Is your company already purchasing circularly?

A circular purchasing policy is a key lever to foster the transition from a linear to a circular economyThe circular economy is a restorative and regenerative economy. By maintaining the value of the products, materials and resources in the economy through smart product design, repurposing and/or shared use of products, it reduces the extraction of natural resources by using resources already present in the economy.. Focusing on what you sell but also on what you purchase helps fellow entrepreneurs who also have embarked on the circular path. You will gain innovation, efficiencyEfficiency is focused on the productivity of resources, i.e. in an improvement in the relationship between the natural resources used and the benefit they provide in the form of a product manufactured or a service provided. and sustainable collaboration from it.

1. Know what you’re purchasing

The first aspect of your purchasing policy you can examine is the products and raw materials you purchase. Evaluate the following aspects, for instance:

• Are they biobased, recycled or recyclable?
• Do you sometimes opt for renting instead of buying, or do you use second-hand materials?
• Are the products you buy designed with few elements and did the manufacturer opt for ecodesignEcodesign allows a product design to be adapted in view of its repair or a full or partial repurposing of its components at the end of its useful life. or a modular design?
• Is the product easy to repairRepair is making a faulty product work again, allowing its use to be extended without the user parting with it, or with a view to reuseReuse designates all operations by which substances, materials or products that are not waste are used again in an identical way to their originally intended purpose. (donation, second-hand sale). and is the warranty period long enough?
• Does it generate waste after use?

In this context, it is interesting to assess the Life Cycle Cost (LCC) of a product or service prior to making a purchase. Working with LCC not only takes into account the purchase price but also the costs for energy, insurance, water, maintenance, repair, recyclingAny recovery operation through which waste, including organic waste, is reprocessed to become substances, materials or products that can be used for their initial function or other functions., disposal, etc.

2. Select the right supplier

In addition to which products you buy, the choice of supplier you work with also matters. Choose suppliers that make an active contribution to circular solutions. Pay attention to the following points:

• Does the supplier provide a fast repair service?
• Does the supplier establish sustainable partnerships with circular chain partners?
• Does the supplier share information on the sustainable use of his products?
• Does the supplier promote circular purchases to his customers?
• Does the supplier report on his circular and sustainability efforts?
• Does the supplier hold circular certificates or labels by accredited external parties?

3. Make clear arrangements

A circular contract can help guarantee the circular ambitions of both parties. Think of:

• Alternative business models such as pay-per-use, rental, buyback or leasing.
• Concrete goals with respect to recycling, environmental impact or reuse that can or must be realised within the scope of the collaboration.
• (Financial) rewards for realised objectives.

A sustainable contract that reflects mutual trust and gives both parties the opportunity to plan long-term investments.

Ensure your contract is airtight, doesn’t disadvantage any parties and that the agreements are legal and productive. That is why it is always a good idea to obtain legal advice before writing the document.

4. Use interesting tools for a circular purchasing policy

Would you like more information and tips to establish a circular purchasing policy? There are many online tools available, such as:

• Circular Flanders and Circular Wallonia for useful tips and guidelines,
• Gids voor Duurzame Aankopen from the federal government,
• MVI criteria tool from the Netherlands for an insight into sustainable purchase criteria.
• CFIT Framework for strategies for a circular and fair ICT purchase policy.