Local Content in Procurement is the first book of its kind. Recognising the substantial economic and social value brought to host countries and local communities through the procurement practices of large private and public companies, this book by Dr Michael Warner – Director of the consultancy firm Local Content Solutions and former architect of the Local Content standards for BG Group – provides a first-hand account of the Local Content regulations, strategies and procurement processes needed to realise these social benefits.
Acknowledging that the employment and industrial benefits of large-scale procurement have been sorely overlooked, this book is both a how-to manual and a thoughtful insight into the challenge of creating sustainable jobs and competitive national industries through expenditure on bought-in goods and services.
With literally trillions of dollars of goods and services being procured over the next ten years in exploring and developing for oil, gas and mineral resources across the globe, the book focuses on these sectors, yet also has wide application to the utilities, construction, infrastructure, manufacturing and defence sectors.
Local Content in Procurement has been written for those working for the procurement, strategy and social responsibility departments of major private and public companies and international suppliers, for industrial and economic policy-makers and regulators of local content, and for all those involved in the management of procurement expenditure to develop national and local industries.
Local content has become a key element in the strategic development of the extractive
industry worldwide. This book is a first-class highly recommended guide by the
foremost authority on the subject. Extraordinary clarity and insight have been
combined to produce a must-have handbook for the serious international business
executive and consultant.
Hon. Tam Brisibe, former Chairman, Committee of Petroleum Resources Upstream, House of Representatives, National Assembly, Nigeria
Local content has become a popular catchcry in many resource-rich countries.
But while policy-makers are understandably eager to derive greater value-added
benefits from the extraction of natural resources, formulating a regulatory
framework for local content that will lead to the creation of internationally
competitive domestic industries can be a fiendishly complex task. This clearly
written book describes the pitfalls and outlines some of the solutions to this
conundrum and should serve as a useful handbook to regulators and industry
Joe Leahy, Brazil Bureau Chief, Financial Times
What we have learned from this book is allowing us to focus on the
practicalities of the local content in our invitations to tender for major
contracts. We are now able to obtain tangible information and contractual
commitments from tenderers to support our local content business objectives and
be accountable to our stakeholders in Ghana.
Dinah Quashie-Idun, Local Content and Supplier Development Supervisor, Tullow Ghana Limited
A valuable book for all supply chain professionals living with local content
challenges and opportunities. Always practical. Keep it close to your
Simon Blamires, Regional Supply Chain Director, Africa, Newmont Mining, Ghana
This book is a first of its kind and a must-read for those working or in
business in an overseas environment. Demonstrable local content is becoming a
key to business success, provided the subject is fully understood and
implemented with care. The author provides a practical approach with clear
examples of how this success can be achieved.
Graham Balchin, Vice President of Projects, BG Trinidad and Tobago, Trinidad
The first comprehensive analysis of local content as a strategic factor, how
it affects the ambitions of international businesses and how it can be turned
into an opportunity. This is a book each business development, project and
procurement manager should have on his desk.
Cesare Pagani, Human Resources and Local Content Manager, Heerema Marine Contractors, Angola
The book is a must-read for those of us responsible for formulating local
content policy and regulations.
Elias A. Kilembe, Senior Principal Petroleum Geologist/Local Content Coordinator, Tanzania Petroleum Development Corporation
This book goes beyond mere lessons in local content, which it presents
through practical examples and useful methodologies and tools. The book also
offers deep reflection on local content as a fundamental strategy for
procurement and how local content can be optimised to grow the economy of a
country. Should this book be read? Absolutely!
François Bréant, Head of Industrial Strategy and Local Content Management, Total, Paris
In this book, Dr Michael Warner provides a holistic, comprehensive and
practical framework for integrating local content into sourcing strategies. A
timely and important contribution to understanding how local content in
procurement may be leveraged for enabling the creation of local jobs and
competitive domestic industries in supply chains.
Zanele Xuza, Preferential Procurement Manager, Anglo American
This book is a must-have for those who have responsibilities for formulating
policies and strategies in government and the private sector on local content
development. Well researched, it dwells in detail on the use of different local
content models and emerging tools for bridging capacity gaps in the effective
management of local content. In an area where there is still paucity of
well-researched literature, this book fills a big gap, and not a moment too
Olamide Onasanya, Nigeria LNG Ltd, Head Nigerian Content Co-ordinator
1. Competitiveness and protectionism:
is local content a road to economic competitiveness of a pathway to
2. Local content optimisation: modelling the economic impact of local content on commercial interests and public policy
3. Procurement strategy: the role of contracting and procurement strategy in effective local content management
4. Case study: procurement as a driver of national competitiveness in the Poinsettia Project, BG Group, Trinidad and Tobago
5. Major contract tenders: factoring local content into the formulation of invitations to tender and tender evaluation for major contracts
6. Accessible procurement: designing procurement procedures to facilitate access for local suppliers
7. SME development programmes: capacity building of SMEs to participate in procurement
8. Aid procurement: an opportunity to stimulate private sector development through local Supply chains
9. Metrics and measurement: unpacking the performance reporting of local content and local supplier development
Dr Michael Warner has 22 years’ experience aligning business strategy with the socioeconomic priorities of host countries. He is the former architect of BG Group’s standards and procurement-based procedures for Local Content management, and the Group’s risk-based approach to supply chain sustainability. He is also former Coordinator for the Oil, Gas and Mining Secretariat of the World Bank programme on Business Partners for Development, and a former Research Fellow with the Overseas Development Institute managing the Business and Development programme. Currently Managing Director of the specialist training and consultancy firm Local Content Solutions, he has worked in Europe, Africa, Central and S.E. Asia, the Middle East and Latin America, and on assignments for BP, Shell, BG Group, World Bank, IFC, DFID, UNDP, FAO, WEF, Anglo American, Alcan, Newmont Mining AMEC, Balfour Beatty, Sodexho and others.