The procurement of raw materials, machines, their components, and any third-party service from within the same country is called domestic sourcing. In one of our previous posts, we have talked about the downsides and upsides of domestic sourcing. In this two-part post, we will remain focused on how your enterprise can make the most of domestic sourcing.
Stress Over Quality
When you partner with local suppliers, you should make quality assurance a one-point agenda with them. Make sure you meet them often and escalate the point regarding quality. By doing this, you can procure better quality from local suppliers compared to your competitors.
Take Advantage of Consignment Inventory by Working with Local Suppliers
When you work with local suppliers, you have the option to mull over the idea of consignment inventory. By offering favorable invoice terms to local vendors, you might be able to do run your operations without tying up too much of your capital in inventory.
Protect Your Patented Products
It is very difficult to identify, escalate, and resolve copyright infringements and patent steals when you source from low-cost countries. For all such products that involve intellectual property, you should partner with dependable local vendors. Using domestic sourcing for IP-theft sensitive production also makes it easy for you to file lawsuits and follow them if things go south.
Supporting Local Suppliers Improve Industry Reputation
Enterprises that establish a network of local suppliers for their procurement manage to get an esteemed position among peers. Better industry reputation translates into both tangible and intangible benefits.
To streamline your domestics sourcing, you should deploy SimplyPurchasing in your procurement department. This robust procurement management software works on many fronts to improve organizational performance. It improves the procurement process and helps you get a better hold of sourcing and contract management.