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Buying Locally April 21, 2014 Kimberly Kokenakes Director , University Services

Buying Locally April 21, 2014 Kimberly Kokenakes Director , University Services. Why Buy Locally?. Supports the local economy Fosters local job creation Reduces environmental impact through decreased transportation requirements

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Buying Locally April 21, 2014 Kimberly Kokenakes Director , University Services

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  1. Buying LocallyApril 21, 2014Kimberly KokenakesDirector, University Services

  2. Why Buy Locally? • Supports the local economy • Fosters local job creation • Reduces environmental impact through decreased transportation requirements • Reduces greenhouse gases—particularly for key products such as produce

  3. August-Picked Why Buy Locally? Coated in petroleum wax SOLD December-in supermarket

  4. Defining Local Buying No universal standard exists today • Local buying is generally defined by the organization • Requires an understanding of the upstream aspects of the supply chain • Requires an understanding of existing buying patterns • Can be defined at city, county, state, regional levels, by mileage from destination, or other parameters

  5. Key Questions When Buying Locally • Can the local market meet our needs? For which products? • Is buying from local distribution really buying locally? Are there instances when it might be? • Are there commodity or product considerations for expanding the definition beyond immediate locale?

  6. Environmental Considerations 2011 data from the National Service Center for Environmental Publications

  7. MSU Local Buying Activities • Tracking in-state spend, regional spend, and local spend • Partnership with the Michigan Economic Development Corporation and Pure Michigan Business Connect to increase spend in Michigan • MSU Residential and Hospitality Services procures food from suppliers in five regionally local states • Michigan, 165 suppliersOhio, 15 suppliersIndiana and Illinois, 12 suppliersWisconsin, 6 suppliers

  8. MSU’s Local Buying Activities • University Research Corridor (URC) • MSU, U of M, Wayne State • $15.5 billion annually in economic impact statewide • MI Spartan Impact demonstrates MSU’s statewide and local region spend. • Last year, MSU spent $396 million in-state http://mispartanimpact.msu.edu/

  9. MSU Local Buying Activities Academic/Operational Research Projects Funded • Buying locally—exploration of best practices and recommendations for • Identifying a common definition of buying locally • Development of a set of metrics to reflect efforts • Standard method for measuring economic impact of local buying and related savings • Identification of transportation impacts and develop method for measuring environmental impact from reduced transportation • Executing a pilot program

  10. MSU Local Buying Activities Academic/Operational Research Projects Funded • Product Trace Backward Project: Using a sample of products, analyze path back to raw materials and determine impact on procurement decisions. • Anticipated outcomes include: • Increased understanding of supply chain for improved decision making and risk mitigation • Development of a standard tool to perform future trace-backs for high-volume or high-risk products • Reduced reputational and financial risk for MSU

  11. Discussion Questions • What local buying activities are your organizations engaged in? • How are your organizations viewing local buying? Is it a priority? • What motivated your organization(s) to focus on local buying? • What challenges have you or your counterparts faced in building the business case for buying locally?

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