Project Title

Supply Chain Capacity Building for SMEs - Supply Chain Management, Cold Chain Storage and Technical Regulations  

Project Year

2014   

Project Number

SME 04 2014 

Project Session

Session 2   

Project Type

Standard 

Project Status

Completed Project   
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Project No.

SME 04 2014 

Project Title

Supply Chain Capacity Building for SMEs - Supply Chain Management, Cold Chain Storage and Technical Regulations  

Project Status

Completed Project 

Publication (if any)

 

Fund Account

Operational Account 

Sub-fund

None 

Project Year

2014 

Project Session

Session 2 

APEC Funding

73,136 

Co-funding Amount

73,151 

Total Project Value

146,287 

Sponsoring Forum

Small and Medium Enterprises Working Group (SMEWG) 

Topics

Small and Medium Enterprises 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

United States 

Co-Sponsoring Economies

Australia; Canada; Malaysia; Mexico; Philippines; Singapore; Chinese Taipei 

Expected Start Date

01/09/2014 

Expected Completion Date

31/12/2015 

Project Proponent Name 1

Lynn A Costa 

Job Title 1

Senior Trade Development Advisor 

Organization 1

Global Markets, International Trade Administration, US Department of Commerce 

Postal Address 1

14th and Constitution, Room 3867, Washington, DC 20030, USA 

Telephone 1

1-202 4825428 

Fax 1

Not Applicable 

Email 1

Lynn.Costa@Trade.Gov 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Lynn A Costa 

Project Summary

This project will give SMEs the technical skills and supply chain management strategies needed to integrate and succeed in global supply chains. This can potentially add value to their products by increasing product quality (value) and potentially position SMEs for future supply chain opportunities. The project will primarily focus on two of the five sectors the SMEWG selected as essential to economic development (agriculture and food processing) and will draw on the vast supply chain management knowledge resident in Georgia Tech’s Supply Chain & Logistics Institute and its partner The National University of Singapore. SMEs will learn about cold-chain storage, which is critical to meeting product safety regulations for temperature-sensitive exports and the new logistics technology that tracks and ensures product integrity, learn about the various regulations in APEC, markets, and have an opportunity to network with supply chain experts, companies, regulatory experts and SMEs from other APEC economies. The project will be held on June 8-9, 2015, adjacent to the 40th SMEWG meeting and will include SME delegates attending the SME Working Group meeting. Small and medium-sized company owners and/or managers in the agriculture and food processing sector interested in supply chain and cold chain integration, management and logistics strategies are the target participants.

Relevance

Small and medium-sized companies are the dominant stakeholders in the Asia Pacific trade region and have significant difficulties successfully participating in existing and newly established supply chains. They lack the knowledge, expertise and financial capability to take advantage of the extensive outsourcing done by large global corporations. According to William W. Goldsborough, PhD (Logistics Alliance Strategies & Associates), “For large (over $1 billion) U.S. headquartered companies, international markets are no longer of secondary importance. The need to lower operating costs, achieve scale economies and find new sources of revenue is driving multinationals to source, manufacture and sell in foreign locations at an accelerating pace.”  With the proper technical assistance, the growing demand by MNCs for global suppliers is a tremendous opportunity for SMEs - as long as they are adequately prepared to seize these opportunities. The two-day capacity building workshop will help prepare SMEs for supply chain integration by putting them in an educational environment, and in direct contact with, supply chain specialists that focus solely on supply chain solutions. At the workshop SMEs will: (1) gain supply chain management strategies, (2) have opportunities to network with SMEs who have successfully integrated into a global supply chain, (3) learn about cold-chain storage and why it is essential to consumer safety and improving quality which is essential to   securing contracts, and (4) provide the foundational context for an APEC website that will serve as a web portal for SME global supply chain connectivity. The Asia-Pacific trade region has vast resources, capabilities and strengths. Connecting SME products, resources and capabilities with global companies is beneficial to all APEC economies, whether highly developed or emerging APEC economies. 

