The Pro's and Con's of Local Sourcing


We all love a good celebration and get together and let's face it, the festivities usually have a lot to do with food. But do you know where your holiday treats are coming from and why? Local sourcing has been much in the press of late, so here's our guide to some of the advantages and disadvantages of local as opposed to global procurement...

    Pros

    • Good for PR, demonstrating investment in the local community
    • Good for local suppliers who benefit from serving their local community
    • Easier to travel to suppliers for development, management and site inspection purposes
    • Easier to satisfy local preferences and source specialised products
    • Shorter supply chains and therefore greater predictability of delivery times and lower costs

     

    Find out more with CIPS guidance on global supply chains.

    Cons

    • Close supplier/staff connections can lead to issues with ethical supplier selection
    • Undesirable local publicity can arise when contracts need to be terminated
    • Possible resistance to change
    • Supplier may come to depend too much on the buyer leading to complacency
    • Local suppliers that are small businesses may be less efficient with restricted economies of scale
    • Policy issues around encouraging competition and positive discrimination of local suppliers

     

    Find out more with CIPS guidance on global supply chains.

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