Project Title

Promoting Supply Chain Resiliency in the APEC Region: Reviewing Progress on the 7 Principles 

Project Year

2017   

Project Number

TPT 02 2017A 

Project Session

Session 2   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

TPT 02 2017A 

Project Title

Promoting Supply Chain Resiliency in the APEC Region: Reviewing Progress on the 7 Principles 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: General Fund 

Project Year

2017 

Project Session

Session 2 

APEC Funding

100,000 

Co-funding Amount

341,333 

Total Project Value

441,333 

Sponsoring Forum

Transportation Working Group (TPTWG) 

Topics

Transportation 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

Emergency Preparedness Working Group (EPWG) 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

United States 

Co-Sponsoring Economies

Australia; Canada; Hong Kong, China; Korea; New Zealand; Papua New Guinea; Philippines; Russia; Singapore; Chinese Taipei; Viet Nam 

Expected Start Date

01/02/2018 

Expected Completion Date

31/10/2018 

Project Proponent Name 1

Christopher Clement 

Job Title 1

Head of Delegation, Transportation Working Group 

Organization 1

US Department of Transportation 

Postal Address 1

1200 New Jersey Avenue, SE, Washington, Dc 20590, USA 

Telephone 1

1-202 4930623 

Fax 1

Not Applicable 

Email 1

Christopher.Clement@dot.gov 

Project Proponent Name 2

Ann Katsiak 

Job Title 2

Chief of Party, US-ATAARI Project 

Organization 2

Nathan Inc 

Postal Address 2

Not Applicable 

Telephone 2

1-703 5167743 

Fax 2

Not Applicable 

Email 2

AKatsiak@nathaninc.com 

Declaration

Christopher Clement and Ann Katsiak 

Project Summary

The objective of this project is to increase the capacity of APEC economies to build resilient supply chains by instituting systems and processes that can reduce disruptions to global supply chains caused by natural disasters. This work is guided by the APEC seven principles of promoting supply chain resilience, which were adopted by members in 2013. The project includes two components:

- An APEC-wide workshop that will seek to review and reflect on the progress over the past 5 years by APEC economies on the seven principles on promoting supply chain resilience. This will include sharing experiences and lessons learned over the past 5 years and delving into principles not already discussed in TPTWG workshops with a focus on supporting critical transportation infrastructure and inter-modalism. The scope of this workshop will be informed by the findings of a self-funded stock-take of the work-stream, which will be completed by the second half of 2017.
 

- Targeted short-term Technical Assistance to address capacity gaps or areas that need additional support in implementing Action Plans that have been developed.

Relevance

APEC’s 21 member economies are disproportionately impacted by natural disasters. UNESCAP estimates that since 1970, a person living in the Asia-Pacific region has been five times more likely to experience natural disasters than a person living elsewhere.[1] The Asia pacific region has witnessed firsthand the disruptions caused by natural disasters which have resulted in significant economic costs.  In 2011, the flood in Thailand estimated to have caused losses of US$43 billion and affected companies worldwide. In 2012, hurricane Sandy on the US East Coast caused losses estimated at US$65 billion[2]. The economic costs are a caused by the destruction of economic and social infrastructure as well as disruptions to supply chains and the resulting loss of trade revenue. These losses are exacerbated by a number of factors, not limited to lack of emergency preparedness plans, lack of long-term approaches, and limited partnership between the public and private sectors. Supply chains that aren’t agile and cannot rapidly respond to change are often impacted most by disasters, and thus, the associated businesses experience extreme losses. These issues impact both businesses and government, and both can play an active role in mitigating supply chain risks, and thus, reducing losses. Governments can play a supporting role in helping companies cope with unexpected disasters and shocks, which will improve the resiliency of supply chains.

To address this, APEC economies have placed significant emphasis on supporting capacity building efforts to improve the resiliency and robustness of supply chains in the region.

In 2013, APEC economies agreed on Seven Principles of Supply Chain Resilience, which provides an overarching framework to support APEC economies to manage and mitigate risks to the supply chain as a result of natural disasters. These principles are to:

1) 
Share information and knowledge to promote supply chain resilience.

2) Promote disaster risk management and hazard mapping to better understand potential risks to supply chain resilience.

3)
Support planning and business continuity management to improve global supply chain resilience.

4)
Promote best practice policy, regulations, and flexibility to enable global supply chain resilience.

5)
Leverage regional cooperation to support the supply chain, including coordination with other multinational organizations working on supply chain resilience inside and outside the APEC region.

