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Reduce the time
Reduce costs
Availability of materials
Minimize the risk points
Technical support fast
No need for more stores
Buying on credit
Encouragement to local suppliers
Contributing to the growth of the nations's economy.
Transfer of some of the procurement & freight forwarding risks to the suppliers.
Eliminating or minimising issues related to quality & delivery.
Supplier has the opportunity to reduce costs
Supplier can suggest methods for improvements to customer.
In addition to all above answers by the Experts which are all right, I would like to add that Local Purchases increase the Country's Annual Gross Domestic Products (GDP) which in return increase the country's economic strength and monetary value/power (currency), and will also increase the local competition keeping it more healthy, and decrease the unemployment (more local purchases means more local suppliers which in return will create more positions/vacancies),
Fast delivery, cost benefit and reduce of the cost sales, avoid out of stock, receiving good quality and avoid any damages, avoid overstocking and high inventory value. The local procurement is perfect for the just in time method, perishables and short shelves goods. Even dealing with local supplier is smoother than with international ones, easier to solve any conflict or agreement arrangement.
Purchasing local ...
short notice delivery (same or next day delivery)
you know your vendor
inventory can stay at vendors place and they are doing inventory for you
you are supporting in the local economy
delivery free to your dock
no import export or freight broker needed
credit because a person been recognised working for a company charging the account.
Payment of credit I will leave off, since I have been issuing PO's and have paid local and other vendors the same way and our managers have their own credit cards to use.
Of the most important benefits of local procurement
Reduce the cost value
Direct follow-up
Transportation value
It depends on the nature of project / industry requirement.
In Saudi arabia, specially Delivery time, payments, easy replacement, fast negotiation, selection of products with its quality required and many more.
Reduce the time
Reduce costs
Availability of materials
Minimize the risk points
Technical support fast
No need for more stores
Buying on credit
Less lead time
Purchase in credit
Less transportation cost
Custom clearance hassle free
Less warehouse requirement
easy access
Local purchase will tend to apply the SMART and holistic concept, thus making an organisation to have better & flexible business terms with their internal and external suppliers/customers.
Local procurement has some advantages in different directions such as but not limited to ;
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