Monday, April 27, 2015

Cost Disadvantages Of Purchasing Eco-friendly Items For Businesses

Using recycled materials in a production process can pose risks to a company.


Companies often desire to go green and many consumers want to see companies doing what it takes to prevent the depletion of the environment. Going green is not something that can simply happen overnight for any business because it is not always cost effective. The cost disadvantages to a company buying green products can be tremendous. Often, a company must decide if the desire to be environmentally responsible outweighs the expense.


Employee Time


When a company wishes to buy green products, often employees must be pulled away from their normal daily duties or new employees hired in order to complete a green task force or to work on finding the right green products. This is often necessary to develop a program that will work for the company. It can be time consuming to research suppliers who will provide the company with the same products they are used to, but that have the added advantage of being environmentally friendly.


New Suppliers


Companies that begin a green product initiative must find new suppliers who have green products, or must try previously untested products from existing suppliers. If the suppliers don't deliver in a timely manner or don't turn out to be reliable, the company's production can be affected at significant cost. If the products that are more environmentally friendly don't produce the same quality of final product, this too can be disastrous to a company's reputation.


Employee Training


If the new green products that a company purchases require a different method of use or a different method of disposal, employees must be taught the new processes. This can be expensive in terms of training costs and reduced productivity while employees experience a learning curve.


Product Cost


The cost of the products themselves can also be a problem. Although the company may be using some of the same products that have simply been improved to be more green, the cost of these products can severely escalate. The more green products purchased, the more the cost will increase