Critical insights for national supplier development programme

About the client

UNIDO is a specialised agency of the United Nations. Its mandate is to promote and accelerate sustainable industrial development in developing countries and economies in transition.

Results

Impact of the programme assessed

UNIDO project approach validated

Benefit of funds deployed by the Government of India quantified

Executive summary

UNIDO was engaged by the Government of India to implement a national automotive supplier development programme in cooperation with ACMA, an Indian automotive supplier association. The use of benchmarking as a monitoring and evaluation mechanism has allowed for an objective understanding of performance relative to global peers as well as overall programme impact.

Challenges

UNIDO interventions at an enterprise-level were facilitated by ACMA councillors working with clusters of five to ten suppliers, with up to five clusters being facilitated concurrently in as many different automotive manufacturing hubs across India.

A cost effective benchmarking assessment against appropriate international comparators of enterprises across a wide spectrum of manufacturing processes and products was required.

Importantly, this need to be done in a manner that ensured an understanding of the benchmarking process and outcomes was established within in each individual cluster.

How the benchmark helped

Working closely with UNIDO knowledge of the benchmarking process and assessment outcomes was transferred to ACMA councillors via a capacity building process.

Enterprise-level benchmarking reports were then prepared both upon supplier intervention inception as well as upon completion.

These were complimented by baseline and impact programme-level reports that were presented and workshopped with both UNIDO and the funder.

Results and future plans

The benchmarking has served to assess impact of the programme and thereby validated the UNIDO project approach and quantified the benefit of funds deployed by the Government of India.

Further to this it has also provided direction in respect of how future phases could be enhanced and what needs to be done to ensure that Indian suppliers are able to compete globally – issues critical to the Government of India, ACMA and UNIDO respectively.

At a cluster-level councillors have gained an enhanced understanding of how they can best support the enterprises they are working with, while the enterprises themselves have benefitted from access to a world-class benchmarking methodology.

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