In a world of global commerce and supply chains, it can be easy to forget how important local industries are to our shared prosperity and growth.
However, there are numerous compelling reasons to choose Australian made products. From promoting job opportunities and community resilience, to ensuring product quality and safety, and securing a more sustainable supply chain, it’s clear that buying Australian made has many benefits.
At Procurement Australia, we understand that the benefits of thoughtful procurement go far beyond the product or purchase itself. Through our partnerships with local, industry leading suppliers, we see the far-reaching economic, environmental and ethical flow-on effects of buying local.
📈 Economic benefits of buying Australian made
Perhaps the strongest reason to buy Australian made products is the positive impact it can have on the local economy.
Choosing to purchase locally made products equates to choosing to contribute to the growth and sustainability of local businesses. This in turn helps to create and maintain job opportunities that bolster the entire nation’s economic health.
Australia’s economy is a vibrant and diverse one. From agriculture and manufacturing to design and technology, Australia is home to both established industries, and sectors with the potential to grow. This diversity and potential helps to provide employment opportunities to countless employees throughout every corner of the nation.
However, this vision is dependent on an important factor: sustained demand for Australian made products. By buying and supporting Australian made products, we all play a part in growing and sustaining our local economy, and those who rely on it for secure livelihoods. Similarly, buying locally can significantly reduce reliance on potentially unstable or risky international imports, thereby minimising supply chain risk with lower delivery costs and increased supply certainty, even during uncertain times.
🍃 Environmental benefits of buying Australian made
The focus of companies and industries both local and worldwide is increasingly turning to Environmental, Social and Governance (ESG) issues. In response to this spotlight, supply chains are becoming the new frontier for sustainability.
As a recent report from Ernst & Young outlines, more than 90% of an organisation's greenhouse gas emissions, and 50% to 70% of operating costs, can be attributed to supply chains.[1] In the face of such high emissions percentages, many organisations are seeking ways to create long-term value in their supply chains, while also staying cognisant of risk and compliance requirements.
One path some organisations are taking to achieve this mix of goals is by choosing products manufactured locally. When goods don't have to travel long distances to reach their final destination, it reduces the energy consumption associated with transportation – a crucial factor in the fight against climate change.
While every organisation’s sustainability goals will look slightly different, there are several common elements that suppliers need to demonstrate to individual consumers and aggregators: greater visibility of internal practices, incorporation of sustainability outcomes, and perhaps most importantly, an understanding of how to incorporate economic benefits within an end-to-end procurement approach.
⚖️ Ethical benefits of buying Australian made
Supporting local businesses isn’t just a throwaway line. The practice of buying locally comes with a range of tangible benefits that affect individual lives throughout the supply chain.
For example, Australian made products are subject to some of the strictest quality standards and regulations worldwide. This high standard ensures that consumers receive goods that are of the highest quality and abide by stringent safety guidelines, in turn inspiring consumer confidence in Australian made products from food safety to manufactured elements.
Australia also has a strong commitment to fair labour practices, workers’ rights, and ethical production. Regrettably, not all countries are in step with Australia’s strict labour laws. Modern slavery, including human trafficking, forced labour, and forced marriage, remain rampant in some areas of the world. Their existence trickles into the practices of global supply chains, including the conditions under which products are made.
By choosing Australian made products, final consumers can trust that they have been produced under ethical conditions, ensuring fair treatment of workers and adherence to the Modern Slavery Act 2018.
💁How we support Australian made products
Choosing to buy Australian made products is a decision that goes beyond one reason or benefit. It’s a choice that can help support the local economy, preserve jobs, inspire innovation and sustainable practices, and uphold ethical standards throughout every stage of the procurement process.
At Procurement Australia, we’re conscious of the buying power we have behind us to make significant choices that affect the final products available to our members. That’s why wherever possible we engage local suppliers that make Australian products that benefit all Australians.
Through our latest partnership with Complete Office Supplies (COS) we’re working towards securing an office supplies supply chain for members that is local, sustainable and Australian-owned.
References:
[1] Alves, R A et al, ‘How sustainable supply chains are driving business transformation’, Ernst & Young: https://www.ey.com/en_us/supply-chain/supply-chain-sustainability-2022#:~:text=Focusing%20on%20supply%20chains%20is,are%20attributable%20to%20supply%20chains.
Source: Procurement Australia