Want a stronger, more resilient supply chain? Look locally.

Here’s how local suppliers help grow your business — plus, three tips to find local suppliers that meet your needs

1. Attract More Customers

Today's consumers are community-conscious and crave fresh, local flavors. 57% of Americans say they shop at small businesses in order to keep money in the community,[1] and 56% prefer local food.[2]

2. Lower Shipping Costs

Between tariffs, duties and overseas freight costs, global supply chains can get expensive — especially for perishable goods like fruits and veggies. Sourcing locally helps keep these costs low. 

  • The average cost for ocean freight is $0.25-$0.40/pound.[3]
  • The average cost for air freight is $1.15-$2.30/pound.[3]

3. Gain Flexibility and Control

Work with local suppliers to helps shorten lead times by eliminating overseas freight. That means you’ll get fresher ingredients, plus more flexibility to adjust to fluctuating market demand.

4. Reduce Your Carbon Footprint

Just eight global supply chains emit more than half the world’s annual greenhouse gas community.[4] Source locally to reduce your supply chains' fuel consumption.

5. Access Hyper-Personalized Service

Local suppliers are plugged into the local business community — this helps them anticipate and understand your needs, and tailor their offerings to match.

3 Steps to Localize Your Supply Chain

1. Set Clear Goals

Localizing your supply chain can be a gradual process, and you may need to rethink your offerings with local ingredients and materials in mind.

Select which local ingredients, products, and services you can easily source locally, and then set medium- and long-term goals for the future.

2. Identify and Evaluate Local Suppliers

Network with other businesses in your area to identify potential suppliers. Make a shortlist of available resources.

Ask potential suppliers:

  • Which materials can you supply?
  • What is your production/harvesting capacity?
  • What are your typical lead times?

3. Negotiate Payment Terms

New suppliers provide an opportunity to secure favorable terms that will help strengthen your cash flow, such as longer payment terms or discounts for early payments.

Here to Help

Learn more about how PNC can work with you to develop strategies to manage your supply chain and find the right financial solutions to help your business grow.