Facilitating SMEs Participation in Regional

Facilitating SMEs Participation in Regional & Facilitating SMEs Participation in Regional & Global Supply Chain : Destination Global Supply Chain : Destination

Bangladesh, Bhutan, Mongolia & TimorBangladesh, Bhutan, Mongolia & Timor--LesteLeste

Presented at UN-ESCAP, Bangkok, 9 Nov.05

Dr. SAILENDRA NARAINDr. SAILENDRA NARAINUNUN--ESCAP Consultant &ESCAP Consultant &

Chairman, Centre for SME Growth & Development Finance Chairman, Centre for SME Growth & Development Finance

Email : [email protected]

Economies of Bangladesh, Bhutan, Economies of Bangladesh, Bhutan, Mongolia & TimorMongolia & Timor--Leste (BBMT)Leste (BBMT)

Land locked Developing CountriesLand locked Developing Countries

Bhutan & MongoliaBhutan & MongoliaLeast Developed CountriesLeast Developed Countries

Bangladesh & TimorBangladesh & Timor--LesteLeste

SMEs constraints in the Select Four SMEs constraints in the Select Four -- BBMTBBMTBesides traditional hardships SMEs in today’s digital economy suffer from

Obsolete technology & production processLack of modern marketing/delivery mechanismInformation asymmetryLack of knowledge managementInability to integrate in global supply chain

Supply Chain NetworkSupply Chain Network-- A tool to make SMEs A tool to make SMEs globally Competitiveglobally Competitive

•• SMEs can become globally competitive by entering into SMEs can become globally competitive by entering into international supply chain systeminternational supply chain system

•• Advantages may be enhanced through proper use of ICT Advantages may be enhanced through proper use of ICT and knowledge management exerciseand knowledge management exercise

•• Countries China, India, Japan, Philippines, Taiwan, Countries China, India, Japan, Philippines, Taiwan, Province of China, Thailand etc. are the foreProvince of China, Thailand etc. are the fore--runners in runners in Asia, butAsia, but

•• Many developing countries particularly the “Select four” Many developing countries particularly the “Select four” have yet to make a kickhave yet to make a kick--start start

Supply Chain NetworkSupply Chain Network-- More a gift of More a gift of Business Sector rather than Public or Govt. Business Sector rather than Public or Govt. SectorSector

•• Private sector of countries in Asia which have Private sector of countries in Asia which have successfully experimented with Supply Chain successfully experimented with Supply Chain Network (SCN) have definite experience to share Network (SCN) have definite experience to share and lessons / road map to be followedand lessons / road map to be followed

•• SMEs of developing economies can derive SMEs of developing economies can derive benefits from those initiatives benefits from those initiatives

Supply Chain Network in Private SectorSupply Chain Network in Private Sector

• MNCs/TNCs have contributed significantly in developing Supply Chain in the Private Sector- Japan, China, India, Thailand, etc

• Supply Chain Network has been promoted & implemented by business sector instead of Governments

• Use of ICT and knowledge management critical to supply chain for competitiveness

Response of Companies Approached Response of Companies Approached

•• Sample of the companies which have derived benefits by Sample of the companies which have derived benefits by introducing Supply Chain Network system:introducing Supply Chain Network system:

•• Tata Motors (Tata Motors (VCM networkVCM network))•• Maruti Udyog (Maruti Udyog (supply chain for cost benefitssupply chain for cost benefits))•• Indian Oil Corporation(Indian Oil Corporation(Xtrapower Fleet CardXtrapower Fleet Card) ) •• LML (LML (auto supply Chainauto supply Chain) ) •• SembCorp Logistics (SembCorp Logistics (SCM forSCM for outsourcingoutsourcing) ) •• Bajaj Auto (Bajaj Auto (VCMVCM networknetwork) ) •• Mahindra and Mahindra (Mahindra and Mahindra (BuyerBuyer--suppliers dynamicssuppliers dynamics) )

Supply Chain Network includes activities Supply Chain Network includes activities from raw materials to delivery to customersfrom raw materials to delivery to customers

The companies adopted supply chain as an The companies adopted supply chain as an integrated system coveringintegrated system covering

materialsmaterials operationsoperations distributionsdistributionsmarketing marketing afterafter--sales servicessales services customers’ satisfactioncustomers’ satisfaction

Supply Chain NetworkSupply Chain NetworkTNCs/MNCs contribution to SMEsTNCs/MNCs contribution to SMEs

Developed large base of suppliers and vendors from the SME sector

SMEs developed competitive edge by placing due emphasis on value addition

Their success largely came from: mutual trust, alliance, cooperation, information sharing and harmonious relationships with all players of Network, especially customers

Mc Donald’s “Supply Logistics” is an interesting example.

