JBDC Business Dialogue May-July1024

Jamaica’s Global Logistics Hub:

Supply Chain Management

Going Global?

9 Make sure your business plan suits your destination

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“POSITIONING MSMES FOR THE GLOBAL SUPPLY CHAIN” 5 7 9 11 13 15

Increasing Early Stage Business Survival Rates: JBDC’s Business Monitoring Programme

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Steven Laing: The Birth of TARA Courier Services

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Chief Executive fficer Dept Chief Executive fficer

eneshia oo s JBDC Corporate Communications nit Sancia Camp ell JBDC Corporate Communications nit Melissa reen JBDC isual Communications nit

Ayanna ‘ASD’ Dixon: From Rising Fashion Entrepreneur to Fashion Tutor

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Chief Technical A visor

Colin Porter Technical Services nit The eral Printers LTD

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s we get ready to welcome the opportunities from the implementation of the world’s fourth Logistics Hub, the Jamaica Business Development Corporation (JBDC) is all set to assist entrepreneurs who are ready to make the transition into global markets.

We are sensitive to fact that the globalization process for Micro, Small and Medium-sized enterprises (MSMEs) can only be realized through any of a range of cross border activities, including trade, international investment and participation in strategic alliances, partnerships and networking arrangements affecting a variety of business functions, from research and product development to distribution. In light of this, we embarked on a mission some seven years ago to provide more tangible support for our micro and small businesses, through the staging of the JBDC annual Small Business Expo and Conference, held this year under the theme: “Positioning MSMEs for the Global Supply Chain.”

The event is keen on fulfilling specific objectives, which will assist in the sustainable creation and development of MSMEs in Jamaica. As the excitement builds up for the Logistics Hub, we thought it prudent to equip entrepreneurs, especially those micro and small businesses to actively participate in arguably the most transformative initiative by the Government. Firstly, we want to develop a better understanding among participants of the trends that define this initiative and secondly, highlight the opportunities that these trends will create.

While generally MSMEs report increased international business contacts in recent years, evidence suggests that relative to the contribution they make to local and national economies, MSMEs remain overall, under represented in the international economy and change in this respect is slow but certain to happen. All of this will require active collaboration between governments, international agencies and the private sector to address these issues with the view to reaping the significant potential benefits that should accrue from the creation of a simpler, more business friendly, more integrated economy at all levels.

The JBDC has started this process and is committed to continuing, facilitating growth and helping MSMEs contribute to the global economy. We invite you to join us on this journey!

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Valerie Veira, J.P. CHIEF EXECUTIVE OFFICER, JBDC

Keneshia Nooks is the Corporate Communications Manager at the Jamaica Business Development Corporation (JBDC), she has over 11 years experience in various marketing and communication techniques including advertising, media production, brand development, public relations, social marketing, market research and sponsorship. She also currently coordinates publicity initiatives in the Caribbean, Europe and the United States for newest music sensation, OMI and Italian Reggae Singer, Alborosie.

Sancia Campbell is a PR Practitioner in the business and hospitality sectors with over 13 years experience in marketing, publicity and communications. An excellent writer and avid lifestyle blogger, Sancia enjoys reading, project management and events planning. She is currently the PR & Events Coordinator at the Jamaica Business Development Corporation (JBDC).

Carlette Deleon has extensive experience in marketing and publicity enhanced by keen knowledge of the entertainment industry. Her positions as Promotions Coordinator at The Book Shop and Public Relations Assistant at J. Wray & Nephew Limited have also added to her expertise. Her subsequent stint with roles of Publicist and Administrative Manager at Headline entertainment.

A trained and experienced business development practitioner, Althea West-Myers currently manages the Business Advisory Services department of the Jamaica Business Development Corporation (JBDC), where she is involved in crafting strategies for small business growth and assessment of the MSME sector. Her involvements at JBDC also include managing the implementation of the ISO 9001:2008 Quality Management System. She is also a part-time lecturer in entrepreneurship, business principles and management and organizational behaviour at the Vector Technology Institute and the University of the West Indies, Mona Campus.

Brenda Lee Tang is a Fellow of the Association of Chartered leads ACCA’s business and key relationships in the Caribbean and is responsible for advancing ACCA’s strategy in the region.

Other Contributors: Scotiabank Diana M. Williams Tax Administration Jamaica Grace Kennedy Limited Jamaica CGM Gallagher Insurance Brokers Ministry of Industry, Investment & Commerce

Message from

The Honourable Anthony Hylton

Minister of Industry, Investment and Commerce

“...the Government is committed to providing the necessary interventions to enhance the contribution of the MSME sector...”

Hon. Anthony Hylton Minister of Industry, Investment & Commerce

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s J amaica advances t owards becoming a logistics-centred economy, t he r ole of M icro, Small and Medium Sized Enterprises (MSMEs) will become even m ore critical. I t is w ithin t his context that we welcome the 7th annual S mall Business Exposition and Conference, organized by the Jamaica Business Development Corporation (JBDC).

