Supply Chain Digital Magazine May 2023 | Page 109

Peter Spiller
SUSTAINABILITY
Aluminium ingots ready for export . Aluminium is one of the most environmentally friendly metals . An estimated 75 % of the 1 billion tons produced in the past 100 years is still in use today .
How is inflation impacting sustainable procurement practices ? Future-proof procurement is about optimising several dimensions when sourcing materials and services – from specifications , cost , quality , and lead times to ESG and sustainability compliance .
Sourcing managers are naturally making trade-offs between these dimensions when executing a purchasing event . In many cases , the cost dimension matters most once certain thresholds in quality or specifications are met , and this will also be the case going forward .
Sustainable sourcing may be more expensive today , but it doesn ’ t have to be – it is important to screen category by category and SKU by SKU . Many procurement levers , for example de-specification and demand management , often reduce both cost and carbon footprints at the same time , creating a win-win .

Peter Spiller

TITLE : PARTNER COMPANY : MCKINSEY INDUSTRY : PROFESSIONAL SERVICES LOCATION : FRANKFURT , GERMANY
Spiller advises clients across industries including telecoms , hightech , automotive , and consumer goods on operations transformation , supply chain , and procurement topics . He co-leads McKinsey ’ s operations around environmental sustainability , and is a leader of its work in product development and procurement in the EMEA region .