LogisticsLogistics

•• Companies established capacity building programmes to Companies established capacity building programmes to establish relationships between Logistics and Supply establish relationships between Logistics and Supply Chain Network. Chain Network.

•• Some viewed Logistics as integral part of SCNM covering Some viewed Logistics as integral part of SCNM covering the entire business processesthe entire business processes-- raw material to raw material to customers. customers.

•• They used the generic function of Logistics management They used the generic function of Logistics management “to make available the required quantity of products “to make available the required quantity of products when required at the least cost” by resorting to when required at the least cost” by resorting to designing, developing, producing and operating an designing, developing, producing and operating an integrated system which responds to customers’ integrated system which responds to customers’ expectations. expectations.

Logistics (Logistics (contd.)contd.)

Components of Logistics Management

Customer Service

Network Design

OrderProcessing

TransportationInventory

Management

StorageWarehousing

Material Handling

ProtectivePackaging

Procurement Information Forecasting

Generic

Primary

Supportive

Reducing Logistics Costs through lean supply chains leads to…

Increases private sector competitiveness

Increases productivity

Frees up working capital for productive uses

Facilitates capture of larger proportion of value added within country

Provides for product and economic diversification

Increases trade

Promotes economic growth

Facilitates more and higher value employment

Reduced number and costof transactions

Reduced Inventorylevels

Reduced Costs of Goodsdelivered

Improved information flows

Increased market access

Global Logistics Indicators

Examples of IndicatorsFocus Areas

CUSTOMER PERFORMANCE

Clearance TimePercent of consignments inspected

BUREAUCRACY/REGULATIONS

Time and cost for processing a typical export or import orderNumber of signatures

PORT PERFORMANCE

Vessel turn-around timeContainer waiting time at portTime to enter port

ICT & Information

Companies could successfully utilize the ICT and Information sharing techniques by:

• giving more focus on reducing response time• redesigning the business processes• streamlining logistic activities across the supply chain to

reduce cost and improved efficiency• developing high valued supply chain relationships• enhancing customer services for competitive advantage,

and• trying to attain global standard and access to world

market.

Role of ICT

Role of ICT in supply chain has emerged as under:

Negotiating Multilateral trade agreementsFinalising Bi-lateral trade agreements Expediting communications and transportation of data /

informationLowering the cost and time reduction

In the ICT sector, there are three fast emerging technologies namely, (i) Voice system, (ii) memory buttons and (iii) radio frequency tags which facilitate efficient functioning of logistics and supply chain. These technologies would now require serious consideration for adoption

Integrated IT Solutions for L&SCM

Source : D.K.Agrawal (2000), ‘Integrated IT Solution for L&SCM: A Case Study of TELCO, ‘ presented in ICQRIT, GGS Indraprastha University, New Delhi, 21-23 December.

Integrated ICT for Logistics & Supply Chain Network

Most of the companies had considerably invested in the development of a probable integrated IT infrastructure solutions for logistics and supply chain network management (L&SCNM) in terms of

Computer hardware Software

Electronic Data Interchange (EDI)Bar Code System (BCS)

Enterprise Resource Planning (ERP) Intranet, Extranet and Internet

Customer service• Information and support

products and services• Electronic help desk• Mass customization and order

processing

Marketing channel• Public relations and

advertising• Market research and test• Electronic malls and

catalogues

Information retrieval• Online news• Statistics, reports and

databases• Data mining• Competitive analysis

Supplier Relationships• Logistics• Product search• Electronic data interchange• Ordering and payment• Supply chain integration

Financial transactions• Selling and payment• Managing accounts• Credit and payments

Building strategic alliances• Newsletters, bulletin boards,

discussion database• Sharing knowledge and

experience

Electronic distribution• Product, data, Information

Internal communications• Complete internet, external, vertical and

horizontal communications • Groupware• E-mail• Collaboration• Knowledge transfer• Telecommuting

Human resources and employeerelations

• Job opening posting• Expert search • Employee training and support• Distance learning

Sales force automation• On-site configuration and order

processing• Sales process transformation

INTERNETINTRANETEXTRANET

Intranet, Extranet and Internet Applications in Intranet, Extranet and Internet Applications in logistics and supply chain network management logistics and supply chain network management (L&SCNM) (L&SCNM)

