“Capacity strategies” increase the ability of the local business community to meet health system supply chain needs—growing the capacity of existing businesses as well as helping to incubate new businesses. A capacity building approach helps address supply chain gaps, meet specific product needs, and improve the efficiency and resiliency of the supply chain. Capacity building initiatives often incorporate philanthropic or public funding, bringing additional financial resources to the table.
Such business development efforts can also incorporate strategies to maximize impact through inclusive economic development. They can create job opportunities for the populations that experience the greatest barriers to employment and cultivate wealth-building opportunities through employee ownership. Capacity strategies are most effective when employed in combination with revised internal policies that facilitate connections with local vendors.
Core elements of building local capacity
- Leverage the expertise and purchasing power of existing vendors
- Promote business incubation and expansion
- Provide technical assistance and training
Best practices for growing your supply chain
- Support inclusive business structures
- Promote investments in infrastructure
- Provide in-kind support, including space, expertise, and access to information ...
Finding the right supply chain partners
- Leverage large vendor contracts to encourage inclusive, local hiring
- Collaborate with other anchors around shared demand