Circular procurement aims to retain the value of the products, components and materials to be purchased as much as possible.
This video from Zero Waste Scotland explains exactly what circular procurement is and what benefits it has to offer.
Circular procurement is an important tool for promoting a circular economy. Circular choices in the procurement process stimulate the market for circular products and services. The spending volume of an organisation can therefore be exploited to generate a positive impact for people and the environment.
Circular procurement can also provide economic benefits. A total cost of ownership analysis (TCO) for the various scenarios gives a total overview of the cost over the entire useful life of a product or service, such as the energy consumption, maintenance costs or residual value at the end of life. This often leads to different decisions being taken than when only purchase prices are compared.
Circular procurement is not the sole responsibility of the purchaser, as it goes beyond the technical specifications of the product or service actually purchased. The way in which the product is used and disposed of are also important aspects of circularity. Everyone involved in procurement in an organisation can take steps to promote circularity: purchasers, internal customers, contract managers and management. Suppliers can also contribute to circular solutions if the market is asked the right questions. Offering space for circularity means the entire purchasing chain can start moving, and gets the transition to a circular procurement organisation underway.
If management is convinced of the added value of circular procurement, this can be included in the organisation’s vision and strategy, and will encourage every employee to get on board.
A circular procurement pilot is a good way to learn and convince others in your organisation of the possibilities and positive impact. Our database contains lots of examples of successful procurement projects and circular providers that can inspire you in this respect.
Procurement processes and systems have to be scrutinised to complete the transition. The purchasers’ role will become more strategic. Dialogue with the market and follow-up and evaluation of contracts will become more important.
Douwe Jan Joustra, head of Circular Transformation of the C&A Foundation, made some clear statements during his presentation on the action day on 11 June 2019:
"Nothing you do is wrong, accept doing nothing."
- Jordie van Berkel, founder of F-Fort and author of 'Inkoop in Strategisch Perspectief’ (Procurement in Strategic Perspective)