Advantages of Local Sourcing

When considering local legal tech over international legal tech…

They say that “local is lekker” but does the proverbial “they” mean that when it comes down to it?

That’s the question.

Let’s say you’re looking for a new supplier of legal tech for your law firm (for argument’s sake), do you look at local suppliers of legal tech, like AJS, or do you consider international ones?

There are pros and cons for both. Naturally. And it’s left you in a bit of a conundrum. Is it as simple as “thinking globally and acting locally”?

How do you go about this whole thing? You want your law firm to have access to the best legal tech that the world has to offer, but you desperately want to support local businesses (like your own). It seems like a lot of umming and ahhing just trying to pick what jurisdiction to choose from.

Our government has long since implored us to support our local businesses – and who can blame them, it does a lot for our own GDP. And with international affairs running rampant as they are, uncertainties abound, our Rand subject to volatility, it probably makes both financial and commercial sense to purchase your legal tech locally.

If only it were an “obvious” choice….

Global Sourcing

Let’s start abroad – because we’re fancy like that.

Known as global sourcing it’s the process of obtaining goods like legal tech from an overseas supplier to meet the needs of your law firm. It’s a way for companies, like your law firm, to take advantage of different countries’ resources and capabilities in order to create a competitive advantage.

It has also become increasingly popular over the years as technology has made it easier to collaborate with suppliers and partners from around the world. As the global fences have come down so have the prices, and with that companies have been afforded access to a larger pool of potential suppliers, which in turn means that the possibilities are endless.

But it’s not all sunshine and rainbows, with this larger pool of potential suppliers and “endless possibilities” there are some significant challenges with global sourcing –

• Legal and Regulatory Issues – different countries have different laws and regulations, and it’s important to ensure that suppliers comply with them. It’s important to do your own due diligence when working with legal tech suppliers from different countries. This includes researching local laws and regulations and monitoring suppliers for any issues. This could be a hang-up when trying to ascertain whether these suppliers will be able to comply with local laws, like our Broad-Based Black Economic Empowerment (BBBEE) requirements. Keep in mind that one of the requirements is to support black-owned businesses and suppliers (worth 40 points out of a total score of 100 points in order to get your BBBEE rating).

• Currency and Exchange Rate Fluctuations – currency and exchange rate variations can also be challenging when it comes to global sourcing. Different currencies can fluctuate in value, which can affect the cost of goods, especially when the Rand is so volatile. To mitigate this risk, it’s important to monitor these fluctuations and understand how they could affect your bottom line. With the US’ stance against South Africa currently, sourcing legal tech from global shores may need to take a back seat.

• Political and Economic Instability – changes in government or in the wider economy can affect the cost of goods and can make it difficult to do business. Look at the effect the war in Russia and Ukraine has had on the international stage. Now with tensions between the US and Ukraine, the US and South Africa, not to mention Israel and Gaza, there’s just no knowing which way international alliances and relationships will go. To mitigate this risk, it’s important to pay close attention to the political and economic situation in the countries you’re sourcing from. This includes monitoring news reports and staying up to date with any changes that could affect the sourcing of the best legal tech you’re able to come by. But remember that the global political stage right now is extremely volatile.

• Language and Cultural Barriers – language barriers can be a major obstacle when working with suppliers from different countries. Especially when trying to collaborate and work on something that can be a complicated task – like tailor-made legal tech. This can make it difficult to communicate effectively and can lead to misunderstandings and delays. Cultural differences can also create challenges when it comes to global sourcing. Different countries have different values and customs, and it’s important to be aware of these when working with suppliers.

While there are positives to global sourcing which include access to global markets and suppliers, the above downsides to global sourcing include some pretty concerning setbacks and not instances one would want to encounter when looking to invest – especially long term – in legal tech.

For South African law firms, looking to our own shores for legal tech service providers may be just the ticket.

Local Sourcing

In an era of globalisation, and as businesses across South Africa (and Africa really) look to reduce costs – keeping their eyes firmly on the horizons and what’s happening on distant shores – local sourcing becomes an increasingly popular (and often smart) strategy.

Because the choice to buy locally made products can have a profound impact on local communities. With reduced transportation costs to locally sourced parts, opting for goods made in your local community can be a powerful decision.

