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Sustainable Procurement
Paper ProcurementAbhijit Khanna
Office of Sustainability & ProcurementSeptember 21, 2012
Sustainability at GW
• Introductions• Project Background & Scope• Analysis & Recommendations
– Issue– Balanced Scorecard Tool– Business Case Analysis– Benefits
• Rollout Strategy• Questions
Agenda
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PROJECT BACKGROUND & SCOPE
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Project Scope
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Build on research conducted by prior year interns• Understanding of internal operations/sustainable
procurement.• Discussion with external parties (sustainable
procurement at other educational institutions).
Discuss paper procurement issues with external experts.• World Resources Institute, World Wildlife Fund, General
Services Administration, Environment Protection Agency, Xerox, Staples
Discussions with internal parties to vet approach and get stakeholder buy-in.• Procurement staff, Marketing & Creative Services, Law
School.
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Conduct analysis of GW paper procurement and develop a strategy to improve sustainability of procurement.• Determine business case for changing
procurement.• Build balanced scorecard. Purpose: deliver a tool
to institutional buyers and office administrators that provides them with information on additional, non-cost aspects of paper to enable them to determine the best options based on sustainable attributes, quality and price.
• Recommendations
Develop rollout strategy to implement recommendations
Project Scope (continued)
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ISSUE
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Paper Policies at Competing Institutions
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Why not GW?
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• Challenges– University culture (aversion to change/perceived mandates).
• Policy vs. Guidance (a “desired practice”).– Historical objections to recycled content paper.
• Quality perceptions – dust and jamming issues• Cost – on current contract, recycled paper costs more, but alternate
contracts are available.– General lack of education around non-cost paper characteristics.
• How to Address– Provide tools and education to encourage desired buying
behavior.
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BALANCED SCORECARD TOOL
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Balanced Scorecard – Paper Ratings
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Balanced Scorecard – Paper Ratings
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Balanced Scorecard – Selection Impacts
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ANALYSIS & RECOMMENDATIONS
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• The scope of the analysis entailed conducting an evaluation of current paper usage.– The top 10 products (by sales) across the entire university
account for over 90% of copy paper category spend.
• Upon understanding the current state of paper procurement, analysis proceeded to an examination of alternate usage patterns and other contract vehicles.– Consider financial impact of retaining current usage pattern
under more favorable contract terms.– Apply recommended shift in paper usage, coupled with more
favorable contract terms to offset increased cost of recycled content paper.
Analysis: Approach
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Implement a sustainable paper procurement strategy• Target a minimum of 30% recycled content paper (elimination of
most 0% recycled content) by FY 2014. • Encourage this shift via education of paper purchasers around
the university using tools to demonstrate the non-financial considerations/impacts of paper purchases, as well as targeted outreach efforts.
• Periodically revisit target to move towards ever more sustainable paper procurement.
Apply lessons learned to implement sustainable procurement in other product categories (i.e., other paper products, electronics, water, etc.)• Upon determining efficacy of balanced scorecard among
user community, create similar tools to inform purchasing decisions of other products.
Analysis: Recommendations
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BUSINESS CASE ANALYSIS
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Realize financial savings over current spend, ~ $XXX.
Increase amount of recycled paper used at GW without incurring additional financial costs.
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GW has an opportunity to increase its purchase of recycled content paper
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Currently, X% of paper purchases are 0% recycled content.
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Recommended increase in sustainable paper purchases
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Replace 0% recycled content paper purchases with 30% recycled content.
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Additional cost of recycled paper can be offset by switching to another contract vehicle
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Top 3 paper products account for X% of paper purchased at GW.$XXX (current contract) vs. $XXX (alternate contract).
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BENEFITS
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• Strategic Benefits/Opportunities– Cost savings (coupled with paperless initiative).– Contribution to sustainability strategy (carbon neutrality and
water goals).• Potential to save 80K pounds of CO2 and 363K gallons of water
– Drives consistent processes and decision making.– Marketing aspects
• Improved rankings• Appeal to prospective students.• Potential to improve scoring on research grant applications.
Benefits of Implementation
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ROLLOUT STRATEGY
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• Pilot program that utilizes monitoring and reward/recognition to further education of purchasers on this topic
• Tool availability on Office of Sustainability website– Immediately downloadable, exploring making it web-based
• Integration with iBuy Training• Partner with Staples to make iBuy experience of paper
purchase more conducive to consideration of sustainability factors.
• Office of Sustainability outreach via Green Office Program and social media
• Student Engagement
Possible implementation options
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Questions?
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