The use of dynamic purchasing systems reduces many of the participation barriers that typical procurement has and are perceived as creative. The entire process is electronic, simple and cost effective for suppliers to become party to it.
1. To promote Innovation– You must consider how you can promote innovation through different aspects of procurement exercise. The use of outcome specifications, identifying options to innovate through procurement process and exercising the right to directly
procure, research and development to inform your requirements are some of the methods you can use to achieve this.
2. Life cycle costing – This may be considered where additional environmental costs can be attributed to products or services that you are purchasing e.g. the cost of carbon emissions from machinery being bought, the environmental cost & disposal at end of life.
3. Labels – Does the product or service are specific, environmental, social or other characteristics that would be verified by a label e.g. fair trade. When you wish to purchase goods or services that are specific, environmental, social or other characteristics, it is possible to specify levels as a proof to show that the supplied goods and services correspond to the required characteristics. To use this approach, it is necessary to meet the following criteria:
- Labels can only concern criteria that are linked to the subject matter of the contract.
- Labels have to be based on objectives and non-discriminatory criteria.
- The label is established in an open and transparent procedure and accessible to all interested parties
4. Whole life costing – It focuses on a product from production to disposal or from cradle to grave. It takes into account acquisition, operations, ownership and disposal costs. It does not take into any consideration any environmental or social costs.
5. Life cycle impact mapping – it focuses on social and environmental impact rather than just cost, it helps the user identify and asses impacts e.g. it may help focus attention on disposal phase before even procurement is carried out allowing the organisation to build
of life management requirement.