More sustainability in purchasing - here's how!

Sustainability in procurement is not a trend, but a decisive success factor. Companies that focus on sustainable procurement and a transparent supply chain benefit from long-term competitive advantages, minimize risks and optimize their purchasing management. We reveal how it works.

According to an analysis by the Fraunhofer-Gesellschaft, sustainable supply chains help to reduce the ecological footprint by promoting more environmentally friendly production and transportation methods. These findings underline the growing importance of sustainability in procurement and the need for companies to proactively implement sustainable practices in their supply chains.

Why sustainable supply chains are so important

Meeting stakeholder expectations

In recent years, stakeholder demands for transparency and sustainable practices in the supply chain have increased significantly. Companies that meet these expectations can gain a competitive advantage.

Comply with legal requirements

Regulations such as the Supply Chain Due Diligence Act (LkSG) oblige companies to comply with human rights and environmental due diligence obligations in their supply chains.

Reduction of environmental impacts

Sustainable supply chains aim to minimize environmental impacts, raise social standards and promote economic efficiency.

Economic benefits

Sustainable purchasing can promote long-term cost efficiency and strengthen local economic cycles.

Why the Supply Chain Due Diligence Act is so important

The Supply Chain Due Diligence Act (LkSG), which has been in force since January 1, 2023, creates binding rules for companies with at least 3,000 employees; since 2024, it has also applied to companies with at least 1,000 employees. It obliges them to analyze and prevent human rights and environmental risks in their supply chains and to intervene in the event of violations.

The LkSG thus establishes sustainability criteria as a central requirement in purchasing. Companies must actively assume responsibility for their entire value chain instead of focusing solely on direct business partners. This leads to greater control of environmental and social standards - and drives sustainable business practices in the long term.

Sustainable procurement & supply chain transparency: important aspects

Sustainability in procurement means assuming ecological, social and economic responsibility along the entire supply chain.

Ecological responsibility: environmentally friendly materials such as recycled or biodegradable raw materials reduce the consumption of resources. Energy-efficient production and climate-friendly logistics minimize emissions.

Social responsibility: Fair working conditions include labor rights, living wages and secure jobs. Transparency in the supply chain ensures that ethical standards are adhered to.

Economic responsibility: Sustainable procurement promotes long-term cost efficiency and stable supply chains. The involvement of local suppliers strengthens regional economic cycles.

Well thought-out and transparent supplier management is crucial to meeting these sustainability criteria. Companies that clearly document and monitor their processes benefit from long-term partnerships, risk minimization and a positive corporate reputation.

10 actions for sustainable procurement management

1. sustainable supplier evaluation

Sustainable purchasing starts with selecting the right suppliers. Define clear criteria to identify suppliers that comply with social, ethical and environmentally friendly standards. This can include aspects such as CO₂ reduction, fair working conditions or the use of environmentally friendly materials. Use supplier questionnaires, certifications and independent audits to make informed decisions.

2. create supply chain transparency

The more complex your supply chain, the more difficult it is to ensure its sustainability. Use digital tools and tracking systems to create a transparent supply chain. This allows you to track where your raw materials come from and whether environmental or social standards are being adhered to. Blockchain technologies or special software solutions can help to analyze data in real time and identify potential risks at an early stage.

3. prioritize environmentally friendly materials

Raw materials and materials have a significant impact on a company's environmental footprint. Give preference to recycled or renewable materials and pay attention to resource-conserving production methods. Materials with recognized environmental certificates such as FSC (for wood) or GOTS (for textiles) help to make sustainable purchasing decisions. Reduce unnecessary packaging and opt for reusable or biodegradable alternatives.

4. use certifications

Rely on established environmental and social standards to ensure sustainable procurement. Certifications such as ISO 14001 (environmental management), fair trade or the cradle-to-cradle principle provide guidance for responsible purchasing decisions. These standards not only help with internal control, but also offer your customers and partners transparency and trust.

5. digitalization for more transparency

Use digital solutions to manage sustainability aspects efficiently. Supplier management systems enable an automated check of sustainability criteria. Platforms for calculating emissions and analyzing environmental and social risks help to make informed decisions. AI-supported systems can also identify patterns in the supply chain and thus optimize sustainability strategies.

6. promoting a circular economy

A functioning circular economy reduces waste and resource use. Focus on durable products, reuse and recycling. Develop strategies to reintroduce materials into the production cycle at the end of their service life. The concept of “product-as-a-service” can also help to minimize material waste and build sustainable value chains.

7. partnerships for more sustainability

Sustainability only works together. Therefore, work closely with suppliers, customers and other stakeholders to develop sustainable solutions. Long-term partnerships can optimize supply chains, comply with environmental standards and promote social responsibility. Initiatives such as industry alliances or sustainability platforms can provide valuable impetus here.

8. employee training and internal guidelines

Sustainability can only be successful in the long term if it is anchored in the corporate culture. Train your employees in sustainable purchasing practices and develop clear guidelines for responsible procurement. Internal guidelines help to define sustainability goals and ensure that all relevant stakeholders in your company are involved.

9. reduce CO₂ emissions in purchasing

Analyze the CO₂ footprint of your procurement and implement targeted measures to reduce it. This can be achieved through energy-efficient supply chains, low-emission means of transportation or the use of climate-friendly production methods. Switching to regional suppliers can also have a positive effect and reduce transportation costs at the same time.

10. develop long-term purchasing strategies

Sustainability should not only be implemented in the short term, but should also be integrated into the long-term purchasing strategy. Focus on continuous improvement processes and define clear sustainability goals for your purchasing. Through strategic planning and continuous optimization, you can establish sustainable purchasing as an integral part of your corporate strategy in the long term.

How Line Up supports you for more sustainability

Line Up supports companies in implementing a sustainable procurement strategy. As a full-service partner, we accompany you through the entire procurement process - from consulting, sampling and series production to quality control, import processing and logistics solutions.

Your added value: Through access to the global procurement market and the use of our digital supply chain dashboard, we enable a transparent and controlled supply chain that forms a strong foundation for your sustainable purchasing.

Sustainable purchasing pays off in the long term

Sustainable purchasing pays off for companies in several ways: It reduces risks, strengthens the brand image and ensures compliance with legal requirements. Establish a sustainable procurement strategy, make your company fit for the future and make a valuable contribution to a responsible economy.

We will support you!