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“Jamaica Trade Desk News” Theme: Working together towards ONE Caribbean!
Contact us at (868) 675-8862 Ext. 239 Email: [email protected]
I S S U E 9 – N O V E M B E R 2 0 1 3 M O N T H L Y P U B L I C A T I O N
H I G H L I G H T T H E
D Y N A M I C S O F
W O R K I N G T O -
G E T H E R :
Resolving issues be-
tween Jamaica and
T&T...
I N S I D E T H I S
I S S U E :
Strategize, innovate
and collaborate: dy-namic tools to improve
environmental and busi-ness performances.
Insights on the 37th
Meeting of COTED… 2
Traffic congestion
dampens local busi-
ness development!
3
Basic Guidelines for
import of food and
beverage into T&T...
4
TTCSI putting the
Services Sector into
the spotlight!
5
TTBizOpp 2013! 7
Let ERP solutions
minimize your losses! 8
Contact JA-T&T
Trade Facilitation Desk NOW!!!
8
Editorial:
Resolving trade issues between Jamaica and Trinidad & Tobago… (1/2)
The Jamaica-T&T Trade Facilitation Desk was estab-
lished in May 2012, to encourage a healthy balance
of trade between T&T and Jamaica. This initiative
was driven by the foresight of the Bermudez Group
Ltd (BGL), which has operations in many Caribbean
islands and believes in the strength of the region as a
whole. The BGL was also the sole sponsor of the
Trade Desk, until June 2013, when the Associated
Brand Industries Ltd agreed to partner and provide
financial support. This partnership was deemed neces-
sary to maintain the Trade Desk‟s operations and en-
sure that these specialised support services remain
available for Jamaican firms. The Trade Facilitation
Desk was also developed to leverage business oppor-
tunities for Jamaicans, as a response to the perception
of Jamaican firms that the T&T‟s market entry re-
quirements were burdensome.
From inception, the Trade Facilitation Desk has gone
above and beyond to ensure businesses overcome the
current trading difficulties, while creating a way for-
ward to improve the volume of trade in goods, as well
as services between Jamaica and T&T. Due to the
recent developments between T&T and Jamaica, we
are encouraging closer partnership across the region.
These problems cannot be solved with traditional pol-
icy measures. Innovative solutions are clearly needed.
It‟s time for meaningful, diplomatic and financially
sound discussions on a public and private sector level,
to attempt to rectify the strained relationship that ex-
ists.
We look forward to the JA-T&T Trade Facilitation
Desk remaining a strong, respected voice and advo-
cate for Jamaican businesses in T&T. This mechanism
for trade support is already assisting companies with
the following and would be willing to do much more
if the opportunity presents itself:
Assessing their export-readiness,
Becoming compliant with the local market,
Providing information on the T&T business envi-
ronment and regulatory requirements,
Searching for suitable distributors or agents,
Organizing visits to T&T,
Acting as a liaison to share prevailing percep-
tions with the various trade institutions and
regulatory agencies, in order to improve busi-
ness relations.
It is clear that there is a wide range of services that
can be offered and therefore we reiterate our call to
all Jamaican businesses to use or continue utilizing
the Trade Facilitation Desk as much as possible, in
order to voice their concerns and maximize market
penetration.
T&T may appear as a difficult market to penetrate
due to a great variety of products offered and avail-
able to the consumer. Furthermore, the transporta-
tion of goods across the region, and especially be-
tween the T&T and Jamaica is not an easy task,
although necessary for a healthy trading system.
However, a few Jamaican companies have over-
come the burdens with great success, and been trad-
ing with T&T for several years.
We cannot deny that over the last four years, the
relationship between both islands has worsened and
no drastic move has been made by our respective
Governments to resolve the situation. However, we
need to bear in mind that while government and
policy changes could strongly affect business, in-
dustry is the foundation of economic growth.
Therefore, despite this, public and private sector
leaders must work together in creating an enabling
environment for business and foster sustainable
growth for the region.
