This website provides practical knowledge and tools focusing on social, environmental and economic development issues for companies, civil society, local and regional governments.
A Guide to Getting Started in Local Procurement: For companies seeking the benefits of linkages with local SMEs
June 2011
This Local Procurement Guide is designed to provide tools and resources for companies to effectively integrate Small and Medium Enterprises (SMEs) as suppliers through capacity building and assessment tools, by creating a policy and strategy for local procurement.
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.
Tool to Identify and Prioritize Local Business Opportunities
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
Local Supplier Development Company Self-Assessment Tool
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.