Consumer landscapes are continuing to change while businesses are adjusting for the new normal. Manufacturers and industrial companies across the world are working hard to maintain and strengthen their supply chains. And companies who preferred to source internationally to save on costs, are seeking other cost-effective solutions.
The growing reality is that procurement professionals actually prefer to source locally.
Advantages of Using Local Suppliers
It’s clear that most buyers prefer to keep the supply chain as close to home as possible. Here’s why:
- More Flexibility. Local suppliers are typically more reactive than suppliers who are farther away. They can deliver products quicker, and it is much easier for a supplier to coordinate a shipment across the neighborhood than around the world.
- Greater Control. The further away you are from elements of your supply chain, the less control you have over them. Face-to-face visits will allow you to address any concerns and ensure all products meet your standards. There’s also less chance of things getting “lost in translation,” which often occurs when working with big teams of people, many of whom aren’t actually on the floor and touching your products.
- Reduced Supply Chain Costs. North American businesses send and receive parts and products all over the continent and the expenses can add up as quickly as the miles. Even then, these pieces have to be stored in warehouses until they are shipped again to the next supplier or, if you’re lucky, the customer. Many of these costs can be reduced by localizing your supply chain. And, with less money being sunk into logistics, there will be less weighing down your bottom line.
- More Revenue. Local sourcing doesn’t just help save money; it can also help you generate more of it. That’s because companies in your region may be impressed by your efforts to keep a tight and fast-paced supply chain, which can help you attract new customers.
- Good for the Community. It stands to reason that if sourcing locally increases your bottom line, it would do the same for other suppliers and manufacturers in your area, which can be a big boon to your local economy and the people who live there.
Happy, well-paid employees are more likely to invest in local businesses. Additionally, respected and well-off businesses are in a position to contribute to communities through fundraising, volunteering, benefits, and sponsored activities.
- It Helps the Environment. Localizing your supply chain represents a tremendous opportunity to help the environment. When you reduce shipping and storage, you also reduce emissions and energy usage. Sourcing locally not only contributes to green manufacturing, but ultimately helps you build consumer confidence. When consumers buy with confidence, the business benefits from increasing positive brand awareness and customer loyalty.
- Ability to Launch Products Faster. Manufacturers who source locally benefit from working with companies in the same time zone, which leads to easier and speedy communication. You can resolve problems faster and launch products to meet consumer demands and spikes.