Supply Chain: Carpet Exports from Nepal to Germany (Time – hrs)

Time (hrs)1 Packing of consignment in factory2 Loading onto 1 Nepalese truck3 Trucking from factory to Birgunj over distance of 165 km4 Customs clearance and containerization at Birgunj5 –6 –7 –8 Waiting to enter Calcutta Port9 Unloading at Port10 Customs inspection and clearance (fees, informal payments, etc11 Terminal handling, incl. of waiting for vessel12 Other terminal charges (river dues, labor fund contr., etc.13 Liner shipping from Calcutta Port to Bremen Port

Total time : 50 days

Logistics time (% of total time): 32%

Customs time (%f total time) : 13.5%

Total cost of moving to market: 5.9% of value of product)

Logistics cost (% of total cost): 67%

Logistics Cost (% value of prod): 4.4 %

Value Chain Distribution of Costs

Cotton T-ShirtsOne dozen T-shirts= US $21

Includes margins of Branding: e.g. Hanes Retailer margin-e.g. Walmart

Source: Walmart, Survey interviews

Building Competitiveness of SMEs

through Supply Chain

Tata Motors Ltd., India

A case study

Enhancing export competitivenessSpeed and flexibility across value chain through VCM

Supplier

Dealer

Transporter

Administrator

Help-Line

Buyer

Delivery the key for existence in the Global economy

TML is nurturing SME linkages as a source of increasing value creation

Activities &

Operations

Parts &

Aggregates

Systems &

Technology

Now

Early 90s

Before 1990

The experience of an SME supplier to TATA Motors - Auto Profiles Ltd. Auto Profiles Ltd.

Range of Products

Chassis Components for Heavy Commercial Vehicles

Skin Panel Assemblies for Driver’s Cabin

Canopies and Cabins for Excavators, Cranes and Dumpers

Tractor Components

Engine Components

Mini Front End Loader cum Dumper

Mobile Concrete Mixer

Auxiliary ItemsAuxiliary ItemsGussetGussetValve GuardValve GuardCoverCover

Indirect ExportIndirect ExportDriver Cabin for DumpersDriver Cabin for Dumpers

Products for ExportProducts for ExportSuspension Arms for After Sales Suspension Arms for After Sales

MarketMarketFiat UnoFiat UnoFord MondeoFord MondeoFort EscortFort EscortFord FiestaFord FiestaFord KAFord KA

Experience with TATA MOTORSExperience with TATA MOTORS

SMEs growth with TATA

Motors

TATA Motors at Boom

Recession and our Survival

TATA Motors

bounces

back

Pre 1990s Mid 1990s Early Y2K 2003-04

Auto Profiles Ltd. Auto Profiles Ltd.

Customer Schedule is received by

Vendor

Schedules are to be Accepted by

Venders

As per accepted Schedule,

Components are Dispatched

to customer ASN numbers are allotted on the

basis of details sent through SRM by

the customer

Against ASN No. components are

received by customer and Good Receipt No.

Generated.

Against Good Receipt Note, QA Dept.

is preparing the Acceptance /

Rejection report.

On the basis of Inspection report

confirming the acceptance/rejection, Hundis are

raised & accepted

TATA Motors is operating with SAP

(SPECIAL ACCESS PROGRAMME)

SRM (Supplier Relationship Management)

Auto Profiles Ltd. Auto Profiles Ltd.

RAW MATERIAL

INPUT

TATA Steel

SAIL

De-Coiling/Cutting

Pickling

Shearing

Pressing

Assemb.

Painting Dispatch

Flow Chart

Auto Profiles Ltd. Auto Profiles Ltd.

Advantages:

85% of business is with TATA Motors only

1. All information's related to production planning, PO, amendment etc. are appearing in the screen before the month begins.

2. Any amendments in schedule are given, drawing amendments are communicated through SRM

3. The advance production programme helps in planning, procurement of Raw material, m/c loading , tools programme etc.

4. Man power is saved at various stages including collection of enquiries upto receipt of payment.

5. Lot of paper work is eliminated in the whole system.6. Payment is received very fast

Issues to be addressed

(I) Whether Bangladesh, Bhutan, Mongolia and Timor-Leste are ready to render necessary policy and logistic support to their private sector particularly the SMEs, which dominate the economic scene of the Select Four? For this what form of situation analysis for SMEs in the four countries is needed?

(II) Whether SME sector in those countries are attitudinally ready and strong enough to absorb and develop the required capacity to undertake the programme? And if so; the required frame work of capacity building programme?

