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Welcome
Weak linkages between local suppliers andbuyers;
Lack of information about local SME suppliersand their productive capacity;
Lack of awareness of local suppliers aboutdownstream market opportunities;
Inability of local suppliers to supply at thequality and quantity required by larger buyers;
Spillover effects from foreign direct investment(FDI) in the host economy not realized due tolow levels of local content;
Relevance and background
Overall Programme objectives Strengthen the ability of domestic
enterprises to capture emergingsubcontracting opportunities in theircountries;
Support enterprise through improvedproductive capacity and performance;
Increase the local content of majorinvestment projects in developingcountries;
Link local enterprises as suppliers and sub-contractors to large buyer firms;
Benchmark the performance and practices oflocal enterprises against international standardsto establish their competitive position;
Respond to need of large investors to findqualified local suppliers and develop localsuppliers
Support benchmarked potential suppliers inimproving their competitive position throughlinkages with service providers;
Specific Programme objectives
Who benefitsand how?
Buyers Gain access to supplier databases
of profiled validated suppliers ofsemi-finished goods andindustrial services;
Get assistance to find appropriatesuppliers for RFQs;
Suppliers Find new market opportunities by
working with major buyers at thenational and international level;
Benchmark performance andpractices to develop capacity forupgrading;
Institutions/governmentagencies Gain visibility, expand client base; Use available firm-level data
about local supplier capacity andlocal content potential for policyadvocacy purposes; Gain access to state-of-the-art
tools;
SPX Networkand approach
A growing global network
SPX Profiling – profiling of skills, technology,equipment, processes, products within the firm;
SPX Management Information System- Hostingsystem of SPX Profiling Database with addedutility functions for matchmaking;
SPX Benchmarking – Assessment of businesspractices and operational performance incomparison with other firms;
Effective Buyer Engagement – support to buyersto realise their local content strategies, meetingsubcontracting requirements and CSR goals
UNIDO SPX Tools and Methodologies
Diverse technical and advisory support
Selection of host institution Establishment of SPX Unit Recruitment of appropriate staff Training (profiling training, benchmarking
training, buyer engagement training) Sensitizing local companies (suppliers and
buyers) Supervised benchmarking Database of benchmarked suppliers linked to
MP Determining buyer requirements Investment opportunities for upgrading
suppliers (IPA)
Establishing SPX activities
Establish basic work principles
1. SPX does not discriminate against or favourcertain suppliers
2. SPX does not substitute for specializedcommercial services
3. Advice but no interference in manufacturingplanning
4. SPX promotes transparency5. SPX does not enter into commercial dialogue
and supplier-buyer negotiations6. Confidentiality and integrity
SPX EnterpriseProfiling
Profiles/data ofthe capacities andcapabilities ofSMEs are collatedto be promotedamong buyers
Customizedsupport to buyerslooking forcompetitive localsuppliers
The SPX Profiling method
The SPX Profiling process
7,000+**17 SPX Centres
Global SPXProfiling Database
SPX ManagementInformation System
SPX EnterpriseBenchmarking
supporting SME competitiveness; focus on SME competence to handle
known subcontracting opportunities; provide SMEs competence a high
visibility with buyers
SPX Benchmarking generateslasting and profitable businessto SMEs by:
compares SME operationalperformance and practices againstmetrics from other companies ofsimilar size and type.
enables SMEs to objectively assesstheir businesses, make sectoralcomparisons with internationalpractices and identify upgradingneeds
SPX Benchmarking method
SPX Benchmarking covers two important, closelylinked aspects of analysis of firm performance
Balance scorecard – you can’t managewhat you don’t measure
The SPX Benchmarking milestones
“Gap analysis” as starting point for supplierdevelopment
Financial Performance• Cost management• Productivity• Financial StabilityCustomer Performance• Product Quality• Service Quality• Customer responsiveness
Internal Processes• Operations Management• Supply Chain Management• Information Management• Corporate GovernanceLearning and Growth• Leadership• Human Capital Management• Safety and Health• Environmental Management
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Exceed buyer expectationsBelow Expectations
Overall practice vs performance scatterdiagram
Analysing performance and practice inmore detail
SPX BuyerEngagement
SPX Service Proposal to Buyers
Facilitating matchmakingbetween buyers and suppliers SPX supports the process of Buyer
Engagement to facilitatematchmakings with SMEs;
SPX serves as a means to assist inBuyer CSR Plans, in Local ContentStrategies and SupplierDevelopment Initiatives
Capture &define sub-contractingopportunities
Capture &define sub-contractingopportunities
Step 4Step 4
Plan andphysicallyreach out tobuyer firms byseeking theirmandate tosourcesuppliers
Plan andphysicallyreach out tobuyer firms byseeking theirmandate tosourcesuppliers
Step 3Step 3
Identify keybuyer firmsfrom thepublic andprivate sector
Identify keybuyer firmsfrom thepublic andprivate sector
Step 2Step 2
Understandthe national,industrial,sectoral sub-contractingcontextthroughmarket/sectorintelligenceand analysis
Understandthe national,industrial,sectoral sub-contractingcontextthroughmarket/sectorintelligenceand analysis
Step 1Step 1
The process of engaging buyers
The process of engaging buyers
Opportunity development
SPX SupplierDevelopment
SME development agencies Private sector associations Enterprise development programmes Professional consultancy firms International investors Financial institutions Universities and Industrial Research
centres Industrial service and training providers
Who can be SPX service provider?
SPX impactand results
Thank you foryour attention
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