Enterprise Green Purchasing Strategy And Implementation Of The Research

Along with economic development, waste of resources and environmental protection become more and more serious challenges to be faced by businesses, governments, and the population. Consumers have begun to be aware of the importance of environment protection. To meet consumers and governments and international organizations’stricter requirement for sustainable development, leading companies have focused their attention to resource saving and environmental protection. Although concept of green procurement has been widely accepted, some difficulties make companies hesitant in implementing green procurement.In daily business operations, companies always face changes in the external and internal business environment; today companies must, additionally, changes driven by the need to embrace the implementation of green procurement as an overt strategy. Due to the importance of effectively implementing a green procurement strategy and delivering an overall "green" impact, management must achieve unity in thinking among employees and collectively, all should be responsible for the implementation.In particular, Companies have to establish two green procurement standards relating to:(1) raw materials which are environmental-friendly and (2) suppliers who protect environment. During green procurement, companies must use environment protection standards as well as quality, cost and delivery standard to measure suppliers. Four steps are used to choose green suppliers; these are (1) an investigation of the supplier’s environmental management system,(2) verification of the supplier’s certification of environment management systems,(3) identification of green suppliers and (4) follow-up to ensue suppliers adhere to what they say. In addition, companies must seek to reduce the environment’s burden, from excessive waste, and companies must execute waste recycling and maximize material reuse.From the view of environmental management, the basic requirements for green procurement are that raw materials meet company’s green standard and suppliers meet standard of green suppliers. The implementation of green procurement policies and standards can reduce pollutants, and emissions, and raise employee satisfaction. Green procurement is helpful to a company’s competitiveness though positive product differentiation and, raising brand image (focusing on the company’s association with the "Green Movement") and enhancing collaboration among participants of supply chain. At the same time, green procurement is an essential prerequisite for company to obtain government orders. In the future, it is clear that companies will have to assume more and more costs related to environment protection and waste recycling as Government’s at home and abroad raise environmental standards and demand compliance. Through green procurement, companies are able to both protect the environment and reduce their own and society’s costs related to pollutants emission and waste management.To become an environment-friendly enterprise, G Company implemented green procurement in2008and improved thereafter. G Company set up a green procurement workshop at first, with members from various related departments. Then G Company came up with a green raw material list and a green supplier list. This led to G Company issuing "Green inspection standard" related to their demand for "green products". According to G Company, raw materials, chemicals and package materials from suppliers must conform to domestic and foreign laws and regulations. G Company also require supplier to set up an effective environment management system. Whether suppliers are active in environmental protection, or not, becomes a criteria in deciding of the eligibility to be included on G Company’s approved procurement list. Compared to common purchasing procedure, green procurement includes the environment-friendly control process. At the initial stage of procurement, green procurement focuses suppliers on membership of the green supplier list, and then G chooses "Environmentally approved" suppliers based on price, quality and delivery. G will only engage with a supplier in the procurement procedure after confirming raw materials are environment-friendly.