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Circular Economy

Circular procurement in 8 steps

Circular procurement in 8 steps provides purchasing organizations with tools and insights to embark on circular procurement. The book summarizes this new way of purchasing in eight steps, emphasizing that circular procurement is tailor-made.

  1. Define the Ambition

    In step 1 of the circular procurement process, you define the working definition for the circular economy in relation to your procurement issue. Only when you have a clear understanding of what circular means for your organization can you find suppliers willing to contribute to achieving that goal. It’s also important to know how to make internal considerations to initiate a first circular procurement pilot. Projects with a lower risk profile and a visible impact on circular aspects are strong pilot projects to promote circular procurement within your organization. Product groups with limited complexity and lifespan are more advantageous to circular procurement.

  2. Create Internal Support

    Step 2 begins with addressing the ‘how.’ By outlining the consequences of a circular procurement process, it becomes clear that circular procurement is more than a one-time transaction. Successful circular procurement depends on collaboration between internal departments. Bridge internal interests, involve and inform stakeholders to create support for a successful circular procurement process.

  3. Formulate the Question

    Define the functional question and how you formulate it. Start by mapping your needs; not purchasing is, after all, the most concrete contribution to the circular economy. Then, try not to formulate the solution technically, but allow flexibility in the question so that market parties can come up with solutions.

  4. Collaborate with the Market

    Collaboration is a crucial means to achieve a circular economy and a circular project, but it is not self-evident. As the client, you often need to initiate collaboration, including between different chain partners and potential customers. Take on the role of the director in a tender or procurement process.

  5. Shape the Request or Tender Procedure

    The request or tender procedure should reflect what your organization aims to achieve with the procurement of the product or service. If you want collaboration, convey this in the formulation of the request or the chosen tender procedure. In circular procurement, applying the principles of ‘collaboration’ and ‘innovation’ is important.

  6. Measure and Assess Circularity

    Shaping a circular selection and award framework is perhaps the most challenging step. This step looks at the assessment of qualitative questions and provides insight into measuring and assessing circularity. Choose a workable format and strike a balance between delivering the performance and measuring it.

  7. Ensure Circularity

    How do you ensure circular ambitions in the long term? Circular business models can be a means to ensure circular use by linking a financial incentive to circular performance. You can also include performance indicators (KPIs) in a contract.

  8. Contract Management

    Don’t forget to shape contract management well in a circular procurement process. The request or tender is, in fact, the start of the relationship between the client and the contractor; the collaboration itself takes shape during the contract’s duration. Maintain the relationship and ensure sufficient moments for evaluating collaboration.

Getting Started with Circular Procurement?

Effectively applying circular procurement can be a journey. Ikwilcirculairinkopen.nl helps you take the next steps based on your role. A benefit for your company and our planet. An E-Learning track in Dutch is also available to delve into circular procurement.