Sustainable Procurement – An Embedded Process to Supplier Management Activities

The development of a sustainable procurement policy takes into account key practices and puts them into the context of the organization and its operating model. Many of the metrics used to define, track, and monitor objectives stemming from policy and practice are quantitative — for example, the amount of water used during the manufacturing process or the amount of pollutants expended into the atmosphere. However, some of the metrics are qualitative and may be difficult to articulate in either Web-based or spreadsheet-driven environments. In larger, more complex organizations, the amount of real-time information used to drive decision-making creates the need to look at enterprise systems to gather and aggregate this information.

With more than 90 percent of today’s sustainability reporting, tracking, and monitoring processes currently handled by basic spreadsheet tools , enterprise-wide sustainability programs suffer from many of the management headaches other compliance and strategy programs face. These challenges include:

  • Disparate and static data sources
  • Erroneously defined key performance indicators (KPIs)
  • Absence or poor definition of key risk indicators (KRIs)
  • A lack of manageable ways for roll-up and reporting of value chain progress toward supply chain goals

Through the Sustainability Executive Advisory Council at SAP, organizations have visibility to the emerging roadmap of key practices for sustainable procurement as being developed (and in some cases co-innovated) with SAP.

The Sustainability Executive Advisory Council (EAC) of SAP is developing several roadmaps to enable functions and processes to address corporate sustainability reporting (CSR), planning, and monitoring activities. Preview these conceptual roadmaps and the expected releases of related SAP functionality through a full article at SAP Insider GRC Expert here.  (Login required.)

William is a member of the Sustainability EAC. To learn more information and register for membership, visit the Sustainability EAC’s site.  His book “Understanding SAP BusinessObjects Enterprise Performance Management” covers strategy, sustainability, business planning, and operational effectiveness.  You may purchase this title from the SAP Press bookstore or here.

William’s SAP PRESS book Understanding SAP BusinessObjects Enterprise Performance Management, available now, covers strategy, sustainability, business planning, and other topics. For more information, visit

1 Comment

Filed under Change Management and Leadership, Compliance, Procurement, Strategy, Sustainability, Technology

One response to “Sustainable Procurement – An Embedded Process to Supplier Management Activities

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