There are many opportunities for organizations to benefit themselves, as well as the economies that sustain them, by making minor adjustments to the way that they purchase goods and services. This report outlines strategies and paths that policy-makers, sustainability managers, procurement professionals and others involved in institutional purchasing decisions can pursue to realize this potential.
Around the world, there is a growing movement to support local economies, and various approaches are being taken in different places. Great benefits come from strong, resilient local economies, and many opportunities exist to take small steps that can majorly benefit our public institutions, businesses and communities. If purchasers are ready to take on leadership roles, the tools and solutions detailed here are effective ways to expand local purchasing and strengthen our communities.
Part I outlines the argument for local procurement. It demonstrates the power that institutional procurement has over the economy and highlights opportunities for change by examining the current landscape in Canada, the United States, Australia and the United Kingdom. It details how local economic impacts fit within the definition of value when attempting to achieve best value inprocurement.
Part II and III identify tools that can be used by institutions and policy-makers to increase local procurement. They outline a number of challenges, and details solutions that are currently being used. Examples of the tools have been included along with references to material for further research.
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Content
PART I: THE STATE OF LOCAL PROCUREMENT
Introduction
The Purpose of Procurement
The Power of Procurement
The Opportunity of Procurement
The Current Landscape
United States
United Kingdom
Australia
Canada
Summary
PART II: CHALLENGES
Overview
Challenges to Increasing Local Procurement
Trade Agreements
Internal (Interprovincial) Trade Agreements
International Trade Agreements
Challenges for Small and Medium-Sized Local Businesses
Challenges Faced by Procurement Departments
Challenges with Local Business Lack of Capacity
Lack of Leadership and Collaboration
PART III: SOLUTIONS AND TOOLS
First Steps
Policy Leadership and Management Commitment
Define Local
Leakage Calculators
Targets
Greater Engagement
Reverse Trade Shows
Work with Large Suppliers
Pre-procurement
Broader Advertising
Requiring Some Local Businesses in Bidding
Tailoring RFPs to Local Businesses
Process Improvements
Databases
Procurement Cards – Speed of Payment
Simplify Tender Documents
Unbundling
Tie Locality to Other Value Based Goals
Tie to Small Businesses
Tie to Social Ventures
Tie to Sustainability
Tie to Minority and Female Owned Businesses
Move Towards “Total Cost”
Inclusion of Values in Score Cards – Give Local a Weight
Measuring Local Multipliers (LM3)
Inclusion of Tax in Bidding
Notes for Policy-Makers
Municipal
Provincial
Federal
CONCLUSIONS
Format
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