Changing Trade Competitiveness: The ITC Approach

Transcription

1 Changing Trade Competitiveness: The ITC Approach 6Technical Assistance Needs 6ITC responses 1.

2 1 st Need:A Sector Strategy (Action Plan) Develop overall country response Build critical country mass Build PPP based on strong sector associations Make a sector value chain analysis 2.

3 1 st Response:The SHAPE 3.

4 1 st Response:The SHAPE A Structured Thinking Process: Analyse Brainstorm Action Plan Strategy 4.

5 The SHAPE Ten Step Approach 1. Analyse Domestic Supply/Exports/Imports 2. Analyse the Value Chain (VC) 3. Identify problems in the VC and define the Actions 4. Identify export and sourcing Opportunities and define the Actions 5. Group Similar Actions together 6. Prioritize Actions and assign Time Frames 7. Working Group 8. Finalize Strategy 9. Official Launch 10. Implement and Monitor the Strategy 5.

6 BORDER CUSTOMS PROCEDURES BORDER Sales (+Marketing, and Services) TEXTILE INSTITUTE DOMESTIC SUPPORT SERVICES AGENTS/BUYING HOUSE DESIGN INSTITUTE DOMESTIC RAW MATERIALS DESIGN YARNS Outbound Logistics Customs-GSP/Quota Export Clearance TESTING TEXTILE Mnf. & Exporter RMG Mnf. & Exporter ACCESSORIES & PACKAGING Business MARKET RESEARCH MACHINERY Inbound Logistics Customs, Import Clearance Other Associations Textiles Associations Clothing Associations Sourcing DONOR ACTIVITIES LARGELY KNITWEAR FABRIC SUPPLIED AGENTS TPO BORDER CUSTOMS PROCEDURES BORDER 6.

7 2 st Need:Know your Competitors Quotas stifle competition Now competitors are everywhere 7.

8 2 st Response:THE FiT 8.

9 THE FiT: Benchmarks performance It is divided into 4 broad areas Management & Organization Sales & Marketing Financial Planning Production, Sourcing & Operations 9.

10 10.

11 3 rd Need:Information on Sourcing and Supply Chain Management Skills Cost-structure of a woven shirt up to the FOB point 7% 8% 10% 75% of cost = sourcing 16% 59% Fabric Trimmings Cut& make Labour Other overhead Profit 11.

12 WOVEN SHIRT: For every 1 Dollar earned approximately 60cts is spent on inputs Profit $0.10 Overheads $0.08 Labour $0.07 Fabrics: $0,59 Trimmings:$0.16 A 10 % reduction in the supply cost of fabric and trimmings = Profit now $0.16 Overheads $0.08 Labour $0.07 Input supplies & Logistics $0.75 $0.69 A 60 % increase in its Gross profits without increasing sales Any reduction in purchasing and logistics costs has a direct and large impact on export competitiveness! 12.

13 3 rd Response: Source-it ITC textbook 1.-New ITC textbook on fabric sourcing, training and supply information 1.Introduction 2.Material Sourcing Process 3.The Buyer/Designer Side 4.The Factory Side 5.Salesmen Samples 6.Ordering Stock Materials 7.Fabric Inspection 8.Final Checks 9.Trim 10.Production Schedule 11.Things Go Wrong The Art of Sourcing 12.Where to Source What 13.Satisfying the Buyers Needs 2.- Training 3.- Sourcing Data Base (SAARC and ASEAN countries) 13.

14 4 th Need:Understand changing markets and adapt products accordingly Numerous competitors and complex trade structure; Opportunities in higher-end and niche markets with value-added products; Exploit market potential in other developing countries, especially in a regional context. 14.

15 4 th Response:Providing Information A new T&C website T&C workshops on the business implications and how to prepare for increased competition Development and implementation of tailormade projects 15.

16 16.

17 Providing Business Information 17.

18 Providing Data Analyis 18.

19 Providing Technical Assistance 19.

20 5 th Need:E-Trade to attract larger buyers The use of «e»in light of the quota phase-out Overview of technology developments e-requirements imposed by buyers in the US and EU The role of HGK & Singapore trading houses Case studies of e-successful manufacturers Dissemination and training 20.

21 5 th Response:Business Guide A Business Guide on e-applications in the T&C Sector 21.

22 5 th Response:Business Guide A Business Guide on e-applications in the T&C Sector Overview of technology developments e-requirements imposed by western buyers The role of HGK & Singapore trading houses Case studies of e-successful manufacturers Dissemination and training 22.

23 Market Pressure on Clothing Manufacturers after the quota phase-out New Market Entrants Rivalry between manufacturers Threat of Substitutes Supplier Power e-influence Retail Power e-influence 23.

24 Likely evolution of the T&C Industry Today Future Producer Conflicts Retailer Producer Retailer Competition Conflicts Competition Customer Competition Customer Producer Conflicts Retailer Producer Retailer Response Demand Response Demand 24.

25 The Global T&C Value Chain and the use of e-applications E-Linking of the Value Chain Sales Info + Direct Order Delivery Status Info Fabrics Clothing Agent Retailer MARKET Physical Delivery Clothing Value Chain R&D Inbound Logistics Production Outbound Logistics Marketing to Retailers 25.

26 6 th Need:Develop a Regional Approach Strategic Response: Critical (country/regional) mass Rules of Origin require regional cooperation Regional/Sub-regional Partnership Regionally integrated industry Link foreign investors to local business 26.

27 6 th Response:Strengthen regional trade cooperation South-South Trade Development Regional trade development along the regional value chain 27.

28 ITC s TA to the Clothing Sector Need 1: Sector Strategy Development Clothing Sector Strategy Development «the Shape» Need 2: Know your competitors Benchmarking tool The «FiT» Need 3: Sourcing Information and SCM skills Skills development & regional supply information Need 4: Understanding changing markets New website; workshops; tailor-made projects Need 5:E-Applications in T&C A Business Guide Need 6: Intra-regional trade along the value chain South South Trade Development Approach 28.

29 1.-Sectror Strategy Develpment 2.-Undersatnding it s own and competitors performance 3.- Developing fabric sourcing skills to become full-package suppliers 4.-Understanding changing markets 5.- Applying e-applications in the T&C sector Sales (+Marketing, and Services) Sales (+Marketing, and Services) Outbound Logistics Customs-GSP/Quota Export Clearance Outbound Logistics Customs-GSP/Quota Export Clearance Manufacturing Sourcing Inbound Logistics Customs, Import Clearance Manufacturing Inbound Logistics Customs, Import Clearance Sourcing The SHAPE The FiT Sourcing Guide and database Garment-Maps and ITC T&C website Business Guide in e-commerce for T&C Implementing tailor made market penetration approaches in line with buyer requirements ITC Tailored Consultation 29.