Why Supply Chain Sustainability?

An organization’s various sustainability impacts arise not only from its direct interactions with its immediately surrounding environment and communities, but also (and often to a far larger extent) from its purchasing activities, and the corresponding (often global) supply chains. The same is true of an organization’s natural capital dependencies.

These impacts and dependencies together often represent both present and latent commercial and reputational risks and opportunities for an organization. Today’s competitive market, a tightening regulatory environment, fluctuating energy costs, issues of supply chain resiliency and efficiencies, and other competitive pressures are shaping supply chain sustainability management as a strategic imperative.

Why Sustainable Spend Analysis?

Sustainable Spend Analysis is widely recognized as the most efficient and effective way to achieve a comprehensive, multi-impact analysis of the whole supply chain. Results readily provide quantified 'hotspot' analysis, informing the impact types, procurement type, and supplier(s) that warrant further investigation and/or engagement. 

Spend Analysis utilizes only an organization’s general ledger, a reliable and complete source of information, and maps it to the Comprehensive Environmental Data Archive (CEDA®) (see: Data:CEDA) via VitalMetrics’ proprietary software. This dramatically reduces the time and resources usually required to complete a supply-chain sustainability impact assessment, while simultaneously improving the completeness and accuracy of the results.


Methodology

VitalMetrics offers a more efficient, two-phased approach to quantifying supply-chain sustainability impacts. By combining sustainable Spend Analysis and Process analysis into an integrated Hybrid approach, VitalMetrics delivers accurate, detailed results while saving you time and money.

More details on our methodology can be found by clicking here


Results

A completed sustainable Spend Analysis might deliver results such as the: 

  • GHG Emissions
  • Water Consumption
  • Primary Energy Use
  • Waste Generated

...of an organization's entire supply chain - 'cradle-to-gate' - and segment that analysis back to the organization by:

  • Procurement Type / Product Category
  • Supplier
  • Business unit
  • Project

The Sustainable Purchasing Leadership Council’s (SPLC) Guidance for Leadership in Sustainable Purchasing Version 1.0 strongly encourages organizations to conduct a sustainable Spend Analysis as a way to understand and prioritize opportunities to improve environmental, social, and economic performance within their supply chains. 

Please contact us to get started today with a free consultation today. 


Case Studies

Our work with Travis Perkins Plc won the SPLC Leadership Award!

Seen here is an in-depth interview with Jez Cutler, Head of Environment & Sustainability at Travis Perkins plc, regarding VitalMetrics' award-winning Carbon, Water, Energy, Waste supply chain impact analysis.

In this frank and inspiring conversation, Jez Cutler shares his experience with comprehensive spend analysis. The discussion covers areas such as:

  • Why Spend Analysis?
  • Data 
  • Results & Learnings
  • Next Steps

Learn more...


general servcies administration

general servcies administration

Our work with the U.S. General Services Administration (GSA) won the SPLC Leadership Award as well!

The GSA commissioned VitalMetrics to conduct a comprehensive environmental spend analysis for 12 environmental impacts across federal spending, and to identify opportunities to improve procurement procedure to reduce its environmental impacts. With over $500 billion annual expenditure, the U.S. federal government is ranked as the single largest purchasing entity in the world. The analysis was underpinned by CEDA, an environmentally extended input-output LCA database, and included a structural path analysis (SPA).

The procurement ledger included over 3.3 million individual rows of data and over 800 million data fields. The spend data was collated and stored into a queryable database, and a software platform was developed by VitalMetrics to analyze queried spend data by purchasing agency and procurement categories.

Learn more...