local supplier development program

Topics: Economic growth, Sustainable development, Economic development Pages: 11 (2047 words) Published: March 21, 2014
DEDICATED TO MAKING A DIFFERENCE

World Business Council for
Sustainable Development

Case Study

2007

Ledesma

Local Supplier Development Program
Ledesma’s Local Supplier Development Program aims to strengthen job-creation in and the economic development of the province of Jujuy, in Argentina, and particularly in the area where its employees live. In doing so, the company designed a program in which the growth of local suppliers could also provide benefits for the company. In this way, the sustainability of the program is not solely dependant on the commitment to local development.

The company decided to identify Jujuybased small and medium enterprises (SMEs) that could, with management
assistance and finance, replace other
suppliers from outside Jujuy. These
include companies from various industrial
and non-industrial sectors. In doing so,
Ledesma benefits from reduced transport
costs and the possibility of having its
supplier closer to its operations.
Eleven companies took part in the first
development cycle. Their combined sales
to Ledesma increased by 80% from 2005
to 2006.

Ledesma in Jujuy, Argentina

About Ledesma
Ledesma is an Argentine-owned agro-industrial company supplying high-quality products to Argentine families and industries, mainly in the sugar, paper and fruit industries. Ledesma, which will celebrate its 100th anniversary in 2008, leads its markets of choice and employs more than 5,600 people in Argentina. The company strives to align its economic growth with social progress and environmental protection. This alignment is part of the company’s business style, and the essence of its social responsibility. From the very beginning, Ledesma and Fundación Ingenio Ledesma (Ledesma Sugar Mill Foundation) have carried out several activities designed to promote development, education and the improvement of the quality of life of people, especially of the inhabitants of the province of Jujuy, where most of Ledesma’s production activities are localized.

Ledesma actively takes part in various joint initiatives such as CEADS (the Argentine WBCSD chapter), FUJUDES, FUNDESNOA, and the United Nations Global Compact. Ledesma believes that its commitment to social responsibility will be increasingly appreciated by its clients, consumers, suppliers, employees, shareholders, and by the communities where it operates.

WBCSD page 2

The Program
Ledesma started the Local Supplier Development Program after two years of work on a small- and medium-sized enterprise training program that began to show its limitations. Recognizing the situation, the company took on an annual study of the perceptions, expectations and priorities of what a supplier development program would entail, and set their focus for the new program primarily on increasing local supplier sales to Ledesma. Players

The Ledesma team consists of an Operational Team made up of the heads of supply, human resources and corporate social responsibility and Sponsors consisting of logistics managers and the external affairs manager.

The Operational Team is responsible for the design, implementation and monitoring of the project, and for keeping the Sponsors informed of all progress made. The Sponsors make any suggestions they consider appropriate with a view to more effective achievement of the specific objectives.

Developed
suppliers (6)

Working group
(coordinator &
evaluation)

Sources of finance

Suppliers in
incubation (10)
FUJUDES
(facilitator )
FUJUDES / Fundación
Premio Nacional a la
Calidad (coach)

The Jujuy Foundation for Sustainable Development (FUJUDES) acts as facilitator. FUJUDES´s main objective is to study, design and implement programs intended to generate greater development in the province of Jujuy and the Argentine Northwest At the request of the Operational Team, FUJUDES:

• seeks adequate sources of financing to suppliers;
• assists in the preparation of documentation aimed at securing...
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