In keeping with the spirit of the revised Treaty of
Chaguaramas, the relationship between T&T and
Jamaica needs to improve. This adage captures it
perfectly: “If you want to go fast, go alone, but if
you want to go far, go together.”
It is important to highlight that states such as the
USA, Canada, Europe are interested in conquering
the Caribbean, not just Jamaica or T&T. Our indi-
vidual markets are insignificant, but together we
are an excellent market for these suppliers,
due in large part to the fact that demand for
imported food products is largely inelastic.
Page 2
P A G E 2
The 37th meeting of the Council on Trade and
Economic Development (COTED) was held
from Tuesday, 5 November 2013 to Satur-
day, 9 November 2013. At this forum, sev-
eral issues were discussed and resolved.
These issues included external economic
trade relations, intra-regional trade and the free movement
of CARICOM nationals.
As the end of the CARIBCAN draws to an end, both CARI-
COM and Canada are negotiating the CARICOM and Can-
ada Trade and Development Agreement. Unfortunately, it is
highly unlikely that the negotiations would conclude before
31 December 2013, when they were expected to be con-
cluded. In this regard, CARICOM would be seeking an ex-
tension of the conclusion date of negotiations to the 30 June
2014. This extension would be sought by the Chairman of
the Prime-Ministerial Sub-Committee on External Negotia-
tions to the Prime Minister of Canada. Additionally, each
member state was mandated to submit any outstanding
documentation to the Office of Trade Negotiations, as the
reason for the slow progress was linked to the late submis-
sion of positions.
Both Cuba and Venezuela have approached CARICOM,
each with the view of expanding the volume of trade be-
tween the parties. While the Agreement on Trade, Eco-
nomic and Technical Cooperation between the Caribbean
Community and the Government of the Republic of Vene-
zuela is limited in scope, the Trade and Economic Coopera-
tion Agreement between CARICOM and Cuba covers a
wider range of goods. However, both the Venezuelan and
the Cuban governments have expressed their respective
interests in increasing the number of goods that is afforded
preferential treatment. In both instances, meetings of the
Joint Council under both agreements will be convened to
address the modification of the agreements. Thus, each
CARICOM member state is required to submit its position
on topics which should be addressed at the meetings.
Among the items discussed pertaining to intra-regional
trade included the suspension of the Common External Tar-
iff for petroleum. Jamaica, as a signatory to the PetroCaribe,
benefits from a supply of petroleum products (such as crude
oil, gasoline, diesel oil, kerosene, fuel oil and jet fuel)
from Venezuela. However, each of these products at-
tracts a duty when being imported extra-regionally. Thus,
Jamaica requested that the CET be suspended on these
products. In accordance with Article 83 of the Revised
Treaty of Chaguaramas, the suspension of the CET can
be granted once there are no producers of the product
within the region, the quantity produced is insufficient,
or the quality produced is not of Community standard.
The suspension was granted, as Jamaica gathered the
support of all member states for its request. While Trini-
dad and Tobago is a producer of these products, the twin-
island state is fully cognisant of the importance of these
products to any manufacturing community, and sup-
ported a 3-year suspension of the CET.
The free movement of nationals was raised at the
COTED, with specific focus on the recent court ruling on
the Shanique Myrie vs. the State of Barbados case.
It was indicated that the procedures to which immigra-
tion officers adhere to are important, especially when a
potential immigrant is denied entry. Procedures such as:
Written reasons for a decision given by the im-
migration department;
Access to meaningful judicial review for a deci-
sion by the denied immigrant;
The notification of the denial of entry by the
immigration department (this notification
should be the denied CARICOM national‟s
member state, as well as the CARICOM Secre-
tariat),
were deemed to be matters of good governance in treat-
ing immigrants. While the issue focused on Shanique
Myrie, other pertinent issues were raised, including:
Bahamas and Montserrat not being party to the
Revised Treaty for this aspect;
The requirement for visas for Haitian national
for intra-regional travel.
Thus, member states are required to review the immigra-
tion procedures at the port of entry, so that such an inci-
dent would not be repeated.
