Cities and counties should reach out to suppliers as they up their sustainability game

Local governments can achieve their biggest sustainability wins in two areas, says Jarrod McAdoo, director of product marketing and public sector procurement expert at global procurement firm Ivalua. Those areas are fleet makeup and digitizing procurement operations. He tells Co-op Solutions that making the change to an electrified or natural gas fleet of vehicles is low-hanging fruit for governments. “Also, digitizing processes and moving from paper-based requests is also something governments can do in the short term that will be a big victory for sustainability.”

Ivalua works with governments, including cities and counties, to digitize their procurement processes. The company offers a unified platform that provides automation, collaboration and business insights to manage an agency’s spend and suppliers. The company’s platform enables cross-discipline collaboration throughout the enterprise.

McAdoo says local governments are taking several sustainability actions in 2023-2024. “The biggest trend I see is the pivot from transactional to more strategic. I see more local entities that are hungry for data and ensuring they are making strategic decisions with the data. This means moving towards technology tools, digitizing processes and pursuing analytics.”

What are some ways local governments can get the ball rolling on sustainability initiatives? McAdoo suggests that cities and counties should work to open a new dialog with suppliers on sustainability. That dialog, he says, could lead to development of a supplier code of conduct regarding sustainability. Those conversations, he adds, could start from a point of common understanding. He notes several benefits that could be achieved through the two groups holding a discussion:

• “A knowledgeable supplier can help identify opportunities for sustainable procurement as well as provide guidance on how to track total cost of ownership (TCO) of initiatives. Many lighting providers have developed the tools and resources to guide customers on tracking the TCO of projects like switching to LED lamps and bulbs. This knowledge and the models used allow cities and counties to openly share the calculation and the payback period for these projects and address the optics of a higher initial cost.”
• The dialog can give local governments the opportunity to educate suppliers and develop a new source of providers of sustainable products and services. “This will increase the overall competition and will help preserve a strong local and diverse supplier base.”
• There’s a side benefit that McAdoo sees from this arrangement: “This collaboration and joint development will ensure that sustainable products and processes are not scarce resources where public sector entities have to compete or acquire at an unsustainable price point.”

McAdoo says city-county officials face several competing forces as they develop sustainability initiatives. “Most notably is the cost pressure resulting from various economic factors. Sustainable procurement is seen as being more costly in a number of areas. This includes the cost of resources needed to conduct green research and green sourcing events, the initial higher cost of procuring green items, change management with internal users and stakeholders, and collaborating with suppliers.” He explains that each of these costs is real, and they must be considered. He adds that these costs rarely outweigh the benefits of a sustainable procurement program.

McAdoo notes that there are several levers that cities and counties can use to debunk, reduce or mitigate these higher costs. “Some of them are longer-term initiatives like investing in training for staff and stakeholders on how to conduct sustainable procurement and tracking the benefits of those transactions. These types of trainings and change management initiatives are worth the investment, but they require time.” He explains that while they are developing these programs, cities and counties can take some short-term actions to achieve some benefits and build momentum in sustainable procurement programs.

OMNIA Partners offers a robust portfolio of cooperative contracts in the public procurement space. The firm simplifies procurement for state and local governments. Its cooperative purchasing approach focuses on efficiency, compliance and value. Here is information on Ivalua’s offerings through OMNIA Partners.

Michael Keating is senior editor for American City & County. Contact him at [email protected].