(III) What policy and operational measures be further taken to successfully foster SMEs’ participation into the global and regional supply chains, which will eventually make them competitive?

RecommendationsRecommendations(A) National Strategy:(A) National Strategy:

•• Strategy for SME development through Supply Chain Network and usStrategy for SME development through Supply Chain Network and use of e of ICT and knowledge management should not be standICT and knowledge management should not be stand--alone but linked to alone but linked to national development national development programmesprogrammes leading to income generating activities leading to income generating activities and poverty reduction and poverty reduction programmesprogrammes. This will bring about wider acceptance . This will bring about wider acceptance of the of the programmeprogramme components in the private sector, which plays critical role components in the private sector, which plays critical role in developing these innovative concepts among its members. . in developing these innovative concepts among its members. .

•• National strategy for development of Supply Chain involving privNational strategy for development of Supply Chain involving private sector ate sector extensively should be built on strong base of consultations amonextensively should be built on strong base of consultations among the g the private sector, stakeholders and civil society at large. This shprivate sector, stakeholders and civil society at large. This should be so ould be so designed that the process of consultations gets suitably reflectdesigned that the process of consultations gets suitably reflected in the ed in the strategy document.strategy document.

•• The strategy should not only revolve round capacity building of The strategy should not only revolve round capacity building of the SME the SME sector in the designated areas but should also cover policy makesector in the designated areas but should also cover policy makers in the rs in the government, extension agencies, financial system and private secgovernment, extension agencies, financial system and private sector trade tor trade related bodies. related bodies.

Recommendations (contd.)Recommendations (contd.)•• Government policies should aim at building conducive informationGovernment policies should aim at building conducive information

technology environment, foster partnerships including foreign technology environment, foster partnerships including foreign partnership with partnership with TNCsTNCs for integrating for integrating SMEsSMEs into global market with into global market with the increased use Supply Chain Networkthe increased use Supply Chain Network

•• Formulation of suitable policy package which fills the existing Formulation of suitable policy package which fills the existing gap gap coming in the way of SME development. Development of Supply coming in the way of SME development. Development of Supply Chain /ICT policy Chain /ICT policy programmesprogrammes must find suitable place in the must find suitable place in the government’s annual plan and more importantly their government’s annual plan and more importantly their implementation strategy should be spelt out very clearly so thatimplementation strategy should be spelt out very clearly so thateffective monitoring may be undertaken by the responsible effective monitoring may be undertaken by the responsible agencies.agencies.

•• Suitable awareness creation Suitable awareness creation programmesprogrammes should be pressed into should be pressed into service on a regular basis to disseminate latest and accurate service on a regular basis to disseminate latest and accurate information on technical advancements of the products and the information on technical advancements of the products and the processes, their resultant benefits or otherwise, status of processes, their resultant benefits or otherwise, status of neighbouringneighbouring countries, etc. so as to soften the rigid mindset and countries, etc. so as to soften the rigid mindset and arouse acceptability to innovative ideas by arouse acceptability to innovative ideas by SMEsSMEs..

Recommendations ( contd.)Recommendations ( contd.)•• Especially designed Especially designed programmesprogrammes on importance, on importance,

cost effectiveness, and criticality of Supply cost effectiveness, and criticality of Supply Chain Network with usage of ICT / knowledge Chain Network with usage of ICT / knowledge management in business, production and management in business, production and marketing should be introduced for upgrading marketing should be introduced for upgrading the status of the status of SMEsSMEs and make them competitive and make them competitive in the global market.in the global market.

•• Delivery mechanism of support service providers Delivery mechanism of support service providers to to SMEsSMEs, mostly in the public sector, needs to be , mostly in the public sector, needs to be drastically reformed as the existing delivery drastically reformed as the existing delivery system has totally failed in achieving the system has totally failed in achieving the objective. They are all supply driven instead of objective. They are all supply driven instead of demand. The institutional setup, mindset, style demand. The institutional setup, mindset, style of operation and attitude will need to be of operation and attitude will need to be changed. changed.

Recommendations (contd.)Recommendations (contd.)(B) Private sector including (B) Private sector including TNCsTNCs / / MNCsMNCs

•• Supply Chain has been widely promoted more by the private sectorSupply Chain has been widely promoted more by the private sectorrather than governments. All support must flow to the Business rather than governments. All support must flow to the Business Associations in promoting this concept among their member Associations in promoting this concept among their member SMEsSMEs..

