SPX Concept & Model | Industrial Subcontracting | Partnership |Regional GSPX network

The Subcontracting and Partnership exchange (SPX) in the GCC is the Gulf Organization for Industrial Consulting (GOIC's) initiative for industrial cooperation which has been in place since 2001, crowned by an agreement between GOIC & UNIDO in 2003 to apply the SPX mechanisms to small and medium industries in the GCC countries. By 2004 the SPX program at GOIC was operational through which GOIC had established country level SPX solutions.

GSPX- GCC Subcontracting & Partnership Exchange has been initiated by GOIC to network all GCC nations together for a common cause. GOIC will be the focal point for providing training in 6 GCC countries. GOIC is in the process of establishing a regional subcontracting data base to cover all the manufacturing industries in GCC within three years limited to the Target Sectors .

In addition, SPXs act as centers for multidisciplinary assistance and information for subcontractors and suppliers in the following fields:

Concept of Subcontracting is all about the strong linkage between supplier & buyer, and partnership is all about effective linkage between various stake holders like Investor and various other Institutes.
 

•  Supplier of Component & services
•  Supplier of Sub-assemblies
•  Provider of Special activities or Process
•  Looking for Joint Venture

Buyer means the Main contractor usually large scale industries is a purchasing /procuring organization looking for:

• Manufacturing capacity
• Service / Component suppliers
• Sub-assembly suppliers
• Partners for Joint Ventures
   

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Industrial Subcontracting

Industrial subcontracting is an efficient way to organize industrial production through cooperation between main contractors and subcontractors. It consists of an agreement between the main contractor and the subcontractor. The main contractor entrusts an enterprise with the production of parts and components or provision of services that are necessary for the manufacture of the final product. The subcontractor carries out the work according to the specifications provided by the main contractor. Thus, there is a division of labor in the industrial production.

An economic relationship where one entity, the main contractor, requests another independent entity, the subcontractor or supplier, to undertake the production or carry out the processing of a material, component, part, subassembly or the provision of an industrial service in accordance with the main contractor’s specifications.
 

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Partnership

UNIDO has been advocating the concept of “industrial partnerships” which refers to long-lasting and equitable industrial subcontracting relationships based upon the specialization and technological expertise of subcontractors or suppliers. The complementarily of the assets and technologies between the parties involved can thus form the basis for the establishment of vertical type relationships with a long-term sharing of responsibilities.

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Regional GSPX network

Regional GSPX network can act as a centre for exchanging of business enquires and provide suitable matchmaking of enquires and will be evolved into preferred facilitation destination for large and SMEs by means of synergized initiatives by GCC nation by connecting all SPX centre on a common platform. SMEs and large industries will be directly benefited from the SPX matchmaking.