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Beyond purchasing

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34 It’s not easy being green | Section V<br />

Importance when selecting a supplier for a major contract<br />

Quality<br />

67% 26% 6% 1%<br />

Price<br />

55% 33% 11% 1%<br />

Supplier's record for reliability<br />

and service levels<br />

Supplier's record for speed<br />

41% 41% 14% 3% 1% 1%<br />

24% 41% 26% 6% 2% 1%<br />

Existing relationship with supplier<br />

15% 37% 39% 7% 2%<br />

Supplier's reputation for employee<br />

welfare/ human rights/ CSR<br />

Possibility of privileged access to supplier's R&D<br />

11% 21% 27% 23% 14% 4%<br />

10% 25% 31% 16% 12% 5%<br />

Supplier's environmental record<br />

10% 20% 32% 20% 14% 3%<br />

Supplier's general brand reputation<br />

Proximity of supplier to operations<br />

10% 35% 35% 12% 7%<br />

9% 28% 36% 15% 10% 2%<br />

0 10 20 30 40 50 60 70 80 90 100<br />

% of respondents<br />

Very important<br />

A bit important<br />

Important<br />

Not at all important<br />

Moderately important<br />

Don’t know/ Not applicable<br />

on the life­cycle costs of assets,<br />

instead of only upfront costs, helps<br />

greatly in this regard. Consideration of<br />

broader organizational goals can also<br />

help. In government, for example, Mark<br />

Pedlingham, Executive Director of<br />

Markets, Suppliers, and Skills at the<br />

United Kingdom’s Office of Government<br />

Commerce, notes, “you can look at the<br />

boundary you draw around<br />

procurement. If you look narrowly you<br />

may end up with one particular answer.<br />

If one of your government policies is<br />

around local employment though, you<br />

might consider that it was more cost<br />

effective to use local labor because the<br />

cost of delivering that employment<br />

would be higher another way.”<br />

As Gardy says, “in many cases it is not<br />

necessarily easy, but that is not an<br />

excuse not to address it,” especially as<br />

procurement’s contribution to corporate<br />

sustainability looks set to become<br />

an increasingly important part of its<br />

performance and an area where it can<br />

make a marked contribution to<br />

corporate strategy.<br />

© 2008 KPMG International. KPMG International is a Swiss cooperative. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member<br />

firm has any authority to obligate or bind KPMG International or any other member firm vis­à­vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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