1AID‐FOR‐TRADE CASE STORY: ITC 

 

 

 

 

 

 

Modular learning system ‐ Supply chain management 

 

 

 

AID‐FOR‐TRADE: CASE STORYTHE INTERNATIONAL TRADE CENTRE

MODULAR LEARNING SYSTEM – SUPPLY CHAIN MANAGEMENT2011 AID FOR TRADE GLOBAL REVIEW: CASE STORY

Date of submission: 16February2011

Region: GlobalCountries: Angola,Argentina,Bangladesh,Barbados,Bolivia,Botswana,Cambodia,Chile,Chi-

na,Colombia,CostaRica,CzechRepublic,Djibouti,Dominica,DominicanRepublic,Ecuador,Egypt,Eritrea,Ethiopia,Ghana,Greece,Guatemala,Guyana,Hungary,India,Indonesia,Jordan,Kenya,Kazakhstan,Laos,Lebanon,Malaysia,Maldives,Mexico,Mongolia,Namibia,Nepal,Nigeria,Pakistan,Panama,Peru,Philippines,Senegal,Singapore,SouthAfrica,Spain,SriLanka,Sudan,Swaziland,Switzerland,Taiwan,Tanzania,Thailand,Trinidad&Tobago,UnitedArabEmirates,USA,Vietnam,Yemen,Zimbabwe

Type: ExportCompetitivenessProjectAuthors: MargaretaFunder,Manager,MLS-SCMProgrammeContact details: MargaretaFunder

E-mail:funder@intracen.org

EXECUTIVE SUMMARY

Managinganenterpriseinadevelopingcountryisacomplicatedundertaking.Businesspeoplehavetopossesstheskillstohandleahostofresponsibilities,oftenwithlittleformaltraining.

ITCisfillingagapintrainingwithitsModularLearningSysteminSupplyChainManagement(MLS-SCM ).Theprogrammeconsistsofaseriesof18completeandup-to-datetrainingmodulesonsupplychainmanagement,aswellasaprofessionalcertificationprogrammewithinternationalexaminationsmanagedbyITC.

Theprogrammeiscurrentlyofferedbyanetworkof120licensedpartnerinstitutionsin61countriesundertheoverallguidanceandsupervisionofITC.Morethan25,000peoplehavebeentrainedtodate,byapproximately1,500trainers.TheMLS-SCMiscurrentlyavailableinEnglish,Spanish,Chinese,FrenchandArabic.TherevenuefortheinstitutionalnetworkwasestimatedatUS$2.7in2009.

TheMLScoversthekeyaspectsforeffectivesupplychainmanagementandpreparesenterprisestoenterglobalsupplychainsbyofferinghighqualitytrainingwhichisatthesametimeeasilyaccessible(intermsoflearningapproach)andaffordable.TheMLS-SCM isaimedspecificallyatstaffresponsibleformanagingpurchasingandsupplychainoperationsinenterprises.Itrespondstoenterprises’rapidlygrowingneedtodevelopskillsinsupplychainmanagement,akeyareaforcompetitivenessandexportperformance.

TheMLS-SCM Programmeisbasedonabusinessmodelwherelocaltrainingproviders(mostlyfromtheprivatesector)signlicenseagreementswithITC,coveralllocalscostsfromtheverybeginning,paylicensefees,royaltiesandexamfeesto ITCandthenrecovertheir investmentandgenerate incomebysellinghighquality trainingprogrammeintheirlocalmarkets.

ITCtrainsthelocaltrainersandassistwithcoursedesign,marketingoftheprogrammeandoffersoverallguidance.AnInternationalAdvisoryBoardconsistingofhighlevelinternationalsubjectexpertsoverseeandvalidatetheprogramme.

ManagersregisterwithoneofITC’slicensedpartners,studyattheirownpace,and,aftersuccessfulcompletionofexams,areabletoobtainprofessionalcertification.

TheMLS-SCM Programmewasdevelopedinthelate1990sbyacoreteamconsistingoftwoITCstaffandagroupofexternalexperts,someofwhomwereattachedtotheCharteredInstituteofPurchasingandSupply(CIPS).Afterseveralroundsofexpertmeetingsandpilotteststhefirst12moduleswerelaunchedbyITCin2000.Sincethen,eightadditionalmoduleshavebeendeveloped.AllareregularlyupdatedbyleadingSCMexpertsaroundtheworld.Theprofessionalcertificationprogrammewaslaunchedin2002basedonarequestfromagroupofAsiancountries.

