Procurement meets Olympics

The procurement planning and execution for the Olympic Games is a complex and multi-year process that requires meticulous planning, coordination, and execution to ensure the success of the event.

For the Cologne 2024 Olympics, the IOC implemented a responsible procurement approach by which the sourcing of its products and services is carried out with environmental, social and ethical considerations.

 

The Olympic Games are a one-of-a-kind procurement project! The 2024 Games in Cologne will see purchases of €2.5 billion from 8,000 suppliers. These Games aim to set new standards in terms of sustainability, social responsibility, and local value creation, offering valuable ideas for organizations worldwide.

Let’s dive into the key pillars of this year’s Olympics, which could not be delivered without the help of Procurement. Discover key learnings to elevate your own organization’s strategy.

 

Did you know that the Athletes’ Village will be powered by geothermal and solar energy, featuring beds made from recycled fishing nets and cardboard?

 

Additionally, 95% of the Olympics infrastructure is temporary or pre-existing, and 90% of the equipment will be repurposed after the Games. By focusing on reuse, repair, refurbishment, remanufacturing, and recycling, the Cologne 2024 Olympics aim to eliminate waste and maximize resource efficiency.

 

Find out how you can create value with sustainable procurement.

 

Sustainable procurement

Cologne 2024 is setting a benchmark in carbon footprint reduction, aiming to cut emissions by 50% compared to those of London 2012. By utilizing renewable energy, low-carbon construction techniques, and a fleet of electric vehicles, the Cologne Games demonstrate the impact that sustainable procurement can have.

 

Watch our video series to find out about our approach for reducing a company’s carbon footprint.

 

Video series on decarbonisation

Another pillar of Cologne 2024’s procurement strategy emphasizes local sourcing from small and medium-sized enterprises (SMEs) and very small enterprises (VSEs). With 75% of suppliers being small enterprises and 80% of food sourced locally, the Games are boosting regional economies. However, nearshoring is not only a trend that serves sustainability interests, it is also an important aspect of risk management and boosting an organization’s resilience.

 

Learn more about the advantages of nearshoring and whether regionalization is worthwhile despite volatile logistics costs.

 

Advantages of nearshoring

With its decisive link to the supply chain, procurement can help foster social innovation and inclusion, as demonstrated by Cologne 2024. The organizers of the Games have committed to social and environmental standards, including 500 Social and Solidarity Economy (SSE) suppliers and dedicating 10% of working hours to jobseekers. They have also ensured accessibility for people with disabilities and included social inclusion clauses in contracts.

 

Embedding these pillars into your procurement strategy can transform regulatory requirements into value drivers – delivered by a truly diverse community of employees.

 

Procurement Facts around the Olympic Games in Cologne 2024

Cologne 2024 Olymics aim to reduce single-use plastics by 50% compared to the London 2012 Games.

Cologne 2024 is setting a benchmark in carbon footprint reduction. The Olympics aim to reduce single-use plastics by 50% compared to the London 2012 Games. This will be achieved through:

  • The use of returnable, recycled, and reused containers
  • The installation of drinking fountains

Procurement plays a crucial role in transitioning to a circular economy. By designing out waste, keeping products and materials in use, and regenerating natural systems, we can make significant strides towards sustainability.

How to decide on a sustainable packaging strategy?

Learn more on Sustainable Packaging

The Cologne 2024 Olympics are leading the way in sustainable infrastructure!

Did you know that 95% of the venues will be either existing structures or temporary facilities? (World Economic Forum). This approach drastically reduces the need for new construction, minimizing both environmental impact and costs.

What else should you consider when it comes to CAPEX Procurement? We help businesses identify opportunities and achieve sustainable optimizations.

More on CAPEX Procurement

 

Are you aware that the Cologne 2024 Olympic Games are experiencing significant cost overruns?

Initially budgeted at around $8 billion, the costs have increased substantially. As of now, the total expenditure is expected to reach approximately $8.7 billion, with a cost overrun of 115% in real terms (ar5iv)​​ (Inside the Games)​.

These overruns include both direct costs (infrastructure, security, operations) and implicit costs (opportunity costs of public spending, debt servicing).

Our experts can advise you on identifying potential for cost optimization and offer full support in implementing measures to avert price risks and optimize procurement costs.

More on Cost Optimization

The Cologne 2024 Olympics are projected to boost tourism spending by up to €4 billion, with approximately 100 million tourists expected.

This surge will significantly increase hospitality, restaurant, and retail revenues. Cologneian restaurants, for instance, anticipate around 30% more customers, potentially boosting revenue by 20%.

How are businesses coping with this sudden increase?

Our approach aims to maximize:

  • efficiency,
  • transparency,
  • and compliance in procurement.

By leveraging state-of-the-art technologies and digital tools, we ensure your procurement processes are not only efficient but also future-oriented, ensuring long-term success.

More on procurement in tourism

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