Price alone is not enough, sustainability is also on the table

The New Tender Reality: Sustainability Has Become as Strategic a Criterion as Price

The rules for winning tenders and becoming a strategic supplier are fundamentally changing. In these processes, where price used to be almost the sole determinant, there is now a new and powerful player on the table: sustainability. From low-carbon production to social responsibility criteria, a company's sustainability record now determines the fate of tenders and supplier selections.

Low Carbon Production: Getting Ahead in Tenders

Low-carbon production is now a clear advantage in tenders and supplier selection. The first and most critical step in this process is measurement; that is, a company needs to determine how much carbon emissions it causes.

Companies that can measure their emissions and present this data transparently stand out from their competitors. This is because corporate customers now turn to their suppliers and make concrete demands such as "Report to me the emissions of the products I bought from you last year". A company that cannot present this data may lose its contract the following year to a competitor that can present this data. This situation clearly shows that parameters such as carbon emissions, sustainability reporting and water footprint are as important as price in tenders and loan processes. It is inevitable that criteria such as having concrete studies on green transformation and having verified carbon footprint will become standard in important tenders.

New Competition Area in Supply Chain: Carbon Score

A firm's carbon score has become a new competitive parameter that directly affects its position in the supply chain. This is because a producer is indirectly responsible for the carbon emissions of the supplier from which it buys raw materials; these emissions are reflected in the producer's own carbon scorecard as "indirect emissions".

Therefore, when a producer is faced with a choice between two suppliers that are similar in terms of price and performance, it will naturally prefer the one with lower emissions. This moves the competition between suppliers away from the price axis and into the realm of environmental performance. A low-emission supplier not only helps its customers reduce their emissions, but also gets a leg up on the competition.

Not Just Carbon: Social Criteria Changing the Rules

Sustainability is not just about carbon scores; one of the most important elements that have changed procurement processes in recent years is social criteria. Global companies are now looking for an approach that "values their employees" when auditing their suppliers. the understanding of "I pay your salary, that's enough" is being completely demolished. Instead, human-oriented criteria such as

• Personal rights and social opportunities offered to employees.
• Providing a more comfortable and cozy working environment.
• Career planning and training opportunities.

The social dimension of sustainability covers a wide range of issues, from the rights of employees to the social rights of customers and consumers. Modern procurement processes therefore now require a multi-faceted analysis that considers the financial, environmental and social dimensions of a company as a whole.