Selecting Environmentally Responsible Vendors
By Arthur Weissman President and CEO, Green Seal, Inc. | September 02, 2010
Why Green Your Supply Chain?
The benefits of incorporating environmental responsibility into your purchasing decisions can impact your bottom line and property efficiency in a number of ways, including:
- Ensuring greater consistency in supplier performance;
- A reduction in long-term risk and threats to your property;
- A reduction in packaging, transport, waste treatment, and purchasing costs; and
- Improved vendor relations and branding with your guests and community.
Most importantly, however, is that incorporating environmental responsibility into your purchasing decisions is not that different from the traditional purchaser's interest to minimize the cost of transportation, waste management, and time spent in managing stock. According to Deloitte"...maximizing transportation efficiency, reducing fuel and energy consumption, minimizing inventory and waste, and purchasing based on Total Cost of Ownership were considered leading supply chain practices, long before green considerations like carbon emissions and sustainability entered the equation." In addition to benefits for individual properties, your suppliers can also benefit from participating in your green supply-chain program in some of the following ways:
- Lower production costs by adoption of "just-in-time production" methods;
- Lower liabilities due to lower levels of stock in reserve;
- Better relationships with regulatory agencies due to compliance with client programs; and
- Streamlined management systems.
In addition to these business-to-business returns, local communities will also benefit indirectly though your adoption of a green supply chain program in the following ways: