A Global Supply Chain Model and Poverty Reduction

A joint partnership between APICS, PSE and SAM

Objective: Our desire is to develop a commercially viable supply chain model which support the micro-enterprise owners in developing countries help escape poverty.

Pilot project: By sourcing scarves we have been able to double income of approximately 25 silk weavers in Kanjipuram, India from 20 to 40 cents an hour for a month.

Project expectations: We would like to expand the model to increase duration and the number of weavers we can help. To ensure sufficient volumes over a long term horizon it is essential to build a commercially viable model. This requires creating a sustainable value chain. We believe a sustainable value chain can only develop by merging U.S. market needs, with international logistics, handloom processes, and sourcing or raw materials. The student groups will be working on developing this chain. Specifically, PSE will be defining the products which will sell in terms of color, sizes, patterns and function. In addition, they will forecast the expect margins, volumes, and outlets for the specified products. Finally, we are hoping to make to order items that have firm orders.

Other the other side of the coin is the sourcing of raw materials, pattern set-up/change over, production, and transportation. APICS members will be responsible in identifying suppliers, deciding upon batch volume, specifying and monitoring quality, and executing the transportation function.

Finally, we expect to increase scale and ensure longevity. Here, SAM with their management expertise would be able to help out. Also, the interchange between production and marking ends of the supply chain need to be managed.