Efficio’s ICV and Local Content Development service helps legislate and regulate procurement practices by national and local authorities and by companies, foreign or domestic-owned, especially where these are performing ‘public’ functions.
Developing countries often find their economic potential is undermined when public and private procurement expenditures flow out of the country to foreign companies.
In view of this, several countries and companies have developed localisation programmes which aim to improve economic prosperity through investments into the economy, increasing jobs and wealth for the local workforce, growing local manufacturing capability and capacity, increasing economic sustainability and political stability, driving knowledge transfer and technology localisation, and so on.
Efficio’s holistic In Country Value (ICV) and Local Content Development service helps authorities and companies to drive sustainable local content growth through the implementation of procurement localisation and strategic market development activities.
Efficio’s Local Content Service
Efficio’s end-to-end Local Content Service is divided into three key areas: identifying the localisation opportunities, delivering the associated localisation initiatives, and sustaining and measuring the impact and benefits.
The first phase aims to identify the country’s or company’s current level of localisation through:
- Supply chain analysis (baselining)
- Identifying key areas of future demand as well as opportunities for increasing localisation (demand analysis and opportunity identification)
- Setting the localisation strategies and approaches for key opportunities – be it through leveraging and developing the existing local supply chain to increase their capacity and capability, or through attracting new investments and strategic partnerships
The localisation strategy is then implemented swiftly and efficiently, through:
- Embedding local content requirements into national procurement policies, Target Operating Models, procurement strategies, sourcing processes and ultimately supply agreements
- Growing the existing local supply chains through targeted supplier development programmes focusing on capability and capacity development (e.g. improved quality, Health & Safety improvement, cost reduction etc.)
- Identifying and attracting potential foreign investors and strategic supply partners through robust investor value propositions and supporting investments through a wide range of incentives such as tax breaks, land access, regulatory support, joint funding etc.
The final phase focuses on securing and measuring the long-term benefit of localisation efforts. It includes managing the cultural and process change in organisations to embed new requirements, while measuring the impact of localisation through various KPIs.
Efficio’s Local Content experience
Efficio has designed and implemented a variety of local content programmes for major organisations across the Middle East and Africa, including key players of the local content ecosystem in the Kingdom of Saudi Arabia.
Sample references include defining Saudi Arabia’s national standard for local content for the Ministry of Energy and SAGIA, developing and delivering holistic local content programmes at SABIC, Ma’aden and the Saudi Telecoms Company, and localisation of CAPEX project expenditure at NEOM.
Our projects are advised and delivered by our Local Content Centre of Excellence, and our services are underpinned by our eFlow technology platform, which enables more flexible analysis of supply chain data, demand planning and automated reporting of local content performance through a dynamic Local Content Reporting System.