SMEDA SUBCONTRACTING PARTNERSHIP EXCHANGE (SPX) PROGRAMME –PAKISTAN

Scheme of presentation SPX Global- Background & Introduction SPX Methodology SPX Pakistan SPX Pakistan Achievements Challenges Way Forward

SPX Global Background & Introduction

Background Weak linkages between local suppliers and buyers Lack of information about local SME suppliers and their productive capacity; Lack of awareness of local suppliers about downstream market opportunities; Inability of local suppliers to supply at the quality and quantity required by larger buyers; Spillover effects from foreign direct investment (FDI) in the host economy not realized due to low levels of local content

SPX Global Over the last 25 years, UNIDO has established 25 SPX centers in Africa Asia Europe and the Middle East.

SPX Introduction SPX assists enterprise development through a range of support services including profiling, matchmaking, benchmarking, buyer engagement and Supplier Development Strengths the ability of domestic enterprises to capture emerging subcontracting opportunities Develop local suppliers to respond to need of large investors to find qualified local suppliers Benchmark the performance and practices of local enterprises against international standards to establish their competitive position SPX basically provides a platform for the match making of suppliers and buyers at the national, regional and international level

SPX Methodology

SPX Methodology

SPX Pakistan

SPX Pakistan Tools and Methodologies SPX Profiling – Profiling of skills, technology, equipment, processes, products within the firm; SPX Management Information System- Hosting system of SPX Profiling Database (9000* companies from 17 Countries) with added utility functions for matchmaking; SPX Benchmarking – Assessment of business practices and operational performance in comparison with other firms; Buyer Engagement – Support to buyers to realise their local content strategies, meeting subcontracting requirements.

Major Benefits to Buyers & Suppliers

Buyers Gain access to supplier databases of profiled, validated suppliers of semi-finished goods and industrial services Suppliers Find new market opportunities by working with major buyers at the national and international level Benchmark performance and practices to understand strengths and weaknesses

SPX Enterprise Profiling

The SPX Profiling method

SPX Enterprise Benchmarking

SPX Benchmarking covers two important, closely linked aspects of analysis of firm performance

SPX Buyer Engagement

Facilitating matchmaking between Buyers and Suppliers SPX supports the process of Buyer Engagement to facilitate Buyers in meeting their subcontracting opportunities. It also serves as a means to assist in Local Content Strategies and Supplier Development Initiatives

SPX Pakistan Achievements

SPX PAKISTAN ACHIEVEMENTS Four Sensitization Events held in Lahore, Karachi and Peshawar in collaboration with PAAPAM and other Stakeholders. Various meetings/sessions held with other Associations/industry stakeholders, including Atlas Honda Meeting with vendors at Gujranwala Business Centre Daroghawala Industry owner’s Association. Cutlery Association in Wazirabad Pakistan Gloves Manufacturing & Export Association Sialkot Fan Manufacturers Association in Gujrat. Benchmarking session held with PAAPAM member at Lahore

SPX PAKISTAN ACHIEVEMENTS More than 231 enterprises profiled and uploaded on the SPX Management Information System. 33 companies have received SPX Benchmarking services 25 buyers have been supported to realize their local content strategies and meet their subcontracting requirements More than 5 matchmakings in the automotive sector have been facilitated. SPX Pakistan has started actively supporting the internationalization efforts of domestic enterprises in SPX targeted sectors

Challenges

CHALLENGES Reluctance of SMEs to share data with Government Organizations Confidentiality culture in the market is an impediment in data collection Repeated follow up result in delay in completion of assignments

Way Forward

Way Forward Please Visit our website www.spxpakistan.smeda.org and register yourself as buyer or supplier to avail our services or you can contact us via telephone or email.

Thank you for your attention