Buying from SME’s today… help define the key issues post COVID (VIRTUAL)

Increasingly we seem to be sourcing from smaller suppliers – SME’s – as a percentage of total spend. Either by policy (such as in Federal Government) or by buying local (as a policy, or to reduce supply risk). 

Federal commonwealth buyers, some state govt buyers and many local councils have regulated BUY LOCAL policies. Other drivers like indigenous procurement policy, community focussed support, anti-slavery considerations and reduced supply-chain risk also tend us towards using smaller suppliers – even as we outsource ever more of our business operations. Reducing supply risk can also drive us towards buying locally …  

Yet, to what extent do we make allowances for SME suppliers to give us their best possible support? Compared to large corporate behemoth suppliers? Do they have to comply the same? Should they? Can they be as transparent?

And, since Australia and New Zealand are already oligopolies, are we actually increasing risk by buying from smaller companies now? As professional procurement managers what should we be doing to enable better supplier performance and more secure supply lines from SME suppliers? Ultimately, what is best practice in dealing with small suppliers?

IF you buy from small suppliers, join this PASA CONNECT Roundtable to share best practice and discuss the best solutions to optimise supply and risk