Select a suitable product group
If you are about to implement circular procurement for the first time, be sure to select a suitable product group. This choice depends on several factors. The basic assumption is that you are purchasing a physical product: only then you can apply the principles behind a circular economy, which is all about retaining the value of materials.
Next, your internal organisation needs to determine which product groups must be procured in the short term and what the internal risks are for a procurement project. Externally, you need to ascertain how mature the market is with respect to circularity.
- For your first project, choose a product group that does not present to many risks for the internal organisation. Experimenting produces the best results if there is scope for learning.
- Select a product group from a market that is relatively mature, to ensure that the market can actually deliver on the ambitions of your first circular procurement process.
- Examine your procurement power compared to the size of the market. Select a product in a market where you buy directly from the supplier, enabling you to use your ambitions as leverage.
The eBook Circular Procurement in 8 steps (pp.51-54) details how to select a suitable product group for your first circular procurement pilot.
This guidance gives some tips on creating a successful approach to circular procurement.