Local Content Procedure
The Local Content Procedure is a 14 page document with instructions, Local Content guidelines, introduction and 6 steps in developing and implementing Local Content. The document also has a revision record, document ownership and document status. The document then goes into the main body, which includes 3 headings and 8 sub headings.
This Local Content Procedure sets out the policies and procedures governing the organisation’s approach to Local Content, which will have primary carriage within the Contracts & Procurement function, and also involve other functions within the organisation. As such this Local Content Procedure should be developed and regularly reviewed in line with Contracts & Procurement Procedure (XXX-CP-GOV-CPP-000) and Local Content Policy (XXX-CP-GOV-LCP-000).
The Local Content Procedure includes guidelines including a step by step approach.
Local Content relates to the proximity of goods, services and human resources that an organisation in any given location requires and acquires.
An example of a weak Local Content outcome would be construction company that directly imports 100% of its business inputs, exclusively uses offshore services, and has a workforce dominated by 457 visa holders.
An example of a strong Local Content outcome would be a national food retailer that sources a good portion of its fresh and processed goods from as close to it outlets and shoppers as feasible and requires any major suppliers to do the same within their own supply chain.
Local Content can and should drive hard savings into an organisation’s bottom line.
Local content “shortens” and can “de-risk” traditional global supply chains, as has been seen during the COVID-19 pandemic.
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