Raw Materials Management (Inputs) - Substitution

By following this action plan, the organization will be able to establish an effective mechanism to purchase and use less expensive and more environmentally friendly raw materials, while optimizing costs and reducing the ecological impact.

1. Assessment of needs and criteria:

- Analyze raw material needs: Identify the types and quantities of raw materials used in the production processes.

- Define environmental and economic criteria: Establish criteria for raw materials, including aspects such as cost, environmental impact, sustainability, and local availability.

2. Search for suppliers:

- Identify potential suppliers: Search for suppliers offering less expensive and more environmentally friendly raw materials.

- Evaluate offers: Compare suppliers' offers in terms of cost, environmental performance, quality, and delivery conditions.

3. Establish supplier relationships:

- Negotiate with suppliers: Discuss purchasing terms, including prices, volumes, and sustainability commitments.

- Select suppliers: Choose suppliers that best meet defined criteria, favoring those that offer environmentally friendly raw materials.

4. Establish purchasing procedures:

- Develop purchasing procedures: Develop procedures for purchasing raw materials in accordance with cost and sustainability criteria.

- Train staff: Train buyers on new procedures and criteria to ensure consistent adoption of sustainable sourcing practices.

5. Optimize supplies:

- Plan purchases: Plan purchases to optimize costs and reduce waste based on production needs.

- Use sourcing strategies: Implement strategies such as volume purchasing or long-term contracts to obtain better terms and reduce costs.

6. Monitoring and performance management:

- Monitor supplier performance: Regularly assess supplier performance in terms of cost, quality, and compliance with environmental criteria.

- Establish performance indicators: Use KPIs to monitor the effectiveness of the procurement mechanism, such as cost per unit of raw material and environmental footprint.

7. Continuous evaluation:

- Analyze results: Review the results obtained in terms of cost reduction and improvement of environmental performance.

- Adjust strategies: Make adjustments to procurement strategies based on the evaluations to further optimize costs and environmental impact.

8. Communication and reporting:

- Inform stakeholders: Communicate the successes and results of the implementation of the sustainable procurement mechanism to internal and external stakeholders.

- Reporting: Prepare regular reports to document progress, savings, and environmental improvements achieved.

9. Continuous Improvement:

- Develop a Continuous Improvement Process: Establish a process to continually evaluate and improve sustainable sourcing practices.

- Review Criteria: Regularly review raw material and supplier selection criteria to incorporate new sustainability and cost trends and technologies.