What are the benefits of sourcing from local or regional suppliers?

Sourcing from local or regional suppliers can offer many advantages for your business, especially in terms of sustainability and social responsibility. In this article, you will learn about some of the benefits of choosing local or regional suppliers over distant or foreign ones, and how to evaluate them for your needs.

1 Lower transportation costs and emissions

One of the most obvious benefits of sourcing from local or regional suppliers is that you can save on transportation costs and reduce your environmental impact. By minimizing the distance and time that your goods travel, you can lower your fuel consumption, carbon footprint, and risk of damage or loss. You can also avoid potential delays, tariffs, and customs issues that may arise from cross-border trade.

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Rajitha Shaji

Procurement Manager at BFG Advanced Facades WLL
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If the quantity is less and the requirement is urgent, ofcourse it should be from local source in order to avoid the abnormal hurdles for shipments. Also we can ensure timely service, quality and easy replacement in case of damages.

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Liem Nguyen

Operation Management - PMI Project Management Professional
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The low transportation cost may not true for all products, especially, if the outsource across ocean. A product should go through a series process to be finished. No matter what who do it (one factory or series factory) the use of energy may not difference. The reducing emission may be compromised.

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2 Better quality and freshness

Another benefit of sourcing from local or regional suppliers is that you can ensure better quality and freshness of your products, especially if they are perishable or sensitive to temperature and humidity. By buying from local or regional suppliers, you can access the latest harvests, batches, or innovations, and avoid the degradation or spoilage that may occur during long-distance shipping. You can also inspect the products yourself, or request samples or certifications, to verify their quality and safety standards.

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Liem Nguyen

Operation Management - PMI Project Management Professional
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It may be right when we are dealing with fruit & vegetable within a few hundred miles. However, storing & packaging are the key activity that strongly impact to quality & freshness.

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3 Stronger relationships and communication

Sourcing from local or regional suppliers can also help you build stronger relationships and communication with your vendors, which can lead to better service, collaboration, and loyalty. By working with local or regional suppliers, you can communicate more easily and frequently, visit their facilities or offices, and resolve any issues or disputes quickly and amicably. You can also leverage their local knowledge, network, and reputation, and support their growth and development.

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4 Greater flexibility and responsiveness

Sourcing from local or regional suppliers can also give you greater flexibility and responsiveness to meet your changing demands and expectations. By relying on local or regional suppliers, you can adjust your orders, delivery times, and specifications more easily and quickly, and respond to any fluctuations in supply or demand. You can also take advantage of seasonal or special offers, or request customized or exclusive products, that may not be available from distant or foreign suppliers.

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5 Positive social and economic impact

Sourcing from local or regional suppliers can also have a positive social and economic impact on your community and industry. By choosing local or regional suppliers, you can support the local economy, create jobs, and contribute to the tax base. You can also promote the social and environmental responsibility of your business, and align your values with those of your customers and stakeholders. You can also enhance your brand image, reputation, and trust, and differentiate yourself from your competitors.

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Ted Qarri MBA, CPIM

Director of Supply Chain | SCORE Business Mentor
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Brand image and social responsibility are one thing, but a positive economic impact in the local environment also increases the quality and quantity of resources a company can tap into. For example, creating jobs locally contributes in increasing the qualified workforce, which you can benefit from in the near future.

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6 How to source from local or regional suppliers

Sourcing from local or regional suppliers can offer many benefits, but it also requires careful planning and evaluation. You need to consider your business goals, budget, quality standards, and risk factors, and compare them with the capabilities, prices, and performance of the local or regional suppliers. You also need to establish clear and fair contracts, terms, and conditions, and monitor and measure the results and feedback. You can use various tools and methods, such as online directories, trade shows, referrals, audits, or scorecards, to find and assess local or regional suppliers for your business.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Saleh Al Ghunaim, CCMP

Procurement I Strategic Sourcing I Contracts Management I Category Management I Supply Chain Management
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Sourcing from local or regional suppliers offers several benefits, including: 1. Reduced environmental impact 2. Support for the local economy 3. Improved product quality and freshness 4. Increased transparency and traceability 5. Faster response times 6. Stronger relationships and collaboration This reduces the distance products need to travel, minimizing carbon emissions associated with transportation. It also promotes local businesses, job creation, income distribution, and community development. Additionally, local suppliers often provide fresher, higher-quality products, ensuring compliance with quality standards and ethical practices.

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What are the benefits of sourcing from local or regional suppliers?

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1 Lower transportation costs and emissions

2 Better quality and freshness

3 Stronger relationships and communication

4 Greater flexibility and responsiveness

5 Positive social and economic impact

6 How to source from local or regional suppliers

7 Here’s what else to consider

Supplier Sourcing

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What are the benefits of sourcing from local or regional suppliers?

1

2

3

4

5

6

7

1 Lower transportation costs and emissions

2 Better quality and freshness

3 Stronger relationships and communication

4 Greater flexibility and responsiveness

5 Positive social and economic impact

6 How to source from local or regional suppliers

7 Here’s what else to consider

Supplier Sourcing

Rate this article

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