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Green Procurement at Lockheed Martin

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maggie smith

on 26 April 2010

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Transcript of Green Procurement at Lockheed Martin

What is Green Procurement?
According to Lockheed Martin:
“Green Procurement is the purchase of environmentally preferable products and services. Green purchasing means that you take into account certain environmental criteria when making purchasing decisions” Environmental Sustainability Sustainable Purchasing

Reevaluate social, economic, and environmental impacts of their purchasing

Not solely because it is “the right thing to do”

Positive Future U.S.Environmental Protection Agency Comprehensive Procurement Guidelines 1995
Supplier Directory Lockheed Background Go Green Initiative 2008
Green Procurement Program
Office Supplies
SWOT Analysis Strengths Weaknesses Opportunites Threats Government Partnership Lockheed Martin works very closely with the United States Government
Similar environmental views develop strong partnerships United States Government spend nearly $350 billion annually on goods and services The Government is a real “power player” in the procurement industry
Green Metrics -Usually, a supply chain provides a perfect environment to capture metrics

-No industry standard green metrics

-Require creativity to meet company’s needs

-Two approaches: Top Down & Bottom Up
Top Down Approach Choose suppliers that will help achieve the company’s green visions Bottom Up Approach Implement feature into information system to determine how green you really are Run reports to analyze categorically
Qualify Suppliers
Implement "green label" in ERP


Recommendations Lockheed should integrate this concept into their ongoing SAP implementation This will allow report running Establish audit teams to be able to certify suppliers as being green
Provide supplier incentives
Maintain a clear view of corporate sustainability vision
Competitors Going Green
Northrop Grumman:
“Green IT”
Boeing:
Apache Helicopter and F/A-18
“Solar Eagle”
Raytheon:
Energy-focused Program

Electric Boat:
“Green Submarine”
Lean Six-Sigma
IBM:
Global Environmental Stewardship
Energy-Star Rated

Full transcript