Local Sourcing Partnership Strategies Amja jath Hayath Head - Procurement STAR CEMENT – UAE www.linkedin.com/in/amjathhayath
About Me www.linkedin.com/in/amjathhayath
Has your Organisation fully utilised the potential of Local Resources / Capabilities to boost Operational Efficiency in your Business?
Benefits Of Local Sourcing More Flexibility Never know when an opportunity will strike or a challenge will arise. For instance, you can receive a highly lucrative bid from a great customer, or an existing client may need you to ramp up in order to meet demand. Will you be ready? If you source locally, the answer will probably be yes. That’s because local suppliers are typically more reactive than suppliers who are farther away. They are able to 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 being “lost in translation,” which often occurs when working with far-flung teams of people, many of whom aren’t actually on the floor and touching your products.
Cont … Reduced Supply Chain Costs The amount of money companies spend on logistics every year is staggering. 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 End 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 the 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 local region may be impressed by efforts to keep a tight and fast-paced supply chain, which can help to attract new customers.
Cont … 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 local area, which can be a big boon to local economy and the people who live there. Well-paid employees are more likely to invest in local businesses. 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 Local sourcing is good for your business, your community, your friends, neighbors and even the planet.
Don’t get left behind. START NOW , if not yet… Thank You. Amjath Hayath Secretary, CIPS Northern Emirates
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