•• TNCsTNCs and and MNCsMNCs should be encouraged to have outsourcing should be encouraged to have outsourcing arrangements with arrangements with SMEsSMEs and given fiscal support by the and given fiscal support by the governments for establishing Supply Chain Network with governments for establishing Supply Chain Network with SMEsSMEs..

•• Based on UNIDO pattern, private sector may adopt Cluster Based on UNIDO pattern, private sector may adopt Cluster Approach to establish Supply Chain within the designated area.Approach to establish Supply Chain within the designated area.

•• Intranet, Extranet and Internet system should be encouraged in tIntranet, Extranet and Internet system should be encouraged in the he SME sector. SME sector.

Recommendations ( Recommendations ( contdcontd))

Recommendations (contd.)Recommendations (contd.)•• SMEsSMEs in Bangladesh, Bhutan, Mongolia and Timorin Bangladesh, Bhutan, Mongolia and Timor-- LesteLeste have yet to adopt have yet to adopt

SCM system to their full advantage. In recent times, with the enSCM system to their full advantage. In recent times, with the entry of China try of China in the world market, the SCM system has shown a number of changein the world market, the SCM system has shown a number of changes. The s. The primary economic returns in the chain of production are to be foprimary economic returns in the chain of production are to be found in und in areas outside of production, such as design, branding and marketareas outside of production, such as design, branding and marketing. Value ing. Value chain analysis provides not just a method of understanding thesechain analysis provides not just a method of understanding thesedevelopments, but also a way of identifying key challenges in thdevelopments, but also a way of identifying key challenges in the promotion e promotion of upgrading. of upgrading. SMEsSMEs may have to be made aware of this system.may have to be made aware of this system.

•• One needs to view the upgrading challenge in a wider perspectiveOne needs to view the upgrading challenge in a wider perspective, , capturing the central idea that it may involve changes in the nacapturing the central idea that it may involve changes in the nature and mix ture and mix of activities, both within each link in the chain, and in the diof activities, both within each link in the chain, and in the distribution of stribution of intraintra--chain activities. This relates both to the achievement of new prchain activities. This relates both to the achievement of new product oduct and process development, and in the functional reconfiguration oand process development, and in the functional reconfiguration of who does f who does what in the chain as a whole. It is thus possible to identify fowhat in the chain as a whole. It is thus possible to identify four trajectories ur trajectories that SME firms can adopt in pursuing the objective of upgrading,that SME firms can adopt in pursuing the objective of upgrading, namely:namely:

•• -- Process upgradingProcess upgrading•• -- Product upgradingProduct upgrading•• -- Functional upgradingFunctional upgrading•• -- Chain upgradingChain upgrading

Recommendations (contd.)Recommendations (contd.)Recommended value chain framework: Four categories of upgradiRecommended value chain framework: Four categories of upgrading ng

•• Process upgradingProcess upgrading: Increasing the efficiency of internal processes in such a : Increasing the efficiency of internal processes in such a manner as to ensure that they are significantly better than thosmanner as to ensure that they are significantly better than those of rivals, e of rivals, both within individual links in the chain (for example, increaseboth within individual links in the chain (for example, increased inventory d inventory turns, lower scrap), and between the links in the chain (for exaturns, lower scrap), and between the links in the chain (for example, more mple, more frequent, smaller and onfrequent, smaller and on--time deliveries)time deliveries)

•• Product upgradingProduct upgrading: Introducing new products or improving old products : Introducing new products or improving old products faster than rivals. This involves changing new product developmefaster than rivals. This involves changing new product development nt processes both within individual links in the value chain and inprocesses both within individual links in the value chain and in the the relationship between different links of the chain.relationship between different links of the chain.

•• Functional upgradingFunctional upgrading: increasing value: increasing value--added by changing the mix of added by changing the mix of activities conducted within the firm (for example, taking responactivities conducted within the firm (for example, taking responsibility for, sibility for, or outsourcing, accounting, logistics and quality functions) or or outsourcing, accounting, logistics and quality functions) or moving moving activities to different links in the value chain (for example fractivities to different links in the value chain (for example from om manufacturing to design).manufacturing to design).

•• Chain upgradingChain upgrading: moving to a new value chain (for example, Taiwanese : moving to a new value chain (for example, Taiwanese firms moved from the manufacture of transistor radios to calculafirms moved from the manufacture of transistor radios to calculators, to tors, to TVs, to computer monitors, to laptops and now to advanced phonesTVs, to computer monitors, to laptops and now to advanced phones).).

