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Public sector, Latest news


THE IMPACT OF BUYING LOCAL IN PROCUREMENT

Purchasing from local suppliers strengthens supply chain resilience and deepens
community ties.
Published on 30 November 2023
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 * 
 * 
 * 

As procurement practices become more integrated into larger organizational
strategies around social responsibility, companies are paying closer attention
to their supplier base and actively seeking diversity—supporting minority-,
women-, and veteran-owned businesses or suppliers that can help meet
environmental, social, and governance and corporate social responsibility
targets.

 

To that end, there is a growing push to identify local suppliers from within the
communities in which organizations reside. Frequently these initiatives are
driven by regulatory guidelines (most often in the case of public sector
entities), but there is a rising appreciation for the value of local buying
beyond questions of compliance. For starters, it helps deepen the connection
between a business and the community. But the benefits run deeper. “Local buying
is good for small businesses and our third-party sellers, but it’s also good for
our local communities,” says Antwuan Griffin, general manager, socially
responsible purchasing, Amazon Business. “One of the things the pandemic taught
us is the intrinsic value in strengthening our local supply chains and making
sure our small-business communities are thriving, so they have sufficient
capacity. It’s all part of a smarter approach to business buying.”

 

Happily, local buying is a space in which the value to the business and the
values of a business can successfully align, says Lynn Meadors, senior customer
advisor at Amazon Business. Investments in the local community can be deeply
meaningful to those making them. “These are not random people who happen to be
in the area. These are the communities in which buyers live, where their
children go to school, where their parents live, and where they grew up,” she
says.

 


TECHNOLOGY AS AN ENABLER

Historically, the biggest roadblock to robust local purchasing hasn’t been want
or willingness; it was all about logistical capacity—endless hours searching to
identify potential suppliers, place and pick up orders, and beyond. “It would
cause operational headaches and bottlenecks,” Meadors says. “It was so
inefficient.”

Griffin agrees.

 

“The biggest challenge is getting actionable intelligence,” he says. People are
willing, even eager, to make procurement decisions that prioritize local
businesses, provided they’re given the means to do it. Leveraging technology is
key to that effort. Companies can use the feature set of Amazon Business, for
example, to identify, highlight, and prioritize local sellers, setting
parameters around pricing thresholds, product offerings, and delivery
requirements.

"We see smart business buying really being leveraged by customers of all sizes
and stripes. For small and medium-sized businesses, this may be the first time
they’ve had an ability to drive purchasing toward other local businesses."

— Antwuan Griffin, General Manager, Socially Responsible Purchasing, Amazon
Business

“It makes it easy for the administrator to set up a preferred buying policy, and
buying local is just one of the many smart business buying policies we use,”
Griffin says. “Products that fall into relevant categories that have been
established as a priority show up first, so it’s incredibly simple for users of
Amazon Business to find something that aligns with what it is they’re supposed
to be buying.”

 

These tools also allow procurement teams to integrate local buying into other
strategic considerations around purchasing, while robust real-time reporting and
analytics provide the visibility required to properly measure success. “The
capabilities of Amazon Business help leaders track progress with an eye toward
goals, from the user or buyer level up through spending groups and to the
organization as a whole,” he says.

 

The ability to identify, onboard, and highlight through Amazon Business also
allows organizations with smaller procurement operations lacking technical
capacity or human bandwidth to take more proactive steps around local
purchasing. This, Griffin says, can be a game-changer. “We see smart business
buying really being leveraged by customers of all sizes and stripes,” he says.
“For small and medium-sized businesses, this may be the first time they’ve had
an ability to drive purchasing toward other local businesses. Historically,
you’ve needed to set up an entire division within your procurement or finance
shop to drive these types of outcomes. Now organizations of all sizes can think
big, and dream of what’s possible through procurement.”

 


THE POWER OF LOCAL BUYING IN ACTION

For Meadors, the potential of local buying isn’t something that’s just for
customers of Amazon Business. At the National Institute of Governmental
Purchasing’s 2023 convention in Louisville, Kentucky, she hoped to use the
presence of Amazon Business at the event to do some tangible good. Having
previously lived in the Louisville area, Meadors was familiar with the landscape
of nonprofit organizations there, and identified one dedicated to youth in
foster care that was in need of donations.

 

The idea was to create toiletry kits that could be distributed to the young
people served by the nonprofit. Rather than simply order what was needed,
Meadors utilized the tools of Amazon Business to refine her search. “I used our
Guided Buying and local buying features, setting up preferences for Kentucky
suppliers so each of the products we were searching for came from a seller in
that region,” she says. “Then I placed the order.”

 

It was a simple process, Meadors notes, but identical to what any other Amazon
Business customer could utilize in an effort to drive local purchasing and
generate the force multiplier it can represent. More than 300 kits were created
and distributed—well beyond what they’d hoped to generate—but Meadors
particularly appreciated how they were able to expand the project’s reach.

 

“We found a local seller, so they got the business benefit. Local facilities
processed it, so we have that layer, and we were giving to a local
organization,” she says. “It’s the idea of making multiple impacts, layered on
top of each other.”

 

Originally published on the Wall Street Journal.

 

Learn more about how you can reshape your supply chain to support diverse and
local suppliers with smart business buying solutions from Amazon Business.

Learn more
Contact sales



LATEST NEWS


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 * ENHANCING GOVERNMENT PROCUREMENT WITH AMAZON BUSINESS
   
   3 ways Amazon Business streamlines processes and empowers procurement teams


 * EMPOWERING RESPONSIBLE PURCHASING: HOW AMAZON BUSINESS SUPPORTS B2B SUCCESS
   
   Achieving a balance between profit and sustainability is vital for
   manufacturers' long-term success in today's dynamic business world.


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