Collaborative Environmental Procurement Strategies May 24, 2006

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Collaborative Environmental Procurement
StrategiesMay 24, 2006

• Pamela Brody-Heine
• Eco Stewardship Strategies
• Zero Waste Alliance

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Different Strategies

• Environmentally Preferable Purchasing
• Collaborative Procurement Strategies
• Cooperative Purchasing
• Servicizing
• Tools and Resources

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What is Environmentally Preferable Purchasing
(EPP)?

• 1) Adding environmental considerations to
  purchasing decisions along with such traditional
  factors as performance, price, health, and
  safety.
• 2) EPP is the act of purchasing products/services
  whose environmental impacts have been considered
  and found to be less damaging to the environment
  and human health when compared to competing
  products/services.

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What Are The Benefits of Environmental Purchasing
for Companies?

• Many companies have achieved cost savings through
  environmental purchasing, such as
• Reduced material costs for manufacturers.
• Reduced repair and replacement costs when using
  more durable and repairable equipment.
• Reduced disposal costs by generating less waste.
• Improved product design and performance of the
  product(s).
• Increased employee safety and health at the
  facility.

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Benefits (continued)

• Many companies adopted environmental purchasing
  policies for such traditional business reasons
  as
• Recognizing market preferences, and serving
  customers who have a stated interest in
  "environmentally friendly" products and
  practices.
• Distinguishing a company and its products from
  competitors.
• Avoiding hidden costs and pursuing cost savings.
• Increasing operating efficiency.
• Joining an industry or international market
  trend.

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EPP Resources

• Pollution Prevention Resource Center
  www.pprc.org/pubs/epp/epp_report.cfm
• New American Dream Responsible Purchasing
  Network http//www.newdream.org/procure/index.php
  
• EPAs website on EPP www.epa.gov/epp/index.htm
• EPAs Guidance Document on EPA www.epa.gov/epp/pub
  s/guidance/finalguidancetoc.htm
• EPAs Database of Environmental Information for
  Products and Services http//yosemite1.epa.gov/opp
  t/eppstand2.nsf

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Cooperative Purchasing

• Businesses come together to form purchasing
  cooperatives, so they can
• Save time and money researching and developing
  bid specifications
• Negotiate lower prices because of the increased
  magnitude of the contract
• Share equipment
• Reduce environmental impacts from transportation
  and logistics of products and services

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Example Product/Service Areas

• Office supplies
• Janitorial services and products
• Office furniture
• Painting services
• Electronics (computers, printers, copiers, etc)
• Waste management and recycling services
• Universal waste management services
  (fluorescents, batteries, cell phones,etc)

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Servicizing

• Supply chain approach shifting product
  providers into service providers
• Aligns incentives
• Customer interested in reducing waste
• Encourages hauler to reduce waste
• Include suppliers in more of the entire life
  cycle
• Some servicizing examples include carpet leasing,
  office equipment leasing, outsourcing of onsite
  chemical management, and office furniture supply,
  maintenance and moving services.

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What are the Benefits of a Servicing Program?

• Environmental and cost savings without much
  effort on customer's behalf
• Allows customer to focus on their primary areas
  of business
• Maintenance and ultimate disposal is the
  supplier's responsibility
• Product(s) are managed by the supplier, who best
  knows the product, liabilities, and waste
  reduction opportunities
• Can help companies meet environmental goals
• Vendor can function as much as a partner,
  problem-solver, and information resource as the
  product provider
• Inherently provides incentives to maximize and
  recapture the end-of-life value of products and
  equipment

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Examples

• Office Equipment and Furniture
• Carpet
• Waste
• Chemicals

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Chemical Supplier Example

• Typically chemical supplier is paid for the
  volume of chemicals provided
• Include supplier in life cycle increasing
  efficiency of processes handling inventory
  management handling disposal at end of life
• All these create incentives for suppliers to
  reduce the amount and toxicity of chemicals they
  provide

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Resources

• Pollution Prevention Resource Center
  www.pprc.org/pubs/epr/service.cfm
• Tellus Institute www.tellus.org/bs/publications/s
  ervicizing.pdf
• Chemical Strategies Partnership
  www.chemicalstrategies.org/cms_defined.htm