ISSUES ADDRESSED

Expertknowledgeinsupplychainmanagementiskeyforenterprisecompetitivenessandexportperformance.ResearchcarriedoutatthedevelopmentstageofthisprogrammeindicatedthatdespitethesignificantpotentialvalueoftraininginSCM,suchtrainingwaseithernon-existent,offeredonaverylimitedscaleornotofsufficientqualityinthemajorityofthecountriestargetedbythisprogramme.Inaddition,manyenterpriseswerenotawareofthepotentialvalueofSCMskillsdevelopment.

OBJECTIVE PURSUED

TheobjectiveoftheModularLearningSysteminSupplyChainManagement(MLS-SCM)programmeistopromoteenterprisecompetitivenessthroughimprovedpurchasingandsupplychainmanagementknowledgeandskills.

Allnetworkmemberinstitutionsreportthefulldetailsoftheiractivitiesincludingnumberofcourseoffered,numberandprofilesofparticipantstrained,namesoftrainersused,andcourseevaluationstoITConaregularbasis.YearlynetworkperformancetargetsaredefinedbyITCbasedontargetsgivenbythenetwork.Thisdatawhichisenteredonlineonthenetworksupportwebsiteisalsousedtoshowcasebestperformancesinthenetwork.

PROJECT DESIGN AND IMPLEMENTATION

Thisprogrammeisdesignedforbusinessexecutivesatdifferentstagesoftheirprofessionalcareer:forthosenewtosupplychainmanagement,theprogrammeoffersacompletecourseforthiskeybusinessfunction;forotherswhowanttorefreshorreinforcetheirskillsets,specialistcoursesareavailable.Participantscanchoosefrom18modules,studyattheirownpace,takeexamsandgaininternationallyrecognizedprofessionalcertification.ITChasworkedwithleadingexternalinternationalexpertsinsupplychainmanagementtodeveloptheModularLearningSystemtrainingprogrammeinresponsetotheneedforongoingprofessionaldevelopmentofsupplychainmanagersindevelopingcountries.WiththeongoingsupportoftheSwissSecretariatforEconomicAffairs(SECO),ITCmanagesthecontinuingdevelopmentanddeploymentofITC’sModularLearningSysteminSupplyChainManagement.

Theprogrammewasfirstlaunchedin12countiesinSouthandSouthEastAsia,inthecontextofaregionalprojectfinancedbySECO,aswellasinChina.TheprogrammewasalsodevelopedinColombia,PeruandBoliviawiththesupportofanongoingITCprojectfinancedbySpain.

Asaresultoftheverypositiveprogrammeevaluationin2007,SECOiscurrentlyfinancingtheglobalscalingupoftheprogramme,includingthreefulltimestaffinGeneva.Theprogrammewillbefullyself-sustainablefrom2014.

PROGRAMME STRUCTURE

TheSCMtrainingprogrammeisbuiltonthreepillars:

PROFESSIONAL CERTIFICA-TION OF PARTICIPANTS

HIGH QUALITY TRAINING MATERIALS

ITC NETWORK SUPPORT training of trainers, course design, marketing and getting ready

Alltrainingprogrammesprovideaccessiblecontentandplentyofpracticalapplications,checklists,casesandbusinessgames. ITCproducesSupplyChainManagement trainingpacks completewithparticipant coursebooks, trainer materials, and multimedia learning tools. Where possible, content is localized with relevantadditionaltechnicalmaterialsandcaseexamples.

TRAINING MODULES

TheSCMprogrammeconsistsof18modulescoveringkeyaspectsofsupplychainmanagement, includinglogistics,procurement,andinventorymanagement.Theinstitutionsdeliveringthetrainingdecideuponthelengthoftrainingforeachmodule,witheachgenerallylasting18–30hours.

1. Understanding the Corporate Environment 2. Specifying Requirements & Planning Supply 3. Analysing Supply Markets 4. Developing Supply Strategies 5. Appraising & Short-listing Suppliers 6. Obtaining & Selecting Offers 7. Negotiating 8. Preparing the Contract 9. Managing the Contract and

Supplier Relationships

Afterparticipantshavesuccessfullycompletedsomeorallofthemodules,theyareeligibletotakecertificationexaminations:

�The International Certificate in Supply Chain Management,awardedaftersuccessfulcompletionoftheexamsformodules1-6.

