A Guide to Getting Started in Local Procurement: For companies seeking the benefits of linkages with local SMEs
3 good reasons to engage in local procurement:
- Mitigate risk to company operations, by identifying business drivers that make local procurement a strategic business tool and not just a goodwill initiative.
- Respond to government regulations or investment agreements stipulating local content levels, by precisely determining the appropriate definition of “local”.
- Provide benefits to the local community by creating sustainable business opportunities with local enterprises, by designing assessments, models, templates, and programs.
The Local Procurement Guide at-a-glance:
- An excel-based company self-assessment tool (Local Supplier Development Company Self-Assessment Tool);
- A framework to identify business drivers for local procurement;
- Sample Local Procurement Policy clauses;
- A Questionnaire for Supplier Diversity;
- A Tool to Identify and Prioritize Local Business Opportunities;
- Sample work plans and budget considerations;
- Sample key performance indicators; and
- Sample language for local supplier sub-contracting.
The tool is split into a Matrix (Step 1), and working tools (Steps 2, 3 and 4).
The Matrix and tools will guide your through the multi-step process of:
• Identifying potential goods and services for local procurement
• Segmenting short-listed opportunities according to three levels: low risk/easy to higher risk/difficult
• Prioritizing opportunities to tackle in the short, medium and long term
The Local Supplier Development Company Self-Assessment Tool is designed to help companies or institutions with large procurement needs to create a supporting structure that will effectively allow them to use their procurement dollars to maximize the business value that the procurement function can bring.