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What are the advantages of local procurement?

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تم إضافة السؤال من قبل Mohammad AL Faris , Logistics and Operations Head , Turquoise Mountain
تاريخ النشر: 2016/01/19
Adel  Kansow
من قبل Adel Kansow , Supply Chain Manager , AIC Steel

Reduce the time

Reduce costs

Availability of materials

Minimize the risk points

Technical support fast

No need for more stores

Buying on credit

Fida Hussain Mirza
من قبل Fida Hussain Mirza , Procurement Manager , Rafi International FZC

Encouragement to local suppliers

Contributing to the growth of the nations's economy.

Transfer of some of the procurement & freight forwarding risks to the suppliers.

Eliminating or minimising issues related to quality & delivery.

Supplier has the opportunity to reduce costs

Supplier can suggest methods for improvements to customer.

 

 

Mahmoud Thabet
من قبل Mahmoud Thabet , Head of General Purchasing , Qatar Petrochemical Company QAPCO

In addition to all above answers by the Experts which are all right, I would like to add that Local Purchases increase the Country's Annual Gross Domestic Products (GDP) which in return increase the country's economic strength and monetary value/power (currency), and will also increase the local competition keeping it more healthy, and decrease the unemployment (more local purchases means more local suppliers which in return will create more positions/vacancies), 

Shamoun Effat
من قبل Shamoun Effat , Procurement Manager , International Rescue Committee

Fast delivery, cost benefit and reduce of the cost sales, avoid out of stock, receiving good quality and avoid any damages, avoid overstocking and high inventory value. The local procurement is perfect for the just in time method, perishables and short shelves goods. Even dealing with local supplier is smoother than with international ones, easier to solve any conflict or agreement arrangement. 

Elke Woofter
من قبل Elke Woofter , Project Assistant , American Technical Associates

Purchasing local ...

short notice delivery (same or next day delivery)

you know your vendor 

inventory can stay at vendors place and they are doing inventory for you

you are supporting in the local economy 

delivery free to your dock 

no import export or freight broker needed

credit because a person been recognised working for a company charging the account.

 

Payment of credit I will leave off, since I have been issuing PO's and have paid local and other vendors the same way and our managers have their own credit cards to use.

 

 

 

Ahmed Mahmoud Yousef Mahmoud Al-Harery
من قبل Ahmed Mahmoud Yousef Mahmoud Al-Harery , Supply Chain Manager , Balubaid Group of companies ( Autozone)

Of the most important benefits of local procurement

Reduce the cost value

Direct follow-up

Transportation value

Pervez Mohammed
من قبل Pervez Mohammed , Procurement Manager , Green Falcon Co. Ltd

It depends on the nature of project / industry requirement.

In Saudi arabia, specially Delivery time, payments, easy replacement, fast negotiation, selection of products with its quality required and many more.

Jahabar Sadiq Ifthikar
من قبل Jahabar Sadiq Ifthikar , Senior Procurement Specialist , University of Hafr Al-Batin

Well totally agreed the above answered by Mr. Adel Fathi Abd El Wahab Konsow 

Reduce the time

Reduce costs

Availability of materials

Minimize the risk points

Technical support fast

No need for more stores

Buying on credit

Mohammad Eliyas
من قبل Mohammad Eliyas , Senior Supply Assistant , UNHCR

Less lead time

Purchase in credit

Less transportation cost

Custom clearance hassle free

Less warehouse requirement

easy access

John Omollo
من قبل John Omollo , Supply Chain Coordinator , Synresins Limited

Local purchase will tend to apply the SMART and holistic concept, thus making an organisation to have better & flexible business terms with their internal and external suppliers/customers.

Ma'en Alhaqash  CPSM
من قبل Ma'en Alhaqash CPSM , Supply Chain Instructor/ Consultant , Efficiency Training Institute , The world of Metal Shelves

 

 

Local procurement has some advantages in different directions such as but not limited to ;

 

  • Mitigate supply risk; near to door, replacement , supplier visit any time,  avoid logistics and customs and formal authorities approvals for some categories like chemicals and telecommunication, less advance payment risk.
  • Cost wise; availability of alternatives and fabrication solutions with notable cost reduction, get the benefit from local dealers who  importing big volume to gain lower price than the direct import in case of small quantities.              
  • CSR consideration and local supplier improvement programs

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