Each choice we make has a "cost." True cost is a combination of the economic, social and environmental costs set against the offsetting benefits associated with each choice that we make. Professional purchasers and supply chain managers who consider green criteria in the procurement process (or early in the supply chain sequence) have the power to reduce or even eliminate waste and environmental impacts as well as reduce costs. In fact, global experience and examples show how green criteria early in the procurement process improve the organization's environmental performance, while addressing ethics, social regeneration and economic concerns.

Correcting a problem close to its source is less costly than taking action downstream. This is what Green Purchasing is all about. If the environmental impact can be addressed as early as possible, overall costs will ultimately be lower than pollution abatement later on. Downstream corrections are more costly in terms of many resources, including dollars, labor, technical complexity, and adverse publicity. Experience has shown that each time a problem goes unchecked, it will cost about 10 times more to fix later on.

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Last Updated June 2008

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