The theme for this year, ‘ Positioning M SMEs f or t he Global Supply Chain’ is particularly appropriate. As articulated in the MSME and Entrepreneurship Policy, the Government i s committed to p roviding t he necessary interventions to enhance the contribution of the MSME sector and to ensure its integration into the global supply and value chains. Integral to this process, is the Jamaica Logistics Hub initiative, which is part of the overall thrust to position Jamaica as an important p layer in the global trading s ystem.

Ultimately, our goal is to make it easier and less costly to move goods, services and data to different parts of the world.

We also see this exposition and conference as part of t he w hole process of f ostering a culture o f entrepreneurship and innovation. It is through events and i nteractions s uch a s these that k nowledge is exchanged, new i deas a re generated and new business relationships a re s pawned. Equally important, we s ee t his event a s a catalyst for new business developments, e xpansion of e xisting businesses and a n opportunity f or e stablishing new markets and growing the customer base.

Finally, we welcome all the participants and exhibitors and commend t he JBDC t eam f or t heir dedication and hard work, the end result of which is the seventh successful staging o f this event. I commend you a lso f or t he r ole you have been playing i n facilitating capacity building, r aising the skill l evels of m embers of t he M SME sector, and i n general, facilitating the business development process.

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BUSINESS & INNOVATION Contributed by the Ministry of Investment

riefly, global logistics is the process of planning, implementing and controlling the flow and storage of goods, services and related information from a point of origin to a point of consumption located in a different country. Global logistics encompasses the entire range of operations concerned with products or components movement, including both exports and imports, simultaneously.

Logistics Hub

A logistics hub is a specific area where all the activities relating to transport, logistics and goods distribution – both for national and international transit – are carried out on a commercial basis by various operators. The operators may be either owners or tenants of the buildings or facilities (warehouses, distribution centres, storage areas, offices, truck services, etc.) built there. In order to encourage intermodal transport for the handling of goods, a logistics hub should preferably be served by a multiplicity of transport modes (road, rail, deep sea, inland waterway, air). A global logistics hub consists of the highest degree of organizational and functional development, with vast global distribution networks.

Jamaica Global Logistics Hub

Jamaica has most of the elements or advantages necessary to become a global logistics hub. These include: Location Jamaica offers a north-south-east-west option for supply/value chains within the western hemisphere – an option that no other country can offer. Jamaica offers a pull for ships coming from the Pacific side of the Panama Canal, mainly from China. This geographic comparative advantage also applies in aviation.

Infrastructure Jamaica has several deep water ports in the south of the country, the prime one being Kingston, which is the 7th largest natural harbour in the world. Currently, the most critical elements of the Jamaica Logistics Hub include: 1 Privatization and modernization of the Kingston Container Terminal (KCT) to accommodate much larger vessels.

2 Development of Vernamfield to facilitate long haul cargo and passenger flights and support the establishment of a maintenance, repair and overhaul (MRO) facility.

3 A dry dock facility to provide repair and maintenance services to ships.

4 A commodity port at Cow Bay, St. Thomas, to position Jamaica as a strategic location for the storage and transportation of dry and wet bulk commodities (grains, minerals, petroleum and liquid natural gas).

5 A Single Electronic Window – enabling the efficient cross-border flow of goods, services and people.

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Commerce

6 Special Economic Zones, which will cluster large transnational corporations engaged in a variety of logistics activities, including warehousing and manufacturing, thereby adding value to semi-finished goods that are destined for global markets.

Government and Industry Support The Jamaica Global Logistics Hub initiative enjoys full government and industry support, which is critical as Jamaica moves up the global supply chain and towards becoming a logistics-centred economy.

Supply Chain In many cases, supply chain is referred to as logistics and vice versa. However, although logistics and supply chain are inextricably linked, both do not mean the same.

Logistics is a sub-component and extension of the supply chain and the backbone on which supply chains are driven. As defined by the Council of Supply Chain Management Professionals: “Logistics is the part of the supply chain process that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements.”

Reverse or Return Logistics Reverse logistics involves the creation of a network for receiving defective and excess products back from customers, and supporting customers who have problems with delivered goods. This includes the reverse flow of unsold finished goods, parts and packaging materials from the point of consumption at the customer’s end, back to the organization, or to rework/refurbishing vendors.

Management of the Supply Chain A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. It includes manufacturers and suppliers, transporters, warehouses, retailers and the customers themselves. Simply put, if a company makes a product from parts purchased from suppliers and these products are sold to customers, then you have a supply chain. Some supply chains are simple, while others are rather complex. The complexity of the supply chain will vary with the size of the business and the intricacy and numbers of items that are manufactured.

Management of the supply chain involves an entire network of interconnected businesses that work together to design, produce, deliver and service products. This involves the oversight of materials, information and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.

A great opportunity now exists for Jamaican companies to start thinking of the supply chain as a value chain. Rather than accepting the conventional view that all value-creating activities need to be conducted within the company or within the country, a much broader global position need to be taken. or this to be achieved on a

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BUSINESS & INNOVATION P

Contributed by CGM Gallagher Insurance Brokers

robably the most important asset that a small business operator will own is the stock or inventory available for sale. It is possible to place insurance coverage on this depending on the particular situation. Providing the goods are stored in a location which is a reasonable fire risk or can be secured against burglary, then consideration can be given to obtaining coverage.

