SUSTAINABILITY
What is Danfoss doing that others are not ? Successful companies optimise procurement spend from a dual mission objective , addressing cost and carbon at the same time and same the priority level .
Developing a joint baseline , they implement optimisation initiatives covering both dimensions and track them in a systematic way . Trade-off decisions are based on meaningful carbon pricing logic or strategic considerations , and can lead to competitive advantage through securing scarce materials early on , for example .
How can procurement get stakeholders on board with sustainability ? Internal stakeholders are under the same pressure as procurement to become more sustainable . There are areas where procurement relies on other functions to be in-step – for example , the R & D department when re-designing products to allow more sustainable sourcing .
It is crucial to boost cross-functional collaboration , share objectives , and create transparent business cases – best practices that leading category management organisations have established already .
We see the bigger challenge with suppliers , especially with SMEs , that may not have the resources and tools to accelerate their decarbonisation efforts .
118 February 2024