From Cost-Cutting to Carbon Footprints: The Evolution of Procurement

Sustainable Supply Chain

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Welcome to the Sustainable Supply Chain Podcast. I’m Tom Raftery, and this week, I spoke with Anders Lillevik, CEO and founder of Focal Point, a company specialising in procurement orchestration and management as a software service.

Anders discusses the evolving landscape of procurement, highlighting its shift from cost-saving to incorporating supplier risk management and sustainability. He explains the modern challenges where companies need to ensure suppliers are environmentally responsible, socially compliant, and financially stable.

Key takeaways include integrating sustainability into procurement strategy rather than treating it as a standalone project. Anders shares how Focal Point’s solutions help organisations manage complexity by setting up processes that ensure all necessary checks are in place before signing contracts.

We also explore balancing cost and sustainability, with Anders arguing that efficient operations reduce waste and pollution, benefiting the bottom line. He stresses the importance of using data for informed decisions about supplier selection and performance.

Anders shares an inspiring success story of a major hotel group in Las Vegas managing water usage, waste, single-use plastics, and carbon footprint with Focal Point’s solutions. This case illustrates how companies can lead in sustainability while achieving business goals.

Finally, we discuss the future of procurement, with trends emphasising procurement as a value-adding function focusing on collaboration, transparency, and strategic thinking.

Check out the video version of this episode.
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