Property Insurance A typical policy would be to provide “All Risks” of loss or damage but would, more particularly, cover the following perils: • Fire and Lightening damage • Domestic explosion • Damage caused by flooding and the overflow of water pipes and other apparatus • Loss due to tropical storms, hurricanes or other storm type perils • Earthquake, volcanic eruption • Damage due to riot, striking workers or otherwise maliciously caused • Impact of motor vehicles, aircraft or other aerial devices • Loss due to burglary involving forcible entry to the premises The premium rate will depend on such factors as the nature of the business, the type of structure housing the goods and the level of security afforded. The location of the risk can also be a factor. Office risks are usually regarded as a low risk whilst manufacturing is among the higher categories depending upon the nature of the operation. The current Insurance market is competitive and premium costs are at a lower level than has been experienced in recent years.

Cover can also be extended to include any equipment such as production machinery, fixtures and fittings, computers and any other similar items. It can also be extended to include leasehold improvements which relate to adjustments that might have been made to the rented property but are owned by the operator of the business. This will include partitioning, false ceilings and any other similar structural alterations. Should there be any buildings to insure then they can covered in similar fashion to the above.

In certain circumstances it would also be possible to include coverage for related risks such as: 1) The financial loss to the business directly caused by the perils insured against which leads to an interruption in the business. This will follow damage to the goods and /or other contents from the insured perils.

2) The additional costs of operating the business that might occur because of the damage. This will require that financial statements and other such information be available.

Public Liability Insurance A policy is available to protect the business operator against claims that may be made, because of accidental bodily injury to third parties, or damage to the property of third parties caused by the negligence of the Insured or the employees. This would include any risks associated with the premises from which the business is being operated or from any work undertaken away from the main location(s).

A limit of liability will be chosen that will cover the business operator against such claims being made and will be expressed as a limit any occurrence and an aggregate in the period of the policy. A typical limit chosen would be J$10 million, but will clearly depend upon the level of the risks associated with the operation. In the case of a small hotel or a bed

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and breakfast such an operation will carry more exposure than a regular office type risk with guests being invited to the premises. It should be noted that Jamaicans have become much more conscious of their rights in recent years and there has been a rapid increase in the level of claims being made especially for bodily injury alleged to have been caused.

Employers Liability Insurance In similar fashion to the above mentioned policy, there is also a need to cover the legal liability for death, accidental bodily injury or diseases which occur to employees due to the negligence of the Employer. Again this is the above type of coverage which is intended to provide the EMPLOYER with protection should an accident occur and liability devolve upon them. It is not intended to be a benefit policy for the employee and we will indicate further on how benefits can be covered. The cover will also be expressed as a limit, any one occurrence with the same amount being the aggregate in the period on Insurance. Typically the limit will be J$10 million but additional coverage is available if the risks associated with business warrant it.

There has also been a growth in such claims as persons become more aware of their rights. The insurer will base the premium upon the wage roll of the category of the worker. Clerical, Managerial and Administrative employees are regarded as the lowest risks whilst those involved in manual work or with machinery will carry an increased risk.

The policies outlined are usually the minimum that any business should carry but there are others that might be of interest depending on the nature of the business. These could include the following classes of coverage available.

Money in Transit For those businesses involved in cash sales with the transit and premises risks being an exposure. This will involve the risks associated with persons outside the business.

Fidelity Guarantee Covering losses due to theft by employees of monies, goods or other assets owned. We mentioned above that there are also policies available as benefits to the employees.

Group Life and Personal Accident These would cover the employees for a sum either fixed or related to their earnings for natural death (Life) or for accidental death or permanent injury (Personal Accident) and will operate for 24 hours and not just being work related.

Group Employee Benefits Coverage is operable for health and accident related medical expenses such as Doctors’ visits, prescribed drugs and hospital costs. It will also include surgical procedures. The minimum number of employees for a scheme is usually 10.

The programmes indicated above are typical of most business operators but the Insurance Market is becoming more receptive to solutions which will impact the particular risks. An example is the development of Cyber Crime Insurance which has become necessary due to the increased sophistication of the society. B

BUSINESS & INNOVATION GOING GLOBAL? MAKE SURE YOUR BUSINESS PLAN SUITS YOUR DESTINATION!

By Sancia Campbell

Globalizing a business alsomeans that thecom petiti ve profile ofthe business will change.The busines s’com peti torsare no longer localbut willnow include businesses of equalsi ze as w ellas majorfi rm s, conglomerates and franchises within thesame indust ry. “The internet revolutioni zed theconceptofcompetition . It gives business a global reach which in turn provideswider access to varying types of consumers,” she t no ed.

The foll owing rae some additional suggestions for‘GoingGlobal’:

Consider thert-up sta requireme nts

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o you’ve beenina business fora while…let’s say fi ve years.You have a great product,whichisbreakingall therecords inthelocal ma rket:sales figu res are high;customer satisfa ctionisalsoat its highest levelsin ce theinception ofthebusiness and productionis smooth. Consumerscan’t seem to getenoughofthis product and investorsare lining up to helpyou ‘up the ante’– diversify the busines s, inc rease productioneven furtherand globali ze the busines s.