6)
Promote critical infrastructure protection and inter-modalism as a key component of supply chain resilience.

7) Recognize and promote best practice in human resource and capacity management
in the context of supply chain resilience.

This project will focus on reviewing the progress made on supply chain resilience in APEC and the importance of promoting resilient transportation networks as key elements of accelerating the recovery of supply chains following natural disasters in the Asia Pacific region. The project will also focus on the principles not previously discussed, with a focus on critical infrastructure and inter-modalism.

The project is relevant to several Rank 1 funding criteria for 2017. This includes: Trade and Investment facilitation and liberalization, including infrastructure development and PPPs; Supply Chain Connectivity; Emergency preparedness and disaster management, including activities relating to the efficient movement of capital, goods, services and people as well as the implementation of the APEC Disaster Risk Reduction Framework; and activities outlined in Global Value Chains (GVCs) Blueprint. In addition, the project is also aligned with the “Inclusive Growth” and “Secure Growth” pillars of the APEC Strategy for Strengthening Quality Growth and relevant to the strategic directions of the Phase Two of Supply-Chain Connectivity Framework Action Plan (SCFAP) 2017-2020 led by CTI. This project also complements the work progressed under the broader APEC connectivity agenda.


[1] UNESCAP, Asia-Pacific Disaster Report 2017, http://www.unescap.org/publications/asia-pacific-disaster-report-2017.

[2] Aon Benfield, Annual Global Climate and Catastrophe Report: 2012, http://bit.ly/1VvQznN

Objectives

The objective of this project is to improve the capacity of APEC economies to effectively mitigate the impacts of natural disasters on global supply chains. This will be achieved by:

-  Conducting an APEC-wide workshop which will focus reviewing and reflecting on the progress made on the seven principles of supply chain resiliency. This will include a review of the seven principles, including a focus on principles not previously discussed with a focus on critical infrastructure and inter-modalism.   The discussion will be informed by the findings of a self-funded stock take exercise planned for 2017, which is expected to highlight lessons learned and areas that require targeted support to ensure that businesses are able to recover quickly from disasters. The workshop will ensure that officials across the region covering these issues are well-versed in all areas of supply chain resilience and thus able to apply these principles to their work.

Targeted technical assistance addressing gaps in implementation of previously developed economy-led Action Plans and other areas of critical need identified by developing economies. These developing economies that receive targeted assistance will have the ability to more fully implement their Action Plan,  leading to more systematic and prioritized improvements to their supply chains.

Alignment

This work stream responds directly to APEC’s broader trade facilitation and regional economic integration agenda. The importance of promoting supply chain resilience has been reflected in Leaders’ and Ministers’ Statements and instructions to members (Leaders and Ministerial Statements – 2012/2013/2014). It complements CTI and SCE-led policy frameworks, including Phase Two of Supply-Chain Connectivity Framework Action Plan (SCFAP) 2017-2020 and the APEC Connectivity Blueprint (2015-2025). This project reflects the strategic directions of the APEC Disaster Risk Reduction Action Plan implemented by the Emergency Preparedness Working Group (EPWG) and EPWG’s current and previous annual work plans. Furthermore, it builds on several initiatives implemented under the EPWG to promote disaster preparedness and disaster resilience. It is also aligned with work undertaken by the Small Medium Enterprise Working Group (SMEWG) to promote business continuity plans. 

Supply chain resilience remains a key priority for the TPTWG. The APEC Framework for promoting supply chain resilience and its seven guiding principles adopted by TPTWG members in 2014 underpins the capacity building efforts led by TPTWG, in collaboration with the EPWG. This project builds on the successful capacity building projects that have been conducted since 2012 aimed at promoting robust and resilient supply chains in the Asia Pacific region. Each year, the focus has been on one of the seven APEC principles and targeted economy-specific events since 2015 in Peru, the Philippines, Viet Nam and PNG. The project is aligned with the strategic objectives of the TPTWG’s Strategic Plan as well as the Intermodal and Intelligent Transportation Systems experts (sub) group’s areas of focus.

TILF/ASF Justification

Supply chain resilience is an issue for all APEC economies, but developing economies often have more vulnerability to supply chain disruptions due to natural disasters and fewer resources to address these disruptions.

