This article was written for and first appeared on First5000.com.au on August 25 2021
As COVID threatens to disrupt global supply chains for years to come, Australia’s big businesses must stop overlooking local talent when tackling the country’s greatest challenges.
Australia has world-leading startup talent in cutting-edge fields from agtech and robotics to finance and professional services.
Unfortunately, this talent has long struggled for recognition as large businesses look overseas rather than take advantage of the expertise in their own backyard.
Looking closer to home for talent doesn’t just make your supply chain more resilient, it also fosters that local expertise – which can then give you a competitive advantage on the world stage.
It’s not just about buying from local suppliers, it’s about engaging them and investing in them to extend the capabilities they can provide to your business.
While COVID creates uncertainty, it’s not the only disruption Australian businesses will face. Investing in the capabilities of local supply chain partners is an investment in their own future. With just a small boost in income from big organisations, medium-sized businesses could give a significant boost to the Australian economy.
Research from the University of Melbourne and Cambridge demonstrated that just a 10% increase in revenue would translate into a 35% increase in cash flow over 5 years. In turn, that means a 25% increase in company tax payable – funds that Australia needs as the economy tries to recover from the initial impact of the COVID 19 pandemic.
Forging closer relationships with nimble local suppliers makes it easier to develop custom solutions to meet specific needs. It also helps strengthen the Australian economy to weather the challenges which inevitably lie ahead.
It’s certainly easier to do business with a supplier based on the other side of town, rather than the other side of the world – especially when global supply chains are plunged into chaos.