2.5.2. The business and civil
contribution
Building supply chain capacity
The many large corporations that source their supplies from
developing countries require reliable suppliers. Large corporations can help
SMEs become more viable business partners by providing training in basic skills
such as management, bookkeeping, business planning, marketing, distribution,
and quality control. They can assist through technology transfers, direct
investment in infrastructure, and the sharing of knowledge.
This makes SMEs more competitive and facilitates access to
credit. All of this can benefit the large corporations by creating more
effective and inclusive supply chains.
(http/www.wbcsd.org/web/development.htm)
Rationalizing procurement procedures
Many global companies use intermediaries to identify local
suppliers. This can add an extra layer of cost to the operation, a financial
outlay that rarely goes to the originator of the goods. It also adds time. By
building relationships with SMEs, large corporations can cut out the middlemen.
This helps drive down costs, hastens delivery and improves quality.
(http/www.wbcsd.org/web/development.htm)
Strengthening local distribution networks
SMEs have local knowledge, understand domestic consumer
demands, and have access to remote regions. By contracting local SMEs to sell
and distribute their products in these markets, large corporations can help
strengthen the sales capacity and income of local SMEs. At the same time, they
can strengthen their own distribution networks and open up new markets for
their products. (http/www.wbcsd.org/web/development.htm)
Improving standards
Global companies are increasingly asked about the operations
of their suppliers, and thus can offer transparency along their supply chains.
Large corporations can help their SME suppliers to comply with international
standards such as ISO 14001. Such compliance can enable SMEs to compete in
international markets while at the same time improving the overall quality of
suppliers to large corporations. (http/www.wbcsd.org/web/development.htm)
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