T H E S M A R T P R O C U R E M E N T P R O J E C T Vision, Mission & Agenda

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1 THE SMART PROCUREMENT PROJECT Vision, Mission & Agenda

2 Background Sustainable Procurement The focus of the procurement function has shifted from minimising costs to maximising value. Sustainable Procurement is a better integrated, more strategic approach to procurement. It accounts for risks, impacts and value within and beyond the organisation, resulting in cost savings, risk mitigation and the opportunity to identify new business opportunities. The SBN Smart Procurement Project The SBN Smart Procurement Project is a collaboration between the Sustainable Business Network and a selection of our member businesses. It aims to support Sustainable Procurement practices and boost their profile within New Zealand. The Smart Procurement Leaders Group is responsible for setting the strategic direction of this project, and current and former members of the Group are listed on the project website. The Smart Procurement Practitioners Group is comprised of large SBN members and meets quarterly as a circle of learning, influence and feedback for the project. page one

3 Introduction We come together as the Sustainable Procurement Leaders Group with the intention of raising the profile and improving the practice of sustainable procurement in NZ. Our vision is one where NZ businesses confidently and consistently employ sustainable procurement practices, creating value for the NZ economy, society and environment. Our resources and activities are intended to assist all NZ businesses, including SMEs and Social Enterprises, to manage risk and identify opportunities for stronger, more positive outcomes. Businesses will undoubtedly benefit from the better practice of sustainable procurement, but crucially so will the societies they exist within and the environments that support them. What is sustainable procurement? Sustainable procurement goes beyond a singular concern with minimising costs or maximising narrow business-to-business commercial value. It is a mature approach to procurement, viewing it as a strategic concern linked directly to an organisation's risks and impacts and capable of contributing to its broader mission. The Procuring the Future 1 report, from the UK Sustainable Procurement Task Force, provides the following definition: Sustainable procurement is a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment. New Zealand has an opportunity to learn from international best practice and amplify emerging best practice within New Zealand. By doing so NZ businesses can manage not just their own procurement performance but ensure that their activities are net contributors to the good of the people and places around them. page two

4 As a Leaders Group, we believe that the benefits of sustainable procurement are self-evident both for individual businesses and for society at large, and that these benefits include: reducing waste and improving resource efficiency, securing supply of necessary goods and services, providing cost savings, minimising business risk, and providing opportunities for new products and services that aspire to a positive impact on people and place. What are we doing? The SBN Smart Procurement Project will seek to provide clarity to NZ businesses on what sustainable procurement means and a clear vision for how it could look. It will develop and circulate appropriate resources, which may include events, training, statements of principles, best practice guidelines and/or tools to support others in their efforts to realise better and more sustainable procurement outcomes. As well as better sustainability outcomes, this project's outputs will provide the basis for stronger and deeper relationships between businesses and their suppliers. The project's outputs will ensure that highperforming SMEs and social enterprises are well positioned to participate and be rewarded within procurement processes. Who are we? The Smart Procurement project is a collaboration led by the Sustainable Business Network. The Leaders Group is facilitated by the SBN with contributions from a select group of SBN members. For current and former Leaders Group partners, please see the Who we are tab on the Smart Procurement project website. How can you get involved? The Smart Procurement Leaders and Practitioners Groups are facilitated by the Sustainable Business Network, a social enterprise member-based organisation with the aim of transforming NZ into a model sustainable nation. Sam McGlennon (sam@sustainable.org.nz) is the lead SBN contact for the project. page three

5 Scope (The finer points) This project will focus on supporting NZ businesses and their supply chains. The project intends to build capability within NZ businesses to address their strategic sustainability risks and leverage better outcomes through procurement practices. The project will support both buyers and suppliers by providing clarity on expectations and possibilities, as well as resources and other materials for both groups to enable the continuous improvement of their sustainability performance. The project's emphasis, including through project outputs, will be to recognise and reward suppliers for their achievements and commitment to continuous improvement, rather than advance a compliance-based, exclusionary approach. Given the high proportion of SMEs within the NZ business sector, the project will ensure that its strategic directions and outputs are capable of assisting and supporting the inclusion of these (and other noncorporate) businesses. All project partners will use their own criteria and processes for their respective procurement decision-making. This will not be the role of the Leaders Group or SBN, even if some of the project outputs explicitly seek to align or harmonise procurement approaches page four

6 Sustainable Business Network sustainable.org.nz