An article written by Mr. Christian George– TTMA Re-
search Officer, Trade Unit. Email: [email protected]
37th Meeting of the Council on Trade and Economic Development (COTED)
… Resolving trade issues between Jamaica and Trinidad & Tobago (2/2)
While these leading countries may
be hesitant to trade with one Mem-
ber State, they might be enthusiastic
to get an opportunity to do business
with the whole of CARICOM, and
then the investment is almost cer-
tainly worth it.
Jamaica and Trinidad & Tobago
belong to a beautiful, rich, diverse and resourceful Carib-
bean. This region has the capacity to astound the world with
its strength through the commonality of our struggle for an
independent identity.
The harmonization of our collective ideas, innovative
capacity and will can be converted into economic
growth. To fulfill this, we must refuse to be constrained
by the shackles of nationalistic insularity, pay more than
mere lip service to our integration tenets and find a way
to harness our regional identity. The world is yet to see a
united Caribbean and what it is able to produce.
Let‟s work together to promote the CARICOM region!
2014 is an opportune year of positive change...
Article written by Mrs. Naika Pichi-Ayers– TTMA Ja-
maica Trade Desk Officer. Email: [email protected]
Page 3
P A G E 3
The issue of traffic conges-
tion is a growing global
phenomenon with which
we all have to contend. As
transportation is a funda-
mental part of how we live
and do business, the ways
in which we move people,
goods and services have
various unintended and
harmful side effects on the economy. This is evident
through the occurrence of increased levels of congestion
on the Trinidad & Tobago roadways – resulting in lower
levels of productivity and higher costs for the local busi-
ness community, especially the manufacturing sector.
Overview of traffic congestion in T&T
Generally, traffic congestion is characterized as a road
system in which one experiences increased road trip times,
slower vehicle speeds and increased vehicle lineups. In
T&T, this phenomenon is fostered by several factors, in-
cluding an inadequate road management system, an ineffi-
cient public transportation system and the fuel consump-
tion subsidy.
Statistics reveal that at peak hours there are over 30,000
vehicles per hour on the main roads and highways. Fur-
thermore, on an average work day over 500,000 vehicles
transit the city of Port of Spain, the hub of government
offices and other essential service providers.
Despite, the recent developments in highway infrastruc-
ture, many are concerned that such developments have not
kept pace with the number of vehicles that are being im-
ported into the country. Data from the Ministry of Trans-
port unofficially indicates that 3500 private vehicles are
licensed on a monthly basis. This fate, coupled with highly
subsidized fuel prices, begs the question of whether our
economy can sustain this increasing rate of vehicular traf-
fic.
Conceptually, through the provision of mass transporta-
tion, the public transportation system should ease the traf-
fic woes, by reducing the number of private vehicles on
the roadways. However, the system‟s inefficiency inevita-
bly compels commuters to utilize/purchase private vehicles
for reliability and efficiency.
The implications of traffic concession of the manufac-
turing sector
The occurrence of traffic congestion impacts negatively
on the operations of the manufacturing sector. From a
social standpoint, research indicates that traffic conges-
tion has a damaging impact on an individual‟s health. As
such, the extensive time spent in traffic on a daily basis
is associated with increased levels of stress, fatigue and
high blood pressure of workers which ultimately can
result in lower levels of productivity - especially in la-
bour intensive jobs, increased inefficiency – due to loss
in man hours, and higher costs – including additional
salary payments to workers to compensate for overtime
hours worked.
From an economic standpoint, the average manufac-
turer, actively engaged in importing and exporting, gen-
erally has to contend with a potpourri of challenges in
the arrangement for pickup and deliveries of goods to
and from his warehouse/port/customers. These chal-
lenges range from sea congestion, affecting the berthing
of cargo vessels at the port, to regulatory issues with the
Customs and Excise Division, especially in terms of
having goods inspected for clearance; the challenges
involved in clearing the border are numerous. This proc-
ess is then compounded by the added costs involved in
transporting these goods on land, which adds incremen-
tally especially during peak hours, due to traffic conges-
tion.
