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Sustainable Procurement

           Paper Procurement
             Abhijit Khanna
 Office of Sustainability & Procurement
           September 21, 2012
Agenda

• Introductions
• Project Background & Scope
• Analysis & Recommendations
   –   Issue
   –   Balanced Scorecard Tool
   –   Business Case Analysis
   –   Benefits
• Rollout Strategy
• Questions




                                     Sustainability at GW
                                 1         2 March 2013
PROJECT BACKGROUND & SCOPE




                             Sustainability at GW
            2                      2 March 2013
Project Scope

Build on research conducted by prior
year interns
• Understanding of internal operations/sustainable
  procurement.
• Discussion with external parties (sustainable
  procurement at other educational institutions).


       Discuss paper procurement issues with
       external experts.
       • World Resources Institute, World Wildlife Fund, General
         Services Administration, Environment Protection
         Agency, Xerox, Staples



              Discussions with internal parties to vet
              approach and get stakeholder buy-in.
              • Procurement staff, Marketing & Creative Services, Law
                School.
                                                                        Sustainability at GW
                                           3                                  2 March 2013
Project Scope (continued)


Conduct analysis of GW paper
procurement and develop a strategy to
improve sustainability of procurement.
• Determine business case for changing
  procurement.
• Build balanced scorecard. Purpose: deliver a tool to
  institutional buyers and office administrators that
  provides them with information on additional, non-
  cost aspects of paper to enable them to determine
  the best options based on sustainable
  attributes, quality and price.
• Recommendations




              Develop rollout strategy to
              implement recommendations


                                                         Sustainability at GW
                                               4               2 March 2013
ISSUE




        Sustainability at GW
  5           2 March 2013
Paper Policies at Competing Institutions




                                           Sustainability at GW
                             6                   2 March 2013
Why not GW?
• Challenges
  – University culture (aversion to change/perceived mandates).
      • Policy vs. Guidance (a “desired practice”).
  – Historical objections to recycled content paper.
      • Quality perceptions – dust and jamming issues
      • Cost – on current contract, recycled paper costs more, but alternate
        contracts are available.
  – General lack of education around non-cost paper characteristics.


• How to Address
  – Provide tools and education to encourage desired buying
    behavior.




                                                                 Sustainability at GW
                                    7                                  2 March 2013
BALANCED SCORECARD TOOL




                          Sustainability at GW
           8                    2 March 2013
Balanced Scorecard – Paper Ratings




                                     Sustainability at GW
                           9               2 March 2013
Balanced Scorecard – Paper Ratings




                                     Sustainability at GW
                          10               2 March 2013
Balanced Scorecard – Selection Impacts




                                         Sustainability at GW
                           11                  2 March 2013
ANALYSIS & RECOMMENDATIONS




                             Sustainability at GW
            12                     2 March 2013
Analysis: Approach

• The scope of the analysis entailed conducting an
  evaluation of current paper usage.
   – The top 10 products (by sales) across the entire university
     account for over 90% of copy paper category spend.


• Upon understanding the current state of paper
  procurement, analysis proceeded to an examination of
  alternate usage patterns and other contract vehicles.
   – Consider financial impact of retaining current usage pattern
     under more favorable contract terms.
   – Apply recommended shift in paper usage, coupled with more
     favorable contract terms to offset increased cost of recycled
     content paper.

                                                            Sustainability at GW
                                  13                              2 March 2013
Analysis: Recommendations


         Implement a sustainable paper procurement strategy
         • Target a minimum of 30% recycled content paper (elimination of

  1        most 0% recycled content) by FY 2014.
         • Encourage this shift via education of paper purchasers around
           the university using tools to demonstrate the non-financial
           considerations/impacts of paper purchases, as well as targeted
           outreach efforts.
         • Periodically revisit target to move towards ever more
           sustainable paper procurement.


          Apply lessons learned to implement sustainable

  2       procurement in other product categories (i.e., other
          paper products, electronics, water, etc.)
          • Upon determining efficacy of balanced scorecard among
            user community, create similar tools to inform purchasing
            decisions of other products.