Itisimportantto note thatwhethera business operatesfrom a small backroom inJamaica orfrom a large factory fl oorintheregions ofthe FarEast,eachhasthecapaci ty to run a global operation .Continuously evolvingtechnologies have enabledeven micro businesses to become com petiti ve in the global rket ma pla ce.

Accordingto Althea W estM yers,Business Adviso ry ServicesM anager Development Corporation(JBDC) ,“Inorder at theJamai ca Business foryourbusiness to ensure equalsuccesswiththeir localoperation , businesses must use a combination approach to business developmentwhichconsiders theimportance ofresea rch,designing a great product to meet and exceed consumer needs, the engagement of technologi cal toolsand having a w ell-thoug ht through business .”plan

Expertssay that whileoperatinga global business ischallengin g,itis easier fora business withinternational experien ce to achi eve successin theglobal ma rketpla ce because they are li kelyto have some experien ce.

Insta rtingup,extensi ve ma rketresea rch mustbe conducted to answ er thefoll owing questions: W ho is m y ideal tomer? cus W here r ae th ey found?

W hat rae their needs?

Can I efficie ntly supply these needs?

O f cours e, thesequestions are not exhausti ve but are critical to answ ering some por imtant questions at ininitial th ysi s anal .

Seek help Face it,yourbusiness isnotthefirst to globali ze and itcertainly will not be thelast . There are personswho have traversedtheroad you are seekingto rtavel who will ave hsomeexperien ce and canvegi insig ht on that ma rkets’ tas tes, cultu res and tradition s. In addition there are consulta ntswho have extensi ve experien ce inthehostcountries…seek helprom f these person s.That ishyw th ey exist.

Employ st rategic planning

Smallfi rms inparticular must employ SMA RT goal s. SMA RT goalsare Specifi c,M easurabl e,Attainabl e,Realistic andTimel y. The first step isto ide ntify yourtargetma rketand thendetermine ifa foreigncountry is li kelyto w antyourproduct.You canalso lookforsmalle r,nichema rkets W estM yersdefined thebusiness planasa‘roadma p’ ,whichide ntifies that rae easier to e nter and fer offew errisks foryourtype of busines s. whatisto be done and how thebusiness will drive an efficie ntand successful operation .Intheglobal contexthow ever,theplanlooks at Conduct marketresearch how thebusiness will operate intheglobali zed environmentversus the local nvironment e .

M arket resea rch isimperati ve to the successof any busines s. And particula rlyforsmallbusinesses that m ay nothave theresources ofa She explained that‘thepla n’w ouldnow incorporate theneedsofthe ,there isno room forerror.Sele ctyourforeignma rket globalenvironment such as tas tes, preferences and purchasing large corporation car efully and f ocus on count r ies th at al r eady sh ow an interestinyour habit s,focusing on what ma rketerscall STP:Segmentin g,Targeting pr oduct .

Sta r t by r esea r ching t w o or th r ee i nt er national ma rketsthat cesbased and Positioning bothits productsand its intendedaudien offer the most potential for suc cess.B on what the needs re. a

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BUSINESS & INNOVATION How to Make your Supply Chain Environmentally Friendly

By Keneshia Nooks

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overnments and many of the world’s leading organizations are making major advances to address environmental waste management and improving energy efficiency among manufacturing companies. This is being done in an effort to save money while making the most of the available resources in our environment. There is no question that one of the reasons for this move by large companies is a result of the ‘eco-friendly’ lifestyle that many consumers have caught on to. Many want to ‘save energy’, ‘go green’ or even ‘recycle more’.

It is no surprise that retail shelves have a sudden explosion of organic or eco-friendly products...it is big business! This increasing trend presents many growth possibilities for businesses, as well as opportunities for environmentally minded entrepreneurs who are ready to start their own small business. I am sure that you are already asking the question, how sustainable is this option and how can you possibly make money from waste? But, before you drown yourself into the how’s and why’s consider these scenarios.

In 2007, entrepreneurs Laurie Hyman and Robert von Goeben started a company called Green Toys. The idea came about when Hyman was unable to find non-toxic and safe toys for her two children. Today, the US-based company produces toys for tots from 100% recyclable milk jugs, selling globally to 75 countries. Consider also, Jamaican manufacturers who use recycled wood, coconut shells, plastic and glass to make value added products such as jewellery, home accents and other accessories. From automotive and retail to textile and brewing, companies and entrepreneurs are using ‘lean and green’ as simultaneous sources of improvement and as viable business alternatives in various sectors of industry. Lean and green means doing more with less, but how can you make your supply chain (sequence of processes involved in the production and distribution of commodities) environmentally friendly?

Green Toys co-founder von Goeben, indicated in an interview that “the key to selling a green product is not asking customers to sacrifice quality, but rather pulling people in by the utility of the product.” Consider too that we are aiming to adapt environmentally friendly practices when we prevent physical waste, increase energy efficiency or improve resource productivity, we save money, improve profitability and enhance competitiveness.

Several factors come into play in this instance: -How do you ensure operations support ‘eco-friendly’ or ‘green thinking’?