This project has an explicit focus on developing economies through the implementation of economy level technical assistance to address capacity gaps or areas that need additional support in implementing Action Plans that have been developed. These developing economies will likely include those that have been a focus in the past: the Philippines, Viet Nam, and Papua New Guinea. As noted above, this project is strongly aligned with the strategic directions of the ASF sub fund on Free Trade Area of the Asia Pacific and Global Value Chains, which provides support through technical cooperation and knowledge transfer to ensure the effective participation of developing economies in global value chains and help them achieve their domestic economic objectives.

Beneficiaries and Outputs

Outputs:

·    A two-day APEC-wide workshop that will seek to review and reflect on the progress over the past 5 years by APEC economies on the seven principles on promoting supply chain resilience. This will result in the sharing of experiences and lessons learned from the last 5 years and a deeper dive on principles not previously discussed in workshops. The workshop will also hone in principles not previously discussed, covering critical transportation infrastructure and inter-modalism. We will thoughtfully seek participants and expert speakers to achieve the right mix of interests and skill sets. We will look to identify participants who have been closely involved in developing and implementing policies and regulations impacting supply chain resilience, from the transportation, emergency management, commerce and trade or other sectors. 

·    Targeted short-term Technical Assistance will address capacity gaps or areas that need additional support in implementing Action Plans that have been developed. The stocktake report may identify gaps and additional areas for capacity building.  The targeted assistance will look to build on lessons learned from previous economy-level workshops, which were held in the Philippines, Viet Nam, or Papua New Guinea. Thus, the project has budgeted for technical assistance to two of these three economies. Any further assistance would be self-funded. The selection of these economies would be based on voluntary engagement as well as the outcomes of the stocktake report. If the stocktake report points to further economies seeking technical assistance, the POs encourage those economies to seek technical assistance through other APEC funding. The outputs will be determined based on what the technical assistance looks like exactly. The technical assistance may be in the form of targeted engagements or series of in-person meetings/field work conducted by key experts, depending on outcomes from the stocktake and discussions with economies. We do not envision this to involve workshops, but rather more targeted, in-person meetings through an assessment period of a few weeks. The budget includes funding allocated for field work to conduct these meetings. Any materials used for or resulting from the economy-level technical assistance will be made available in the APEC database as online resources. 

·    M&E results from the feedback forms, knowledge gained forms, and follow up surveys will serve as an additional output. Key results will be included in the final report, which will be disseminated to the TPTWG. 

·    A final report will serve as an additional output. This will include key learnings from the APEC-wide workshop, best practices, and a summary of any outcomes from the workshop. It will also include key M&E results.

Outcomes: Through bringing the transportation, emergency managers and companies in each economy together, and by reviewing what has been done to date, APEC will be able to synthesize all of the learnings and best practices to date, and address any remaining gaps or issues. Ideally, all seven principles will have been addressed by the end of the project, in some way or another. Ideally, the workshop will provide for the final pieces, or remaining principles, to be further examined and for economies to be able to reflect on all of the principles and learnings to date, resulting in an increased ability to improve supply chain resilience.

In addition, developing economies that receive targeted assistance will have the ability to more fully implement their Action Plans, leading to moresystematic and prioritized improvements to their supply chains. This in turn will reduce business failures following a disaster, improve services to victims (who are disproportionately women and children), help minimize area and world-wide disruptions following large incidents, and better connect governments and companies in joint efforts to resolve problems and crises that impact them all.

Beneficiaries: The target audience includes the public and private sector of targeted APEC economies and non-governmental organizations. Ideally, the representatives will be mid-level and working in the areas of transportation infrastructure, logistics and inter-modalism - in either a technical or policy development capacity. Representatives from the private sector may be from industry groups involved in supply chain logistics or corporate social responsibility related to disaster recovery. Specific organizations will be discussed with the TPTWG/EPWG delegates and stakeholders from participating economies. These private sector and non-government participants can also provide input and help to review of the progress and gaps of the APEC Seven Principles on Supply Chain Resilience.

Nominations will be directed to Ministries/Departments of Transportation, key industry groups and relevant research bodies in the APEC region involved in supply chain logistics. The technical assistance will target economies that have participated in economy-level capacity building events over the past few years (Philippines/Viet Nam/PNG). Project organizers will ensure that APEC developing economies are fully represented in the workshops to ensure that the expected capacity building outcomes are achieved. In addition, the organizers will ensure that gender considerations are fully addressed during the project planning and implementation stages of the activity. 

