IDEAS

Local procurement: Get the best branding and sustainability outcome by sourcing locally made

Property portfolio assets represent both the most visible aspect of a brand and by far the greatest financial investment.

In the process of guiding clients through the rebranding journey, we evaluate procurement as means of ensuring the best long-term outcome over short-term cost savings. With consideration to time and cost as well as social and environmental legacies, sourcing locally provides value to our clients.

Many of the corporate clients we work with have long-term commitments for their property assets, so choosing the right sourcing strategy has a long term impact. Regardless of whether they are rebranding or building something from scratch, our design solution is never a ‘quick fix’ in the name of convenience or saving time and costs. While it’s easy for clients to be enticed by the lower prices of off-shore procurement, factors like compromised quality and the imposition of logistics, unforeseen delays and freight as well as taxes and the duties are often overlooked.

The other key factor is sustainability; the carbon footprint for freighting products internationally must be a consideration.

Materials
and warranties

When deciding if global or off-shore centralised sourcing is the correct approach to a project, tight product specification is essential to ensure quality standards can be achieved consistently whilst eradicating inferior product substitution. Components and materials like LED lighting, vinyls and paints are not necessarily produced to a consistent quality across the world.

If the likelihood of a rebrand of scale is conducted in a short space of time, then this model may be a viable solution when all things are considered. More often our experience has been that localised projects in Australia and New Zealand can be better sourced locally often achieving an equal if not better cost outcome as well as a ensuring better quality and consistency long term. Establishing and maintaining legacy supply chains means that warranties will be honoured, and any issues can be resolved efficiently. Any future additions, changes or maintenance can be undertaken quickly and consistently to the original design specification.

mycar

A recent case study of this is the mycar rebrand. We worked closely with mycar to carefully assess the risks versus benefits of off-shore procurement to their project. Given the size of this project it was considered due to the perceived potential cost savings. We identified numerous challenges involved in bringing the large volume of product into Australia for a national portfolio, highlighting that the larger the quantity manufactured offshore, the greater the in-country logistics required in distributing the product upon its arrival. The scale also required multiple shipments also adding to cost and potential delays posing a greater risk to meeting the program.

When clients start to weigh up the risks of manufacturing offshore including factors such as programming, against costs in their rebranding journey, the cost advantage becomes negated. Add to these the social and environmental implications and the case for local procurement gains further weight.

The conclusion of our analysis was that the cost advantage was only marginal, this was outweighed by achieving the ambitious project program. The ability to deliver the project inside the projected timeframe delivered a better outcome in terms of brand strategy. Speed to market supported advertising and marketing endeavours which added intangible value to the project.

The quality solution speaks for itself.

mycar

Think local,
act local

Thinking and acting local is the key to sourcing materials that promote positive long-term outcomes in rebranding projects. Diadem has always had great faith in Australian and New Zealand manufacturing capabilities. Adopting an agile and sustainable procurement model will see us continue to shape the built environment in a way that is authentic to each project and location, forging a much wider and positive impact.

We understand how important it is to build a sense of trust and respect with our suppliers, and we can only do this through regular, face to face communication with them. Diadem is proud to have created a bespoke network of suppliers across Australia, New Zealand and Asia, and we take pride in working with them on subsequent rebrand projects with our commercial clients.

Sourcing decisions need to be made with a holistic project perspective. This means matching specifications, materials and manufacturing capabilities able to meet the intended design outcome – long term.

In whichever geography we operate, the success and longevity of Diadem’s projects can largely be attributed to our holistic approach to procurement. This perspective focuses on the total value local supply chains can deliver for our clients and the wider community for the long term.

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