In today’s globalised economy, many businesses are facing the reality of the complexities of distant suppliers. More and more businesses are turning to Authenticate to localise their supply chains within a specific geographical region.  

After years of global supply chain disruption, many businesses are realising the true cost of cheap products and services. To strengthen their supply chain network and business practices, nearly two-thirds of American manufacturers are “likely” to bring production and sourcing back to their home continent. 

This article will be discussing the sustainable supply chain practice of long-term localisation and how Authenticate can help your business localise your supply chains.  

What is supply chain localisation? 

Supply chain localisation refers to the process of shifting a supply chain to focus on goods and services from local suppliers within a geographical region. Distant suppliers can come with many complexities, and the more local a business’s supply chain suppliers are, the more reliable and efficient their supply chain processes are.  

What are the benefits of localising your supply chains? 

Improved risk management 

Businesses can reduce their vulnerability to external risks when they localise their supply chains. Geopolitical conflicts, natural disasters, trade disputes and transportation issues can cause disruptions to global supply chains.  

Localised supply chains allow for better control and agility when responding to unforeseen events. This, in turn, facilitates a more dependable and consistent flow of goods and services. 

Reduced costs 

When businesses have a local supply chain, they are more likely to save money. Shorter transportation distances lead to reduced logistics costs, such as warehouses and shipping expenses.  

Sustainable practices 

Supply chain localisation has social and environmental benefits. If your business has sustainability objectives, localised supply chains can reduce the CO2 emissions typically associated with long-distance transportation.  

The benefit of localised supply chains is that they facilitate a reduction in greenhouse gas emissions and demonstrates a commitment to sustainable business practices.  

Effective quality control 

Localised supply chains allow businesses to perform effective quality control. Proximity to suppliers allows for frequent inspections of products, ensuring they meet the right standards and are suitable. Localisation also makes supplier management an easier process.  

Effective regulatory compliance  

Localising your supply chains can help your businesses comply with local regulations and legal standards such as product safety regulations, labour laws, and environmental standards specific to the UK. This minimises the risk of non-compliance issues, penalties, and reputational damage. 

How can Authenticate help you localise your supply chains? 

Audits and assessments  

By conducting thorough audits and assessments, businesses can evaluate potential local suppliers. Businesses can assess suppliers’ capabilities, quality standards, and compliance with regulations to help identify reliable suppliers who align with the business’s requirements and values.  

Audits and assessments can also help businesses identify potential risks associated with local suppliers, such as financial instability or inadequate quality control systems.  

Businesses can also use this tool to assess if local suppliers are complying with regulations, laws and ethical practices.  

Supply chain mapping 

Authenticate offers a supply chain mapping tool to aid in localising your supply chains. Our team thoroughly maps out supply chains to understand the different stages and processes involved in sourcing your goods and services.  

With this information, we work with you to assess the feasibility and potential for localising each stage of your supply chains. By understanding the geographical proximity of suppliers and customers, we work with businesses to strategically identify opportunities to source from local suppliers.  

Businesses can use Authenticates supply chain mapping tools to identify any inefficiencies and risks within their supply chain to allow for targeted improvements to enhance their overall supply chain practices.  

Are you wanting to localise your businesses supply chains? Contact Authenticate today.  

For more information on the Authenticate platform or to discuss your challenges and requirements, get in touch with the team.