With the rise of the huge shopping mall, small businesses are often pushed to the side-lines in favour of bigger international brands, forcing local entrepreneurs to set up shop in less-than-ideal locales. But things are changing.
Local suppliers are finding a foothold once again in the wake of the pandemic that forced many big brands to reconsider their options around either having empty stores, closing their doors, relocating, downsizing, or going completely online.
The ongoing lockdowns have impacted significantly on manufacturers and industrial companies, both locally and around the world, as they work endlessly to maintain and strengthen their supply chains. Now, companies who previously sourced internationally to save on costs, have resorted to looking around for other cost-effective solutions, and local has indeed thus, become ‘lekker’.
Procurement professionals who sourced local suppliers during the pandemic developed supply chains strategies that contributed to many manufacturing businesses remaining afloat, while those who continued to rely on international supply chains were mostly disrupted, or indeed failed entirely.
There are various benefits to sourcing locally
One benefit is flexibility. For example, a client may need to ramp up to meet demand. Being able to react timeously is possible if they source locally, as local suppliers are typically more reactive than suppliers who are farther away. They can also deliver products/goods quicker and, logistically, it is far easier for a supplier to co-ordinate a shipment from across town than from around the world!
In addition, having control over stock is paramount to maintaining a strong supply chain, and the further away you are from elements of your supply chain, the less control you have over them. And besides, you can ‘check’ on them spontaneously… allowing you to address any concerns and ensuring all products meet your standards without the inevitable miscommunication that can occur over distance.
This is directly related to the next benefit, and that is lessening supply chain overheads by reducing/removing your shipment and transport logistic costs, including warehousing.
The obvious outcome here is a healthier bottom line, while sourcing locally also benefits the local community of entrepreneurs and spares the environment by reducing transport emissions.
There is good reason for saying ‘local is lekker’!