Recommendations (contd.)Recommendations (contd.)(C) International Agencies:(C) International Agencies:

•• International agencies should be encouraged to provide initial pInternational agencies should be encouraged to provide initial push to the ush to the programmeprogramme through Business Development Services (BDS), which may through Business Development Services (BDS), which may eventually find a place in the policy eventually find a place in the policy programmesprogrammes of the concerned country. of the concerned country. This will help bringing in the experiences of best practice adopThis will help bringing in the experiences of best practice adopted ted successfully elsewhere.successfully elsewhere.

•• Donors may provide maximum support in these developing countriesDonors may provide maximum support in these developing countriesthrough BDS, technical skills and country exchange through BDS, technical skills and country exchange programmesprogrammes. Suitable . Suitable skill upgrading skill upgrading programmesprogrammes may also be introduced. may also be introduced.

•• Donors should also, based on their international experiences, brDonors should also, based on their international experiences, bring in best ing in best practices and undertake coordination work as between government,practices and undertake coordination work as between government, private private sector and various agencies.sector and various agencies.

•• Donors may also develop long lasting impact with local agencies Donors may also develop long lasting impact with local agencies “taking “taking over” donors’ activities.over” donors’ activities.

•• UNO may use the “UNO may use the “Global CompactGlobal Compact” platform to bring ” platform to bring TNCsTNCs closer to closer to SMEsSMEs

KickKick--start of the Missionstart of the Mission-- Short term ( 2006Short term ( 2006--2007)2007)

Action Action ProgrammeProgramme for UNfor UN--ESCAPESCAP

1.1. ESCAP may mount missions to quickly assess the ESCAP may mount missions to quickly assess the “Gap” and inputs required for promoting Supply Chain “Gap” and inputs required for promoting Supply Chain in the SME sector of the select four countries.in the SME sector of the select four countries.

2. ESCAP may setup a common platform in each country 2. ESCAP may setup a common platform in each country in collaboration with government, private sector, in collaboration with government, private sector, international agencies and international agencies and TNCsTNCs / / MNCsMNCs and work out and work out “National Mission for “National Mission for SMEsSMEs’ integration in Regional and ’ integration in Regional and Global Value Chain.” Global Value Chain.”

3. Each National Mission shall clearly setout the strategy, 3. Each National Mission shall clearly setout the strategy, operational modalities and role of stakeholders for operational modalities and role of stakeholders for promoting Supply Chain / use of ICT in SME sector. promoting Supply Chain / use of ICT in SME sector.

Action Action ProgrammeProgramme for UNfor UN--ESCAP ( 2006ESCAP ( 2006--2007)2007)

4. 4. Four National and One Regional workshops may be organized by ESFour National and One Regional workshops may be organized by ESCAP CAP in collaboration with other stakeholders to create due appreciatin collaboration with other stakeholders to create due appreciation of ion of the Mission and achieve acceptability by bringing about change ithe Mission and achieve acceptability by bringing about change in the n the Mindset of Mindset of SMEsSMEs. .

5. ESCAP may identify initially in each country, export5. ESCAP may identify initially in each country, export--oriented / sector oriented / sector specific specific SMEsSMEs and related institutions for Capacity Building and related institutions for Capacity Building ProgrammesProgrammes..

6. ESCAP may arrange for at least two rounds of capacity bu6. ESCAP may arrange for at least two rounds of capacity building ilding programmesprogrammes for identified for identified SMEsSMEs and one round of and one round of programmeprogramme for the for the institutions and policy makers. Since all value chain is by and institutions and policy makers. Since all value chain is by and large large culminating from this region either in China or India/Thailand, culminating from this region either in China or India/Thailand, their their faculty must be involved to give true picture of international mfaculty must be involved to give true picture of international markets. arkets.

7.7. Identify a few Identify a few TNCs/MNCsTNCs/MNCs and open dialogue for their involvement in and open dialogue for their involvement in promoting the Supply Chain Network with select promoting the Supply Chain Network with select SMEsSMEs in each of the in each of the four countries. Global Compact may become handy in this directiofour countries. Global Compact may become handy in this direction . In n . In this direction, Cluster approach of UNIDO may work better. this direction, Cluster approach of UNIDO may work better.

7.7. All the above initiatives may be taken as jointAll the above initiatives may be taken as joint--institutional exercise by institutional exercise by ESCAP and in the light of the experience gained the Mission may ESCAP and in the light of the experience gained the Mission may be be further extended. further extended.

Thank you