Furthermore, when one considers the large percentage of
business persons who utilize (and will continue to util-
ize) the Port of Port of Spain, for delivery and pickup of
their containerized cargo, it intuitively indicates that
there is/will always be a severe bottleneck around the
city hub that reduces the movement of cargo to snail‟s
pace. All of this contributes to the high „cost of doing
business‟ and stymies our climb up the Global Competi-
tiveness and Logistics Performance Indices.
It is evident that traffic congestion on our roadways can
result in the combined effect of rising transport costs and
lower productivity, which in itself increases the unit
production cost of output. Inevitably this can lead to
inflationary pressure and reduced competitiveness in the
economy.
Traffic congestion dampens local business development… (1/2)
Page 4
P A G E 4
Recommendations
Traffic congestion is a national problem and it requires
concerted national attention. The solution may be derived
from a combination of the following measures:
The government should carefully review the policy
and tax structure for imported foreign used vehicles.
The age and quantity of used vehicles entering the
country on a monthly basis is highly unsustainable
and militates against transit efficiency on all levels.
Improve the public transport service to increase usage.
The fuel subsidy ought to be removed gradually, the
savings from which can be transferred and targeted
towards the sophistication and development of en-
hanced the mass transit services.
The government can identify ways in which their
services can be decentralized to reduce the need for
users to access them in Port of Spain. This should
be followed up by proper sensitization to ensure that
the public is fully aware of the new arrangements.
The government should ensure that the public is
fully aware of and empowered to use their elec-
tronic services (which are in fact being actively de-
veloped) to reduce dependence on transiting into
Port of Spain.
Business persons (and by extension haulers, ship-
ping lines and agents) should be encouraged to util-
ize the Port of Port of Spain‟s night time opening
hours to reduce traffic from heavy goods vehicles in
the day time.
Incentives should be given to persons choosing to
car pool; on the other hand, a tiered tax structure
can be developed for persons who wish to register
multiple vehicles in their name. There should be a
direct relationship between owning more vehicles
and the tax paid, i.e. the more you own, the more
you are taxed.
Contribution from Ms. Arianne Phillip & Mr. Marc
Sandy– TTMA Research Officer, Business Develop-
ment Unit. Respective emails: [email protected] /
[email protected] ).
… Traffic congestion dampens local business development (2/2)
Guidelines for import of food and beverage into T&T...
The Jamaica-T&T Trade Facili-
tation Desk is pleased to an-
nounce that the “Basic guide-
lines for import of food and
beverage into Trinidad &
Tobago” has been completed
early November 2013.
This was done with the active collaboration of the Chemis-
try, Food & Drugs Division (CFDD) of the Ministry of
Health, as well as the Trinidad and Tobago Manufacturers‟
Association (TTMA). The document was disseminated
widely to Ministries‟ Representatives, Business Support
Organizations, Regulatory Agencies and Businesses from
Jamaica and T&T.
This project was initially launched by the Trade Desk Offi-
cer, Mrs. Naika Pichi-Ayers, with the main objective to
assist Jamaican companies, among others, in getting a
better understanding of the labelling requirements, so
as to ensure that the import flow into T&T becomes
much smoother.
It was also initiated in an effort to strongly collaborate
with the TTMA, which has been lobbying the Govern-
ment of T&T over the years, by addressing the CFDD’s
lack of transparency and efficiency, and by extension
of the Republic of the twin-islands.
The guide was designed to be user-friendly and give a
clear and simple vision of the regulatory requirements
on food and beverages in T&T, in an effort to facilitate
trade and ease movement of goods within T&T.
If you wish to download the PFD version, please click
on the link below:
h t t p : / / w w w . t t m a . c o m / a t t a c h m e n t s / B a s i c %
20Guidelines%20For%20Import%20of%20Food%
20and%20Beverage%20in%20Trinidad%20%20and%
20Tobago-%20October%202013.pdf
If you need any clarification on this guide, please feel
free to contact Mrs. Naika Pichi-Ayers, Jamaica-T&T
Trade Desk Officer via email: [email protected]
Page 5
P A G E 5
TTCSI… Putting the Services Sector into the spotlight! (1/2)
How do you honour
dedicated and resource-
ful service providers?
