Project Completion Report
SECTION A: Project profile
Project number & title:
Project time period:
Committee / WG / Fora:
Project Overseer Name /
Organization / Economy:
SME 12 2013A – Integrating SMEs into Global Value Chains
January – July 2014
Date
submitted:
26 June 2014
SMEWG
Lynn Costa
International Trade Administration, United States
SECTION B: Project report and reflection
1. Project description: In 3-4 sentences, please describe the project and its main objectives.
The objective of the project was to enhance the technical capacity and better position SMEs as
suppliers and sub-contractors to Multi-National Corporations (MNCs) who are the primary power
agents in global supply chains. In order to contract with a MNC, small and medium-sized companies
must understand the contractual obligations and certifications required by MNCs so they can
successfully integrate into a supply chain where they build prestige as a supplier and gain credibility
and additional opportunities as a trusted provider. The project also addressed how IT technology can
be utilized to streamline the process for SMEs and how logistics work across a global value chain.
2. Meeting objectives: Describe how the project met each of its proposed objectives. Please
outline any challenges you may have encountered in delivering the activity.
Multi-National companies (DuPont, Trek Bicycles, Boeing Aircraft, FedEx, Hope Bay Technologies,
The Open Computing Alliance, 1300 Only Porcelain, and the Alliance for Artisan Enterprise provided
information on their contracting requirements and the types of certifications (standards, ethics
compliance, intellectual property, etc) they require when contracting with suppliers and subcontractors. Ms. Bernadine Zhang Yuhua from the APEC Policy support Unit gave a presentation on
the analysis that the APEC Secretariat is undertaking that focuses on SMEs in global supply chains.
FedEx discussed how logistics are handled across the supply chain and the Alliance for
Artisan Enterprise described the geometric growth of the artisan industry around the world, how the
organization connects artisans with large corporations, and how the sector supports indigenous and
often marginalized segments of the population – particularly women. Mr. Michael Mudd from The
Open Computing Alliance discussed how cloud computing and other IT services can bring
efficiencies to supply chains and are a valuable asset to SMEs in terms of providing the required
certifications that multi-national companies require.
In the afternoon, the group joined the workshop on Disaster Resilience for SMEs -- Autos and ICT
where they learned how disasters impact a supply chain, how companies can properly prepare for a
disaster, and how logistics and ICT can play a significant role in mitigating the impact an
unexpected disaster can have on a small and medium-sized company within a supply
chain.
The Alliance for Artisan Enterprise and the US Department of Commerce, hosted a meeting the
following morning to further discussion on how to unlock the creative potential of the cultural and
creative industries and how the Alliance connects artisans with large multi-national buyers. The blog
post and photos from this meeting can be found at:
http://www.allianceforartisanenterprise.org/blog/2014/4/3/alliance-inthefield-taiwan
In terms of challenges, Australia and the United States had difficulty recruiting multinational
corporations to address the agriculture and food processing sectors. While several large companies
are seeking suppliers in the APEC region, the timing was not good for them to attend this particular
meeting. These are two key sectors that were identified by the SME delegates as critical to their
SMEs.
3. 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.
This project was educational and served as the launch of this work. As this work moves forward, the
SMEWG will determine how best to evaluate the impact.
4. Output indicators: Describe the main project outputs below. This may include workshops,
tools, research papers, reports, recommendations, best practices, action plans.
.
Indicators
# planned
# actual Details or notes
(Edit or Insert rows as needed)
# workshops / events
1
1
# participants (M/F)
15 males
This number does not include the large number
32
17 females
of SME delegates that attended the workshop.
# economies attending
Three APEC delegations did not attend
21 invited
16
the SMEWG meeting in Taichung
# speakers engaged
Plus a researcher from the Aspen Institute
13
13
who collects handicraft/artisan data
# other organizations engaged
The Aspen Institue
1
1
# publications distributed
0
0
# recommendations agreed on
yes
yes
SME delegates would like to see another
workshop that focuses on agriculture,
food processing, and services.
Other:
Comments: This project was a launch workshop designed to be educational and gauge the
interest of the SME delegates to further this work. After the workshop several delegations
said they found the workshop interesting and very informative. The SME delegate from the
Philippines asked if a follow up workshop could be held on the margins of the SMEWG
meeting adjacent to the SMEMM in 2015. The United States is currently in discussions with
the Philippines about holding a two-day workshop focusing on agriculture, food processing
global handicrafts, and services. We are also looking at the feasibility of organizing an
artisan exhibition.
5. 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.)
 Monitoring plans in place and proposed indicators to measure impacts, including any
impacts on gender. Please summarize relevant information.
At this juncture, the SMEWG has not determined indicators or measurements on this work. As this
project was at the request of the SMEWG Chair, in response to a recommendation from the CTI that the
SMEWG determine the best course of action for SMEs in the Global Supply Chain work, the SMEWG
will need to determine the best way to track how many SMEs have gained opportunities in supply chains
as a result of this work.