                                                               Sustainability at GW
                                 14                                  2 March 2013
BUSINESS CASE ANALYSIS




                         Sustainability at GW
          15                   2 March 2013
Increase amount of recycled paper used at GW
without incurring additional financial costs.

Realize financial savings over current spend, ~ $XXX.




                                                  Sustainability at GW
                            16                          2 March 2013
GW has an opportunity to increase its purchase
of recycled content paper

Currently, X% of paper purchases are 0% recycled content.




                                                            Sustainability at GW
                                    17                            2 March 2013
Recommended increase in sustainable paper
purchases
Replace 0% recycled content paper purchases with 30% recycled content.




                                                                Sustainability at GW
                                     18                               2 March 2013
Additional cost of recycled paper can be offset by
switching to another contract vehicle
        Top 3 paper products account for X% of paper purchased at GW.
        $XXX (current contract) vs. $XXX (alternate contract).




                                                                 Sustainability at GW
                                     19                                2 March 2013
BENEFITS




           Sustainability at GW
   20            2 March 2013
Benefits of Implementation

• Strategic Benefits/Opportunities
   – Cost savings (coupled with paperless initiative).
   – Contribution to sustainability strategy (carbon neutrality and
     water goals).
       • Potential to save 80K pounds of CO2 and 363K gallons of water
   – Drives consistent processes and decision making.
   – Marketing aspects
       • Improved rankings
       • Appeal to prospective students.
       • Potential to improve scoring on research grant applications.




                                                                  Sustainability at GW
                                     21                                 2 March 2013
ROLLOUT STRATEGY




                   Sustainability at GW
       22                2 March 2013
Possible implementation options

• Pilot program that utilizes monitoring and
  reward/recognition to further education of purchasers on
  this topic
• Tool availability on Office of Sustainability website
   – Immediately downloadable, exploring making it web-based
• Integration with iBuy Training
• Partner with Staples to make iBuy experience of paper
  purchase more conducive to consideration of
  sustainability factors.
• Office of Sustainability outreach via Green Office
  Program and social media
• Student Engagement
                                                        Sustainability at GW
                                23                            2 March 2013
Questions?




                  Sustainability at GW
             24         2 March 2013

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Presentation sample (dashboard, excel and powerpoint skills)

