SDP - Suppliers Development | United Nations Development Programme

Supplier Development

Suppliers Development

This methodology aims to enhance productive ecosystems by improving connections between anchor companies and SME suppliers. The goal is to build stronger, more resilient, and inclusive value chains, promoting prosperity through fair growth opportunities and long-term sustainability for all stakeholders.

Prime Offering

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Transforming business relationships between anchor companies and their suppliers, fostering mutually beneficial “win-win” partnerships.

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Promoting an inclusive growth model where SMEs enhance their performance and gain access to more competitive markets.

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Enhancing the quality and efficiency of products and services through optimized processes and best management practices.

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Strengthening business competitiveness by building resilient and sustainable value chains.

OBJECTIVE

Align the strategic requirements of anchor companies within the value chain by promoting business professionalization and driving best practices in management, operations, and communication. This approach enhances supplier relationships and promotes sustainable, mutual growth.

Key participants

Anchor Company

Purchases goods and services from one or more MIPYMEs.

Legally established.

Supplier Company

Develops goods or services for its clients.

Counterparts

Establishes strategic alliances with the public and private sectors.

Connects with cooperation agencies and territorial development initiatives.

Technical Teams

Train and accredit technical teams from government and universities.

Intervention model

The SDP is implemented through the creation of productive linkages between Anchor Companies (AC) and up to 10 strategic MSMEs as Supplier Companies (SC). This process includes specialized support over 9 to 10 months, led by accredited consultants in the methodology, who guide companies in transforming their processes and capabilities.

Description of Implementing the Methodology

Stages

The methodology consists of six stages of technical assistance, using structured tools to support companies on their path to becoming more productive, sustainable, and resilient.

MAIN
BENEFITS

Through this approach, the SDP not only drives business prosperity, but also contributes to inclusive economic development, strengthening the resilience of MSMEs and promoting sustainability in productive ecosystems.

Cost redutcion through efficiency in their supply chain.

Reduces the risk of poor quality in the provision of services.

Development of improvement projects such as investment, quality management programs, business development.

Management of strategic supplier companies.

Avoids production line stoppages.

Establishes an effective communication link with supplier companies.

Competitive price optimization (productivity and cost reduction).

Support in commercial management to increase sales.

Improved product/service quality and customer service.

Implementation of improvement projects to strengthen operations.

Acquire a culture of quality and continuous improvement.

Efficiency in delivery times.

Success stories

Reactivating Albania's Economy Post-Earthquake

After the 2019 earthquake and the pandemic in Albania, UNDP adapted the SDG Value Chains Programme to strengthen MSMEs. Through consulting and training, companies improved their management. Dini is a salesperson who increased his income by 66% thanks to the new skills.

Support in strengthening the capacities of MSMEs in Venezuela.

The companies providing distribution and marketing services that are part of the value chain achieved benefits associated with better financial planning, increased sales, improved profitability, cost reduction, growth in their geographical area, minimized quality issues, higher training percentages, and better communication between suppliers and customers.

Socioeconomic Reactivation of Colombia After the COVID-19 Crisis

Over 8 months, UNDP and USAID successfully impacted productivity, employability, and income generation for 52 micro, small, and medium-sized enterprises in Cali and Bogotá, integrated into the supply chain of six larger companies.

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