6. Participants (compulsory for events): Must be gender-aggregated. May be included as appendix.
Economy
(Insert rows as needed)
# male # female Details
Mr. Paulo Bernal
x
Mr. Hasan Jauhari
x
Mr. Martono Djohari
x
Project Manager, Department of Commercial
Intelligence, Chile
Advisor to the Minister of Trade, Indonesia
Ms. Sara Budi Rahayu
x
Deputy Assist for R&D for Cooperatives and SME
Resources, Indonesia
Ministry of Cooperatives and SMEs, Indonesia
Ms. Azrine Othman
x
Manager, SME Corp Malaysia
Mr. Wee Ah Sah
Mr. Muhammad Aqil bin
Baharin
Federation of Malaysian Freight Forwarders
x
Assistant Manager, SME Corporation, Malaysia
x
Ms. Claudia Peralta
x
Ms. Mary Ann Montemayor
x
Ms. Therese M. Manrique
x
Specialist for Business Articulation, General
Directorate for Productive Development, Peru
MSMEDC, Tindahang Pinoy, Davao Ecocrafts,
Philippines
SCM Philippines, Alphawood Compound
Ms. Luckana Tangchitnob
x
Director of International Affairs Bureau, Thailand
Ms. Nguyen My Anh
x
Ms. Bui Thai Ha
x
Ms. Margaret Clark
x
SME Assistance Center, Agency for Development,
Vietnam
APEC-ASEM Division, Department of Multilateral
Trade Policy, Vietnam
Secretary General, Asia Pacific for The Open
Computing Alliance
Vice President, Alliance for Artisan Enterprise,USA
Ms. Henna Wang
x
Researcher, the Aspen Institute, USA
Ms. Holly Vineyard
x
Ms. Bernadine Zhang Yuhua
x
Deputy Assistant Secretary for Global Markets
Asia, International Trade Administration, USA
APEC Secretariat Policy support Unit
Ms. Rachel Yu
x
DuPont, Sourcing & Logistics Manager
Mr. Michael Mudd
Mr. Wendall Woodside
x
Director, Asia Sourcing, Trek Bicycles
x
Mr. Sandy Chow
x
Project Manager, 1300 Only Porcelain, Chinese
Taipei
Supply Chain Manager, Boeing Aircraft
Mr. Michael Chu
x
Managing Director, FedEx
Mr. Travis Kidd
x
Supply Chain Manager, Trek Bicycles
Ms. Ya-Wen Lin
Ms. Lynn Costa
SME delegates
Other:
x
x
Senior Trade Policy Advisor, International Trade
Administration, USA
16 APEC economies
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 Project Overseer and the SME delegate from the United States sent a workshop invitation to all
SME delegates asking them to recruit and secure participants in the key sectors identified by the
SMEWG at a meeting in Manila. As key sectors differ from economy to economy, it was left to the
determination of the SME delegate which SME participants should receive APEC funding. The United
States also invited the SME delegates to the workshop. The United States reached out to the Office of
the Ambassador for Women at the US State Department to secure an organization that specializes in
cultural and creative industries (handicrafts). The US State Department put the Department of
Commerce in touch with the Alliance for Artisan Enterprise which is part of the Aspen Institute.
7. 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).








Developing economies account for 65% of the world market for handicrafts.
Behind agriculture, artisan activity is the second largest employer in the world, yet is generally
not considered a key driver of economic growth.
Clustering can be an excellent alternative to meet contract quantities, however funding is still an
obstacle for indigenous populations.
Women perform 66% of the world’s work but earn only 10% of the income.
Women are increasingly visible in export-oriented sectors and comprise up to 90% of workers.
Boeing not only contracts with numerous SMEs, they also contract with a small company whose
employees are blind.
ICT can be a cost effective tool for SMEs within a supply chain and cloud computing is an
excellent vehicle for companies to store and provide critical documentation to MNCs.
Certifications and required data can differ based on the final supply chain market. As an
example, the European Union requires data on all chemical content in each component
provided within a supply chain. SMEs must be aware of the requirements in each end market.
8. Next steps: Describe any planned follow-up steps or projects, such as workshops, postactivity 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?
As noted, the United States is holding discussions with the Philippines on a future workshop.
9. 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.
As APEC funding is scarce with more project proposals than funding can sustain, travel-eligible
economies should better use the available funding to send SMEs to these workshops where they gain
valuable information on how to successfully internationalize. The US suggests raising this at the next
SMEWG meeting.
SECTION C: Budget
Attach a detailed breakdown of the APEC- provided project budget, including:
 Planned costs: $69,400
 Actual expenditures: $24,734.65
 Variance notes: Travel-eligible economies did not utilize the APEC funding to send SMEs or
persons responsible for disseminating information to SMEs.
No.
Item Description
Budget
Actual
Balance
1.
2.
3.
Expert's Honorarium
Per Diem - Speakers/Experts
Per Diem- Participants/Trainees
0
1608.00
11,792.00
0
1608.75
7,702.50
0
(0.75)
4,089.50
4.
5.
Airfare - Speakers/Experts
Airfare -Participants/Trainees
4,500.00
49,000.00
3,083.94
9,910.05
1,416.06
39,089.95
Variance Notes
Only 14 participants
attended with funding for
from 22 participants
planned
Only 14 participants
attended with funding
budgeted for 22
participants. Travel was
budgeted for the most
expensive economies to
attend based on
distance and flight
availability. The most
expensive economies
did not send
participants to the
workshop.
6.
Hosting
Component Total
Project Total
2,500.00
2,429.65
70.59
69,400.00
69,400.00
24,734.65
24,734.65
44,665.35
44,665.35
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 ONLY APEC comments: Were APEC project guidelines followed?
Could the project have been managed more effectively or easily by the PO?