ABSTRACT

Procurement is a critical business function; it is indicatively cited that in the private sector a material purchased has a value equal to 50–70% of its sales cost. Improvements in the procurement process will bring about a decrease in cost, thus having a positive effect on cost, while simultaneously increasing the offered level of service by offering high quality products and services and, consequently, satisfied customers. Green procurements related to all the products and services— the production, processing, storage, transportation, distribution and use thereof— have less of an environmental impact compared to the corresponding conventional products or services. Many different definitions have been offered for green procurement, such as environmentally friendly, sustainable and socially responsible procurements. Green procurements involve and interest both roles of the procurement process, namely suppliers and customers. Green procurement has different goals than does tradition procurement. Traditional procurement focuses on the “value for money” aspects of procurement.