Progressive procurement of goods and services

Develop dense local supply chains of businesses likely to support local employment and retain wealth locally. These include SMEs, employee owned businesses, social enterprises, co-operatives and community businesses.

Challenge

When it comes how money is spent and services commissioned by anchor institutions, cost is often the dominant determining factor in who gets the contract. Environmental credentials, social value and decent employment conditions tend to be weaker considerations.

Solution

Community wealth building promotes the progressive procurement of goods and services, as this spending power can be a means through which greater economic, social and environmental benefits can be achieved. By adapting their procurement processes and decision making, anchor institutions can create dense local supply chains and ecosystems of businesses that are more likely to support local employment and have a greater tendency to recirculate wealth and surplus locally.

CLES and Making Spend Matter have developed a spend analysis tool and guide to help you understand how you can harness your procurement spend to make a difference for your place and communities. Learn more.