Business Linkages: Lessons, opportunities, and challenges

a publication by IBLF, Harvard University and the International Finance Corporation
IBLF_BusinessLinkages0705
With support from Business Action for Africa and the Ministry of Foreign Affairs of the Netherlands

For large firms, globalization has generated both new markets and new competitive forces. Constant pressure to reduce costs, shorten lead times, and focus on core competencies has driven firms to change their supply chain management strategies.

Most large manufacturing companies now buy significant percentages of their inputs of both goods and services from other firms, with some spending as much as half of their revenues this way. Managing the supply chain for an optimal mix of cost, quality, flexibility, and strategic advantage (such as access to innovation) is becoming an increasingly important source of competitive advantage.

Business Linkages: Lessons, opportunities, and challenges provides analysis of how companies can develop stronger relationships with small and medium enterprises, and a compilation of successful business linkage initiatives:

1. Minera Yanacocha (Newmont and IFC)
2. Eagle Lager, Uganda and Zambia (SABMiller)
3. SMEs in the value chain (National Business Initiative)
4. Economic linkage program in Rajasthan, India (Cairn India and IFC)
5. Prominp, Brazil (Petrobras and Partners)
6. Private sector initiative, Sub-Saharan Africa (SBP)
7. Anglo Zimile, South Africa (Anglo American)
8. Agricultural supply chain improvement, global (Ecom Agroindustrial Corporation)
9. Gulf of San Jorge SME program, Argentina (Pan American Energy)
10. Partnership for enterprise development in Africa (UNIDO and Microsoft)
11. SME development and linkages in Chad (ExxonMobil and IFC)
12. Vietnam Business Linkages Initiative (International Business Leaders Forum)
13. ACG/BTC linkages program, Azerbaijan (BP and IFC)
14. Diavik Diamond Mines, Inc, Northwest Territories, Canada (Rio Tinto)
15. Supply and distribution linkages with SMEs, global (Nestle)
16. Barclays microbanking, Ghana (Barclays Ghana with the Ghana Cooperative Susu
17. Collectors Association and Ghana Microfinance Institutions Network)
18. Distribution and retail linkages, Global (The Coca-Cola Company)
19. Aspire SME facilities in Africa (Shell Foundation and GroFin)
20. Empowering micro, small and medium retailers, Brazil (Tribanco)
21. Sustainable tea initiative, Kenya (Unilever and Kenya Tea Development Agency)
22. Small business development group, Kazakhstan (Chevron)