Driving economic growth through local supplier development

/ Delivering progress

OUR WORK ON SUPPLY CHAIN SERVICES

Driving economic growth through local supplier development Strong local industries are integral to the growth and economic independence of developing nations. Crown Agents knows that small and medium-sized enterprises (SMEs) are the engine rooms of these countries’ economies. We actively build and integrate SMEs into our end-to-end supply chain work with DFID, reinforcing the foundations of sustainable economic growth and helping countries to graduate from donor dependence. Crown Agents’ supply chain work stretches far beyond that of a procurement agent. We are a complete supply chain services provider, combining our historical expertise with forwardlooking agility and expansive track record. We weave the insight from our long-held relationships throughout Africa into the supply chains we design and build. At the heart of that insight is the growth of local businesses to empower countries to become economically independent and less reliant on donor aid. Crown Agents can help make this a reality. Engaging local suppliers is an integral part of our supply chain process. By encouraging and using local small and medium-sized enterprises (SMEs), donor money directly feeds the fire of hungry local economies. But this does not come at the expense of quality. We hold these suppliers to the same standards as we do our

Chinwe C. Eze Ajoku Managing Director Darlez Nigeria Limited

A GLOBAL PRESENCE—NIGERIA We have a global office network that is committed to individual country needs. We have strong connections, native grasps of local business cultures and well-established understanding of the challenges and risks. Our Nigeria office was founded more than 100 years ago and carries out both consultancy and supply chain work. We have translated our knowledge of the working environment into quantifiable development impact for DFID and other donors. Our work includes: ●

Support to Nigeria’s National Malaria Program (SuNMaP) (DFID): purchasing, inspecting and supplying over 5 million long-

international suppliers. By carrying out rigorous due diligence and inspection services we help them to raise the standards of their products and processes while providing our clients with the same quality assurance but greater value for money. It’s a way of working that has stood the test of time yet we know how to evolve and adapt. We have worked many of our local suppliers for years—some even for decades. In Nigeria, our domestic and international staff cultivate relationships with SMEs that are beneficial for them, for us and for our donors. Since 2011, we have worked with more than 150 local suppliers to place more than 550 orders with a total value of around £32.5 million. It is a similar picture in countries including Ghana and Zimbabwe, where our presence and our methods have grown with the countries’ and donors’ needs.

lasting insecticide-treated bednets, over 1 million rapid diagnostic test kits and over 800,000 ACT treatments. ●

Maternal Newborn and Child Health (MNCH) initiative (DFID): our work on the £33.8 million programme helped to nearly halve infant mortality in three northern Nigerian states.

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Partnership for Transforming Health Systems (PATHS II) (DFID): we helped to provide essential equipment, drugs and other commodities to support primary and secondary health care for the poor

These projects have helped to develop hundreds of SMEs and made a real impact to local economies.

CROWN AGENTS SUPPORTING SMALL BUSINESSES IN OUR SUPPLY CHAINS

Our approach Our work with SMEs is imbued with the technical knowledge, best practice and situational precedent that we have gained over the years. When faced with challenging or hostile environments, however, we use our innovation and resourcefulness to find solutions and deliver exceptional results.

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Mike Thaw Supply Chain Operations Manager Crown Agents Nigeria

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Careful partnership management We place high amounts of value on our existing relationships. We work with our partners to monitor and review progress and ensure optimal value for money. Our eyes are also open to new opportunities where we can seize on the innovation and competitive appetite of new businesses. Personal advice We support our partners with all the resources we’re able to offer. We know how important transparency is to our donors, so we provide indepth advice on contract management and documentation, ensuring clean audit trails. Contracting Through our contracting processes, our partner SMEs become well versed in international procurement standards. Crown Agents operates to international regulations, embedding quotation and delivery standards in the fabric of our suppliers. We help them navigate the issues that can arise in their particular environments, such as extreme currency fluctuation, port delays, fuel shortages and security concerns. Quality assurance control Quality is paramount to the success of a supply chain and our expert inspectors always ensure this. They inspect goods at our suppliers’ premises prior to dispatch. They familiarise

themselves with the organisation and its operations to make sure they’re not engaged in illegal practices such as child or slave labour. ●

Delivery We contractually advise suppliers of what is required of them during delivery and use our experience of working in hostile environments to help this run as smoothly as we can. This wouldn’t be possible without training, reaffirmation and careful management of local partners.

