MODULE

• 4

Sourcing & Procurement

Key Take-Aways

• Sourcing and procurement are critical functions of the circular economy. These functions directly impact the sustainability and environmental footprint of the lifecycle of products and materials. Changes to sourcing and procurement processes can lead the way towards circularity through the identification and introduction of alternative materials, lower-footprint products and equipment, and relationships with current and future suppliers for more circular items.
• The sourcing and procurement functions in a supply chain are complementary, as they both involve the identification and acquisition of goods and services necessary for a business’ operations.
• Circular sourcing is the process of identifying a business that provides a needed good or service, while considering their alignment with circular economy principles and the environmental impacts of their offerings.
• Circular procurement is the process by which public authorities purchase works, goods or services that seek to contribute to closed energy and material loops within supply chains, whilst minimizing, and in the best case avoiding, negative environmental impacts and waste creation across their whole lifecycle.
• Enablers for circular sourcing and procurement include work culture or executive buy in, policy and regulations, materials and waste management infrastructure, awareness, and network strength.
• In addition to local sourcing, the circular processes and actions identified in this module include sourcing and procurement of recycled, renewable or circular materials, long last materials, materials that facilitate circular design, materials to promote waste reduction, and asset sharing of materials and equipment.