Buying legal tech from local suppliers, like AJS, should not only be encouraged but should be championed and should be celebrated, for the following reasons –

1.  Supporting the local economy and creating jobs – purchasing locally-made items directly contributes to the strength of your local economy. This support helps sustain and create jobs, ensuring that the economic benefits of your purchases stay close to home. By choosing local products, you’re not just buying an item; you’re making an investment in your community’s future.

2.  Locally produced products – local products like legal tech, will have been designed with the local market in mind. Buying local products isn’t necessarily about subscribing to any particular ideology. For many people, it’s about knowing and understanding where the products come from and maintaining positive relationships between the supplier and the consumer. Locally sourced products are usually of higher quality with the added benefit of quicker delivery. You see, local manufacturers are often focused on small-scale manufacturing and are often committed to producing the best quality products. As such they have great support from local consumers. Smaller production lines result in products that require more technique, knowledge, and skills. Something that is quite obviously preferable – quality over quantity. The same can be said for the legal tech industry. Internationally produced software is generally made for mass consumption, so you get “what’s in the box.” Finished and klaar. On the other hand, legal tech produced locally is done with South Africans and their often unique challenges in mind. Our requirements aren’t necessarily as general as international ones. Also, buying locally means you don’t have to pay international prices for something you don’t necessarily need. It’s far more likely that a locally produced product can have a more personal touch and can be customised to your needs – something we do quite often at AJS.

3.  Promoting quality and diversity – local artisans, designers, and manufacturers often bring a unique blend of quality and diversity to their products. These goods often reflect the needs, tastes, and cultural heritage of your community, offering a level of originality and innovation that mass-produced items can’t match. Again, reflecting the small batch made product that isn’t made for mass consumption. But is especially made for you in mind.

4.  Customer Support – customer support needs to be easily accessible for it to be beneficial. By buying locally made and locally distributed legal tech, you’re ensured good on-site support if you require product maintenance. At AJS we offer world-class, 5 * customer support. There are many benefits of on-site support. For example, access to an on-site technician removes the frustration of having to navigate call centres, it helps build relationships, and the experts can personally demonstrate what you can do to avoid further difficulties. You can also source the product right back to the manufacturer, if necessary, meaning that you won’t be stuck with a faulty product and no way to fix it. Services we take pride in here at AJS. Because where there’s a will, we will find the way.

5.  Sustainable choices – buying locally can also be a more sustainable choice. Local products typically require less transportation, reducing their carbon footprint compared to goods shipped from afar. This aspect of local purchasing aligns with growing environmental concerns and the push towards more sustainable living practices. By practising local sourcing you also contribute to the reduction of the risk of environmental damage from shipping and logistics.

6.  Reduced cost – buying local will also mean that you have access to local prices. As a consumer, you won’t be subject to the ever-fluctuating exchange rate. Concerned about our economy? Money spent on local products in local businesses stays within our economy for longer. And this means that local legal tech providers are more inclined to spend that income with other local businesses, especially for services like accounting, business software and advertising. A bird in the hand and all that.

7.  Encouraging community pride – purchasing from local legal tech providers is a way to show pride in your community’s resources and talents. It’s a celebration of the creativity and skill that exists within your area and a demonstration of your commitment to maintaining the vibrancy of your local economy. And we have some extremely talented programmers who are able to put any international programmer to shame.

While all South African businesses (law firms included) want to be recognised on the global stage, there is something truly unique about being Proudly South African. We are a different kettle of fish entirely (meant entirely in a positive way). And that often means supporting one another as we seek business and recognition from those from afar – something about only a South African being able to really understand the needs and requirements of another South African.

We feel that sourcing locally made products is more than a consumer choice—it’s a statement of support for your community, a nod to sustainability, and an appreciation for unique, quality products. Made right here at home. So next time you’re in the market for new legal tech, why not consider exploring what your local legal tech suppliers have to offer.

In this respect if you are looking for a world class, full-stack Legal Accounting and Practice Management software suite, get in touch with AJS  – we have the right combination of systems, resources and business partnerships to assist you with incorporating supportive legal technology into your practice. Effortlessly.

AJS is always here to help you, wherever and whenever possible!

– Written by Alicia Koch on behalf of AJS

(Sources used and to whom we owe thanks:  Quick Easy; LinkedIn; Cornerstone; Unleashed; GEP; Oxford College of Procurement and Supply; Royal Examiner; Ten Things; The Small Business Site and Attorney at Law Magazine).