Good Procurement Practices and SMEs in Global Supply Chains: What are the good practices?

Case Study Series

This series of four case studies is part of the International Labour Office SME Unit’s research on procurement practices from Small and Medium Enterprises in Global Supply Chains. These case studies are intended as complementary reading to the publication “Good Procurement Practices and SMEs in Global Supply Chains – What do we know so far?”, by Navas-Aleman et al. (2016), and aim at providing practical examples of procurement practices put into place by lead firms with the explicit objective of having a positive impact on their SME suppliers in developing countries.

The cases were selected in order to provide a varied sample of good procurement practices, both in terms of sector and geographical areas. The cases cover the Fresh Fruits and Vegetables, Coffee, Catering, and Hospitality sectors, and describe the relationship of Multi National lead firms with SMEs from Colombia, Peru, Senegal, and South Africa. They show that procurement practices can be beneficial for SMEs for a wide range of reasons, going from the provision of training and support services (Albert Heijn, Nespresso, Sodexo), to the payment of price premiums for well-performing SMEs (Nespresso), as well as the increased attention to local sourcing (Sodexo, Sun International).

They also provide powerful insight on the reasons why lead firms decide to put into place practices that are deliberately beneficial for their SME suppliers, which represent a real-world application of the typology developed by Navas-Aleman et al.’s work. In some cases, lead firms decide to favor SME development in a quest for input quality (Nespresso), while in others the drivers can be compliance with national legislation (Sun International) or the will to improve the lead firm’s reputation (Albert Heijn, Sodexo).

4-page briefs:
  1. Albert Heijn, The Netherlands
  2. Nespresso, Colombia
  3. Sodexo, Peru
  4. Sun International, South Africa
Full Case Studies:
  1. Albert Heijn, The Netherlands
  2. Nespresso, Colombia
  3. Sodexo, Peru
  4. Sun International, South Africa