Making Supply Chain Cool (Again?)

Have you ever thought of the individual words in the term “supply chain?” We’re not sure who coined the phrase but we can guarantee it wasn’t a successful marketer! The two words, “supply” and “chain,” are powerful ingredients to successful eco-systems, yet their drab connotations invoke pictures of contracts, endless paperwork, and nightmare logistics. 

We’re here to rebrand supply chain and argue why we should all (yes, even non-business people) care about supply chain and how it’s an incredibly valuable factor to the success of our communities and families.

Redefine the Ordinary: Supply Chain

According to Investopedia, “A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer.”

According to Local Union, the supply chain is one of the most impactful and powerful ways businesses can influence their community. 

Think about it. Where and how your favorite businesses get their raw materials, products, offerings, and goods matters; it builds (or destroys) the value of your neighborhood, the creators, and your dollars. 

Brunch: A Case Study

Stay with us (we’re making supply chain cool again)! Let’s run through an example: you love brunching at your favorite local restaurant. You and your friends order coffee, eggs, a pancake, some sides, and maybe a mimosa. You laugh, enjoy your company, and life seems simple. 

Within the context of your meal, you’ve consumed ~ten different products (coffee, eggs, butter, milk, fruit, meat, veggies, orange juice, sparkling wine, etc.). More than likely, those products come from various farms, producers, roasters, or distributors - each having a unique relationship and value proposition with the restaurant. The restaurant chooses these relationships (or the supply chain) based on price, quality, consumers’ desires, and a few more metrics. There’s power there.

You Can Influence Supply Chains

Similar to our individual behavior, where businesses spend their money matters too. Money spent locally has a multiplier effect - when money is reinvested locally, it recirculates in the community (and continues to, as long as the money remains local). This multiplier effect spans procurement, payroll, charities and profit - when money is kept in a community, this recirculation creates opportunities across a wide spectrum of local stakeholders.

Case Study Continued: If you buy a coffee at brunch, your ~$3 goes to the restaurant. They take a margin to pay for their costs (local labor, bills, etc.) and then pay the coffee supplier for the beans. If that coffee supplier is local, then that money pays for even more local jobs, local bills, and creates what we call “cultural goodness” (vote of confidence for local businesses to keep doing what they are doing and create unique eco-systems). Additionally, local businesses tend to support local charities at a higher rate than outside corporations so it’s also likely a small percentage of your money ends up in a local charity.

Supply chain is powerful. Supply chain is complicated. Not every product could or should be purchased locally yet, businesses have the power and opportunity to continue building and influencing their communities.

As consumers, we should give feedback and encourage our favorite stores and restaurants to explore their supply chain. Ask questions, learn about what you consume, and maybe (just maybe), one day supply chain will be cool.

Want more? Check out how Local Union is influencing local supply chain with Dunedin Market & Delivery.