Local Supplier Development

Today’s global supply chain is comprised of millions of small firms. Cost savings often drive companies to seek local suppliers, but that cost advantage—and the company brand—will be at risk if suppliers cannot meet market expectations for quality and reliability. Compounding the challenge are the limited numbers of capable local suppliers, a likely lack of in-house expertise to assess or build suppliers’ capabilities, and inadequate collaboration among operators, contractors, communities, and governments.

We help companies overcome these challenges and improve compliance with local content requirements in cost-effective ways, thereby supporting economic development, strengthening relationships with local communities and government, and, over time, lowering procurement costs.

We build in-house programs or develop multi-stakeholder, industry-wide solutions that will create a sustainable industrial base without losing sight of immediate business needs. Our approach begins with a discussion of business objectives, procurement needs, and community expectations, and includes target-setting, stakeholder engagement, measurement and evaluation, and communications. We help clients determine if and how to engage other operators, contractors, governments, and communities in the program. We prioritize investments so that stakeholders will see results in both the near and long term. And once the client has articulated procurement needs, we identify, evaluate, and certify capable local suppliers.

We can focus our services to meet particular needs or build directories that will broaden suppliers’ markets, thereby improving their abilities to thrive and to continue to support procurement needs. We develop clients’ suppliers either by building the capabilities of selected companies or by launching programs to build the capabilities of a wider pool of potential suppliers.

Areas of development include bidding and contracting, financial management, marketing, customer service, strategic partnerships, and technical skills. High interest rates, lack of longer term loans, and the absence of credit records are just some of the challenges that hinder small- and medium-sized suppliers’ ability to survive and grow. We offer years of experience in designing and implementing enterprise financing solutions in developing economies.

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