APEC Project Completion Report

SECTION A: Project profile

Project number & title: / SME 04 2014 – Supply Chain Capacity Building for SMEs: Supply Chain Management, Cold Chain Storage and Technical Regulations
Project time period: / Date submitted: / 5 August , 2015
Committee / WG / Fora: / SMEWG
Project Overseer Name / Organization / Economy: / Lynn Costa, US Department of Commerce, United States

SECTION B: Project report and reflection

Project description: In 3-4 sentences, please describe the project and its main objectives.

The project was held on the margins of the 40th SME Ministerial in Atlanta, Georgia, along with three other workshops that focused specifically on the integration of SMEs into supply chains in sectors critical to SME growth and ability to export globally. The project focused on the technical regulations that SME suppliers must meet to successfully contract with a multinational corporation and the critical element of cold chain storage to ensuring product integrity and quality. All Atlanta participants toured cold chain storage facilities as an addition to this project to learn about cold chain technology, the volume of product that transfers through a cold chain facility in a single day, how time and efficiency is critical to perishable products, and how temperature is maintained to ensure consumer safety.

Meeting objectives: Describe how the project met each of its proposed objectives. Please outline any challenges you may have encountered in delivering the activity.

Panels of experts were assembled within each sector. Each panel contained an expert from a multinational corporation, a regulatory expert, a logistics provider, a finance expert and a SME that had successfully integrated into a supply chain. The sessions were designed to follow the product from “field to fork”, “ocean to table” or “manufacturer to consumer” so that participants could learn about the supply chain process in its entirety. Regulatory experts from multinational corporations and/or government agencies discussed the specific standards that suppliers must meet within a product line and how product certification can be obtained. Finance experts discussed the various types of financing that are available within each sector. The logistics experts discussed how products are moved over land, sea or air and the critical nature of speed and efficiency for perishable products and how each of their companies handled various temperature sensitive products. The SME on each panel talked about the challenges they faced connecting to a supply chain and how they overcame their challenges. The SME perspective was invaluable to SME participants as it helped them avert similar challenges and also gave them fresh approaches to resolving roadblocks. The United States made a significant effort to include speakers and SME panelists from across the APEC region so that a number of perspectives could be heard. We also recruited academic institutions that support SME supply chain integration to facilitate sustained support for APEC SME agencies and their SMEs. The United States also held a panel that focused on supply chain financing and the various financing mechanisms that are appropriate and available for an SME’s specific level of development, including after they have secured a contract in a supply chain (factoring).

All participants were offered the opportunity to visit a cold chain facility. Participants visited either Americold Distribution Center, Martin-Brower, Preferred Freezer Solutions, Sealed Air, UPS Healthcare Facility in Duluth, or UPS Healthcare Facility in Suwanee. Participants were bused to the facilities and took a tour of the refrigerated facilities, learned about the process and technology to track products, experienced the very cold temperatures in the facilities (flash freeze areas), and viewed many of their economy’s products in the facilities. They learned about the logistics process within the facility, how massive volume transits through each day, and were able to ask questions regarding speed, efficiency and safety. At the Americold facility the clustering (consolidation or batching) model is used to pool potatoes from small farmers to meet the volume that Walmart requires. Clustering or consolidation/batching is a topic that SME delegates requested in the breakout session in Manila (SMEWG meeting in 2013) when this workshop was launched. The United States made every effort to include the key areas of discussion requested by SME delegates during the breakout session in Manila.

The United States also hosted a networking session for all Atlanta participants so they could interact with their peers and the experts. Approximately 350 people attended the Atlanta workshops. We did not encounter any specific problems with the project, other than the sheer number of attendees and making certain that the five workshops, which included Chinese Taipei’s Accelerator Network Forum, were synchronized so that the entire Atlanta experience ran smoothly and efficiently.

Evaluation: Describe the process undertaken to evaluate the project upon completion. (e.g. evaluation through participant surveys, peer reviews of outputs, assessments against indicators, statistics demonstrating use of outputs etc.). Provide analysis of results of evaluations conducted and where possible include information on impacts on gender. Evaluation data needs to be included as an appendix.

Output indicators:Describe the main project outputs below. This may include workshops, tools, research papers, reports, recommendations, best practices, action plans.

Indicators
(Edit or Insert rows as needed) / # planned / # actual / Details or notes
# workshops / events / 1 / 3 / The US recruited speakers for the two Philippine workshops in addition to the US workshop
# participants (M/F) / 50 / 75 / Many participants joined specific sessions
and then moved to sessions in other
workshops. This allowed them to hear speakers/experts of specific interest
# economies attending / 20 / 18
# speakers engaged / 5 / 26
# other organizations engaged / See Agenda for Atlanta Event
# publications distributed / 0 / 0
# recommendations agreed on / 0 / 0 / Recommendations will be captured in the
Iloilo Statement
Other:

Comments: The United States recruited a significant number of panelists/experts for the other economies hosting workshops in Atlanta and coordinated speaker participation across the various workshops.This allowed speakers to participate in more than one workshop so that all Atlanta participants could benefit from their expertise.