-How do you create a niche product from recycled materials?

-What recyclable materials are most sustainable?

-How to make your packaging and product while ‘green’, attractive and useful to its users?

The 3% Solution Report recently published by World Wildlife Fund and Carbon Disclosure Project (CDP) shows that the economic prize for curbing carbon emissions in the US economy is $780bn between now and 2020, rising to $190bn a year by 2020. The report suggests that companies can capture unrealized benefits from ‘improving energy efficiency through management and behavioural changes as well as technology improvements and

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deployment of low-carbon energy particularly rooftop solar power.’

Additionally, international retail chains such as TESCO and Wal-Mart, have not committed to environmental goals because it is the new ‘cool factor’ or because they are nice people. The reason for their action is a simple and powerful realization that the environmental and economic footprints are most often aligned and influences the entire supply chain. These are resultant to developing products and services that reduce customer costs, encourages supply chain partners to implement NPV (net present value) positive measures in their operations and establishes working relationships with suppliers that develop eco-friendly products.

Here then are a few quick tips for how you can make your supply chain environmentally friendly: #1– Consider proximity for raw materials and production: Try to minimize transportation miles between your raw material source and production facility. For example, if you normally look to countries such as the US, China and India for raw materials, consider closer regions or even locally for these sources. #2– Choose sustainable materials: Plastics, paper, glass, metals, automotive materials (e.g. oil, used parts and tyres), various organic items such as yard waste and paper cartons are recyclable items that we use every day. Once you have identified a sustainable material, be transparent with consumers about your production process and the environmental savings. By doing this you gain the trust of your potential customers. #3– Research the various sources for recycled materials: It is important that once you decide on the material you are using for the business, you also consider finding competitive sources for materials and shop around. ou may consult organizations such as the Jamaica Environment Trust, Environmental Foundation of Jamaica and the National Environmental Planning Agency to source various processors of plastics and other recyclable items. #4– Design products that fit ‘eco-friendly’ materials: To be able to produce products from recycled materials, think about its functionality and whether you will require the use of other ‘processed’ products such as paint, screws, glues or fine metals. If you are promoting 100% ‘green’ all elements of the product should be environmentally friendly. #5– Consider green packages: If you are not ready to go ‘lean and green’ for your entire supply chain, consider your product packaging as a place to start adding sustainability to your business model. Look at eco-friendly cartons, recycled banana paper or re-used plastic bottles as packaging alternatives.

Good luck with your green ideas and feel free to share your own experiences with us at communications@jbdc.net. B

BUSINESS & INNOVATION FROM SHIPPING TO PACKAGING: CREATIVE WAYS TO IMPROVE YOUR SUPPLY CHAIN Contributed by Grace Kennedy Limited

If you do not currently have a strategy or maybe you are in the process of re-thinking the existing one, here are some questions to ask yourself:

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business to meet its objectives? There should be three or four main points.

2. For each of the points emanating from question 1, what one thing to the business? Those should become your focal points!

Customer Service:

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between achieving and maintaining adequate service levels and holding costs in line. When your operating environment becomes more challenging by the day, it is harder and harder to sustain those service level standards and before too long the death spiral sets in.

Not all is lost, as there are some creative (with a little thought and without breaking the bank) ways to reduce supply chain costs

Benchmarking:

How do you know if you are doing well or not? Whose standards are you seeking to emulate? What is important to your customers - study your supply chain as a percentage of total sales, how healthy are your stock turns, what percent of your deliveries are on time and complete?

The Right Team:

As with any group of persons, there are the strong ones and those who need assistance (coaching or mentoring) to raise their performance. Who amongst your supply chain team can develop to become high performers? Where does the team struggle and at what tasks do they excel? Could you be missing improvement opportunities because team members are ‘unequally yoked’? Investments in the team could be that missing bridge between ‘also ran’ and success.

Strategy:

Who developed your supply chain strategy or did it evolve over time?

Without a strategy, who knows the game plan and how will you know chain strategy is crafted in isolation of the business’ overall strategy and hence is divorced from the focus and direction of the policy makers.

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minimum order quantities where relevant? What is the lead-time? If we place an order by 10:00 a.m., is it reasonable to expect delivery the same day? Do your customers need expedited delivery? Should they Often times, we blindly follow what the competition does, with little

If you do have a customer service promise, does the team speak with one voice when managing and enforcing the policy?

Inventory:

Twenty percent of your inventory accounts for 80 percent of the activity within your warehouse. When was the last time you really looked at your inventory, do you know what this 20% means? Do you know what inventory you have and where is it? How is it measured?

How are your stocktaking practices? How accurate is your forecasting? Who is accountable for forecasting and demand planning?

Unless your inventory is wine, it is not improving with age. How much are you losing because of damaged or lost product? What percentage of your inventory is now obsolete or moving slower than molasses in winter? Improve your cash position – discount or shift slow and obsolete SKU’s (stock keeping units) to another location where they will sell, but get rid of them and free up valuable storage space and reduce your holding costs. What are your inventory targets? Set targets based on your industry knowledge and maintain the focus – what gets measured, gets done.

