The Benefits of Local Suppliers
What are the real benefits for Australian installation project management and procurement teams in sourcing locally?
Sourcing locally offers several key benefits for project management and procurement teams, and Australian installers. From cost to quality assurance, locally-sourced products have the added benefit of being provided by national suppliers. Communications, dispatch, delivery and even the possibility of face-to-face connections all add to this.
Though offshore products may reduce your bottom line, the truth is that they are often inferior and any issues that need to be resolved can swiftly and significantly diminish any savings you may have made. They often also incur higher shipping costs and may not meet the stringent quality control or regulations of national products, which can prove catastrophic.
Here are the top four advantages of sourcing locally for your piping supplies:
1. Cost Efficiency & Reduced Lead Times:
Sourcing materials and services locally can lead to cost savings and shorter lead times. By working with local suppliers, project management teams can avoid high shipping costs, customs fees, and import taxes associated with sourcing from overseas. Additionally, shorter transportation distances result in reduced delivery times, ensuring timely availability of materials and equipment. These cost and time efficiencies contribute to overall project budget adherence and improved project scheduling.
2. De-Risking the Supply Chain
Lets face it: in construction, unforeseen delays are every contractors nightmare. Having critical components coming in from offshore adds a whole new level of complexity, and therefore risk, due to potential logistical issues. By sourcing locally, you have complete control of your supply chain, ensuring that commitments to clients are met, and projects run to budget with less, and are completed on time. Having a local supply chain also provides greater flexibility, with increased opportunity to expedite or delay deliveries as the project programme requires it. It may be that deliveries can be coordinated to reduce excessive up-front financial outlay, as is often the case with imported product.
3. Quality Assurance & Customisation
Sourcing locally enables project management teams to maintain better control over quality assurance and customisation. They can collaborate closely with local suppliers, visiting their facilities, and assessing their production processes firsthand. This direct interaction allows for clearer communication, customisation of products or services, and quicker resolution of any issues or concerns that may arise during the project. Local suppliers are more likely to be responsive and adaptable to specific project requirements, leading to improved quality control and a higher degree of customisation and success.
4. Building Strong Relationships & Supporting the Local Economy
One of the significant benefits of sourcing locally is the ability to build strong relationships with local suppliers. Procurement teams can establish long-term partnerships based on trust, reliability, and mutual growth. These relationships often result in better communication, increased collaboration and improved problem-solving capabilities, with suppliers better able to understand specific project requirements.
Local suppliers are more accessible, allowing for regular site visits, face-to-face meetings, and effective coordination throughout the project lifecycle. Furthermore, by sourcing locally, project management teams actively contribute to supporting the local economy. They help create and sustain job opportunities within their communities, promoting economic growth and stability. This support fosters goodwill among stakeholders, enhances the reputation of the project and the organisation, and can lead to future collaborations and referrals.
The bottom line is that sourcing locally provides project management and procurement teams with cost efficiency, improved quality control, and community engagement. These benefits contribute to successful project delivery, optimised budgets, enhanced customisation, and the growth of local economies. By prioritising local suppliers, project teams can establish robust partnerships, streamline communication, and strengthen their overall project management capabilities.
Discuss your project requirements with our team of local experts.