SUPPLIER DEVELOPMENT PROJECT IN KAZAKHSTAN SUPPORT TO THE SME COMPETITIVENESS SUCCESS STORY Ural Trade and Industrial Company LLP

Служба развития поставщиков в действии: история успеха ТОО «Уральская торгово-промышленная компания»

Ural Trade & Industrial Company LLP has received 4 300 000 tenge to reimburse expenses for obtaining international re-certification API Spec. Q1, ISO 9001.

Since September 2019 Euroconsultants S.A. – Branch in Kazakhstan together with partners JSC "Kazakhstan Institute for Industry and Export "QazIndustry" and NCE "Atameken" evaluated business based on methodology of the European Foundation for Quality Management - EFQM, among more than 210 SMEs in 15 administrative-territorial units of the Republic of Kazakhstan, which included review of management and business processes.

The business assessment with the main goal to provide empirical information for SMEs to boost their competitiveness was conducted twice: the first time (Business Review-1) experts assessed the current state of business and developed individual improvement plans for companies, and 3 months later in the second visit (Business Review-2) the implementation of this plan was assessed.

According to the results of two evaluations, Ural Trade and Industrial Company LLP received 352 points within business review 1 and 375 points respectively after business review 2(maximum of points is 1000 and average points achieve in Kazakhstan is 323 points), which allowed it to enter TOP-100 of companies and get an opportunity to participate in reimbursement of international certification costs.

Ural Trade and Industrial Company LLP was founded in 2003 on the basis of a plastic products plant, which had been operating in Uralsk since 1981.  The company specializes in production of polyethylene and polypropylene pipes for water supply, gas supply, telecommunications systems, technological pipelines with diameter from 20 to 1600 mm, as well as metal tiles, profiled sheets, accessory elements, road signs and other consumer goods made of plastic. Production capacity of the enterprise is 30 000 tons of polyethylene per year.

Major clients are Kazakhmys JSC, ZhaikMunai LLP, KazAtomProm JSC, Moscovodokanal LLC, Voda Krym LLC. RSE on REM "KazVodHoz" and others.

"At present, in the context of the pandemic, there are certain challenges in business. However, production is working at full capacity. During this time raw materials, polyethylene, metal have risen quite a lot, respectively, we were forced to increase prices for products, which, of course, affects the overall work process. But participation in the Supplier Development Program in Kazakhstan was a great help for us. In particular, in the assessment of the European Foundation for Quality Management, we received advisory as well as financial assistance. International experts of the Project evaluated Business Review - 1 and 2, which helped us to apply corrective actions. Particularly, the IMS-P06 “Personnel Management” procedures were developed to assess the effectiveness of training: right after the training, the employee evaluates his own performance, and 3 months after the training, the head of the department evaluates the employee and the effectiveness of the training received. The assessment gave good effect, recommendations of experts were very useful for us and I think will be useful in future", Nikolay Stephanishin, Deputy Director on Development of Ural Trade & Industrial Company LLP.

The manager of certification and standardization, Fairuza Yessmuratova, added: "All the companies we work with require API Spec. Q1, ISO 9001. It allows us to get orders from big clients who pay close attention to its availability. For instance, many companies, when they find out we are certified by the American Petroleum Institute, are eager to cooperate with us. And in this way it boosts the sales of our products. In particular, we signed a contract with new clients of BatysGazStroy LLP. Moreover, it allows us to enter the international market with a quality competitive product. Therefore, 70% reimbursement of our expenses for obtaining the international certificate is a tangible financial support. We are also glad that the process of reimbursement for certification went smoothly. We gathered the documents - submitted the application. It was not difficult, because we had all the required documents. We got them together in one week. On March 9, 2021, we sent the documents. Within one month we received the money. Our experience in the project showed one thing, we should not be afraid and actively participate in the projects initiated by the Ministry of National Economy of Kazakhstan.

The company has plans to submit another application for reimbursement of the certificate "Intergas Cert" to enter the Russian market.

“At present, in the context of the pandemic, there are certain challenges in business. However, production is working at full capacity. During this time raw materials, polyethylene, metal have risen quite a lot, respectively, we were forced to increase prices for products, which, of course, affects the overall work process. But participation in the Supplier Development Program in Kazakhstan was a great help for us.”

Nikolay Stephanishin, Deputy Director on Development of Ural Trade & Industrial Company LLP

“ … many companies, when they find out we are certified by the American Petroleum Institute, are eager to cooperate with us. And in this way it boosts the sales of our products. Therefore, 70% reimbursement of our expenses for obtaining the international certificate is a tangible financial support.”

Fairuza Yessmuratova

Manager of Certification and Standartization