Well, since 2008 the
Trinidad and Tobago
Coalition of Services
Industries (TTCSI) has
been dedicating the first
week of November to
highlighting the contribution of the services sector to the
economy of Trinidad and Tobago. This year was no differ-
ent. TTCSI hosted its 6th Annual National Services Week
2013 from November 5th to 9th. The theme for the
week-long events was “Services Export; Dream it, Do
it.” The week of events began with the 3rd staging of the
Excellence in Services Award on November 5th at the
Trinidad Hilton Hotel, where several service providers
were recognised and awarded.
The awards recognize and honour role models in the ser-
vices industries for their outstanding performance and con-
tribution to the growth and development of the services
economy. The aim is to inspire more service providers to
be innovative and competitive in their approach to ser-
vices. TTCSI Members, previous award winners, nomi-
nees, government officials, sponsors and other specially
invited guests gathered as service providers received
awards for Best Use of Innovation in Services, Service
Provider of the Year, Young Service Provider and Service
Exporter of the Year, among other categories. Speakers at
the event included Richard Young, Chairman of the Eco-
nomic Development Board, who noted that expanding into
services should provide a strong diversification thrust
away from oil and gas.
Also delivering remarks were Rabindra Jaggernauth,
President of the TTCSI, Gregory Camejo of One Carib-
bean Media, Arthur Lok Jack‟s Nirmala Harrylal-
Maharaj and TTCSI Chief Executive Offcer, Nirad
Tewarie. But the Excellence in Services Awards was
just the beginning! National Services Week also in-
cluded four other events that allowed stakeholders to
engage with expert panellists, and allowed secondary
school students to be involved in the activities sur-
rounding the week as well. It focused on building ca-
pacity to expand the services sector and promote ex-
ports.
On Wednesday 6th November, a discussion on the fi-
nancial services sector entitled “Creating the Future
you Want” was held at the same venue, where the audi-
ence got a chance to interact with Senator Larry Howai,
Minister of Finance, Varun Maharaj, Chief Executive
Officer of the International Financial Centre and Cen-
tral Bank Governor, Jwala Rambaran, who was able to
shed light on the CLICO financial crisis and reforms
planned for the Central Bank and financial regulation.
On November 7, the third event got underway, where
ICT venture capitalist Kamran Elahian and marketing
guru Stephen Arbeit helped participants in „Going
Global: Structuring your Winning Pitch for Growth‟.
Also delivering valuable insight was Honourable Min-
ister of Trade, Industry and Investment, Senator Vasant
Bharath, Senior Investor Sourcing Officer at InvesTT,
Renata Girod, CEO at National Entrepreneurship De-
velopment Company Limited, Ramlochan Ragoonanan,
Shaun Waldron of Exim Bank T&T and Christopher
Lewis, CEO at exporTT.
The winners of the Excellence in Services Award with TTCSI President and CEO, and other Board Members.
Page 6
P A G E 6
… TTCSI… Putting the Services Sector into the spotlight! (2/2)
By far the most exhilarating event, Preparing our Children
for Future Education, Technology and Intelligence was
held on the Friday. TTCSI with the support of School of
Business and Computer Science (SBCS) hosted former
Advisor on Education Policy to the UK Government , Mr.
Richard Gerver, who was able to enlighten and entertain
the audience. He spoke at the event after doing a tour of
local schools and urged those in the room to “find a system
which is organic…constantly evolving, and relates directly
to the interests and purposes of our young people”. In his
view, teachers are the ones with the solutions to the prob-
lems facing the education system in Trinidad and Tobago.
He was joined by Director of Curriculum at the Ministry of
Education, John Roopchan, President of the Trinidad and
Tobago Unified Teachers Association (TTUTA),
Devanand Sinanan and Managing Director of SBCS,
Robin Maraj. After the event, Mr. Gerver held a session
with a smaller group of educators, which focused on meth-
ods of teaching.