�The Advanced International Certificate in Supply Chain Management,awardedaftersuccessfulcompletionoftheexamsformodules1-12.

The International Diploma in Supply Chain Management,awardeduponcompletionofeither:

•Thefirst12modulesplusfouradditionalmodules(choosingfrommodules13-18)andsuccessfulcompletionofaprojectreport,or

•Completionofall18modules

10. Managing Logistics in the Supply Chain 11. Managing Inventory 12. Measuring and Evaluating Performance 13. Environmental Procurement 14. Group Purchasing 15. E-procurement 16. Customer Relationship Management 17. Operations Management 18. Managing Finance along the supply chain

ITC’S ROLE

ITCdevelopsnewmaterialsandmanages theupdatingandtranslationsof the fullprogramme including theprofessionalcertificationprogramme.

ITCprovidesthetrainingfor the local trainerswhowillbeconductingtheworkshops.This includestechnicaltrainingonthesubjectmatteritselfaswellastraininginteachingtechniques.ITCalsoassiststheinstitutionswith:

Identifyingtargetgroups&providinginputstoneedsassessments Designingcoursesforspecifictargetgroups Developinglocalcomplementarymaterialsandcases Gettingstartedandmanagingtheprogramme Marketingandpromotionoftheprogramme

ITCalsomonitorsthequalityandperformanceofthelocalpartnersandtheirtrainers,setstargets,managesthenetworkreportingandotherrelatedactivities.Yearlynetworkeventsarealsoorganisedforinstitutionalrepresentativesandleadtrainers.

PROBLEMS ENCOUNTERED

Problemsencounteredandrisksinthecontextofthisprogrammeinclude:

Managementchangesattheleveloflocalpartnersthatmayaffectprogrammedelivery Staffchanges(egcoordinator)attheleveloflocalpartnersthatmayaffectprogrammedelivery Insufficientmanagement,coordinationandmarketingskillsoflocalstaff Politicalproblemsinacountrythatmayaffectprogrammedelivery Economicproblemsinacountrythatmayresultincompaniescuttingtheirtrainingbudgetsandthusreducingdemandfortraining

Theprogrammeisstronglymarketdrivenandassuchisvulnerabletochangesinmarketconditions.Thisbeingsaid,mostpartnershavebeenabletosuccessfullydealwithsuchsituationsandremaincompetitiveevenintimesofcrises.

ThefactthatlicensesarenotexclusiveandthatalllicensesarerenewedeverythreeyearsallowsITCtomovetonewpartnerinstitutionsincaseofseriousproblems.Insuchcases,thetrainers-whoaremostlyprofessionalsdeliveringtrainingonapart-timebasis-oftenalsomovetothenewhostinstitution

A new toolkit for programme coordinators launched in 2010, and increased support to institutions andcoordinatorsintheareasrelatedtomanagingandmarketingtheprogrammeaimsatreinforcingthecapabilitiesoflocalcoordinatorsandstaff.

FACTORS FOR SUCCESS

Thefollowingpointshavesignificantlycontributedtotheprogramme’ssuccesstodate:

STRONGPRIVATESECTORANCHOR:Mostof thenetworkpartnersare from theprivatesector.Currentpartners include leadinguniversitiesandbusinessschools,chambersofcommerce, industry federations,managementtraininginstitutes,specializedSCMinstitutesandconsultingcompanies.

CLEAR INSTITUTIONALSELECTIONCRITERIA:Workingwith institutions that are already financially self-sustaining,arewellmanaged,committedandhaveagoodreputationincreasesthechancesofsuccess.

“CARROTS AND STICKS”: A mix of dedicated support, concrete benefits, and showcasing of goodperformance,combinedwithclearresponsibilities,targetsandreportingrequirements.

FLEXIBILITY:ThefactthatITCdoesnotdrivetheprogrammeinacountrybutrathertakesonasupportroletothelocalpartnersrequiresflexibilityandagoodunderstandingoflocalissuesandproblems.Atthelevelofprogrammedesign,theflexibilityforITCtoselectand,overtimereplace,institutionshasbeencrucial.

A GLOBAL PROGRAMME APPROACH REDUCES COST: A regional or global approach reduces costssignificantlyasin-countryassistanceandactivitiescanbeprovidedtoneighboringcountiesback-to-back.

