Buy-local initiative spurs up to $18M in transfers to local vendors
A buy-local purchasing initiative among the procurement offices of Detroit-based Henry Ford Health System, Wayne State University and Detroit Medical Center could have already transferred about $18 million worth of purchases to local vendors in its first 18 months.
Source Detroit, originally organized as "Buy in Detroit" in early 2011, debuted with a trade fair last May and, as of July, tallied $16.5 million of combined goods and services transferred to city-based vendors.
But that sum does not include a more recent agreement to place a broad category of information technology staffing services with Detroit vendors, said Sue Mosey, president of the nonprofit Midtown Detroit Inc., which collaborated with the three anchor institutions to launch Source Detroit.
An exact value of the staffing contract isn't yet known, Mosey said.
"We have been focusing on increasing purchasing in a variety of commodity groups which include food, printing, construction, IT staffing services, and some other basic services," Mosey told Crain's in an email last week. "Our hope is to reach $50 million worth of known transfers to city of Detroit vendors by the end of 2014."
Midtown Detroit and the Detroit Economic Growth Corp. collaborate on Source Detroit with the three institutional buyers' senior procurement officers: Ken Doherty, assistant vice president of procurement and strategic sourcing for Wayne State; James O'Connor, Henry Ford vice president of supply chain management; and Donald Groth, DMC corporate vice president of materials resource management.
The program is intended to place more than 3 percent of the institutions' combined $1.6 billion in procurement spending among companies after its first three years. Participating vendors must have "a meaningful presence in the city of Detroit," according to the Source Detroit website.
Chad Halcom: (313) 446-6796, firstname.lastname@example.org. Twitter: @chadhalcom