5 Steps to Winning a Green Supply Chain Contract

Green is the new fast track to winning corporate customers

Becoming a green supplier is the new fast track to winning corporate customers. Most large companies, including Walmart, Ford, Nike and Marriott, are adding sustainability criteria to their evaluations of whom to buy from and what to buy. This opportunity is really leveling the contract-bidding playing field for smaller companies who can deliver green and cost-competitive products.

 

Why Corporations are Greening Their Supply Chain

Corporations are greening their supply chains to reduce risks. In this age of transparency, there are no secrets. A garment factory fire in Bangladesh is now a social media event that impacts the clothing sales of U.S. retailers. Something called a protein supplement can be labeled “pink slime” via social media and within days grocery store chains are pulling products containing this item from their shelves. Corporations are defending themselves from this type of damage by placing new social and environmental standards into their procurement contracts.

Cost savings is the other reason corporate America is greening its supply chain. Going green saves money. Walmart now earns $230 million annually through its waste-reduction program by reselling raw materials it used to pay vendors to collect and haul away! The majority of corporate America has figured out that energy-efficiency investments will generate hedge-fund-sized financial returns. These corporations now expect their vendors to be making this same sustainability commitment to ensure cost competitiveness.

 

 

5 Steps to Winning a Green Supply Chain Contract

Thanks to the U.S. Hispanic Chamber of Commerce, the Utah Hispanic Chamber and Walmart, I conducted a coaching session called “Green Builds Business” that was attended by Johnny Hernandez of JJH Auto Body & Paint. His goal was to win a corporate supply chain contract. Here are the five coaching steps that enabled JJH Auto Body & Paint to win Avis as a new customer and that could work for your business too: