Suvidha and Sumedha were friends and batch mates in MBA. They started a business called 'Locosilks', a start-up which procures silk garments locally for exporting to other countries. This idea came from their strong unde

Local procurement refers to the purchase of goods and services from local businesses. Typically, this occurs in emerging markets and in developed markets where local communities have expectations about participating in new opportunities (such as Australia and Canada). Also known as business linkages, local supplier development, local content or local sourcing, local procurement is increasingly favored as a strategic business tool by international companies in the extractive industries. Local procurement requires a real commitment from the company to work with and build capacity of local suppliers in a way that enables them to become more competitive and profitable. Typically, these suppliers will be small and medium enterprises (SMEs). To compete for bidding and contracting opportunities local SMEs will often need training to bring them up to the required operational, safety, environmental and technical standards. A local procurement program (LPP) seeks to bridge the gap between the standards of the contracting company and the existing capacity of SMEs. It does this externally, through the provision of training, mentoring, and other support for SMEs, and internally, through a concerted effort to identify opportunities, communicate the business case and incentivize staff to commit to local procurement. Local procurement can provide a range of benefits for companies, suppliers and supply chain alike: It benefits the local suppliers: By keeping business local, the company will enjoy greater support from the community and deliver social value. It helps meet CSR targets: Publicly procured projects have defined levels of local spend, so working with local suppliers will help the companies reach those targets. It can shorten timeframes: With material challenges throughout the supply chain, working with suppliers that are local to the project may help reduce the time needed to source what is required. It can help reduce costs: As fuel prices remain high, having local suppliers can lower the cost of transporting materials and reduce the logistical requirements. It provides environmental benefits: By reducing shipping and storage, the overall environmental impact of the project (in terms of carbon footprint) is lessened. Projects that embrace local procurement can add significant value for both the consumer and supply chain alike. By investing in local procurement, projects can directly support local economies through quantifiable apprentices, new jobs, safeguarded jobs and work placements. If the further benefits of reduced costs and lowered carbon emissions, as well as shorter and less logistically challenging pathways for material delivery and storage are factored, it is clear that taking a more localised approach to procurement can have benefits for all concerned.