This project is a Rank 1 because it will significantly foster work under two categories: (1) Promoting Global Value Chains, and (2) Supply Chain and Performance Improvement by increasing SME’s integration into global supply chains, increasing skills and regulatory knowledge which increases their performance productivity and efficiency, establishing networking opportunities with SMEs who have successfully secured a supply chain contract which expands SME marketing and operating knowledge, and gives SMEs crucial information on how cold chain storage and new tracking applications function, and why it’s critical to the health and safety of APEC consumers. The project also aligns with ongoing work on Standards and Conformity Assessment, Technical Regulations and Regulatory Compliance (Rank 1) because many APEC economies have strict regulations on the importation of food for humans and animals. These regulations vary based on the type of food product, the category of importer, the nature of the hazard in the food, and who is responsible for controlling the hazard. The project aligns with a SMEWG priority to support SME access into global supply chains, dovetails with the CTI work stream on Global Supply Chain Connectivity, augments the work done in the Health Working Group on consumer safety, and supports ongoing APEC PSU research (Integrating SMEs into Global Value Chains: Policy Principles and Best Practices; Issue 6, APEC 214-SE-01.5; May 2014).

Objectives

The objectives of the two-day workshop are: (1) place 300 SMEs (including the Philippines participants, APEC funded and non-funded from all APEC economies) in an interactive educational environment with supply chain experts from Georgia Tech’s Supply Chain and Logistics Institute  along with  regulatory experts from state and national regulatory agencies such as the USDA  Foreign Agricultural Service (FAS), with a view towards increasing SME’s technical regulatory knowledge, (2) provides SMEs with a clear understanding of why cold chain storage is an imperative if they export perishable or temperature sensitive products (agriculture, meats, fish, pharmaceuticals, flowers, etc), (3) provides SMEs with successful supply chain management strategies to cope with a demanding and rapidly changing regulatory environment, (4) allows APEC SMEs to network with their peers and exchange information on supply chain challenges, solutions and opportunities, and (5) seek solutions on SME supply chain financing, (6) explores ways academic institutions can support SME integration and sustainability in supply chains, and (7) establishes the foundational concepts for an APEC website on SME Supply Chain Connectivity.

Alignment

The project aligns clearly with the Rank 1 priorities pursuant to instructions from Leaders and Ministers to promote Global Value Chains and Supply Chain Connectivity and Performance Indicators by promoting SME participation in supply chains. The project also aligns with the SME Working Group Strategic Plan (Regional Integration) and the APEC Strategic Blueprint for Promoting Global Value Chain Development and Cooperation. The project will increase SME knowledge and portability across borders, increase their efficiency with through smart supply chain management strategies and techniques, and supports two specific sectors, agriculture and food processing, that were identified by the SME Working Group delegates as most critical to their economies in terms of economic growth and sustainable development.

TILF/ASF Justification

Not Applicable.

Beneficiaries and Outputs

Outputs

This project will include:

Four educational workshops  for approximately 200 small and medium-sized company owners or managers in supply chains and cold chains at the Supply Chain and Logistics Institute at Georgia Tech University.The program is ambitious, however panels of experts (presenters) will share approaches based on three themes: (1) connecting a timely and temperature-sensitive supply chain, (2) securing intellectual property and food safety, (3) collaborating and leveraging the resources of private and public sector stakeholders. Panelists will be assigned to a designated supply chain where SMEs are major suppliers such as coffee, poultry, fish, wine (Chilean) and produce (Philippine mangos). The experts will move the designated product across the supply chain incorporating regulatory considerations, the appropriate logistics (master franchisor or franchisee), the use of the appropriate equipment if a cold chain product, how teaming with a third party logistics firm can expand SME capabilities, why trademarks are essential; even in protecting your company’s name. A successful SME will serve on each panel to discuss its role, challenges and rewards as a supplier. The United States is securing SME panelists from APEC economies to participate as speakers. 

One panel will be devoted to leveraging resources for success, including how synergies can be reached when government, academic and the private sector use their respective strengths to develop and utilize resources and technologies in supply chain challenges. Participants will hear company representatives offer insights on obtaining financing for meeting global standards and obtaining connections to global supply chains while government officials share supply chain projects that are being replicated in many parts of the world. 

-  SME official networking session for all SME participants (200-300 participants) on the first evening  so that APEC SMEs can communicate and collaborate across the APEC trade region

-   Best practices in supply chain strategic planning and management to be shared-

-   An on-sight tour of a cold-chain storage facility so SMEs understand how cold-chain storage functions and why it’s a new global requirement by MNCs who contract with SMEs

-  Increase SME knowledge on intellectual property safeguards and requirements and the sanitary-phytosanitary regulations that SMEs must comply with when exporting globally

-   Establishment of the basis (identify the most useful information for SMEs) for an APEC SME Supply Chain Web Portal to link SMEs with their counterparts and with resources, tools and academic institutions. NOTE: The PSU will be invited to participate to further its study on SME integration into supply chains. 

