5 Reasons Why You Benefit from Sourcing Domestically
Understanding Domestic Sourcing over International Sourcing
For a variety of reasons, companies are looking to build a locally sourced supply chain. In the past, companies looked for international partnerships, as production costs were lower, but now they are looking locally. The uncertainty around the future of multilateral trade deals like NAFTA and the long-term implications of Brexit and other nationalist movements are leading businesses to see the benefits of sourcing domestically.
Here are six benefits to sourcing supply chains locally:
- Streamlined Procurement
When companies source their supply chain locally, the process tends to go much smoother. Sourcing from within the United States allows for more control and decreases risk. When importing, businesses run a higher risk of quality issues. Also, due to port strikes and other factors, many shipments are delayed.
When sourcing domestically companies can travel to a supplier’s facility to check the quality of the product. When the products are closer, the risk of late shipments decreases as far less can go wrong.
- Cost Benefits
Sourcing from domestic suppliers reduces the need for logistics services used to move products across oceans. Businesses can decrease their logistics costs by simplifying the way their products get from place to place. Decreasing international imports saves money in shipping and logistics. Lead-time will also go down so that they can reduce the costs associated with storage and warehousing. By sourcing locally, businesses can buy things when they need them.
- More Flexibility
You never know when a great business opportunity will come your way. If you receive a highly lucrative bid from a great customer, you want to be ready. If you source locally, you will likely be able to get the deal done quickly. Local suppliers are typically more reactive than overseas suppliers. They can deliver products faster, and it is much easier for a supplier to coordinate a shipment across the neighborhood than across an ocean.
- Boosting Credibility
Customers prefer locally sourced goods. By localizing your supply chain, businesses can take advantage of this growing consumer preference, boosting their image with prospects. Sourcing domestically also adds to the local economy by hindering upstream suppliers from importing overseas. When the local economies prosper, businesses benefit from increased consumer spending, which is an advantage for the bottom line.
- It’s Good For The Environment
Localizing your supply chain helps the environment tremendously. When you reduce shipping and storage, you also reduce emissions and energy usage.
Sourcing locally is being taken very seriously in today’s marketplace. Overall, it’s good for our local businesses, our communities, and our planet.
Need help deciding if sourcing locally is a good choice for you? The staff at Econo-Courier has years of experience in logistics and our facility is equipped to meet all your logistics needs. Contact us today to find out more details.
75 Lackawanna Ave, Unit B
Parsippany, NJ 07054
Phone: (800) 526-9094