In the last few years there has been a shift in priorities when it comes to procurement. With the dire impact of the Covid-19 pandemic and subsequent global events on reliability of supply, focus has shifted to looking at local sourcing options to future proof supply chains. In fact, a recent poll found 85% of respondents named disruptions and shortages as one of the top five pressures currently affecting their operations.
By looking to local sourcing opportunities it not only helps companies fix shortfalls, but it also helps them reach their ESG goals. Simply put, balancing sourcing local products and those from international sources, can help to reduce carbon emissions and other forms of pollution associated with long-distance transportation, which can lead to a reduction in greenhouse gas emissions.
The immediate effect that local procurement has on a community is the social and economic benefits of the creation of jobs and the multiplier effect through the economy. It is also easier to understand the value drivers of local businesses, especially those in regard to social inclusion and diversity.
Additionally, local procurement tends to support small and medium-sized enterprises (SMEs), which are the backbone of the Australian economy. By working with local SMEs, companies can help to build the capacity of these businesses to hire and grow, adding to long-term sustainability of the community.
A good example of is Earthtrack Group, a local WA supplier and manufacturer of solar and LED lighting solutions for mining and industrial applications. Earthtrack have been working within the local community for over a decade.
Their flagship product, Earthlight Solar Lighting Towers are constructed locally in Forrestdale (and will soon move to a larger facility in Kewdale WA). By sourcing local components and services, in addition to their own manufacturing in-house, Earthtrack Group supports the local economy and creates employment opportunities.
Earthtrack Group also work closely with local communities. The company has been involved in a range of community initiatives, including sponsoring local youth sporting clubs and supporting local charities. They see it as being a good corporate citizen by supporting local clubs in all the great work they do regarding inspiring future generations to achieve great things.
Supporting local business is good for business and has broader benefits for all.
