Why source locally?

Exposed vulnerability

The COVID-19 pandemic sent ripples throughout the entire pet industry. Global supply chains suffered from lockdowns and closed borders. Migrant workers were not available, crops could not be harvested and cross border logistics came to a halt. At the same time, consumers started buying more locally. So, why not increase efforts to source locally?

Improved sustainability

Of course, local sourcing can only work if local resources are economically viable and if it is competitive with highly optimised supply chains. But there are other factors impacting this equation.

Reduced logistics due to local and shorter supply chains logically leads to a reduction of greenhouse gas (GHG) emissions. Besides GHGs, particulate matter is also emitted and transport by ship negatively impacts ocean ecology.

When sourcing locally, any negative or positive impacts are locally oriented as well as any economic benefits. Local impacts combined with local sales increase the awareness of sustainability and leads to more sustainable demands. In that respect, local sourcing can be a driver for more sustainable choices. The real, or true cost of production is more visible and actions reducing environmental and social costs can be visibly linked to economic benefits.

Increased supply security

Even before COVID-19, climate change and geopolitics already influenced market volatility. Since the pandemic, the risk of global supply chain disruption is starkly highlighted. Has COVID-19 changed the world in such a way that local sourcing has become a prerequisite for guaranteed supply?

With needs remaining the same, local production can become the new normal. A better and direct relation with primary suppliers, with less intermediates, leads to improved communication about quality demands and better understanding of product availability. It may also influence value distribution in favour of investing in sustainable production practices. Additionally, local sourcing can be a driver for product innovations as the available resources might not always be the same as the ones previously used.

Increased transparency

Local supply chains are shorter, enabling increased transparency. Increased transparency has twofold benefits. Firstly, it helps to understand value chain processes and enables optimisation. Secondly, it can help to build brands. Humanisation of pet products has driven increased use of natural and fresh ingredients as a mode to increase product quality. Direct supply relations and sharing of information along the supply chain, helps consumers to better understand quality and sustainability of products.

A good example is the shoe producer Hanwag, which allows you to find out where the cow providing the leather for your shoe has grazed. Another example is Eosta, a fruit trader that tells the story of its producers and demonstrates the sustainability impact of its products.

A new normal

COVID-19 has changed our world forever. Temporarily travel restrictions have severely impacted our supply chains. When a vaccine is available, travelling will happen again, but the shown vulnerability of our supply chain already makes us think differently of where we source the resources for products which are important to us.

Pet products, and especially food for our pets, are among these important products and hence we expect a mixture of sourcing farther away with sourcing locally to fulfil the wish for high quality products. Increased sustainability demands will further drive local sourcing, because of increased transparency and possibility to influence product production and development.