We talk a lot about sustainable supply chains, the circular economy, and responsible sourcing and sometimes make fun of them, but we don’t do much about them. When it comes to sustainable procurement, using technology in tender and contract management can make a big difference. By using technology in these areas, businesses can make positive changes in the environment and society while making sure they are efficient and accountable. In this piece, I look at how technology can change tender and contract management to make it more sustainable with easy-to-implement ideas.
When it comes to finding suppliers that fit with your goals for sustainable purchasing, technology is a powerful tool. Digital platforms give you access to a lot of information about your suppliers, like how well they take care of the environment, how they treat their workers, and how ethically they source their goods. By using these platforms, businesses can make well-informed decisions and encourage sustainable practices throughout their supply chain. I’ll, however, make specific recommendations for some of the best platforms out there.
It’s important to make the supply chain and sustainable practices as clear as possible, and technology can help with this. For example, blockchain technology keeps a secure and unchangeable record of transactions, so you can see where products come from, what certifications they have, and how they affect the environment in real time. By using this kind of technology, businesses can make sure they are following sustainability standards and reduce any possible risks to the environment and society.
Technology-based contract management systems make it easier to keep track of compliance, especially when it comes to requirements for sustainability. By adding sustainability clauses to contracts and using smart systems, organisations can automate the process of tracking and measuring suppliers’ adherence to pre-defined sustainability criteria. This makes it easier to keep track of things and helps create a culture of sustainability in the supply chain.
Data analytics tools are a great way to measure and evaluate how well suppliers do in terms of sustainability. Businesses can learn about the sustainability practices of their suppliers by collecting and analysing data on key performance indicators like energy use, waste production, and social impact. With this information, they can find areas that need improvement, set benchmarks, and keep track of their progress over time, which leads to continuous improvement in sustainability.
Finally, using technology in procurement and contracts can help improve sustainable procurement efforts in a big way. Businesses can make real progress towards sustainability by using technology to evaluate and choose suppliers, ensure supply chain transparency, automate contract compliance monitoring, and use data analytics to measure performance. Technology gives everyone in the supply chain the tools they need to make good decisions, reduce risks, and use sustainable practices. By taking a technology-driven approach, businesses not only help create a more sustainable future, but they also save money and make their procurement processes more accountable.
