Over the past few decades, procurement organizations have vigorously evaluated the strategic value opportunities in their supply base. Some found leverage in consolidating and even outsourcing what they considered transactional functions. In general, ‘taking the supply chain global’ to tap new and emerging markets has been the overarching direction. However, shifting dynamics may now make ‘buying local’ a sustainable supply chain management strategy worth exploring.
A recent article, Adapting to a shifting landscape, posed the question: Are supply chains changing shape? Citing increasing risks in global supply chain logistics, the need for increased visibility and control may be slowing the global supply push.
“Multiple tiers of widely distributed suppliers are hard and costly to track, and it is difficult to exert influence in the face of rising demand from other industries and markets. Thus, companies are beginning to source closer to home due to such reasons as higher fuel and commodity prices and the need for greater supply chain responsiveness, reduced lead times, and lower inventory requirements.”
Our professional consulting finds that many leading companies now realize the unique value in sustainable supply chain management as a strategic in-house competency. This core function has been charged with identifying and adapting with business sustainability strategies that ensure the stability of supply.
Given the increasing need to reduce environmental impacts, the rising cost of fuels, and the recently exposed risks of being cut-off from supply around the world, the value proposition of a strictly foreign supply appears to be diminishing. Our sustainability consulting believes a ‘buy local’ will become an important part of more companies’ sustainable supply chain management strategies.