3 Top Reasons to Use Local Suppliers

Over the years, many businesses turned to offshore sourcing to try to find cheaper resources. Unfortunately, while this choice may keep costs down for businesses to an extent, there are many disadvantages to using offshore suppliers, including the negative effect it can have on the wellbeing of the local economy. More and more people across the country are starting to appreciate the value and importance of supporting their local communities and putting their trade in local produce; thankfully, there are also many small businesses which are beginning to follow in the footsteps of their customers. If you are still on the fence on deciding what is best for your small business, then here are three reasons why you should consider reshoring your resource suppliers.

Supporting the community

Small businesses, in particular, rely on their local communities to support them and help them to grow, which is why it is equally important for you to give back to your local community by sourcing from other neighboring businesses. Using local resources is a selling point of your company that you can advertise with pride, and that will help you to build long-lasting partnerships with other vendors in your local area, developed through trust and mutual respect. You may also find that the more business you conduct with local companies, the more willing they are to offer you lower prices for their produce.

Increasing profit margins

There are many aspects of business, which can cost money in the short term in order to increase profits in the long term. For example, comprehensive business insurance is vital for protecting your company from losing money in the face of a range of issues, such as from the costs of liability in the event of a claim, but it does require spending out a little extra. In this same sense, sourcing local materials can mean slightly higher upfront costs, but it may increase the profitability of your business in the long term.
For one thing, many customers appreciate the value of local produce, and so are happier to pay more for the ability to buy products manufactured with local materials. Moreover, local sourcing also allows for a reduction in supply chain costs: when products have to travel a great distance, they regularly have to be passed from one merchant to another, being transported between multiple companies and stored at a variety of warehouses along the way, before finally reaching your stores. This costs a lot of extra time and money that can be avoided altogether by using local suppliers.

Protecting the environment

The further produce has to travel, the greater the carbon footprint it leaves behind. Buying from local vendors cuts down on the greenhouse gases and fuel emissions required to transport goods, especially if your merchandises were originally imported from overseas. Additionally, the more local resources are used, the more regions will be able to diversify the products they supply, rather than being forced to specialize in only a few area-specific crops and materials; this creates greater scope for biodiversity, which is incredibly beneficial for promoting healthy soil and preventing extensive plant disease.