Map the external value chain
A circular procurement project is all about achieving shared goals. That will require cooperation. To determine what this cooperation should look like, it is important to get an idea of the parties involved, both within your internal organisation and in the external value chain.
Analyse how the external value chain is composed, from the production of raw materials to waste management. Map this value chain and the relations between parties. Also try to identify the revenue models, and therefore the interests, of the various value chain partners. Next, make a graphic representation of the new (circular) value chain that you have in mind. Use this as a basis for the discussions with market players.
- Before you start a procurement project, first map the external parties involved and how they may influence the circular ambitions for the project.
- Make a graphic representation of the new (circular) value chain that you have in mind. Use this as a basis for discussions with market players about cooperation within the value chain.
- Create a common interest that ensures both client and supplier benefit financially from value retention of the products supplied.
Step 4 from the eBook Circular procurement in 8 Steps (pp.75-84) details how to organise your cooperation with the external value chain.