PROGRAMMEBOARD:AnInternationalBoardconsistingofhighlevelinternationalsubjectexpertsoverseeandvalidatetheprogramme.

RESULTS ACHIEVED

Theprogrammeisofferedby120licensedpartnerinstitutionsin61countries.

More than 25,000 people have been trained (equivalent to more than 100,000 module participants, ameasurementof thetotalnumberofmodulesthatparticipantshavebeentaught)byapproximately1,500trainers.

TherevenuefortheinstitutionalnetworkwasestimatedatUS$2.7millionin2009.Demonstratedbenefitsattheenterpriselevelin2008-2010exceededUS$51millionbasedonquantifiedsuccessstoriessubmittedtoITCbyenterprises.

TheMLSprogrammewassingledoutasamodel forsustainablecapacitydevelopment in the2007 ITCprogrammeevaluation.

TESTIMONIALS:

I work as a Production Planner with GlaxoSmithKline BD Ltd., and it is my great pleasure to let you know that I have successfully applied the learning (MLS-SCM) to develop the system in the total Supply Chain. Each module has shown appeal to the young learner

to learn and think in quite a different way. Shaffudin Ahmad Mahi (2010)

After long persuasion we were able to cancel some orders previously booked at a higher price compared to the point of supply time and re-negotiated with supplier for a better price (learning gained through module 7).

We closely monitor supply market for the favourable time to buy in during the time of the economic downturn that we could have best price from the market without being stuck in a higher price (in light of Module 3).

We generally place orders through competitive bid, where applicable we do negotiation/re-negotiation and the source can be changed among approved

suppliers (with help from Modules 3, 6, and 7).

Syed Asgar Ali, Country Procurement Manager (Head of Procurement and Spend Management) of BOC Bangladesh Limited and trainer with the MLS-SCM Programme attached to the Dhaka Chamber of Commerce & Industry.

LESSONS LEARNED

ImportantlessonslearnedthathaveallowedITCtocontinuetodevelopandimprovetheprogrammeinclude:

Self-sustainability�is�possible:Sustainablefee-basedtrainingservicesindevelopingcountriescanbedevelopedusingthecombinationofhighqualitymaterials,internationalprofessionalcertificationandsoftsupport.Institutionscancoveralllocalcosts,recovertheirinvestmentsandalsogenerategoodprofitiftheygetthingsright.

Ability�to�mobilize�partners�and�long-term�commitment:Staffinvolvedneedtodevelopacloseandtrustingrelationshipwitheachpartnerandbereadytoproactivelymobilizeandmotivatepartners,andgetinvolvedinproblemsolving.

Communication: A global programme of this type involves a lot of communication and communicationsmanagement,andrequiresconsistentmessagesfromallinvolved.

Certification:Thetrainingprogrammewasneeded,butsomepartnerswantedaprofessionalacknowledgementoftheparticipants’work.ItwasontherequestofcountriesinAsiathatITCdevelopedtheprofessionalcertificationprogramme.

CONCLUSION AND RECOMMENDATIONS

Themodelhasproventhatprivatesectortrainingprovidersarewellsuitedtooffertrainingservicestoenterprises,andthatcompaniesarewillingtopayforsuchservicesiftheygetgoodvalueformoney.Thechancesofsuccessareincreasedwhenthelocalimplementingagenciesalreadyhaveawell-developedcapacitytodelivertrainingandhaveasolidreputationlocally.

At the same time, thedevelopingagencyneeds tomaintainacertain levelof flexibility, includingmanaginguncertaintiessuchaschangesinstaffoftheimplementingpartner,insufficientmanagementbytheimplementingpartner,ortheeconomicorpoliticalinstabilityofthecountry.

TheMLScanserveasamodelforothertrainingprogrammesinwhichmodestinputsoftechnicalassistancetoeachcountryarematchedbysignificantobligationsonthepartofpartners,resultinginextendedreachoftraining.Thepartnersnotonlyhelpbuildcapacityofenterprisesintheircountriesorregions,butrecovertheircostsandattimesevenmakeamodestprofit.Theparticipantsacquireknowledge,andevencertification,enablingbetterbusinessdecisionsandprofessionaldevelopment. ThepartnershipscreatedandenhancedamongITC,thetradesupportinstitutionsandtheenterpriseshasledtoanimportantsystemofsustainablecapacitydevelopment.

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