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Supplier Development Project in Kazakhstan

BECOME A RELIABLE AND CERTIFIED SUPPLIER TO MULTINATIONAL COMPANIES

World Bank funded Supplier Development Project in Kazakhstan - SDPK

Fast Track for Kazakh companies to become certified suppliers to Multinational and Large Kazakh Corporations working in Gas & Oil, Metallurgy and Mining sectors.

About the Programme

The SDPK is World Bank funded Project, implemented by Euroconsultants S.A., a Greek Consultancy group.

The main project beneficiary is the Ministry of National Economy and the main project partner is the “Kazakhstan Industry and Export Centre” JSC (KIEC).

The direct beneficiaries of the programme will be SMEs producing products and providing services for use in the Oil and Gas, Metallurgy, and Mining sectors.

The aim of the supplier development programme is to raise the competitiveness of Kazakhstan SMEs and boost their position within supply chains. The main goal will be to expand the links between SMEs and large domestic and international corporations operating in Kazakhstan and to enable Kazakh SMEs to become certified suppliers to large foreign and domestic companies operating in Kazakhstan. The SDPK will work with individual SMEs to improve their ability to meet the requirements of large buyers in terms of quality and reliability of supply, as well as to promote their relations with relevant MNCs and domestic large buyers

The SDPK is designed to make Kazakhstan SMEs the first choice for Multinationals operating in Kazakhstan and the region.

Project Aims and Benefits

The project aims to establish a “fast track” for selected Kazakh SMEs to gain approved supplier status to multinational companies.

What we offer:

Free business reviews for SME suppliers, based upon European Foundation for Quality Excellence practice, and full adherence to  Multinational audit methodologies regarding supplier potential. These will be used to identify areas for improvement and to devise specific actions to build supplier capability.

This approach will enable the suppliers to benchmark themselves against world-class performance standards and to achieve continuous improvement towards increasing competitiveness at a strategic level.

Multinational Companies and large domestic companies from the target sectors will be invited to participate in the design of the company evaluations. Additionally, Multinational companies will support the programme throughout, through the creation and functioning of a working group, and their participation in, and support to, suppliers workshops, as well as their involvement in “Meet the buyer” events.

Selection Criteria for SMEs to participate in SDPK

  • Enterprises must be a small or medium-sized legal entity, in conformity with the definition of “Пункт 24 Предпринимательского кодекса Республики Казахстан”
  • Enterprises must manufacture products or provide services which are required by buyers in the following sectors: Oil and Gas, Metallurgy and Mining.
  • Enterprises must employ 21 and 500 persons on a permanent basis;
  • Enterprises must an annual revenue not less than 50,000,000 KZT (fifty million tenge);
  • Enterprises must own assets to the value of 50,000,000 KZT (fifty million tenge) or above;
  • Where there is a foreign shareholding in the enterprise, this must not exceed 25% ;
  • Enterprises can have no unsettled liabilities towards the Republic of Kazakhstan;
  • Enterprises must have operated profitably over the last three years;
  • Enterprises must provide, their application, their annual financial reports for the last two years of business (2017 and 2018);
  • Enterprises mats have no tax arrears on the day of application;
  • The amount of tax paid  for the last 3 years should be more than 1 million tenge;
  • General classification of economic activity
  • Enterprises cannot be on the list of unreliable suppliers on public procurement, portal Samruk-Kazyna;
  • Enterprises cannot be in the process of bankruptcy or liquidation;
  • Enterprises must be fully committed to full programme participation and commit supporting resources, where required.

The way we will assist SMEs to become certified suppliers of MNCs –The Supplier Development Process

The process initially involves a one-day business review of 200 Kazakh SMEs. During the visit to the participating enterprise, an extensive assessment document will be completed, evaluating all aspects of the business and identifying areas for improvement.

The identified areas are built into an improvement plan of short-term actions to be implemented over a three month period.

After the initial 3 month period, a second review will take place. 100 SMEs, which have achieved most success, in terms of the goals which were set out in their Improvement Plans will be selected from the 200 SMEs to move onto the second phase of the project. In the second phase, these 100 SMEs will receive financial support to obtain  internationally recognized certification. At least 70% of the costs of acquiring such recognition will be met by the SDPK Programme, the remaining will be the contribution of the recipient SMEs. In the period between the 2 reviews, the SDPK will organise a series of seminars and workshops on issues that are shared priorities for all participating Kazakhstan SMEs.

SMEs participating in the project will receive tailored business improvement support and will be provided with opportunities to meet Multinational buyers at “Meet the Buyer” events which the SDPK will organise.

All participating SMEs will be added to the supplier database that will be created within SDPK.

Multinational Companies will be asked to join a working group that will meet regularly to ensure that the project is meeting their needs in terms of the direction of supplier development. In the previous pilot programme this help proved invaluable. Kazakh consultants will be encouraged to join the programme working closely with international experts to ensure the transfer of knowledge and best practice.

 

For further information about the project, please contact:

World Bank funded Project "“Provision of consulting services for the establishment of the Supplier Development Service, development of its competencies and implementation of pilot projects for the supplier development”

Project Office: Kazakhstan, Nur-Sultan,Qabanbay Batyr Ave.17, Block Е, 4 floor

Tel: + 771 72 983 785 (2103)

Assem Saparova, Project Assistant, E-mail: A.Saparova@euroconsultants.com.gr

Abulkhair Babagaliyev Project Assistant, E-mail: A.Babagaliyev@euroconsultants.com.gr

 

 

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