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

Bui

ldin

g B

lock

sO

utpu

t Are

as

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