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Supply Chain Governance – Lessons Learned

Supply Chain Governance – Lessons Learned. World Bank, Friday 14th May, 2010. Helveta – World Bank Update Agenda. Project Development Process Project Lifecycle Stakeholder Landscape Private Sector ICT based Governance Initiatives Scaling from Local to National Deployment

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Supply Chain Governance – Lessons Learned

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  1. Supply Chain Governance – Lessons Learned World Bank, Friday 14th May, 2010

  2. Helveta – World Bank Update Agenda • Project Development Process • Project Lifecycle • Stakeholder Landscape • Private Sector ICT based Governance Initiatives • Scaling from Local to National Deployment • REDD Readiness using ICT

  3. About Helveta • Helveta is the UK-based provider of CI World™, supply chain intelligence software for forestry, food and extractive industries. • Chain of Custody monitoring • Asset Tracking • Performance Improvement • Document Control • Resource Mapping

  4. About Helveta – Global Presence Russia Turkey Spain Pakistan Guatemala Honduras Peru Bolivia Malaysia Indonesia PNG Liberia Cote d’Ivoire Ghana Nigeria Cameroon CAR Congo South Africa

  5. Project Development Process

  6. Project Development Process – Public Sector • Regulatory/Institutional Driver established, e.g.: • Free Trade Agreement • Forest Law Enforcement Governance and Trade • REDD+ • Terms of Reference defined • Expression of Interest/ Call for Proposals • Request for Proposal issued • Proposal Submitted • Technical and Financial Evaluation • Award Notification • Contract Negotiation • Contract Award • Commencement

  7. Project Development Process – Private Sector • Corporate Driver established, e.g.: • Brand Equity enhancement – sustainable procurement • Revenue enhancement – price premium/access to market • Inventory control – margin improvement • Business Initiative defined • Expression of Interest/ Call for Proposals • Request for Proposal issued • Proposal Submitted, ROI specified • Technical and Financial Evaluation • Award Notification • Contract Negotiation • Contract Award • Commencement

  8. Project Lifecycle

  9. Project Lifecycle Pre-sales • Pre-sales, proposal support, quotes • Initiation/Kick-off • Requirements gathering – functional specification • Technical output methodology • Quality Assurance Processes • Helpdesk • Continuous improvement Initiation Specification Build Beta Release Beta Optimise Production UAT Support Go-Live

  10. Stakeholder Landscape

  11. Private Sector ICT Governance Initiatives

  12. Cocoa Traceability Pilot • Project Scope • 10 District Offices (locations tbc) • All have PC/Internet Connectivity • Secondary Evacuation Transport • Take-over point • Discrepant Shed • Shipping (Bill of laden) • Receipt in Europe (Hamburg)

  13. Cocoa Supply Chain

  14. Cocoa Traceability Pilot Cocoa Supply Chain Critical Control Points District Depot Storage Secondary Evacuation Take-over Point Take-over Point Shipping Discrepant Shed Receipt Receipt in Europe (Hamburg) Cocobod Transfer Cocobod Transfer Sea Transfer to Europe Correction

  15. Cocoa Traceability Pilot • District Depot • Receives cocoa from Society • Bags cocoa • Confirms weight • Seals bag and applies tag • Manages transport logistics in CI World • Monitors HHC usage • Provides data input as required

  16. Scaling from local to national deployments

  17. Liberia - Project Objectives • The provision of a technology system that will: • Manage a chain of custody providing traceability of forest products from stump to export • Continuously monitor timber flows in Liberia including: • log/timber tracking system • monitoring of regulatory documents • monitoring of sampled field checks • Release timber exports on behalf of the Government of Liberia • Invoice and monitor payments by logging companies to the GoL

  18. Liberia – Project Update • First wood flow from standing tree to export milestone reached 2009 • UAT successfully completed February 2009. • Post implementation system change control project currently underway. • Current rainy season has suspended production. • +- 440k individual trees tagged and located • +- 180k trees verified in the system • 9 contract areas • Sawmill being constructed in Monrovia for first processed timber production.

  19. Liberia – Project Experiences • Project delays • Stringent due diligence processes for contract allocation excluded 100% of bidders at first round. • Conflict over land rights and ownership in legislation. • Speed at which Liberia could establish the industry was underestimated. • Technical Challenges • Lack of “as is” process meant system was built on a set of assumptions as to how the forestry process would be developed. • Insufficient attention to capacity building meant assumed forestry processes were not 100% as expected. • Lack of existing industry meant discovery of process changes could only be made as industry developed, very late in the day for changes to be made. • Delays to wood flows meant reduced funds for necessary system expansion following identification of changes to process.

  20. Liberia - System web input forms

  21. Liberia - System Map Report, Inventory

  22. Liberia – System Verification Reports

  23. Liberia – Gov Revenue Collection

  24. Liberia – Pre Felling Compliance Check

  25. Bolivia • Update • Project extended to end September 2010 • Manufacturing defect detected with GPS chipset on handheld computers • 18 HHC returned to manufacturer for repair. • Latest CI Mobile version upgrade delivered improved GPS accuracy and UTM conversion • Production process at the CIMAL plant reengineered, adding delays and requiring system changes. • Harvesting for 2010 pushed back 3 months due to extended unseasonal rains • System offers full support for Spanish

  26. Bolivia – System Map Report, Inventory.

  27. Bolivia – Commercial Census Report Each row displays detailed information for a tree including the volume which was determined during the survey.

  28. Bolivia – Traceability Report On a single page, the user can check the history of a tree as it goes through the different stages in the Chain of Custody.

  29. REDD Readiness Using CI World MRV Functionality

  30. REDD Project Objectives • Combine remote sensing data with terrestrial data for ground truthing, to create a REDD forest MRV multi-stakeholder, online platform • Integrate indigenous communities into the field data gathering process of REDD- relevant parameters, generating employment for communities and adding validation capabilities of forest health parameters • Apply best practice carbon analysis methods to data sets and report forest carbon absorption capacity in and auditable, transparent online environment • Combine field MRV data with remote sensing data and make available to all stakeholders in the process.

  31. www.helveta.com Community Forest Monitoring

  32. Community Forest Monitoring Mushrooms Gathering From The Ground Leaves Good Drinking Water Yams Craft Materials

  33. Community Forest Monitoring FLEGT Approximately 50cm Size Approximately 80cm Approximately 100cm

  34. Community Forest Monitoring Size Tracks Type of sighting Logs Planks Stump

  35. www.helveta.com Community Forest Monitoring

  36. Thank You

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