Outcomes:  

SMEs will have a better understanding of the various health regulations products must meet as a supplier in a supply chain and how these regulations can vary depending on the final destination of the product. APEC economies have various and differing regulations on imported agriculture and food products. For example, in the United States there are very specific Federal regulations on temperature-sensitive foods and medical products for both human and animal consumption. In many instances the supplier must guarantee that the product has stayed in a temperature-controlled environment as it passes from farm to fork – or supplier to consumer. SMEs will also learn how to ensure product integrity to meet safety and regulatory standards with the latest temperature monitoring/tracking technologies that are available through cold-chain storage equipment and monitoring/tracking technology. They will learn how to increase their capability to minimize inefficiencies through smart chain management practices and they will have opportunities to learn from SMEs that have successfully mastered global markets. Learning from successful SMEs will help them avoid common mistakes and give them insights on how to more effectively overcome export challenges. 

Workshop sessions will include the following key discussion points. With this information SMEs are significantly better equipped to integrate into global supply chains. Addressing these issues will also facilitate their reputation as a trusted, contracted supplier. This facilitates further SME supply chain opportunities. 

·  What are some of the best practices for keeping food products safe throughout the global supply chain from the field to the fork?

· How does a corporation ensure high-quality and consistency guidelines are met?

· How can SMEs keep up with all the regulatory changes in various markets?

· What are the best practices being applied by various stakeholders (farmer, transporters, retailers) to increase supply chain efficiency?

· What can SMEs do to improve their ability (increase quality performance metrics, collaborate with others to gain better economies of scale, etc.) to gain access to a global supply chain.

. What are some of the emerging strategies in sourcing/delivery/manufacturing that SMEs should consider in their work plans?

·   Are there export assistance programs for SMEs?

·   What financing is available to SMEs in a supply chain? How do SMEs bridge the production-delivery gap when increased financial resources are needed during the production period to meet contract quantity?

·   What are some key government sources for market information?

·   How can SMEs find the right academic institution to work with?

·  What are ways an academic institution can help an SME across the global supply chain?

·   What type of web portal information would be most useful for APEC SMEs? 

Beneficiaries

SME owners and managers in the agriculture and food processing sector interested in supply chain and cold chain integration, management and logistics strategies, both male and female, are the project target participants as well as the direct users and beneficiaries of the outputs. Globally recognized supply chain experts from academic institutions and supply chain managers from leading multi-national companies will provide participants with management, cold-chain storage, and logistics knowledge to prepare them and help them succeed as supply chain suppliers. Regulatory experts from government agencies, national and/or state, will be invited to inform SMEs on the various regulations they will have to meet as an SME exporter. Supply chain specialists from the US Department of Commerce will organize the content of the program in conjunction with the teaching staff at Georgia Tech’s Supply Chain and Logistic Institute; recognized as one of the top supply chain institutes in the United States. Educators from the National University of Singapore, also known for its excellence in supply chain management, will also participate as speakers and educators. SME delegates will also participate in the workshop which is scheduled adjacent to the 40th SMEWG meeting and will be able to use the information, knowledge and resource base to help SMEs in their domestic economies. 

Public policy makers could also benefit from the project as the discussion would assist policy development supporting SME participation in GVCs. 

SMEs outside the designated sectors could also learn from best practices, better prepare themselves with knowledge on regulatory requirements and connect with other SMEs/academic institutions/non-governmental associations by accessing the project final report and using the proposed web portal.

Dissemination

The Project Overseer will prepare a comprehensive report and disseminate to SME Working Group delegates. The PSU staff will be invited which will enable them to include information and outcomes stemming from the workshop into Integrating SMEs into Global Value Chains: Policy Principles and Best Practices Issue 7

Gender

Workshop and logistical information will be provided well in advance of the workshop. The informational document will note the important inclusion of women-owned SMEs in this workshop. This document will be distributed to all SME delegates and trade ministries for recruitment purposes. Women are an important dimension of the agriculture and food-processing sectors and therefore APEC economies will be encouraged to actively recruit female participants. The face of agriculture around the globe is often female. In many of the world’s regions, women work alongside men in the fields that provide nourishment and income for their families. They contribute to commercial agriculture, which includes high-value products such as vegetables and cut flowers for local and export markets. In some societies, women also harvest and sell agricultural goods. Helping both genders supports economic development in APEC economies by giving them exposure to the regulations and requirements set by the global marketplace and preparing them for opportunities.

