The Benefits of Sourcing Inventory Locally, in Britain

With ever-changing external conditions for businesses and environmental consciousness growing for customers, “shop local” is something we are hearing more each day. 

Whether it’s clothing, homeware, fresh food and drink, or other essential products, consumers and brands have both highlighted the presence of locally sourced produce.

It could be due to being more environmentally aware, choosing more sustainable products and sources, or looking for better, fresher quality of product purchased. 

And with a conscientious shift occurring in customers thinking about what they are buying and where they are buying from, there are a number of benefits to sourcing inventory locally, in Britain.

With businesses facing so much change over the past few years and innovation always on the table, looking at ways to be agile, resilient and flexible is key to staying afloat. 

Table of Contents

• Reduced carbon footprint

• Faster delivery

• Greater customer satisfaction 

• Supports the local economy and community  

• Quality control

• Alignment with local markets

• Mitigating supply chain disruptions

• Greater collaboration

• Cost savings

1. Reduced Carbon Footprint

Whilst customers in Britain and worldwide started to look at their own habits, behaviours and carbon footprint, the magnifying glass was also placed on businesses and organisations.

For many customers, they now look for companies to share their environmental concerns and efforts, with those focused on this more likely to buy from businesses who talk about and source products locally. 

And this is not just a focus for customers. In a 2023 survey from the Nasdaq Centre for Board Excellent and WTW, they found 75% of board members worldwide agreed that a coherent environment, social, and governance (ESG) strategy helps create sustainable organisational value and stronger financial outcomes. 

With businesses looking for more environmentally-friendly solutions, sourcing inventory locally has its part to play in this by minimising transportation distances and as a result, lower carbon emissions associated with the shipping of goods. 

So whilst sourcing inventory locally has a number of other benefits, for businesses looking at the environmental impact of their operations beyond environmentally friendly packaging, looking a bit closer to home could help improve sustainability efforts.

2. Faster delivery

There are a number of solutions businesses utilise to help improve the customer experience of the purchasing process.

From inventory management softwares to more efficient scanning and packing offerings and shipping software, ensuring customers receive what they order on the day they expect to is key to increasing the chance of repeat customers. 

But when it comes to delivery, supply chains can make all the difference to the customer experience, particularly if timings start to increase. 

In fact, a BDO global risk landscape report found 52% of companies agreed that the risks of a large complex supply chain now outweigh the benefits, with an overwhelming 89% admitting that the disruption of the last 18 months has revealed weaknesses in their supply chain.*

Further reading: Why Global Unrest Drives Local Supply Chain

When sourcing inventory locally, it usually means shorter supply chains and as a result, faster delivery times. Deliveries can be more prompt for your customers and the lead times can be reduced, a win-win for businesses and customers alike. 

*Accurate as of 1.03.2024

Further reading: How to Choose the Best Shipping Software for your Business 

3. Greater customer satisfaction 

There is no greater inconvenience for a customer than receiving something they did not want, a product with poor quality, a cancelled order, or an order that never turns up at all.

With tools and features like forecasting and analytics available, they can help prevent stockouts and reduce the risk of customer dissatisfaction. And when it comes to sourcing inventory locally, it opens up chances of more prompt order fulfillment. 

Without delays in international shipping or supply chain complexities, customers can receive their goods faster and when they need it due to the faster delivery. Perfect for last minute party costume orders or outdoor furniture when the British weather takes a spontaneous turn for the better!

4. Supports the local economy and community  

Similar to how preparing for boosting sales in key calendar dates promotes business success, knowing where to source inventory locally can help suppliers and other businesses too.  

Sourcing inventory locally in Britain means supporting local businesses and communities.

Not only does it help foster a closer relationship with businesses closer to home, it also champions and supports local businesses and communities with great products and offerings to hand. 

While the focus for business owners is business growth and expansion, by supporting local businesses, local jobs can be sustained, and economic growth and prosperity of the region can continue, which feels like a big win for businesses and their local business partners. 

5. Quality control

Working with international inventory providers can be cheaper or offer greater discounts when buying en masse, but there are a number of challenges that can arise.

Perhaps quality control is not as good as it should be, maybe you need to get in touch with your suppliers in other countries and they don’t respond for days, if at all?

Lost time can mean lost money. As well as lost repeat customers, and by being closer geographically to suppliers, there may be less oversight and greater management of product quality. 

Sourcing and automating inventory from businesses and suppliers closer by makes it easier to foster closer relationships with them, ensuring quality standards are adhered to and any issues be resolved promptly. 

Further reading: The Best Alternatives to Linnworks for Inventory Management 

6. More alignment with local markets

Similarly to the benefits of being geographically closer to suppliers, sourcing inventory locally can help improve the relevance to local customers.

Products are typically tailored to local tastes, preferences, and regulatory requirements which all helps with the product relevance to the target local market. 

7. Mitigating supply chain disruptions

Sourcing product globally can open up certain new avenues of opportunity but opens businesses up to greater disruption risks out of their control.

Sourcing products locally can help reduce the risk of external disruptions caused by factors such as international trade disputes, geopolitical tensions, or natural disasters. 

By depending on local suppliers more and distant suppliers less, there can be more security when it comes to mitigating potential supply chain disruptions.

With so much out of our control as business owners, sourcing stock closer to home can help with at least this aspect of the chain, even if you still need to track inventory changes across stores and locations. 

Further reading: Automation Tools for Online Sellers

8. Greater collaboration 

Being closer to suppliers can help closer collaboration and stronger communication grow.

Not only can this help foster better relationships as mentioned earlier, but on a practical level it can create space for more effective problem solving, potential co-development of products, and innovation. 

Instead of working as separate entities (business-and-supplier), this can help work towards mutual business success. 

Being nearer suppliers can open up opportunities to meet in person, get clearer understanding first hand of specifications, and even open up avenues for custom designs.

Looking at prototypes sooner in the design and quality process, and having more time to make amendments vs a product being designed abroad and taking much longer to arrive. 

8. Cost savings 

Although buying products from supplies overseas can be cheaper at scale, looking at the bigger picture is key to assessing the benefits of sourcing inventory locally, in Britain. 

From tips on reducing seller costs on Amazon to inventory pricing checks, consulting what money is coming in and going out is crucial for any business.  

With the cost of shipping sky-rocketing due to the pandemic, sourcing from overseas is not always the most cost-effective solution for many businesses, and can for some, actually be an impractical solution. 

Sourcing locally has many benefits and while sourcing products locally may not always result in lower costs, compared to global alternatives, it can offer cost savings in certain aspects. This can be in the form of reduced shipping expenses, lower inventory carrying costs, and minimised risk of currency fluctuations. 

And whilst cashflow and boosted savings is key for any business, this is just one benefit of sourcing local inventory, in Britain.

Sourcing Locally is the Path Forward

As we have seen, not only does sourcing inventory locally open up cost considerations, and pose logistical and operational advantages, it can provide benefits for the environment, local economy and businesses and beyond.

And being a business that can do its bit to give back? That’s an organisation a lot of customers might like to buy from.