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Payments Crown Agents trains suppliers in the provision of suitable documents for payment. All records are kept for both internal and external audits.

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Review and appraisal We have live supplier appraisal systems that record performance of all business used to service donor contracts. We use this framework to constantly develop the highest standards and mitigate risks.


Our achievements Since 2011 we have worked with

150

Nigerian suppliers

on more than

totalling

550

orders

£32.5m

NIGERIA Nigeria has a thriving SME sector and we have engaged hundreds of these businesses over the years to service in-country donor funded programmes. The effects of this have been very clear: jobs for thousands of people, increased business efficiency, millions of Naira paid directly into the Nigerian economy which has translated into vital tax revenue for the Nigerian government.

“There is no way we would be even close to where we are today without our 25-year relationship with Crown Agents. They helped us reorganise our business and they opened our eyes to new possibilities.

“Working with Crown Agents has been an important eye-opener. It has brought about One of our longest-standing SME partners is opportunities and shared experiences that are Darlez Nigeria Limited, a local health care difficult to come by. We have worked with them to equipment supplier. The company was founded in provide goods to some of Nigeria’s most 1989 and when Crown Agents started working with challenging regions and realised potential that we it in 1990 it had a staff of one. didn’t realise we had. Now, Darlez employs more than 100 people and supplies more than 800 hospitals and laboratories nationwide. Our continuous support and engagement through global donor programmes has unlocked their potential and helped them reach into national and international markets.

“Looking back, trust and enthusiasm from Crown Agents have been key factors to our success story. I would encourage the international development community to similarly believe and trust in small enterprises, focusing on unlocking potential of people to make a lasting impact in local economies. ”

GHANA In Ghana, we’re working with KinaPharma Limited to get a vital anti-malarial drugs to children.

experienced local manufacturer and had the right to distribute vital medicines on the market.

The drug in question—sulphadoxine pyrimethamine with amodiaquine (SPAQ)— is one of the most significant preventative medicines against childhood malaria in Ghana. Its complexity and the limited times when it must be administered (before the start of the rainy season) makes it a challenge to source and deliver. Adding international procurement regulations, Food and Drug Authority review and registration and inspection and testing to the timeline makes for a very complex and time pressured process.

Nuamah Eshun Famlyeh General Manager Operations, Kinapharma Limited

Chinwe C. Eze Ajoku, Managing Director, Darlez Nigeria Ltd:

As part of DFID’s £18.8 million Ghana Malaria Prevention, Diagnosis and Data Programme, we have to oversee the delivery of SPAQ to the Upper West region of Ghana. When designing the supply chain it was clear that we needed a supplier that was trusted, domestic and professional to international standards. In KinaPharma we found a wholly Ghanaian-owned company that was an

Identifying KinaPharma was the first step. After that came: ●

Complete documentation review including GMP certification, product registration with the Food and Drug Administration, and certificates of analysis for each batch.

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Quality control, covering pre-shipment inspections and product sampling, with each sample sent to our internationally accredited laboratory in Singapore.

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Contracting and appraisal in accordance with international standards. The drugs were only released for delivery once satisfactory test results were received.

Our market shaping supply chain services have positively contributed towards KinaPharma’s organisational development, and we’re looking forward to a long and productive working relationship with them.


Our offering

ABOUT CROWN AGENTS We are a renowned multi-disciplinary international development company recognised by our clients as a leading partner in their development. We are a limited company owned by a non-profit-making foundation. The Crown Agents Foundation is our sole shareholder, overseeing our ethos and activities. We maintain representative offices in more than 40 countries worldwide, assisting governments and donors in their pursuit of

social and economic development through the provision of high quality cost effective solutions. Our broad range of services include supply chain services, humanitarian response, human resource management, procurement, public financial management, and training; at all times working to the highest standards of excellence and integrity.

CONTACT Bryan Richmond

Lee Chacksfield

Director—Supply Chain Services [email protected] T +44 (0)20 8643 3311

Deputy Director—Supply Chain Services [email protected] T +44 (0)20 8643 3311

Crown Agents St Nicholas House St Nicholas Road, Sutton Surrey SM1 1EL, UK

0216