Buying Local Pays Dividends
LOCO, in cooperation with Columbia Institute and ISIS Research Center at the Sauder School of Business recently released a report titled The Power of Purchasing that outlines the economic impacts of local procurement. This is a landmark study in the Canadian market conducted by Sauder MBA Alumni Anthony Pringle. While most would agree that purchasing locally has a positive economic effect, Pringle sought to quantify the effect by studying the economic effect that B.C. businesses could have by simply purchasing office supplies locally. Without getting into too much detail (read the report, it’s really well written), Pringle compared the economic effect of purchasing office supplies from a local supply company, Mills Basics, to that of purchasing from a national chain. He found that by employing the former, buyers were able to provide nearly double the economic benefit to the local B.C. community in the form of greater employment as well as higher tax revenue for the local government.
Although many companies still make purchasing decisions based on price alone, there are a growing number of values based organizations willing to look at the greater economic impact that buying can have. With reports like Pringle’s as ammunition for the fight, purchasing managers in Canada will undoubtedly have a greater opportunity to make the case for local buying.