The evolving landscape of supply chain management demands a delicate balance between cost efficiency, sustainability, and regulatory compliance. For Mohammad Bamuqabel, an accomplished leader in end-to-end Supply Chain management & certified in Transformation for Supply Chain, boasting 20 years of transformative experience across a range of sectors, Corporate, achieving this balance requires a proactive approach to supplier localisation, environmental responsibility, and long-term value creation.
In this exclusive interview, Mohammad shares his practical experience and thoughts on how companies he has worked for are embedding sustainability into their procurement strategies, aligning with Saudi Arabia’s Vision 2030, and fostering innovation within their suppliers’ ecosystems. From leveraging life cycle costing to enhance cost-effectiveness to implementing robust ESG-driven supplier assessments, he provides valuable insights into how procurement can drive both business success and environmental stewardship.
Join us as we explore the key strategies, challenges, and successes behind a proven, practical approach to sustainable supply chain transformation.
How do you integrate sustainability metrics into your procurement decisions?
Sustainability is at the core of our procurement strategy. We conduct detailed assessments of potential suppliers based on key environmental criteria, including carbon footprint, energy efficiency, water usage, waste management, and resource conservation. These sustainability metrics are embedded into our procurement scorecards, ensuring that environmental responsibility is balanced with cost, quality, and delivery performance.
We also emphasise partnerships with local enterprises that align with Saudi Arabia’s Vision 2030, focusing on green technology investments and sustainable practices that drive local development, economic diversification, and job creation. To stay ahead of regulatory changes and evolving international sustainability standards, we continuously review and refine our evaluation criteria. This approach enhances value creation, promotes environmental stewardship, and strengthens the local supply chain for a more resilient and sustainable future.
What steps have you taken to ensure sustainable sourcing in your supply chain?
Our sustainable sourcing strategy centers on supplier localisation, allowing us to meet environmental standards while supporting the local economy. We actively seek partnerships with Saudi suppliers who demonstrate a strong commitment to local content and long-term community development.
To ensure alignment, we conduct rigorous evaluations that assess compliance with Saudi regulations, adherence to quality benchmarks, and alignment with Vision 2030 objectives. To further support our local suppliers, we invest in training and capacity-building programs aimed at improving operational efficiency and integrating innovative sustainability practices. Through close collaboration, we help our suppliers adopt best practices in resource management, waste reduction, and digital transformation, creating a more resilient and competitive supply chain.
Additionally, we conduct regular audits, performance reviews, and collaborative improvement plans to ensure that our suppliers not only comply with evolving standards but also drive continuous innovation and excellence. This localisation strategy reduces reliance on international vendors, strengthens local industries, and contributes to a robust, sustainable ecosystem within the Kingdom.
How do you assess the sustainability credentials of your suppliers?
We evaluate suppliers based on a three-pronged approach that aligns with Saudi Arabia’s Vision 2030:
- Localisation: We prioritise Saudi-based suppliers who contribute to local economic growth and comply with national regulations.
- Environmental Standards: Suppliers are assessed on energy efficiency, water conservation, waste management, and carbon footprint, ensuring they meet both local and international sustainability benchmarks.
- Diversification & Innovation: We encourage suppliers to expand their offerings and adopt innovative practices to build a more resilient and adaptive supply chain.
These evaluations are reinforced through comprehensive audits, on-site inspections, and ongoing performance reviews, ensuring our suppliers meet sustainability standards while supporting the Kingdom’s strategic objectives.
How do you ensure sustainability is maintained without compromising on cost?
We integrate sustainability into procurement without inflating costs by employing a strategic, long-term approach:
- Leveraging Local Sourcing: Prioritising Saudi-based suppliers minimises logistics costs and tariffs while supporting Vision 2030’s economic goals.
- Applying Life Cycle Costing: We assess total cost of ownership rather than just upfront costs. Investing in sustainable practices may require an initial investment, but it yields long-term savings in energy, water, and waste management.
- Fostering Supplier Collaboration: Close partnerships with suppliers drive continuous improvements, making sustainable practices more cost-effective over time.
- Conducting Regular Performance Reviews: Ongoing audits ensure sustainability and cost-efficiency remain aligned with strategic objectives.
By adopting this comprehensive approach, we achieve high sustainability standards while maintaining cost-effectiveness in procurement.
Can you share any successful examples of sustainable procurement initiatives you’ve led?
Our partnerships with major Oil & Gas clients like Aramco and SABIC require strict compliance with Environmental, Social, and Governance (ESG) standards, as well as adherence to localisation initiatives such as Saudi Aramco’s IKTIVA program and SABIC’s NUSANED initiative. These programs play a vital role in enhancing the competitiveness of companies looking to expand their market presence.
Saudi Aramco prioritises local suppliers with eco-certifications for materials and services, while SABIC enforces rigorous ESG evaluations in its procurement strategy. To align with these requirements, we have integrated their procurement strategies with our supply chain framework, resulting in tangible sustainability initiatives. This alignment has not only strengthened our long-term partnerships with key clients but has also enhanced our market competitiveness by embedding sustainability into our procurement and supply chain operations.
