1.2 Tactical decisions

Making tactical procurement decisions more circular

Even without a circular economy strategy in place within your organisation, the procurement department can choose more circular purchasing options.

Process

Chart: Tactical decision making flow

Checklist

• Can you explore the opportunities to reuse as-is or repurpose internally?

• Can you choose non-ownership based sourcing options?

• Can you embed circular economy criteria in your requirements?

• What is your optimal supply chain structure to address your circular economy needs?

• What due diligence do you need to conduct on circular economy products?

Product as a service*

Chart: Product as a service flow

• Can you choose the payment arrangement that enables circularity?

  • Fixed period (e.g. price/month): Potential circularity, but no incentive to limit consumption/use rates;

  • Pay-per-use (e.g. price/wash cycle) or Pay-per-outcome (e.g. price/ provision of light or price/service of floor covering): Greater chance for circularity, as the supplier is incentivised to provide the service with minimum consumption of resources.

* This section is adapted from Tukker, Arnold. "Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet." Business strategy and the environment 13, no. 4 (2004): 246-260.