Helping Government Agencies Invest Locally

The Benefits of Shopping Locally

Shopping locally has many benefits, the most significant being, to be able to direct dollars spent back to your community. According to the American Independent Business Alliance, local dollars recirculate within the community 2-4 times more than money spent at a non-local company. As your dollars move through your community, the money generates more local wealth, charitable contributions, and jobs.

While you may already know that shopping locally helps grow the local economy, there is an added positive impact that it can have on the environment. Shopping locally also means shorter delivery time, which leads to less pollution. In 2020, the United States transported and shipped an average of about 55.2 million tons of freight daily, equating to 1.6 billion metric tons of carbon dioxide.

Shopping locally may seem like a great opportunity; however some government agencies may face challenges in sourcing local sellers due to regulatory restrictions. Agencies must ensure a fair and ethical process when purchasing products. Partnering with procurement experts can make it simple to search for local, small, and diverse sellers while meeting transparency and quality control standards and maintaining a familiar self-service buying experience.

Here are some ways your agency can invest locally:

1. Establish defined ESG goals

While there are currently no defined environmental, social, and governance (ESG) policies within state and local government, agencies are feeling pressure from taxpayers to pay more attention to where and how their taxes are being spent. To keep the public’s interest in mind, establishing a list of defined and realistic goals your agency wants to achieve in the next six months to a year should be your first step. These goals should:

• Address what is vital to the community and mission of your agency—such as buying from various small businesses from select cities or counties in your state.
• Educate employees on how these goals will meet the concerns of the taxpayers

2. Purchase products with local certifications

Once goals are defined, purchasers must find products that meet ESG goals. Organizations first need to assess whether current suppliers or partners meet your organization’s ESG standards. One way to simplify the process is to explore procurement solutions that enable account administrators to set up diversity certification buying policies. Choose which seller certifications would apply to your agency, locations to purchase from, and Amazon Business will automatically mark those types of sellers as preferred for your buyers.

Amazon Business recognizes 150+ certifications from national certification bodies, including the Section 889 attestation form, the Small Business Administration, the Department of Veteran Affairs, and others that make it easier for purchasers to identify local and diverse spending. Centralizing purchasing that supports ESG goals helps organizations operationalize and scale responsible purchasing programs. 

3. Track and grow your progress

It's essential to track current spending and monitor buying patterns once goals are established to quantify impact, show accountability, and highlight wins and opportunities. Tools such as Amazon Business Analytics can help your organization gain visibility into your team's purchase history and ensure they purchase from preferred local, small, and diverse sellers. Look to simplify reoccurring reporting with pre-built reports and dashboards to improve transparency into your organization's purchasing and spending trends by individuals or groups. Measuring progress and reporting impact are critical to helping organizations save time and money, driver faster decision-making, and influence smart spending habits across your agency.

Adopting and monitoring ESG goals within your agency is a long-term effort that will ultimately benefit the common good. With Amazon Business, we help public purchasing meet transparency and quality control standards while delivering a familiar self-service buying experience.