The final event on Saturday encouraged secondary school
students to conceptualize a project that would create a
green space on their school‟s compound. Trinidad and
Tobago Green Building Council (one of TTCSI‟s mem-
bers) co-sponsored the “I AM Secondary Schools Environ-
mental Competition” which culminated in the prizing giv-
ing ceremony at the JFK Auditorium at the UWI St.
Augustine Campus. Specially invited guests, participating
schools, teachers and students who worked on the projects
were present at the ceremony, which featured entertain-
ment from 3Canal. The Honourable Ramona Ramdial,
Minister of State in the Ministry of Environment and Wa-
ter Resources gave the feature address and highlighted that
she was impressed with the quality of entries into the com-
petition. She pledged, on behalf of the Ministry, an
award of $5000 to each of the schools taking the top
three positions. This was in addition to the trophies and
prizes that the schools received. St. Joseph Covent San
Fernando, Bishop Anstey High School Port-of-Spain
and Naparima Girls‟ High School placed first, second
and third respectively. Special awards were given for
Best Drawing and Most Original Presentation, which
Queen‟s Royal College and San Juan South Secondary
School received respectively.
For the last six years the National Services Week
staged by the TTCSI has become an annual marquee
event that brings mainstream attention to the local ser-
vices industries. With the assistance of agencies such as
GIZ (German Agency for International Cooperation),
Caribbean Export Development Agency, SBCS, First
Citizens Bank, exporTT, invesTT, Guardian Group,
One Caribbean Media, Balroops, Tabletop Limited,
T&TIFC, Lifetime Solutions, IBL Bank, Ministry of
Education, Illuminat and Unversity of T&T, the week
exceeded expectations.
We hope that you could join us for National Services
Week 2014!
An article written by Ms. Aurelia Bruce, TTCSI Re-
search Officer. Ms. Dickson can be reached at (868)
622- 9229 or via email : [email protected]
Dr. Driver Board member of TTCSI presents Christian Boucaud, Best Young Service Provider of the
Year 2013, while Diane Joseph, former treasurer of TTCSI shakes her hand.
Page 7
P A G E 7
Learning more about Governments contracts in Trinidad & Tobago...
For small and micro companies government contracts can
seem complex and perhaps even intimidating. However,
there is tremendous potential for collaboration between the
private and public sectors. The Government buys typically
every type of product that is manufactured and service that
is offered, from soaps to military tankers to human re-
source consultant. Business Opportunities in Trinidad and
Tobago, referred to as BizOppsTT, is intended to provide
an information sharing avenue through which SMEs can
unlock their potential. The two day conference hosted by
the Trinidad and Tobago Chamber of Industry and Com-
merce took place on 27th & 28th November, 2013.
Business opportunities were presented from Water and
Sewerage Authority (WASA), Telecommunication Ser-
vices of Trinidad and Tobago (TSTT) and Ministry of Na-
tional Security just to name a few. Noteworthy was the
presentation on the FairShare Programme of the Ministry
of Labour, Small and Micro Enterprise Development
(MLSMED). The FairShare is an avenue for micro and
small enterprises and cooperatives that are at least 51%
owned by Trinidad and Tobago nationals, to access public
opportunities of a maximum value of $1 million. The
MSEs are required to first register with the MLSMED in
order to access the listing of procurement opportunities.
In addition to expounding on the business opportunities,
the presentations demystified the pre-qualification require-
ments for companies wishing to register for future procure-
ment opportunities.
Additionally, participants got an opportunity to hear
first hand from the Procurement Specialists the com-
mon errors that they should be mindful of when sub-
mitting a bid. While the tips may be obvious to some, it
was said that they are too often taken for granted by
some companies. The following tips were noted:
Have a packages of frequently requested docu-
ments always at hand;
Develop a format and checklist – ensure you fol-
low the format or checklist given. If one is not
provided create a clear format and checklist that is
easy to follow;
Have a protocol to deal with clarifications and
amendments;
Conduct a mock evaluation;
Ensure you attend the site visits.
For further information on the
BizOppsTT 2013 Conference
or how you can participate in
BizOppsTT 2014, please contact the Trade & Business
Development Unit of the Trinidad and Tobago Cham-
ber of Industry and Commerce at (868) 637-6966.
