ABSTRACT

The strategic role of purchasing is important due to its potential for promoting open communication among supply chain members and creating mutual benefits. Buying companies need to pay attention to the environmental performance of their vendors and suppliers because they will be influenced by what they buy and whom they buy it from when it comes to environmental issues. Green purchasing and procurement enable buyers to significantly influence their environmental performance. This topic has been the core of environmental supply chain strategies. This chapter focuses on the general elements of green procurement and purchasing. The definition and drivers of green purchasing are initially provided. Green purchasing strategies, including monitoring and collaboration, are also discussed. Finally, a green purchasing performance measurement process that incorporates five steps—establishing a green purchasing project team, setting well balanced performance measurement goals, determining methods and tools for performance measurement, developing environmental performance indicators, and developing a green purchasing performance measurement system—is presented.