Warehousing and Order Processing Costs: insurance, power, and administrative costs associated with operating your warehouse or storage location? Even if you rent, these costs will apply. What is your average cost per order or even the average sales value of each order? Are the orders even covering your costs? How much of your inventory is leaving illicitly? How many times does somebody handle the product before it ships? By reducing the number of times you handle an item, you will reduce the cost. When was the last time you analyzed each operation in your warehousing facility – where are you too slow?

*CONT’D on page 19

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FINANCE

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• GCT/SCT RETURNS • INCOME TAX RETURNS • EMPLOYERS MONTHLY STATUTORY DECLARATIONS (SO1) • EMPLOYERS ANNUAL RETURNS (S02)

2. All employers with twenty (20) or more employees are to statutory declaration (SO1).

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year-end TAJ will be rolling out a TCC Online service, allowing online.

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ax Administration Jamaica (TAJ) continues to make it easier

Jamaica Tax Portal at www.jamaicatax-online.gov.jm. Currently all major taxes, such as Income Tax, GCT, Payroll Taxes, Property With the continued expansion of the suite of TAJ online services, the following new options have been recently added:

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Property Tax Query Online: giving convenient access to

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Stamp Online: allowing taxpayers the option to make online payments of Stamp Duty and Transfer Tax assessed on inter-vivos transactions, such as Application to Register Land, Mortgages, Instruments of Transfer and Agreement for sale, as well as to query the status of documents being processed by

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login. Taxpayers should then complete an Application for Electronic Filing Account Registration form and submit it to any Customer Care Centre at 1-888-TAX-HELP (829-4357). However, not need to re-register, but should simply update the relevant information on the Jamaica Tax Portal. Note also that online payments will require a valid credit card.

TAJ’s online service saves time and money and may be accessed from anywhere, at any time. It’s FAST, SECURE & FREE.

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FINANCE

- Contributed

unning a business can be very hectic for entrepreneurs with small or medium-sized enterprises (SME’s). If you operate an SME, dealing with all the payments that the business needs to make on a regular basis is probably one of your biggest responsibilities.

At Scotiabank, we understand how important it is for you to keep your payables under control, so we offer a full suite of cash management services that will make it easier for you to succeed. Let’s look at some of the payment services that we provide via Small Business Banking online:

Prepaid Payroll Debit Cards

If you have to pay employees who may not have their own bank accounts, then our pre-paid payroll debit card may be the perfect option for your business.

This payroll payment service provides your employees with their own QuickPay debit cards to which you can electronically deposit their salaries. Your employees can use these cards to access cash at ATMs and to make point of sale purchases at merchants island-wide.

Direct Deposit of Payroll

Direct deposit allows you to save money from cheque handling costs, and it removes the risk of cheque fraud or lost or stolen cheques. You can also effectively track your payments online to better manage your cash flow.

Electronic Disbursements

Apart from your employee payroll requirements, you may also have to handle regular payments for goods and services. Our electronic disbursement service provides a simple way to pay your local suppliers, contractors or business vendors right from your computer.

This service reduces the cost of tendering cheques, and it is an effective way for you to keep track of the payments made to your suppliers. We are sure that they will also appreciate the time-saving process of making deposits direct to their accounts!

International Wire Transfers

If your business requires you to make frequent international payments for goods and services, then our wire payment service will allow you to initiate electronic payments conveniently from your computer, to anywhere in the world.

Writing multiple cheques on payday can be time-consuming and has the potential for errors to be made. If you need to pay your employees’ salaries quickly and securely, then our direct deposit of payroll would be your best solution.

You can rely on Scotiabank's extensive global presence and network of banking partners to ensure that your transactions are carried out promptly; and your overseas vendors will value the quick processing of payments from the electronic funds clearing system.

With this service, you can make payroll deposits electronically into each employee's designated Scotiabank account. You can easily use your existing accounting or payroll system to generate payment files for the bank transactions.

Small Business online banking also offers free account access so you can view current balances, get detailed transaction reports, and perform a range of other essential banking services, all without ever having to leave your office.

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TECHNOLOGY I

title of the past. Instead, the world could see the Chief Financial and

This prediction is made in a new report from ACCA and IMA called Big Data: Its Power and Perils. Big data is the collective term which references to the vast amount of data continually collected through devices and technologies such as credit cards and customer loyalty cards, the internet and social media and, increasingly, WiFi sensors and electronic tags.

Much of this data is unstructured – data that does not conform to a to deal with is becoming increasingly complex, as Big Data: Its Power and Perils shows. opportunities and challenges will be presented by the rise of big data.

The report begins by asking a relatively simple question – “How will big and challenges will it create for the accountancy profession?’

Faye Chua, head of futures research at ACCA says that the report does not aim to make predictions, but it serves as a detailed discussion piece about likely scenarios.

Chua explains: “We have tried to identify and explore the big data trends professionals the possibility of reinvention, the chance to take a more strategic, ‘future-facing’ role in organisations. But this transition will not be easy.”

The clearest need for the wider accountancy profession is for it to thinking, and form new collaborations and partnerships – both internally and externally.

The p rofession will to need do r th ee (3) things: 1.Develop methods and services for the valuation of data – and extend stewardship of data assets.