Work Plan

September 2014: The Global Supply Chain office in the US Department of Commerce has already held discussions with the Georgia Tech’s Supply Chain and Logistics Institute on the range of possible session topics and the cold-chain tour site visit. The US government has been in contact with the Philippine government on how its workshop can dovetail with the US workshop so that both groups of SMEs can benefit from speaker knowledge, the cold-chain tour and networking opportunities. A project contracting specialist from the Department of Commerce has joined the US team to handle contacting and logistics requirements.

October 2014: The Project Overseer is traveling to Atlanta on October 7-9 to review space requirements and meet with Georgia Tech’s staff on workshop course content, goals and objectives. The Project Overseer will meet with the US Commercial Service in Atlanta and the Georgia Export Council to establish a plan for recruiting US SMEs and SMEs from APEC’s non-travel eligible economies so there are a substantial number of participants and networking opportunities for APEC SMEs.

November 2014: The US Department of Commerce’s Global Supply Chain Office will go to Atlanta to review the preliminary course content with Georgia Tech and visit potential cold-chain storage facilities. The US Small Business Association (SBA) will be engaged to assist with US SME recruitment. US regulatory agencies will be contacted for recommendations on appropriate speakers for the technical regulation element of the workshop.

December 2014: Staff from the US Department of Commerce will participate in the Informal Senior Official’s meeting in Legaspi and then fly to Manila for planning and coordination with the Philippine Department of Trade and Industry (DTI). The SME recruitment plan will be finalized and the logistical and informational document drafted.

January 2015: Supply chain experts will be secured for the Atlanta event and the US will roll out the SME invitation information to all APEC economies. Transportation will be contracted for the cold-chain storage tour. 

February 2015: A participant survey will be drafted to capture input from SME participants. This will help the US identify what follow up is required, what information is most beneficial to SMEs on the APEC SME Global Supply Chain website, and how to improve future global supply chain projects for SMEs.

March - May 2015: Finalize the agenda, finalize travel for APEC travel-eligible participants and finalize the participant survey. Hold meetings in Atlanta with Georgia Tech to finalize workshop details. Continue SME recruitment from -APEC non-travel eligible economies.

June - August 2015: Implement workshop, provide workshop readout at the 40th SMEWG meeting in Atlanta, assess survey feedback, and draft the comprehensive report for dissemination. Work with APEC website staff on establishing an SME Global Supply Chain web portal.

Risks

The only challenge the United States foresees is the possibility that a huge number of SMEs will attend, creating up-front challenges in determining exact space requirements. The US Department of Commerce has U.S. Commercial Service Offices in every state in the United States and Commercial Service Offices in 80 countries that will recruit US and foreign SMEs. The US Commerce Department’s Global Markets team has already started the preliminary recruitment of SME delegations from non-travel funded economies and will significantly scale up recruitment in January, 2015. We are also supported by the U.S. Trade Development Agency, the Georgia District Export Council, Georgia Tech, the National University of Singapore, the Manufacturers Association of Singapore, the United States Department of Agriculture, the Philippine Government, the Atlanta Chamber of Commerce, who have or will step in at the appropriate time to recruit SMEs. We have reached out to the Japanese government and the Chinese government and will continue recruitment outreach to secure a large number of SMEs. Our target number is 300-350 SMEs in Atlanta. Video-conferencing was considered, however it is cost prohibitive and not all APEC economies have the required satellite technology to participate. With 21 APEC members spanned across the globe, the time differential between APEC economies is also problematic.

Monitoring and Evaluation

The participant survey and on-sight feedback from participants (SMEs) will help inform the United States on the effectiveness of the workshop. The US will also discuss the quality of the workshop with the PSU staff and how to improve any future global supply chain capacity building projects. The participant on-site registration form will be structured so the exact number of males and females will be identified. At the conclusion of the workshop, participants will be given ample opportunity to evaluate course content and what areas, if any, were absent as a method of improving any future projects. The Project Overseer has years of experience in developing economy issues and capacity building projects, as does the Director for the US Department of Commerce’s Supply Chain Office. Together, and in consultation with supply chain and regulatory experts, the US team will ensure that the course content drives towards substantial workshop outcomes.

