Social procurement is a term that refers to instances where a company’s supply chain adds value to the community beyond that which is offered by the products being produced. It is gaining popularity as we move towards more ethical and sustainable processes, and the best bit is, everyone wins when this type of strategy is employed. That’s why today, we’re exploring how social procurement can benefit your business:
A More Sustainable Supply Chain
One of the biggest benefits of social procurement for businesses is that your supply chain will become far more sustainable, both in terms of reliability and environmentally friendly status.
You’ll essentially be able to wave goodbye to delays and missing shipments that are caused by international shipping or customs issues, and you’ll find that your wait times should decrease as well. This is because you’ll end up working far more with local providers, which is great for the community as well as the stability of your supply.
Better Public Relations
You’ll also improve the standing of your business within the community as you’ll be seen as someone who cares about locals and wants to build a brighter future for everyone. This creates a positive atmosphere and means people will be more likely to choose your business over the competition, even if your product is slightly more expensive.
A Boost For The Local Economy
Another great benefit of social procurement is that it boosts the local economy. By extension, this creates more jobs as there will be more work to go around, which means that everyone, including your business, will have more money in the bank.
A better-performing local economy also improves job security, which encourages individuals to spend on their wants and needs rather than saving all of their spare funds for a rainy day. This equals higher profits for businesses and a self-perpetuating cycle of positive change.
A benefit of social procurement that you may not have expected is that it can actually improve the security of your physical location. Stronger local economies and more positive environments both help to lower the crime rate in an area.
This means your business will be less likely to suffer losses as a result of crime. It may even save you some money on your insurance premiums as safer communities tend to attract lower costs.
More Inclusive Workforce
Finally, social procurement leads to more inclusive workplaces. Because you are interacting with others within your local area on a more frequent basis, you will naturally meet a more diverse range of individuals with skill sets that can benefit your business. When this is coupled with the creation of extra employment opportunities within the community, a more inclusive and diverse workforce will form.
This allows companies to take advantage of different points of view and could even lead to the next big innovation within your business, meaning that not only does everyone win in general, but you may also win big.
Social procurement offers many benefits for businesses, individuals, and the community as a whole. By creating supply and distribution chains that are both more ethical and sustainable, these perks then ripple out into wider society. This creates positive change across many aspects of society that cycle back and further improve quality of life for everyone functioning in the interconnected system.
The benefits outlined in the article are just the beginning. The more businesses start practicing social procurement, the better things will be for everyone.