Sustainable Procurement in Public Sector

Executive Summary

Sustainable procurement is a process whereby organizations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organization, but also to society and the economy, whilst minimizing damage to the environment.

In order to successfully implement the new sustainable procurement policy across city’s all branches, Manager of Supply Management for the city of West Coast is facing three major issues: stretched out departmental and operational budgets; lack of cross functional and integrated approach from different departments; lack of proper knowledge and expertise in sustainable procurement practices. The concept advances sustainable purchasing from a reaction to outside forces or top-down pressures, to a supply methodology congruent with an overall business strategy while meeting the societal, economic and organizational goals.

Based on a detailed research and analysis, we have come to a conclusion that even though by implementing the new SPP policy will result in an additional 10% COGS to the city, it has been analyzed that by adopting sustainable business and procurement practices, the cost will break even in the long run and ultimately result in a sustainable organization. It is recommended that in order for Manager of Supply Management to effectively and cost efficiently delivers the new policy, a cross functional project team from different departments of city is required to develop and review the new SPP policy and align it with the current procurement policy of West Coast city.

Project team will be responsible for the development, assessment and implementation of the new SPP policy within a specific time range and budget. They will also be responsible to develop the training material such as new practices and evaluation criteria and train the entire purchasing staff of city of West Coast, along with promoting awareness,...