From 5% to 63%
Sustainability used to be worth about 5% of a tender score. In one recent tender it was 63%. Jon Wragg on what that shift means for suppliers.
Transcript (edited for readability)
Jon Wragg
What they've actually realised is actually if you create legislation from the top down, then the pressure comes because it becomes commercial. And what you've found is that as big businesses are forced to assess themselves over time and be better and hit certain things, then actually the more pressure they put on their supply chain further down. Now that can be done in a few ways.
But ultimately what you actually find is as this pressure comes down, sustainability is becoming a higher and higher scoring criteria in different things. And it's eking into different things.
So standard way of purchasing for every day since God were a lad is how much is your product and how long will it last? It's about price and quality. That's what it's always been, all right?
Well, actually then sustainability started to eke into it. And it used to be say 5% of the scoring criteria, but number one, how does your product price? And two, how long is it going to last and how's the quality?
Then number three, oh, can we buy a better alternative or can you do a recycle scheme? Or can you, if we break items, can you take it back? Or is there a warranty or whatever sustainability was then?
Well, actually that sustainability, what was 5%, well, I've seen a tender yesterday from a client of ours. Well, that's no longer 5%, it's 63%.
From the full session
Is Sustainability Off the Agenda, or More Commercially Important Than Ever?
Sustainability used to be worth about 5% of a tender score. One recent tender scored it at 63%. A conversation about what has changed in how businesses are bought from, and what it means for suppliers.
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