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Six Essential Strategies for Sustainable Procurement

Sustainable procurement is a spending and investment process typically associated with public policy, although it is equally applicable to the private sector. Organizations practicing sustainable procurement meet their needs for goods, services, utilities and works not on a private cost–benefit analysis, but with a view to maximizing net benefits for themselves and the wider world.

In doing so they must incorporate extrinsic cost considerations into decisions alongside the conventional procurement criteria of price and quality, although in practice the sustainable impacts of a potential supplier’s approach are often assessed as a form of quality consideration. These considerations are typically divided thus: environmental, economic and social.

These are the six essential strategies for sustainable procurement.

Earnest Lim
Diagram designed by Author: Earnest Lim

Supplier Optimization

The company chooses an optimum mix of vendors who can provide the best prices and terms. This process usually means that the less able suppliers who cannot provide a quality service at the terms and prices required are discarded. This is the most common of the various purchasing strategies.


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Earnest Lim Joon Kiong, DPSM
Earnest Lim has substantive work experiences in the field warehousing, terminal ground handling and transportation, specifically in 3PL and 4PL services. He specialises in global control tower involving regional supply chain optimization solution in transportation. He is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Earnest completed the Diploma in Procurement and Supply management (DPSM) on September 2019 at SIPMM Institute.
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