Business Forum | When it becomes more profitable to get supplies in Quebec

The pandemic has weakened global supply chains, and it looks like it’s here to stay. More than ever, buying from Quebec suppliers takes on a strategic value, but too few companies are convinced of this and understand all the advantages.

Over the past few months, we have met with several companies struggling with supply issues. And, in the majority of cases, it turned out that the benefits of offshore sourcing – especially in terms of costs – weren’t as compelling as they thought.

Indeed, in calculating the cost of imports, companies often omit certain expenses, such as regular trips to meet their suppliers, the rental of additional warehouse space or the impact on cash flow. In fact, about 20% of the parameters are forgotten, which distorts the results.

There are also a host of indirect costs and risks to consider. For example, local sourcing reduces business risks, such as delivery delays, production slowdowns or stoppages.

Moreover, thanks to the resilience of their local supply chains, companies gain greater operational agility and ultimately improve their productivity and competitiveness. It is also easier to innovate in product design when the suppliers are local thanks to the collaboration that can be established between business partners.

In addition, repatriating production activities to our territory greatly improves the ability of suppliers to invest in their technological shift.

Local production, which strengthens their position in the market, then becomes a formidable lever of economic development for the regions and for all of Quebec.

We must not forget the environmental advantage of doing business with local suppliers. By buying here, where the products are made with renewable energy, the company reduces its carbon footprint. In short, everyone wins by sourcing directly from us.

There are thousands of Quebec businesses that have the know-how and are ready to meet the needs of local manufacturers for the purchase of services, technologies and products that will display the new “Products of Quebec”. Without completely excluding the international, companies must develop the reflex of first seeing what is in their backyard.

This is a priority that Investissement Québec has given itself to fully play its role as a catalyst for local economic growth.

To help businesses turn the corner, we have rolled out a support strategy for Quebec procurement that offers concrete solutions to businesses. In addition to financial support, Investissement Québec can help them identify the weak links in their supply chain and assist them in finding Québec suppliers. We succeed in particular thanks to the personalized support of our experts and our search engine iCRIQ.com. The latter provides access to the largest directory of manufacturers, distributors, wholesalers and industrial service companies. We are also able to facilitate networking between buyers and sellers.

As it is essential to include all the figures, we have created the Real Import Cost Calculator, an online tool that provides a more accurate picture. By doing the right calculation, the price difference between imported products and products made in Quebec is often less significant, making local procurement all the more attractive.

All in all, on closer inspection, sourcing from Quebec can truly be more strategic and, above all, more profitable.