Outcomes: Describe any specific medium-term changes to policy, processes or behaviour that can be attributed to result from this activity. Please include details on:

What indicators were used to measure medium-term impact? (Example indicators: type/number of policies/ regulations/processes changed, % of businesses conforming to new standards, change in sector’s commercial activity, # individual action plans developed, # agencies using resource or tools etc.)

At the request of the former SMEWG Chair, the United States agreed to chair a breakout session on the margins of the SMEWG meeting in Manila (2013) to discuss SME Supply Chain Integration. The SMEWG agreed on specific sectors essential to SME growth and integration. Since this first discussion, the CTI has launched sector-specific projects to accelerate the integration of SMEs into global value chains. Additionally, some APEC economies are focusing on cold chain storage and the impact of temperature integrity on consumer health and safety – particular in sectors such as healthcare products where the efficacy of a product becomes null if the temperature is not consistent as the product crosses borders. This work has also facilitated closer collaboration with the SCSC and other working groups that address product quality and consumer safety.

Monitoring plans in place and proposed indicators to measure impacts, including any impacts on gender. Please summarise relevant information.

Discussions at the 41st SMEWG in Iloilo will help inform next steps and how the SMEWG appropriately assesses the impact these workshops have on SME integration. The newly launched Digital Economy initiative sponsored by the United States will also support the direct export capability of SMEs, particularly micro-enterprises, throughout the APEC region. Women-owned businesses in Atlanta networked with several government agencies to discuss marketing opportunities and discussed product certification with corporate experts. The United States encouraged participants to attend specific sessions of interest. Many participants not funded by APEC targeted specific speakers or topical areas of interest.

Participants (compulsory for events): Must be gender-aggregated. May be included as appendix.

Economy
(Insert rows as needed) / # male / # female / Details
United States / x / Deputy Secretary Bruce Andrews, US Department of Commerce
United States / x / Mr. Jim Barber, President, UPS
United States / x / Mr. Bud Petersen, President, Georgia Tech
United States / x / Ms. Jannine Miller, Director, Georgia Economic
Development Board
United States / x / Ms. ParticiaLoui, ExIm Bank, Director & Board Member
United States / x / Mr. Tres Bailey, Director of Food Policy,
Walmart
United States / x / Mr. Bruce Harsh, Director of Global Supply
Chain Office, US Department of Commerce
United States / x / Ms. Lynn Costa, Senior Trade Policy Advisor,
US Department of Commerce
United States / x / Mr. Daniel Miller, APEC SME Delegate, US Department of Commerce
United States / x / Mr. Eric Holloway, APEC Coordinator, US Department of Commerce
United States / x / Mr. John Miller, Cold Chair Supply Office Logistics Expert,
US Department of Commerce
United States / x / John M. Andersen, APEC SME Chair, United States
United States / x / Ms. Melissa San Miquel, Grocery
Manufacturing Association
United States / x / Mr. Dan Silvernale, VP of Finance, UPS
United States / x / Ms. Amanda Brody, Director of International Projects,
Global Cold Chain Alliance
United States / x / Mr. Chris Owens, Vice President, Business Development, Americold
United States / x / Mr. Gary McMurray, Georgia Tech Research Institute Food Processing Technology
United States / x / Deputy Assistant Secretary for International Fisheries,
Russell F. Smith, National Oceanic & Atmospheric Administration
United States / x / Mr. Tejas Bhatt, Director of Good Safety Programs, Institute of Good Technologists Global Food Traceability Center
United States / x / Mr. Neil Marshall, Coca Cola
United States / x / Mr. Peter Goggi, President, Tea Association of the USA
United States / x / Mr. Dennis Chrisbaum, Director, International Trade Finance, US Small Business Administration
United States / x / Ms. KarilKochenderfer, Principal of Linkages,Government
and Public Affairs
United States / x / Ms. Jean Rogers, Chief Operating Officer, WEConnect
Chile / x / Mr. Hernan Alfonso Gutierrez Bermedo, Head of Chilean Office of Export Promotion, ProChile
Chile / x / Ms. Lia Vera, Chief Supply Chain Officer, Vina Concha Y
Toro
Japan / x / Mr. Kazumi Nishikawa, Special Advisor to Ministry of Economy, Trade & Industry, Government of Japan
Peru / x / Mr. Ivan Juscamaita, Director of Productive Development, Sierra Exportadora
Philippines / x / Under Secretary ZenaidaMaglaya
Philippines / x / Mr. William Lorenzana, Vice President, Jollibee
Philippines / x / Ms. Daisy Uy, Chemical Engineer, Profoods
Philippines / x / Ms. Louella D. Leones, Deputy Director, Credit Innovation & Advancement Group, ,Department of Loans & Credit,
Central Bank, Philippines
Philippines / x / Mr. Noel Bazan, Provincial Director, DTI
Philippines / x / Mr. Immanuel Cauntay, Manager
Mexico / x / Ms. Clarisa Molina, Mexico Supreme Quality, Food Safety Consultant
Malaysia / x / Dr. Mahinder Singh, Malaysia Institute for Supply Chain Innovation
Malaysia / x / Ms. Mas Imeliabinti Mohd Khalid, Food Safety & Quality Division, Ministry of Health
Singapore / x / Mr. LoonChing Tang, National University of Singapore, Department of Industrial & Systems Engineering
Thailand / x / Mr. SarannakornKaentrakool, CEO & Office Manager, Sunshine International Company Limited
Thailand / x / Ms. SuwannaJiwattapaiboon, Managing Director, Xongdur Thai Organic Food Co, LTD
Vietnam / x / Mr. Hoan Nguyen, Deputy Director, Nano Joint Stock Company
Vietnam / x / Mr. ThanhQuan Nguyen, Chairman & CEO Made-In-Vietnam.,com
Other:

Comments: What was the approach undertaken for participant nomination/selection and targeting? Please provide details. What follow-up actions are expected? How will participants/beneficiaries continue to be engaged and supported to progress this work?

The United States requested that each APEC funded participant represent an SME interested in connecting to a global supply chain or an organization at supported the integration of SMEs into global chains. We also asked that the participant serve in a senior level capacity and in a position to fully understand the scope and capabilities of their respective company. In selecting experts/panelists we targeted experienced representatives from industry organizations, government agencies, academic institutions, multinational corporations, logistics companies (UPS, FedEx and DHL) that work directly with SMEs. We also recruited WeConnect, a global organization that focuses solely on connecting women to the global market. The Atlanta Global Supply Chain Event served as the platform for sector-based workshops in Iloilo on the margins of the 41st SMEWG Meeting and the SME Ministerial Meeting. The Atlanta event served as the launch for the SME Finance Forum in Iloilo and the workshop that will focus on agriculture, food products and handicrafts. Many of the Atlanta speakers will participate in the Iloilo events to further the dialogue on SME integration. The results of both Atlanta and Iloilo will be reflected in the outcome document of the SME Ministerial Statement in the Philippines.

Key findings: Describe 1-3 examples of key findings, challenges or success stories arising from the project (e.g. research or case studies results, policy recommendations, roadblocks to progress on an issue, impacts on gender).

SMEs are generally concerned about the number and complexity of international standards they must meet. This is an area where technical assistance programs and the availability of current standards information is essential to SME success. It would be useful for the SMEWG to have a consultative meeting with the SCSC to better understand the scope of assistance that has been given in the past to SMEs and what is planned for the future. There is also a question surrounding the use of private sector standards (required by many multinational corporations) and Codex standards.

Clearly, access to finance is a challenge for all SMEs, however access to financing is a greater challenge for women-owned companies than male-owned companies. While APEC is not able to change cultural attitudes towards gender-based financing in the shorter horizon, APEC can encourage lenders to look at the quality of the application (business plan, contracts secured, marketing plan, company management structure, etc.) rather than the gender of the applicant.

Assessing impact on SME workshops is nearly impossible. With the limited funding available for travel-eligible economies and the cost (and time) incurred for SMEs from non-eligible economies to attend SMEWG events, only a small number of SMEs from the many thousands that exist in the APEC region can participate and benefit. The SMEWG Chair intends to hold a session in Iloilo to discuss project impact and the appropriate metrics for assessing impact. The SMEWG would appreciate any assistance that the PSU can provide in this regard.

Next steps:Describe any planned follow-up steps or projects, such as workshops, post-activity evaluations, or research to assess the impact of this activity. How will the indicators from Question 5 be tracked? How will this activity inform any future APEC activities?

The next steps of the Atlanta Global Supply Chain Event will take place in Iloilo. Sector-specific workshops under the Korean CTI SME Value Chain work will also add to the body of information the SMEWG will assess. Recommendations from these cumulative efforts need to be assessed in their totality and the findings reviewed for overall impact.

Feedback for the Secretariat: Do you have suggestions for more effective support by APEC fora or the Secretariat? Any assessment of consultants, experts or other stakeholders to share? The Secretariat examines feedback trends to identify ways to improve our systems.

On the margins of SOM1, the United States spoke with the PSU team about assistance in assessing impact (how this can accurately be achieved and what metrics are appropriate). Any guidance the PSU can provide would be greatly appreciated.

SECTION C: Budget

Attach a detailed breakdown of the APEC- provided project budget, including:

Planned costs: The requested amount was $73,136.
Actual expenditures: Actual expenditures, not including costs incurred by the United States to host the entire event, totaled $34,927.31.
Variance notes: Approximately 50% of the requested budget was utilized due to the fact that not every travel-eligible economy elected to send participants.

SECTION D: Appendices

Please attach the following documentation to the report as required. Note that the participant contact list is a mandatory requirement for all Project Completion Reports.

 / Appendices / Notes
Participant contact list: contact info, gender, job titles (mandatory)
Experts / consultants list: contact info, job titles, roles, gender
Event Agenda
Reports, websites or resources created: links or soft copies
Post activity survey or other evaluation data (raw and/or aggregated)
Other information or resources
FOR APEC SECRETARIAT USE ONLYAPEC comments: Were APEC project guidelines followed? Could the project have been managed more effectively or easily by the PO?