Sustainable procurement can strengthen supply chains – new KLU study challenges common assumptions

The study examines a real procurement process undertaken by the Norwegian Hospital Procurement Trust for generic antibiotics – one of the first tenders in this field to systematically include environmental criteria. Instead of primarily awarding contracts based on the lowest price, suppliers were prioritized when they met the specified environmental requirements more fully. While this approach led to higher short-term expenditure, because higher prices were paid, it also supported more stable supplier relationships and helped safeguard supply continuity. An unexpected finding was the significant increase in transparency, as potential supplier risks were identified earlier. 

Sustainability as a stabilizing factor

Expert assessments suggest that more environmentally responsible production practices – for example through stricter wastewater and emission control requirements – may help curb the spread of antibiotic-resistant pathogens in the long term. In the case examined, there was no indication that including environmental criteria negatively affected availability – not even for specific antibiotics with a small market. “Our findings show that sustainable procurement does not have to come at the expense of availability. When applied correctly, it can help reduce risk and make supply chains more resilient,” says Professor Marianne Jahre.

Methodology

The study was conducted as a longitudinal case study in which these tender practices within the healthcare sector were analyzed based on expert interviews, workshop results, meeting documentation and secondary data. The evaluation was carried out using Causal Loop Diagramming, a method for examining dynamic interdependencies in complex supply systems.

 “It is important to me that research not only generates insights but also creates impact – particularly where supply chains directly influence health and care provision”, Prof. Jahre adds. “In this study, we apply an approach that views processes holistically and proactively, while accounting for operational impact. This reflects the Operations Mindset at KLU: making procurement and supply chain decisions that are not only efficient but also responsible and sustainable in the long term.”

The open-access article “Sustainable Pharmaceutical Procurement: Environmental tendering criteria for better or worse?” is available at: https://doi.org/10.1016/j.pursup.2025.101081

About KLU

KLU, Kühne Logistics University, is a leading, state-recognized, international university with campuses in Hamburg, Germany (headquarters) and Saigon, Vietnam. It offers English-taught Bachelor’s, Master’s, MBA, PhD, and Executive Education programs in business and management, data science and analytics, and notably, logistics and supply chain management. 

Named after its founder and benefactor, Klaus-Michael Kühne, one of Germany’s most successful business leaders, KLU is committed to empowering contemporary leaders with a strong Operations Mindset. Accordingly, its teaching and research activities blend academic excellence with a hands-on approach to ensure real-world applicability. Emphasizing digital transformation, entrepreneurship, and sustainability, KLU shapes leaders to drive responsible and sustainable change globally. KLU holds the international AACSB accreditation, an honor bestowed upon 5% of the world’s top business schools. 

Students benefit from small classes and individual support from world-class, highly research-active professors. They can gain additional experience through integrated internships, participation in student and sports clubs, and international exchanges with prestigious business schools and universities. Tailored career coaching and partnerships with top companies ensure a successful career path.

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