Webinar – Procurement and the Circular Economy: Lower-Tier Supplier Involvement

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Next week, I’m debating Tradeshift’s Christian Lanng in a live webinar centered on the notion of introducing the circular economy concept to procurement. The webinar is taking place on Feb. 18, at 1 p.m. CST. Earlier this week, I introduced the concept of the circular economy to Spend Matters readers. Without rehashing what I’ve said already, the most important thing to remember about the circular economy is that it breaks the linear notion of supply chains and creates loops and cycles that can continuously involve different players at various levels of a multi-tier model.

For example, a lower-tier supplier of materials, parts or within a supply chain might not just produce or manufacturer goods, but could also drive material/SKU standardization through deeper involvement in the design process at the OEM and tier-one level (and could also take on the recycling/reuse/rebuild elements of underlying parts and components when they are at the end of their lifecycle). This supplier might also take ownership of all the part attributes used in a given application (and steer its customers and its customers’ customers to make decisions based not just on total cost, but also CSR elements and other factors based on its own research and testing – integrated into a P2P or direct procurement product design and transactional buying environment).

In summary, in a circular economy, lower-tier suppliers will:

  • Take on greater overall responsibility in the supply chain
  • Provide better insight to buying organizations to make optimal decisions at all stages of an end product/solution lifecycle
  • Be expected not just to provide materials, SKUs and services, but remain active in the lifecycle of the solutions they sell (e.g., recycling and remanufacturing)
  • Become more creative at maximizing profit through efficiency and continuous improvement (e.g., following the Nucor model in steel production)

Curious to learn more? We invite you to join our webinar next week.

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