2.

in real time – and decide when data can most usefully be shared with internal and external stakeholders or ‘monetised’ as new products.

3.Use big data and its associated tools not only to identify risks in real time and improve forensic accounting but also to evaluate the risks and rewards of long-term investment in new products and new markets.

Big data demands that accountants will need to develop metrics and standards for the valuation of internal data. In addition, they will need to assess and predict risks.

Everything from social media comments and online product reviews to information on the quality standards, working conditions and credit and political risks of overseas markets is important to big picture analysis.

Unstructured data and data not routinely available from the enterprise system will increasingly need to be gathered, interpreted and understood.

Quite simply, it is the responsibility of the management accountant to explain this data.

Integrating ata d course, be seen in the context of a wider trend: integrated reporting (IR).

Currently much discussed by accountants, auditors, bankers and institutional investors, IR recognises the importance of non-traditional indicators and predictors in company reports and long-term assessments – and, therefore, makes big data more important.

Big data makes integrated reporting more possible, that is, using both performance over time.

The vast amount of data continually collected, stored and transferred by technologies is changing the priorities of businesses and posing important questions for their leaders. How can diverse, and often changing

The International Integrated Reporting Council (IIRC), set up in 2010, has

it will make possible ways of improving performance and productivity, and creating new wealth for shareholders and stakeholders.

Whether or not this framework is agreed upon, it seems certain that organisations will increasingly link diverse datasets to provide a more complete picture of their performance – both for shareholders and stakeholders.

But get it wrong and the results will be poor decisions, breaches to data security and privacy codes, damage to organisational reputation and brand, and destroyed value.

The ethics ofata big d

those who are willing to play an even more strategic and proactive role in business. It is important, however, to understand the realities of what this all means - the opportunities are matched by the challenges.

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intellectual, human, social and relationship, and natural.

There is the need for the management accountant to work across the organisation, even more than they do now. As Nina Tan, ACCA and CFO at Trax Technology Solutions PTE Ltd says: “I really hope that the accountancy profession will not step away from working with information technology and business analytics functions because we really should be there with them to bring value, and at the same time to bring stewardship.”

TECHNOLOGY

It's a Small World, Online G G

oods and services can be ordered online and shipped to your door from across the world in a matter of days, rather than weeks or months. Yet, the relative ease of trade across borders provide significant challenges to match the significant opportunities.

In many cases, entrepreneurs use the internet to reach out to potential suppliers in distant countries with different languages. Following an online introduction, the two associates may plan an in person meeting involving travel.

Transferring the goods across borders requires expert logistics knowledge facilitated by payments. Savvy business professionals employ technology at every step of the process to increase efficiency and maximize profitability.

By: Carlette Deleon

conferencing is highly effective, nothing truly replaces the face to face meeting.

Before embarking on a trip, look to the internet to research the destination, the business and the persons you are likely to meet.

Knowledge is power and power is required for successful business negotiations.

Once armed with a strong knowledge base, look online to compare flight, hotel and ground transportation costs to find the best deals. Time well spent can lead to money well saved.

Certainly, smaller sites can provide rock bottom prices, but do not compromise quality for price. Larger, well established sites often offer better support if there is trouble.

Language

Logistics

Trade is not restricted to English language speaking countries.

French, Spanish, Mandarin and Hindi are all popular languages in major ports across the globe.

However, language need not be a barrier with the right technology tools.

There are several translators available online.

Cloud based translators, like Google Translate help to covert text from over 100 different languages and can even detect the text language if unknown.

This powerful platform can translate languages instantly or in blocks. Further, Google Translate can be downloaded for offline use as well. If text is insufficient, the tool can also pronounce the translation for your convenience.

While good for quick discussions, this tool should not be used to translate legal documents. When it reaches to that point, call on the local embassy for an official translation.

Or, better yet, learn a new language with powerful programs like Rosetta Stone or free apps like Dou Lingo.

Travel Learning the language of a trading partner will certainly help make travel more productive. While video

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After the deal has been sealed, moving the goods from there to here takes centre stage. Popular international shipping companies like FedEx, UPS and DHL, plus the USPS each have powerful websites that can create labels, arrange pick ups, track shipments and provide details on weight, cost and more.

Many SME’s may opt to send shipments by sea rather than air to save on transport costs and individual shipping companies will have their own websites to offer support to business owners.

Using a certified customs broker can certainly expedite clearance of goods, but entrepreneurs can leverage the Jamaica Customs Department website for a range of services to assist with both the import and export of raw materials, good and products.

Payments International payments may be made via bank wire transfers, remittances, credit cards or through third party payment services like PayPal. Each method has its own risks and should be managed with care.

In all cases, payments may be made online.

Globalization has made the whole world, in effect, one village connected by a roadway known as the internet. It’s a small world after all.

THE

SPOTLIGHT

Steven Laing The Birth of TARA Courier Services

By Diana M. Williams & Keneshia Nooks

motorcycles to deliver thousands of packages daily to a wide cross section of individual and corporate clients, in all 14 parishes in Jamaica.

