Developing capacity of local supply chain for a private sector client in Azerbaijan
In 2007 BP, with its co-venturers in Azerbaijan, awarded ACDI/VOCA a multimillion dollar contract to implement the three-year Enterprise Development and Training Program (EDTP) through its regional development initiative (RDI). Under EDTP, ACDI/VOCA identified, developed, and trained potential local suppliers while acting as a conduit of information between BP and the supplier marketplace.
EDTP helped small- and medium-sized Azeri companies develop local supplier processes in line with relevant international quality, health, safety, security, and environmental (HSSE) standards, ISO certifications, and BP’s specific requirements. EDTP staff met with selected local companies’ representatives and worked collaboratively with them on action plans that delineated the required quality assurance procedures, quality controls, technical upgrades, and staff training needed. All companies with which EDTP collaborated in the creation and implementation of these plans had to maintain performance records and meet all of EDTP’s development requirements.
EDTP’s staff worked with a wide variety of companies, from translation firms to chemical suppliers. If technical gaps were identified, EDTP arranged a one-on-one visit from an industry expert to provide assessments and recommendations. These specialized consultants provided highly technical insight and guidance as well as an outline of applicable international quality certification requirements. They provided their depth and breadth of highly skilled technical expertise for 26 clients, expanding EDTP’s reach to more highly technical subsectors. The consultants provided the technical edge necessary to advance the consulting capacity and recognition of EDTP in the Azeri marketplace.
Thanks to BP’s financial support and guidance, a new for-profit consulting firm was incubated within EDTP. The Azerbaijan Enterprise Risk Management Solutions (AZERMS) launched on July 1, 2009. EDTP continued to expand its services through AZERMS. For example, its website (www.edtp.az) connects corporations to client Azeri enterprises, which allows them to deliver their business profiles to a wider range of multinationals. A training program was offered to clients in areas such as HSSE and marketing.
Over the course of the project, 21 local companies graduated from EDTP’s advisory process. EDTP’s endorsement of these local companies enhanced their credibility and increased their visibility with international companies, putting them at the “head of the line” for future BP tenders. Companies working with EDTP increased their headcount, invested in their growth (in terms of new facilities, capital equipment, personnel upgrades, and more), and in turn received new contracts.
