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AfrIPANet IV

AfrIPANet IV. Sub-contracting exchange and supplier development. Enhancing Investment Impact on Local Economies. The Challenge. The World is Globalising Trans National Corporations are looking for local, cost competitive suppliers – ALWAYS! This is not only an Africa problem:

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AfrIPANet IV

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  1. AfrIPANet IV Sub-contracting exchange and supplier development Enhancing Investment Impact on Local Economies

  2. The Challenge • The World is Globalising • Trans National Corporations are looking for local, cost competitive suppliers – ALWAYS! • This is not only an Africa problem: • EU productivity lags behind USA and Japan • Ireland – SME productivity ranked 15th out of 17 in Europe • Africa – Needs an AFRICA response • Needs to develop suppliers to supply buyers

  3. Sub-contracting exchange and supplier development • UNIDO Sub-contracting and Partnership Exchange (SPX) program • Traditional UNIDO program covering over 45 countries • Matching potential sellers with major buyers • In 2007 new SPX program designed taking lessons of past 20 years’ experience • New SPX program brings three new elements: • Benchmarking of potential suppliers to assess their level of maturity • Strategic partnerships with large buyers • Supplier development • FOCUS on UPGRADING Capability…

  4. S(B)PX Other database Local companies BUYERS Facilitated self-assessment Database Oil Companies Shell BHP Billiton Angola Mining Companies Benchmarking Supplier mapping Power Companies Gap analysis Eskom Need analysis Transport Companies COMFAR Transnet Financing Unilever Nestle Agriculture Companies ITPOs Others Upgrading plans Investment projects

  5. SPX is evolving : An Africa Response to meet needs and current situation • Must Look at HOW suppliers need to be developed • To Meet buyer requirements • To move towards International Performance • To understand, adapt and adopt good practice • How? • Benchmarking – Identify Gap, Self Assessment • Get Buy-In from those who WANT to develop • START Upgrading……… • Will provide help to identify and mobilise local sources of support • Matchmaking service • Changing Standards……….

  6. Quicker, Better, Cheaper…Together

  7. How?...... Benchmarking = Diagnosis Good Practice = Medicine Strategic Partnerships = Delivery Mechanism – CIPS, ITPOs, Service Providers, IPAs, Governments, Buyers, Local resources, SPXs

  8. What is Benchmarking? Benchmarking is a continuous systematic process for comparing business processes for improvement...

  9. What is Benchmarking? • Its Objective – Looking into a business MIRROR • Compare against international database- How good is good? • Learn from Best Practice Examples-Don’t reinvent the wheel • Prioritise Actions… for improvement- Across the business • Based on FACTS! • F-Facilitated • A-Assessment • C-Comparison • T-Tools

  10. What tools? Leading Tools Exist for Small and Medium companies- Probe, Winning Measures, Lumus • Access to largest Databases for SMEs • Quantitative and Qualitative • Benchmarking Performance • Benchmarking Practices • Looking to identify and meet Buyer Needs

  11. Buyer Alignment

  12. Level 3 Level 2 Level 1 Dr Richard Keegan, Ireland rkeegan@oceanfree.net

  13. Strategic Partnerships • Microsoft and UNIDO • Chartered Institute of Purchasing and Supply (CIPS) • Align databases and establish demand-driven supplier development programs • Leverage presence of 44,000 members globally • African Venture Capital Association (AVCA) • Transnet, Eskom, SASOL, Shell, BP, Mining companies • Comparison International, Lumus, Winning Measures….. • Making it work locally 17

  14. AfrIPANet IV Durban, South Africa 24-25 October 2008 Thank You www.unido.org/afripanet

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