Improving Sustainable Procurement Practices: A Case Study of Metso Oyj
Chua, Yun Yi (2025)
2025
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https://urn.fi/URN:NBN:fi:amk-202503154304
https://urn.fi/URN:NBN:fi:amk-202503154304
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This research aims to explore how Metso can enhance its sustainable procurement practices in alignment with its sustainability policies by assessing supplier compliance, identifying key barriers, and proposing actionable strategies for improvement.
A theoretical framework for sustainable procurement is developed, balancing economic, social, and environmental objectives. Grounded in the triple bottom line, the framework emphasizes life-cycle decision-making, collaboration, and strategic alignment with global sustainability objectives. It also examines key elements such as supplier relationship management, supplier assessments, and audits to ensure compliance and continuous improvement, while exploring the drivers, barriers, and regulatory factors shaping sustainable procurement.
A mixed-method approach was used, using qualitative and desktop research methods. Qualitative research is used as the primary data source, included semi-structured interview. A total of twelve interviews were conducted. Five involved internal stakeholders from four business lines, while seven were conducted with key suppliers, including five from Europe and two from China. The interviews took place between 8 October 2024 and 4 November 2024. Desktop research, used as a secondary source, included a literature review and materials from Metso’s intranet.
This research identified six key barriers to implementing sustainable procurement. These include supplier non-compliance and resistance, financial constraints, unclear sustainability requirements, and unequal collaboration and enforcement. Additionally, insufficient tools and training, along with regional differences in standards, further limit effective implementation.
To address these barriers, nine practical strategies were recommended. First, enhancing sustainability guidance and upgrading procurement tools can provide clearer standards and improve efficiency. Second, implementing comprehensive training programs and recognizing alternative climate-related initiatives will help build supplier awareness and commitment. Additionally, adopting a supplier scorecard system and unifying supplier relationship models can improve consistency in evaluation and collaboration. Further measures include streamlining auditing processes, establishing localized sustainability hubs, and shifting to total cost of ownership evaluations. Implementing these strategies will enable Metso to enhance its sustainable procurement practices.
A theoretical framework for sustainable procurement is developed, balancing economic, social, and environmental objectives. Grounded in the triple bottom line, the framework emphasizes life-cycle decision-making, collaboration, and strategic alignment with global sustainability objectives. It also examines key elements such as supplier relationship management, supplier assessments, and audits to ensure compliance and continuous improvement, while exploring the drivers, barriers, and regulatory factors shaping sustainable procurement.
A mixed-method approach was used, using qualitative and desktop research methods. Qualitative research is used as the primary data source, included semi-structured interview. A total of twelve interviews were conducted. Five involved internal stakeholders from four business lines, while seven were conducted with key suppliers, including five from Europe and two from China. The interviews took place between 8 October 2024 and 4 November 2024. Desktop research, used as a secondary source, included a literature review and materials from Metso’s intranet.
This research identified six key barriers to implementing sustainable procurement. These include supplier non-compliance and resistance, financial constraints, unclear sustainability requirements, and unequal collaboration and enforcement. Additionally, insufficient tools and training, along with regional differences in standards, further limit effective implementation.
To address these barriers, nine practical strategies were recommended. First, enhancing sustainability guidance and upgrading procurement tools can provide clearer standards and improve efficiency. Second, implementing comprehensive training programs and recognizing alternative climate-related initiatives will help build supplier awareness and commitment. Additionally, adopting a supplier scorecard system and unifying supplier relationship models can improve consistency in evaluation and collaboration. Further measures include streamlining auditing processes, establishing localized sustainability hubs, and shifting to total cost of ownership evaluations. Implementing these strategies will enable Metso to enhance its sustainable procurement practices.