The project’s outputs will also have long term/indirect beneficiaries beyond workshop participants. These include APEC governments (transportation ministries, trade ministries, and economic ministries) as the project will provide useful tools and learnings as they seek to improve the resilience of supply chains in their respective economies. The private sector participants will also be able to draw on best practices and lessons learned and apply them in their respective organization or company moving forward.

Dissemination

All APEC-member economies will be invited to the APEC-wide workshop and given access to all materials. Participation will be sought from both the TPTWG and the EPWG, and the draft workshop agenda will be circulated to both fora before it is finalized. 

To encourage participation, the Project Overseers will continue to share outcomes and outputs from previous phases, and the Project Overseers will encourage repeat participation in the workshop from previous workshops in order to build continuity in the approach. This has worked well in past workshops, most recently with repeated participation from the Philippines at the August 2017 workshop. Workshop materials will also be available to participants from private sector companies and non-governmental organizations, as well as other APEC fora interested in Supply Chain Resilience issues such as CTI and the SMEWG. Materials will be posted on the APEC database following the workshop.

Any materials used for or resulting from the economy-level technical assistance will be made available in the APEC database as online resources. These materials can also be adapted and shared with organizers of future economy-level supply chain resilience work in other APEC economies, and will be disseminated to the TPTWG and EPWG following the technical assistance for this purpose.

Gender

Women and children are disproportionately more vulnerable to disasters, and thus, efforts to improve supply chain resilience in the wake of disasters could lessen the impact on women and children even more. From the beginning of the multi-year initiative, we have ensured that workshop panels feature both male and female experts and that both male and female participants are not only in the room, but engaged. In addition, the content of the workshop will consider the substantial vulnerabilities that women and children face. In past workshops, for example, we heard from a gender lead expert from the Asian Disaster Preparedness Center on risks that women and children in particular face in the wake of disasters and what resilience means to them. The POs will continue to engage similar experts in the workshop under this project. 

We have been gratified that many women have actively participated in Phase 1 and Phase 2 of this project.  In fact, women’s participation in these activities increased from about 33% in Phase 1, to about 45% in Phase 2. We will strive to continue to target women during recruitment of both participants and speakers.

Work Plan

Time

Task

Deliverable

January 2018

Liaise with relevant economies to plan for the scope and deliverables of technical assistance.

February 2018

Finalize the scope and timing of the APEC-wide workshop and consult with relevant economies and APEC Secretariat.

March 2018

Draft nomination forms and other documentation, reach out to venues. Conduct follow up with individual economies for targeted TA.

April 2018

Finalize agenda. Reach out to and prepare speakers. Conduct workshop. (Note that workshop may be held in conjunction with the next TPTWG meeting, though those dates are TBD).

Monitoring report; implementation of workshop

May/June 2018

Conduct any engagement or trips to the economies (Viet Nam and/or the Philippines).

July/August 2018

Draft final report following technical assistance.

Draft final report

September 2018

Finalize all project related documentation, including final report and M&E results.

Final report

Risks

·   Poor participation in workshop: Project Overseers will actively engage with workshop hosts and with technical experts in each of the APEC economies to identify speakers and participants. Project Overseers will also engage in targeted follow up as needed to economies and others (such as ABAC) to ensure a mix of gender as well as developing and small economies and developed and larger ones are represented. Project Overseers will also ensure that the invitation and agenda clearly differentiate between past events to avoid duplication and so that potential participants understand the added value of this workshop.

·  Possibility for scheduling conflicts with other APEC events: The Project Overseers will discuss with the leadership of relevant APEC fora when determining potential dates for the event to reduce the chance for scheduling conflicts. The POs will also maintain strong communication and coordination across APEC economies to mitigate this risk.

· Poor quality of presentations causing limited engagement from participants: Project Overseers will put together adequate speaker guidance to ensure that presentations are relevant and on-topic, as well as engaging. Project Overseers will require speakers to submit a copy of their presentations in advance and so that there is sufficient time to review and suggest changes as needed.

· Low participation in M&E surveys (see following section): Project Overseers will ensure that follow-up surveys are received by collecting business cards rather than handwritten email addresses to use for the survey dissemination. The POs will also try to gauge progress throughout the workshop and especially during the interactive exercises.

.   Lack of engagement from economies receiving technical assistance, leading to a project delay: Project Overseers will try to prevent delays due to lack of engagement by immediately engaging with well-maintained and steady contacts from the three economies at the start of 2018. Beginning the conversations early will help to mitigate this risk. Stocktake results suggests more economies than what the project has planned for: Project Overseers will take this into account, considering the current budget. Though the stocktake will inform future programming, economies outside of those listed in the project proposal will be encouraged to seek APEC funding themselves through the submission of concept notes.

