Successful Procurement Strategies: Driving Social and Economic Impact
Procurement strategies that align with organizational goals while delivering social and economic benefits are crucial in today’s landscape. By focusing on local and sustainable procurement, organizations can foster community resilience, empower small businesses, and create long-lasting impact. Below, we explore standout case studies showcasing how procurement strategies have succeeded in contributing to community building and economic growth.
1. The Greater Manchester Combined Authority (GMCA) – Local Procurement for Local Growth
The GMCA has implemented an innovative procurement strategy that prioritizes local businesses, including SMEs, social enterprises, and community organizations. By focusing on local suppliers, GMCA has stimulated economic growth, supported local employment, and minimized environmental impact. This transparent and inclusive approach ensures equal opportunities for small and minority-owned businesses to bid for public contracts.
Key Outcomes:
- £70m in contracts awarded to local businesses in the last year.
- 500+ local jobs created.
- Reduction in carbon emissions through sustainable local sourcing.
GMCA’s emphasis on integrating social value into procurement decisions exemplifies how local procurement drives community resilience and economic regeneration. For more insights, read about how LocaeRise fosters connections between local businesses and large contractors.
2. The London Borough of Camden – Inclusive Procurement for Social Impact
Camden Council’s procurement strategy centers on securing goods and services that promote local well-being. By collaborating with local charities, social enterprises, and businesses owned by minorities or women, Camden ensures societal benefits from procurement decisions.
Key Outcomes:
- Support for 50+ local community projects.
- 200+ jobs created for disadvantaged groups.
- Over £5m invested in community infrastructure.
Camden’s use of Social Value Scorecards to assess suppliers on their social impact underscores how public organizations can harness procurement to drive inclusivity and sustainability.
3. The Co-operative Group – Ethical and Sustainable Sourcing
The Co-operative Group is a leader in ethical and sustainable procurement. Their robust standards prioritize fair wages, safe working conditions, and environmentally friendly practices. Collaborations with local farmers ensure food is sourced locally, reducing carbon emissions and supporting fair pricing.
Key Outcomes:
- 30% reduction in carbon footprint.
- Support for 500+ local farmers and food producers.
- Improved working conditions for 1,000+ workers globally.
The Co-op’s sustainable sourcing program highlights how procurement can balance environmental sustainability with local economic development.
4. NHS – Sustainable Procurement in Health and Social Care
The NHS has integrated sustainability into its procurement strategy by reducing environmental impact, supporting local businesses, and enhancing healthcare services. Collaborating with local suppliers, the NHS promotes energy efficiency and socially responsible procurement.
Key Outcomes:
- £10m+ saved in energy costs through sustainable practices.
- Support for 100+ local health and social care providers.
- Partnerships with 25+ environmental organizations promoting eco-friendly hospital practices.
The NHS demonstrates how public-sector organizations can leverage procurement for environmental, social, and economic impact.
5. Build Local, Grow Global (BLGG): Supporting Local Economies
BLGG connects SMEs, procurement professionals, and community leaders to strengthen local economies. Through events, training, and summits, BLGG fosters collaborations between organizations and local suppliers.
Key Outcomes:
- 200+ SMEs trained in sustainable procurement.
- 300+ local partnerships formed between SMEs and procurement teams.
- Support for 1,000+ community initiatives via local procurement.
BLGG’s initiatives showcase how collaboration in procurement can generate significant economic and social benefits, driving community growth.
Conclusion
These case studies highlight how procurement strategies that prioritize social value, sustainability, and local economic growth can create lasting benefits for both suppliers and communities. By embracing these best practices, organizations can contribute to community resilience, promote social equity, and drive sustainable development.
Want to learn more about how procurement can drive social and economic benefits in your community? Join BLGG and become part of the movement towards local, sustainable procurement.