Keeping costs in check is one of the top priorities for procurement teams, particularly as businesses are looking to create stability in the face of anticipated economic downturns. However, it’s becoming increasingly clear that sustainability is growing in importance among consumers and business leaders.
These differing priorities can put procurement professionals in a tough spot as they try to find the balance between sustainability and budgetary concerns. But they don’t have to be at odds. Procurement professionals have the opportunity to stand out as leaders and find the balance between meeting the company’s goals without hurting the bottom line.
Our focus on sustainability and environmental advocacy has been growing over the last few decades, with leading experts warning that the climate crisis point of no return is fast approaching, if not crossed already. Consumers are taking note of these warnings and, according to a report from IBM, report valuing sustainability at growing rates. 51% of survey respondents reported that environmental sustainability is more important to them today than a year ago and 41% said that they’ve paid a premium for products branded as sustainable or socially responsible.
Partnering with sustainable suppliers can benefit your company in more ways than one. In addition to promoting environmental stewardship, embracing sustainability can enhance your brand reputation, encourage brand loyalty and increase employee retention among those who value eco-friendly business and decision-making.
To keep up with concerns for the climate and shifting consumer demands for environmentally conscious business practices and products, businesses must follow suit and make sustainable purchasing decisions. Focusing on sustainability can help businesses stand out amongst their competitors while still remaining considerate of their budgets.
Procurement professionals have a unique opportunity to spearhead sustainability practices in their organizations, in fact, they may play the most critical role in steering businesses toward environmentally conscious decisions. McKinsey & Company reports that two-thirds of an organization’s environmental, social and governance (ESG) footprint is based on the suppliers they partner with.
As procurement teams take the reins and step up to lead their companies toward sustainable practices, they can give their companies the chance to be leaders in their industry by embracing sustainability ahead of their competitors. IBM reports that business executives are already anticipating their prioritization of sustainability will grow, with four out of 10 stating that it is currently a top priority and over half reporting that it will become a priority in the next three years. Now is the time to shift priorities and solidify your company as a leader.
One of the biggest factors preventing businesses and procurement professionals from prioritizing sustainability is the high costs often associated with such business practices. While it’s true that sustainable suppliers can come with steeper up-front costs, these partnerships will save – and even earn – your company money in the future. As consumers continue to seek out eco-friendly options, organizations that offer them will be able to expand their audience, particularly if they are ahead of the curve. Attracting new consumers and providing another reason for existing consumers to be loyal can greatly boost your profit margins.
Certain sustainability measures can also reduce long-term costs. Reducing your business's carbon footprint or recycling waste can provide cost savings – whether through tax incentives or spending less on things like fuel.
The biggest mind shift professionals need to make to embrace sustainability is shifting from a focus on short-term profits to long-term benefits. With the economy facing so much uncertainty, businesses need to seek ways to create stability. In addition to helping you attract new consumers, making decisions from a sustainability perspective can provide additional benefits, like supply chain diversity. Cultivating a diverse supply chain can lead to economic resiliency as well as cost savings.
Working with a corporate moving partner like Allied that values sustainability and your budget can help you transition to more environmentally friendly practices. So, how does Allied prioritize sustainability?
Allied is working hard to meet our sustainability goals and to help our clients meet theirs. With over 95 years of experience, a nationwide network of agents and flexible program options to fit your budget, Allied is committed to providing both sustainable options and a quality customer experience. Learn more.