Senator the Honourable Larry Howai, Minister of Finance & the Economy, Honourable Carolyn Seepersad Bachan, Minister of Public Ad-
ministration, Mr. Moonilal Lalchan, President of the TTCIC, Ms. Catherine Kumar, CEO of the TTCIC, Mrs. Camille Sears Carter-Wells,
TTCIC Trade & Business Development Manager, pose with some sponsors and speakers at the Opening Ceremony of BizOppsTT 2013.
Page 8
P A G E 8
Is anyone interested in exporting its products/services to T&T?
The Jamaica– T&T Trade Facilitation Desk is there for you:
Informing Jamaican businesses (among others) about import regula-
tions & entry requirements into Trinidad and Tobago, as well as rep-
resenting their interests;
Encouraging networking and facilitating business match-making
with T&T companies to boost investment and trade;
Addressing main areas of concern and key issues to the relevant trade institutions & regulatory agencies in T&T
and Jamaica (intermediating with such arms as customs, the standards authorities, and helping with negotiating
the bureaucracy) and offering support solutions;
Assisting in the coordination of visits and trade missions to T&T (planning, ground support and follow up);
Undertaking consultations with prospective exporters, business support associations and representatives of the
public sector institutions that play key roles in the export process in both countries.
If you need any additional information, you can contact Mrs. Naika Pichi-Ayers, Jamaica-
T&T Trade Desk Officer and Editor of the Newsletter at: (868) 675-8862 Ext. 239
Email: [email protected] Webpage: http://www.ttma.com/jamaicatt_trade_desk
Let ERP solutions minimize your losses!
With increased com-
petition comes in-
creased cost pres-
sures. This forces us
to find ways to
squeeze waste out of
our processes and
ensure we have an
optimized product
mix to meet cus-
tomer demand. Ob-
taining the necessary
information to ac-
complish this is one
of the benefits of an
enterprise resource planning (ERP) system.
I heard a story last year of a local company that found
they had been consistently selling a particular product
at a significant loss to a foreign customer. This hap-
pened for quite some time before the discovery was
made and the result was some emergency meetings
and a renegotiation of the price with the customer.
How could this happen? It turns out that costing was
done manually and some errors were made in that
computation.
In another situation, a company ran out of a raw mate-
rial and in order to fulfill a big order decided to use a
substitute. The problem was, the substitute cost sev-
eral times more than the ingredient they should have
used. The result was a loss of several hundred thou-
sand dollars which was only noticed at the end of the
month after it was too late to do anything about it.
When they told me about this I saw two issues. The
first was not having the right inventory when it was
required and the second is not having visibility to the
cost implications of such decisions.
With an ERP solution, costs of your raw material inputs
and labour inputs can be properly tracked to specific prod-
ucts. The result is the ability to perform detailed analysis
on the profitability of each product you manufacture. This
leads to appropriate manufacturing decisions, product pric-
ing and could lead to cancelling some products or lines
that are not contributing to the company‟s bottom line.
Based on sales forecasts an ERP system can also assist in
the timely acquisition of raw materials so products can be
manufactured to meet customer demand. The shortage of
one raw material can result in tying up a set of other raw
materials in your warehouse while also losing potential
sales. With the increased freight costs and long lead times
Caribbean nations have to live with, it makes this planning
even more important.
When it comes to selling your products, efficiency can
take the form of sales people entering orders on their
phone while visiting customers. The result is a reduction in
the cost of selling by eliminating the need to transpose
written orders into a system or the eradication of errors
from communicating them over the phone. The system
would also allow data mining customer order history to
look for trends which can form the basis for new market-
ing initiatives, pricing or up sell opportunities.
If your current system is not providing these benefits it is
time to start looking at new options. These systems can be
a significant investment. However, it does not take more
than a couple of errors like the ones I mentioned above to
cover the costs of such a system. The real question is can
you afford not to do it?
Contact Davyn today for a free ERP
Consultation at [email protected] |
www.davyntt.com | (868)-674-9788
Derrick Villeneuve, DAVYN- Director
of Strategy