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Local Supplier Development Programs

A Local Supplier Development Program can start with just a few companies sharing an interest in localizing their sourcing and purchasing.

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Supply Chain Local Supplier Development Programs aim to strengthen job-creation in and the economic development of a local region and particularly in the area where a company's employees live.

In doing so, a local supplier program fosters the growth of local suppliers which can also provide benefits for the company. In this way, the sustainability of the program is not solely dependent on the commitment to local development, but is woven into the business fabric of the business world as well as the families and local environment.

A "Local Supplier Development Program" can start with just a few companies sharing an interest in localizing their sourcing and purchasing. They start by identifying regional small and medium enterprises (SMEs) that could, with management assistance and finance, replace other suppliers from outside the region. Companies can include various industrial and non-industrial sectors.

The members of the Local Supplier Development program benefit from reduced transport costs and the possibility of having suppliers closer to its operations. The community also benefits from reduced transportation impacts such as reduced emissions, reduced employee time away from home, community economy stability and broader awareness of the real cost of doing business on the communities through which goods are moved.

Urban development and economic development are more realistic when companies are engaged with their local communities. Small groups of companies that voluntarily gather to create "Local Supplier Development" programs realize a wide variety of benefits -- economic, friendships, reduced environmental impact, less just-in-time inventory problems, and many times, less expense for their sourcing activities.



Edited by Carolyn Allen, owner/editor of California Green Solutions
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