Embedded in the Nestlé example is a far broader insight, which is the advantage of buying from capable local suppliers.
Outsourcing to other locations and countries creates transaction costs and inefficiencies that can offset lower wage and input
costs. Capable local suppliers help firms avoid these costs and can reduce cycle time, increase flexibility, foster faster learning,
and enable innovation. Buying local includes not only local companies but also local units of national or international
companies. When firms buy locally, their suppliers can get stronger, increase their profits, hire more people, and pay better
wages—all of which will benefit other businesses in the community. Shared value is created