If you’re an importer, wholesaler or manufacturer in Australia, you will know that managing your supply chain is a critical aspect of your business.
In recent times, we’ve seen some significant supply chain disruptions occur. While these can be difficult to manage in a way that is cost-effective and kind on your cash flow, there is one standout alternative that comes with benefits for you, and your local economy — choosing local suppliers!
5 Benefits of Choosing Local Suppliers
Benefit 1. Quicker delivery
When shopping local, the goods can be delivered to you much quicker than if you were to wait for overseas shipping. There’s a vast difference between waiting for something to be delivered from the other side of the world, and waiting for a delivery from the other side of the neighbourhood. With the forecast supply delays in goods from Melbourne, Sydney and Fremantle, timely deliveries are of huge value!
Benefit 2. More flexibility
If a business opportunity arises, you will likely be better prepared to take it on if you’re using a local supplier. Local suppliers may be more responsive, easier to communicate with, and able to quickly fulfil the additional order. If one of your existing customers needs to increase their order suddenly, you’ll be in a better position to meet their needs.
Benefit 3. Reduced costs
Logistics can be expensive! Especially with the increase in shipping container space. By significantly cutting down the distance your supplies need to travel, you can also cut down the cost of logistics. There’s also the added benefit to the environment — Less travelling means fewer carbon emissions relating to the transport of your goods.
Benefit 4. Increased sales
If you’re able to quickly order and receive additional supplies when you need, you’ll be able to take on more orders rather than add them to the queue. With a responsive supplier who can keep up with demand, you’ll be able to efficiently increase your output — this results in more sales, which equals increased revenue.
Benefit 5. Strengthens your local economy
Choosing local suppliers and manufacturers helps to support your community. By doing so, you’re assisting local businesses to survive and create employment opportunities. A thriving community attracts residents from other areas, which will then in turn, help your business thrive.
Use Trade Finance to purchase supplies
Trade finance lets you pay your suppliers upfront when making purchases. By using trade financing, you may be able to:
- Manage cash flow better. You don’t have to worry about coming up with the money to pay your suppliers — trade finance takes care of this for you. Your trade finance facility works together with invoice finance, so the cash flow gap between paying for stock and receiving payment for goods sold is perfectly bridged!
- Secure favourable pricing. Many suppliers may be happy to offer you a discount on your goods when you pay upfront.
- Preserve your working capital. You can use your working capital to invest in other areas of the business, while trade finance takes care of supply expenses.
While local supplies may sometimes be more expensive than their international counterparts, you can think of the extra cost as the premium paid to reduce your stress, fulfil orders promptly, boost your business, and support your local economy. The extra money paid to local suppliers may well be worth it if it means you’re able to keep on top of your orders. Changing up your business by using local suppliers might even see you increase your profitability!
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].