Green sourcing is not a departure from the way sourcing is currently being practiced; it’s an augmentation. When considering the trade-offs between one material, service, or supplier and another, the sourcing function has traditionally measured the value of each by analyzing either the economics of the deal or the deal’s impact on the customer. Green sourcing starts with the same considerations, but it also takes into account the environmental impact of a particular choice, be it transportation, materials, energy source, or packaging design, on the ecological footprint made by a product or service.
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The classic example of these value chains interdependencies is a 32-watt energy-efficient light bulb that costs US$6. It may appear more expensive than a 100-watt bulb that is available for 75 cents, but the green bulb actually has a lower cost of ownership once other factors are taken into account. Its 10,000-hour life is 10 times longer than the life of the cheaper bulb–and it will burn only $48 worth of electricity compared to $150 worth for the conventional bulb. A shift in light bulb supplies, however, may be worth making only when multiplied across a company’s dozens of facilities around the world.

This is a partial recount of a very detailed (and high quality) story about green sourcing process conversion and benefits. Company stories highlighted include: AB, Ford, HP, Kaiser Permanente, Cadbury Schweppes, Marks and Spencer, Starbucks and others.

Although you need to budget some time to really read and digest this, the information and case studies give any organization, with intentions of embarking on a green sourcing initiative, many good examples. The authors highlight three goals from green sourcing to give it a chance to succeed. These include taking a cost approach, building brand appeal, and having cross-functional insights into process.

This is virtually a white paper. Although bringing on experts (like these from Booz Allen) will help accelerate the process and implementation, there is so much good information in this document that many teams can at least start seeing the big picture for green sourcing benefits.