Basware, the leading provider of financial process automation software, today released guidelines designed to help companies create green supply chains. These guidelines were developed for the growing number of companies that are basing purchasing decisions not only on the value that vendors deliver, but also on their compliance with green initiatives and other key corporate values.
“Companies realize that an environmentally friendly supply chain helps them to fully support their corporate values, attract and retain key talent and create goodwill among customers and prospects,” said Jari Tavi, chief technology officer, Basware Corp. “Using third-generation eProcurement technology, companies are able to create and manage a supply chain that supports green initiatives and promotes other areas of corporate social responsibility. Just as vendors have been required to be compliant with Sarbanes-Oxley (SOX) regulations, they will soon need to achieve a certain level of compliance with environmental initiatives and other social responsibility imperatives.”
According to industry analyst firm, Gartner, Inc., “‘Going green’ is no longer just a phrase. Future suppliers will need to be certified green just to remain on shortlists for enterprise consideration. The green movement will pick up steam in 2008 and change the way businesses approach environmental conservation. Strategic Planning Assumption: By 2011, suppliers to global enterprises will need to prove their green credentials via an audited process to retain preferred supplier status.”1
According to Basware, there are several key steps to establishing green supply chains including:
- Determining your organization’s purchasing strategy. Companies should first identify and prioritize the purchasing criteria that are most important to them.
- Establishing good processes that are streamlined and flexible. This will enable companies to effectively implement the green policies that they are establishing. Companies can use a rules-based eProcurement system to incorporate certain criteria into the purchasing process – e.g., vendors must meet certain green standards.
- Finding ways to cut down on paper. By automating your invoicing processes, you can dramatically decrease your use of paper and gain greater efficiency and environmental benefits. Invoices represent the largest number of legally required documents in a company, and for every invoice there are typically two to 10 times that amount of supporting documents, such as goods received, contracts, etc.
- Making purchasing democratic. Any system you implement must be easy to use to encourage user adoption. It is also important to put purchasing systems in as many hands as possible so that it becomes an organization-wide initiative to support green suppliers and other favored vendors.
- Recognizing and rewarding the true value in your supply chain. Price alone should no longer be the major factor in selecting a vendor. The value a vendor provides, such as quality and reliability, as well as adherence to corporate values, are key areas that companies should consider. Advanced eProcurement solutions enable companies to identify and manage the vendors that provide them with the most value, so they can increase business with these top-tier suppliers.
- Considering other areas of compliance that you want to promote through supplier selection, including choosing vendors that follow your corporate values and promote social responsibility.
- Selecting a solution that is robust, yet agile. A technology solution should be robust enough to provide the visibility and control that a company needs, yet flexible enough to adapt to evolving market needs or changing corporate priorities.
- Thinking big, starting small. To develop a strong supply chain that reflects the beliefs of your company and provides ongoing value, focus on continuously improving your procurement processes. Many savvy organizations realize that by making small, measurable improvements they can quickly and cost-effectively achieve results on an ongoing basis as well as avoid long, costly re-engineering projects. Consider your financial value chain holistically and look for ways to implement green values throughout your Purchase-to-Pay operations.
About Basware
Basware is the global leader in Purchase-to-Pay solutions with more than 1,200 customers and 650,000 users in over 50 countries around the world. Basware solutions automate business-critical financial processes and deliver value by providing compliance and control, as well as fast return on investment. The solutions are distributed and implemented in Europe, the U.S., and Asia-Pacific through an extensive network of Basware offices and business partners.
In 2007, net sales reached more than US $107 million. The growth target for net sales for 2008 is 15–25%. Founded in 1985, Basware Corporation is a public company listed on the OMX Nordic Exchange Helsinki (HEX:BAS). Headquartered in Finland, it has seven subsidiaries in Europe and one in the U.S. The company’s U.S. business, Basware, Inc., is headquartered in Stamford, Conn. More information can be found at www.basware.com/us.
The Basware name is a registered trademark of Basware Corporation. The Basware logo is a trademark of Basware Corporation. All other trademarks are the property of their respective companies.
1 “Gartner, Inc. “Gartner’s Top Predictions for IT Organizations and Users, 2008 and Beyond: Going Green and Self Healing,” by Daryl C. Plummer, Charles Smulders, Leslie Fiering, Yefim V. Natis, Simon Mingay, Mark Driver, Jackie Fenn, Laura McLellan, Debbie Wilson, January 8, 2008.
Contacts:
Basware, Inc.
Robert Cohen, 203-487-7905
robert.cohen@basware.com
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Pardes Communications Inc.
Diane Pardes, 781-652-8059
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