  • 1. Sustainable Procurement Paper Procurement Abhijit Khanna Office of Sustainability & Procurement September 21, 2012
  • 2. Agenda • Introductions • Project Background & Scope • Analysis & Recommendations – Issue – Balanced Scorecard Tool – Business Case Analysis – Benefits • Rollout Strategy • Questions Sustainability at GW 1 2 March 2013
  • 3. PROJECT BACKGROUND & SCOPE Sustainability at GW 2 2 March 2013
  • 4. Project Scope Build on research conducted by prior year interns • Understanding of internal operations/sustainable procurement. • Discussion with external parties (sustainable procurement at other educational institutions). Discuss paper procurement issues with external experts. • World Resources Institute, World Wildlife Fund, General Services Administration, Environment Protection Agency, Xerox, Staples Discussions with internal parties to vet approach and get stakeholder buy-in. • Procurement staff, Marketing & Creative Services, Law School. Sustainability at GW 3 2 March 2013
  • 5. Project Scope (continued) Conduct analysis of GW paper procurement and develop a strategy to improve sustainability of procurement. • Determine business case for changing procurement. • Build balanced scorecard. Purpose: deliver a tool to institutional buyers and office administrators that provides them with information on additional, non- cost aspects of paper to enable them to determine the best options based on sustainable attributes, quality and price. • Recommendations Develop rollout strategy to implement recommendations Sustainability at GW 4 2 March 2013
  • 6. ISSUE Sustainability at GW 5 2 March 2013
  • 7. Paper Policies at Competing Institutions Sustainability at GW 6 2 March 2013
  • 8. Why not GW? • Challenges – University culture (aversion to change/perceived mandates). • Policy vs. Guidance (a “desired practice”). – Historical objections to recycled content paper. • Quality perceptions – dust and jamming issues • Cost – on current contract, recycled paper costs more, but alternate contracts are available. – General lack of education around non-cost paper characteristics. • How to Address – Provide tools and education to encourage desired buying behavior. Sustainability at GW 7 2 March 2013
  • 9. BALANCED SCORECARD TOOL Sustainability at GW 8 2 March 2013
  • 10. Balanced Scorecard – Paper Ratings Sustainability at GW 9 2 March 2013
  • 11. Balanced Scorecard – Paper Ratings Sustainability at GW 10 2 March 2013
  • 12. Balanced Scorecard – Selection Impacts Sustainability at GW 11 2 March 2013
  • 13. ANALYSIS & RECOMMENDATIONS Sustainability at GW 12 2 March 2013
  • 14. Analysis: Approach • The scope of the analysis entailed conducting an evaluation of current paper usage. – The top 10 products (by sales) across the entire university account for over 90% of copy paper category spend. • Upon understanding the current state of paper procurement, analysis proceeded to an examination of alternate usage patterns and other contract vehicles. – Consider financial impact of retaining current usage pattern under more favorable contract terms. – Apply recommended shift in paper usage, coupled with more favorable contract terms to offset increased cost of recycled content paper. Sustainability at GW 13 2 March 2013
  • 15. Analysis: Recommendations Implement a sustainable paper procurement strategy • Target a minimum of 30% recycled content paper (elimination of 1 most 0% recycled content) by FY 2014. • Encourage this shift via education of paper purchasers around the university using tools to demonstrate the non-financial considerations/impacts of paper purchases, as well as targeted outreach efforts. • Periodically revisit target to move towards ever more sustainable paper procurement. Apply lessons learned to implement sustainable 2 procurement in other product categories (i.e., other paper products, electronics, water, etc.) • Upon determining efficacy of balanced scorecard among user community, create similar tools to inform purchasing decisions of other products. Sustainability at GW 14 2 March 2013
  • 16. BUSINESS CASE ANALYSIS Sustainability at GW 15 2 March 2013
  • 17. Increase amount of recycled paper used at GW without incurring additional financial costs. Realize financial savings over current spend, ~ $XXX. Sustainability at GW 16 2 March 2013
  • 18. GW has an opportunity to increase its purchase of recycled content paper Currently, X% of paper purchases are 0% recycled content. Sustainability at GW 17 2 March 2013
  • 19. Recommended increase in sustainable paper purchases Replace 0% recycled content paper purchases with 30% recycled content. Sustainability at GW 18 2 March 2013
  • 20. Additional cost of recycled paper can be offset by switching to another contract vehicle Top 3 paper products account for X% of paper purchased at GW. $XXX (current contract) vs. $XXX (alternate contract). Sustainability at GW 19 2 March 2013
  • 21. BENEFITS Sustainability at GW 20 2 March 2013
  • 22. Benefits of Implementation • Strategic Benefits/Opportunities – Cost savings (coupled with paperless initiative). – Contribution to sustainability strategy (carbon neutrality and water goals). • Potential to save 80K pounds of CO2 and 363K gallons of water – Drives consistent processes and decision making. – Marketing aspects • Improved rankings • Appeal to prospective students. • Potential to improve scoring on research grant applications. Sustainability at GW 21 2 March 2013
  • 23. ROLLOUT STRATEGY Sustainability at GW 22 2 March 2013
  • 24. Possible implementation options • Pilot program that utilizes monitoring and reward/recognition to further education of purchasers on this topic • Tool availability on Office of Sustainability website – Immediately downloadable, exploring making it web-based • Integration with iBuy Training • Partner with Staples to make iBuy experience of paper purchase more conducive to consideration of sustainability factors. • Office of Sustainability outreach via Green Office Program and social media • Student Engagement Sustainability at GW 23 2 March 2013
  • 25. Questions? Sustainability at GW 24 2 March 2013

Hinweis der Redaktion

  1. Visual display – scale of 1 – 6, (green = 5 & 6, etc.)Categories & subcategories
  2. Actual Values driving graphics, and explanation page of tool
  3. Allows comparison of paper products by providing a graphical and textual representation of impacts of alternate choices