testing procedures to assess its suppliers’ compliance with the defined procedures.

Sustainable procurement – policy, process and people

PwC can help clients integrate longer-term sustainability considerations into their strategic sourcing and procurement strategies, policies and processes, and build their people’s competencies in this area to help them maximise the opportunities. We can also help identify metrics for measuring, monitoring and reporting progress to internal and external stakeholders.

Case study

Green purchasing criteria – Malaysian telecommunications operator

PwC worked with the client’s sustainability team to develop an approach to cascade environmental criteria into purchasing decisions across the organisation. Subsequently, we designed and facilitated a cross-functional workshop to educate buyers from the client’s various divisions, including Marketing, Finance, Facilities and Operations on the benefits and scope of green procurement. Through a clearer understanding of green procurement concepts, they were able to develop green criteria for their respective purchasing decisions.