Monitoring and Evaluation

Organizers will assess the level of knowledge gained by participants by undertaking baseline and end line surveys, during both workshops. These will be supplemented by a series of follow-up surveys which will be conducted one year after the completion of the two workshops. The follow up surveys will serve to evaluate the extent to which participants are able to apply the knowledge, skills, and capabilities gained in their respective economies and home organizations. There is a risk that participation in the surveys could be low and thus, may not reflect the reality of application of knowledge. Thus, the POs will be sure to try to gauge progress throughout the workshop, including in the interactive exercises. Overall data collected on the workshop will also include number of attendees (sex-disaggregated) and number of participating economies, 

This year’s activities under Global Supply Chain Resilience not only continue the momentum created from earlier phases of this activity, but also represent the fourth year of the multi-year Action Plan agreed upon by APEC economies in Phase 2. 

A self-funded stocktake of these activities to date (currently underway) will inform the planning of the upcoming activities, utilizing key lessons learned and feedback. The stocktake included a survey of all past workshop participants to assess if and how participants were able to successfully apply the knowledge, skills, and capabilities gained in the workshops to their respective economies.  The surveys also included questions on how supply chain resilience has improved as a result of participation in APEC global supply chain resilience activities. The 2018 activities may also look to address any capacity gaps identified in the stocktake.

Linkages

The project will engage a range of stakeholders from the region and globally. Past events have successfully engaged key regional organizations such as the Asian Disaster Preparedness Centre (ADPC), relevant UN organizations (UNISDR), representatives from Association of Southeast Asian Nations (ASEAN), ADB, World Bank and OECD, as well as the Logistics Institute of Singapore, the Transport Asset Protection Association and other industry/private sector bodies. The project will benefit from the involvement of external APEC stakeholders as efforts on this work will be more successful with a whole-of-society approach. As such, stakeholders’ participation will be encouraged. 

This project builds on work conducted under earlier phases of the project - including the EPWG and TPTWG led Global Supply Chain Resilience Phase 1 (Indonesia, 2013), Phase 2 (New Zealand, 2014), and Phase 3 activities in Peru and the Philippines (2015), Thailand and Viet Nam (2016), and lastly PNG and Viet Nam (2017). Other related activities under the EPWG include the Workshop on Private Sector Emergency Preparedness, (Sendai, Japan 2011); the Hazard Mapping and Risk and Vulnerable Assessments Workshop (Chinese Taipei 2010); and the Public-Private Partnerships and Disaster Resilience Workshop, (Thailand 2010). This project complements the work progressed under several CTI projects including “Enhancing resilience of GVC’s to natural disasters”, “PPPs for Business Resilience workshop” and “Seminars on enhancing regional supply chain resilience to disasters in APEC”. Finally, this project successfully promotes effective cross fora collaboration and efforts to strengthen public private partnerships.

Sustainability

This project has great potential for sustainability, and the continuity of support indicates that APEC economies engaged on this effort are committed to making progress on supply chain resilience. Throughout the last few years of the initiative, we have continuously monitored, revised and improved our approaches. The self-funded stocktake, currently underway, offered a deeper and more formal opportunity to review what has been done to date. The best practices and lessons learned that emerge from the stocktake will be available through APEC to serve as a longstanding resource for all APEC economies. These will inform and be solidified through the APEC-wide workshop. Thus, the workshop will be key in solidifying and ensuring that these key lessons are not only shared, but are memorialized through the final report. Economies will also be encouraged to report out the best practices and key takeaways at the TPTWG meeting following the workshop. 

In terms of long-term sustainability, those developing economies that have been previously targeted (PNG, Viet Nam, the Philippines) are encouraged to apply for APEC funding to support further workshops and activities to ensure the long-term effectiveness of this. Further workshops or activities, proposed by these three economies or others, could help to ensure that the supply chain resilience work continues to be effective moving forward and in the long term, i.e. in 2, 5, and 10 years from now. This will also assist in embedding changes and tapping organizations to identify new ideas.

Project Overseers

The Project Overseers are Christopher Clement from the US Department of Transportation and Ann Katsiak of the US-APEC Technical Assistance to Advance Regional Integration (US-ATAARI) project. Both are highly experienced project managers. Their information is included in the cover page of this proposal.

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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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

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PMU Field 3

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