In: Operations Management
4. What are the major benefits of sustainable purchasing/sourcing for the company?
Sustainable purchasing involves commitment towards environment and society and being conscious towards them while procurement.
Benefits of sustainable purchasing:
1) Saving money: Using an efficient process or materials reduces the amount of waste, resulting reduction of operating costs which includes utility cost, waste treatment etc.
2) Goodwill: This helps in increasing the prospects of the business and due its such practices its goodwill and status among the industry and market increases.
3) Saving resources: Deciding to purchase goods that can be recycled, reuse or reduced results in saving natural resources. Other than that involving some technique that can reduce the requirement of resources also comes under this concept.
4) Reduce carbon emissions: Using sustainable resources can result in fewer carbon emissions.
5) Tax concessions: Firms that use energy efficient techniques or equipments and water-energy saving methods are given tax concessions benefits.
6) Financial support: Firms that are keen on purchasing sustainable equipments are supported by providing financial assistance very easily.