Linkages

This project will link SMEs directly with global supply chain experts at Georgia Tech and the

National University of Singapore. These academic institutions teach master level courses in supply chain      

engineering and international logistics and conduct extensive research on integrated food chains, warehousing, and distribution and manufacturing logistics. It builds on the SMEWG workshop held in March 2014 focused on Facilitating the Integration of SMEs into Global Value Chains. By design, the project is cross-cutting with the ongoing work in the CTI, the Health Working Group on consumer safety, the Sub-Committee on  Standards and Conformance and the APEC Policy Support Unit. The staff at the US Department of Commerce USTR (CTI) and ATCWG that have focused food safety issues, will be asked to provide input on topical issues. They will also be invited to participate in the workshop. The Department of Commerce reached out to Korea via the Secretary of Commerce who recently returned from Korea. The Secretary has invited Korean SMEs to Atlanta and offered US collaboration on Korea’s (CTI) global value chain project. We have looped in the U.S. ATCWG delegate after receiving the Japanese supply chain proposal last week. The PO held a conference call on October 23rd with the U.S. ATCWG delegate and the USDA FAS staff that provided institutional based technical assistance in a number of APEC economies. 

APEC is the best source of funds for this project because: 1) one of APEC’s primary goals is to provide technical assistant through capacity building programs for SMEs so they can integrate into the global      marketplace, 2) APEC has the funding source to ensure that APEC SMEs from APEC’s travel-eligible economies (Chile, China, Indonesia, Malaysia, Mexico, Papua New Guinea, the Philippines, Peru, Russia, Thailand and Vietnam) can participate in capacity building programs and projects, and, 3) global supply chain connectivity and integrating SMEs into supply chains is a key area of focus in APEC in a number of working groups, including the SME Working Group.

Sustainability

The project is designed to provide the salient information on regulatory imperatives that SMEs in the agriculture and food-processing sector need to understand in order to gain contracts with TNCs will be highlighted. The project will also provide networking events for SMEs so they can consult and collaborate with their SME peers across the APEC region. Academic and company experts will be present to provide detailed information on supply chain requirements for their suppliers and the project will also highlight new technology that is available (cold-storage and the new logistics tracking capabilities) that supports quality assurance across the supply chain which is required by companies and national governments. SMEs will also have an opportunity to learn from SMEs that have successfully mastered exporting into the global marketplace. This will give SMEs an advantage in terms of avoiding common mistakes, as well as a realistic view on the time, effort, and challenges such as gap financing that their peers experienced and how they found solutions to their challenges. 

Beneficiaries will be supported through a newly-established APEC web portal that will contain web links to regulatory agencies within APEC economies. The portal will also include a list of academic institutions that provide assistance on supply chain logistics and management. Participants will also receive a complete contact list for all the supply chain participants, so they can continue to engage with their APEC counterparts. The survey that will be disseminated at the conclusion of the workshop will provide direct SME input on what additional information is needed on the website to ensure that it is relevant and useful to APEC SMEs. The PO will work with the APEC Secretariat on the opening page content after consultation with the academic institutions. If the APEC Secretariat can provide the web portal opening page (as was done for the APEC SME Ethics website), Georgia Tech, supply chain associations across the APEC region, and the Supply Chain Office in the Department of Commerce can provide informational categories and links to regional academic institutions that focus on supply chain solutions, links to informational websites on logistics, cold chain supply companies and associations, trademark protection, regional development bank programs, government agencies handling supply chain and cold chain issues. The U.S. team will make every effort to provide links to the information desired by SME participants.

Project Overseers

Lynn Costa at the US Department of Commerce will serve as the Project Overseer for this project. Ms. Costa has served as the Department’s developing economy lead in the WTO and other international organizations for over a decade. Ms. Costa was asked by the current APEC SME Working Group Chair to lead the initial discussions on this topic on the margins of the SMEWG Meeting in Manila in 2013. Ms. Costa has ample experience implementing SME related projects as she has also served as the PO on the APEC SME Multi-Year Project on Business Ethics, Financing for SMEs, the SME Business Ethics Forum in Nanjing, and a Chemical Harmonization workshop in Beijing. Ms. Costa will serve as the policy advisor to the incoming SMEWG Chair, Mr. John Andersen, during his tenure in 2015-2016. Ms. Costa will be joined by Mr. Bruce Harsh, Director of the Global Supply Chain Office in the US Department of Commerce. Mr. Harsh has years of experience working on supply chain programs and projects. Mr. Harsh also works closely with USTR on the CTI Supply Chain Connectivity work stream and has served as an expert speaker on this topic in numerous international events on this topic. Ms. Jennifer Harrington, Contract Specialist at the US Department of Commerce, will handle the contacts necessary for the workshop in Atlanta.

Ms. Costa and Mr. Harsh will be supported by the academic staff at Georgia Tech’s Supply Chain and Logistics Institute in Atlanta where the project and the 40th SMEWG meeting will be held. Georgia Tech will coordinate course content with its partner university, the National University of Singapore.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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