And now with local deliveries covered, TARA has since expanded its services to facilitate international deliveries as an authorized FedEx Agent, as well as an online shopping service through its newest arm TARA USA. When asked how does he manage to stay on top of the game? Laing responded with the company’s motto: by “Going the Extra Mile”.

“TARA goes above and beyond to ensure the needs of customers are met in any and every way possible, we are known for being reliable and This is a huge part of how we are able to adapt to the customers’ ever changing needs,” Laing explained.

Recognized as one of Jamaica’s most successful courier services, TARA

S

teven Laing’s story began over 30 years ago in an open back pick-up truck with one client. For this client, Laing would jump behind the wheels of his truck and transport packages of cash around Kingston. Word of the ness and reliability of his business, which resulted in numerous requests for similar services, as well as island-wide delivery of small packages and documents. This very encounter, saw the birth of TARA Courier Services delivery options including daily pick ups, same day deliveries, bike services, online shopping, international and overnight deliveries to name a few.

Although this was over three decades ago, TARA Courier’s Managing Director (Steven Laing) remembers it as though it were yesterday. His each customer, providing on-time delivery at rates that were reasonable and competitive. The business grew quickly, and so did TARA’s reputamain headquarters on Lyndhurst Road in Kingston, with a network of six

and reliable in all operational areas. The MD uses a customer-centric model in his business operations, always seeking to provide a positive experience from the point of contact to the end of the TARA engagement. As an entrepreneur and business owner, he also sees every ‘customer need’ as a business opportunity and examines its feasibility for future growth.

After 31 years, and numerous successful expansions, TARA is now open to the spreading its reach, from locally to within the Caribbean region.

In response to his future developments, Laing says they are keen on taking advantage of the opportunities available in the impending Jamaica Global Logistics Hub. He said, “Being in the logistics business, TARA is already positioning itself due to the range of operations already available island-wide. TARA is poised to providing warehousing, is able to facilitate international and local companies with logistics services and with its presence in the local aviation market, is open to increasing operations regionally.”

To the man or woman interested in becoming a successful entrepreneur, kept and be diligent always. Don’t forget that there will also be eventful times when doing business, but be willing to ride them through… no matter what!” B

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THE

SPOTLIGHT From a very young age, the multi-talented and industrious Ayanna Dixon

has maintained an avid interest in the fashion industry. An aspiring designer and entrepreneur, she began her career as a fashion model, signed to Pulse Model Management, the largest modeling agency in the Caribbean. She shone on the runway, gracing the catwalk for Caribbean Fashion Week alongside top fashion models from around the world.

Although she enjoyed a successful run as a Pulse model, she soon left to pursue her real passion, fashion design. Her mother, a trained textile designer and her father, a successful architect, design naturally runs through Ayanna’s veins. After training both at the Edna Manley College of the Visual and Performing Arts and the Art Institute of New York, Ayanna was poised to make her mark in the design world.

Ayanna ‘ASD’ Dixon: From Rising Fashion Entrepreneur to Fashion Tutor

By Keneshia Nooks

collection was well received and subsequently copped her the First Global Bank’s Fashion Grant for her contribution.

With a new outlook on life as an entrepreneur, Ayanna recognizes that the fashion industry is always evolving and encourages Jamaican designers to be open-minded about change and vigilant in presenting quality work at all times. She said, “Once you love what you do, you will find a way to make it happen, we don’t have all the resources in Jamaica to be on the same level as other emerging designers around the world, but going forward we definitely need to step up our game in terms of quality control and how we package and present our work. As young designers, we should be able to produce more than ten or 20 of one look, be able to implement more mass marketing of our products and focus on the key things that will take our business to the next level!” B

Before returning to Jamaica to start her line, she lived and worked in New York where she gained internships at Monique Leshman, Donna Karan International and Marchesa. With this invaluable experience under her belt, Ayanna returned to Jamaica, inspired by the wealth of creativity and potential for growth in the local fashion industry. Ready and determined to change the face of Jamaican fashion, her line ASD was born.

February 2014 left an indelible mark on Dixon, who got an opportunity to present a collection from her ASD line in the “Jamaican Thread Bare” presentation, along with a team of emerging Jamaican designers as part of the International Fashion Showcase during London Fashion Week. An initiative held in the UK as a joint project by the Jamaica Business Development Corporation (JBDC) - Fashion Incubation Programme, and the Jamaican High Commission in the United Kingdom (UK), Ayanna gained numerous capacity development opportunities and insight for operating on an international platform.

Also a Fashion Designer at the JBDC, she teaches developmental programmes to fashion entrepreneurs who aspire to be part of the apparel and garment industry. Ayanna spearheads workshops for collection development, trends, fashion illustration, draping and offers crash courses in fashion design. Although quite young in the business of fashion, she is keen on teaching all she has learnt about the industry and does this by tutoring continuing education students at the Edna Manley College of the Visual and Performing Arts.

Since starting her company, Ayanna has accomplished a lot in her journey and continues to push forward with her goals. She was placed second in Jamaica's first reality television Fashion Designing contest, Mission Catwalk, and showed at Miami Beach International Fashion Week 2011. Most recently the designer showed at Collection Moda 2013 where her E. 23

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Linking Export Producers to Global Markets.

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