Environmental Purchasing Policies and Managemet

INTRODUCTION

Environmental problems have received an increasing attention during last decade. One of the major sources of environmental problems is supply chain implementations (Aronsson, H. and Brodin, M.H., 2006). In a supply chain, purchasing function is in a critical position to affect an organisation’s response to concerns about natural environment. The goods and services procured, and the actions or lack of actions by purchasing professionals have a direct impact on the natural environment. They also have an influence on equipment selection which impacts energy use and emissions level (Zsidisin, G. and Siferd, S.,2001). Transport sector also is one of the main sources of pressure on the environment, particularly regarding air pollution and noise (Aronsson, H. and Brodin, M.H., 2006),

Companies need to develop techniques for ‘environmentally friendly’ sound purchasing and to measure the purchasing function in their entire cycle (Cousins, P. et al, 2008). Public scrutiny has increased as customers have become more knowledgeable of the fact that it is not only the end product, but also the supply chain that need close observance and monitoring (Journal of Cleaner Production, 2008).

Common purchasing approaches for addressing environmental concerns are resource reduction, product reuse and recycling (Zsidisin, G. and Siferd, S., 2001). In a supply chain desired aim using fewer resources and producing fewer waste. Disposal and landfill are not accepted as a green activity.

LITERATURE REVIEW AND EVALUATION

Environmental purchasing means systematically building environmental considerations into company’s day to day purchasing decision making and operations. Its objective is to help purchasing managers procure most suitable and “environmentally preferable product” that meets company’s needs.

Klassen and McLaughlin (1996) stated that environmental management covers all efforts to minimise the negative environmental effects of a firm’s products or...