“Jamaica Trade Desk News” Theme: Working together towards ONE Caribbean!

Contact us at (868) 675-8862 Ext. 239 Email: tradeassist@ttma.com

I S S U E 9 – N O V E M B E R 2 0 1 3 M O N T H L Y P U B L I C A T I O N

H I G H L I G H T T H E

D Y N A M I C S O F

W O R K I N G T O -

G E T H E R :

Resolving issues be-

tween Jamaica and

T&T...

I N S I D E T H I S

I S S U E :

Strategize, innovate

and collaborate: dy-namic tools to improve

environmental and busi-ness performances.

Insights on the 37th

Meeting of COTED… 2

Traffic congestion

dampens local busi-

ness development!

3

Basic Guidelines for

import of food and

beverage into T&T...

4

TTCSI putting the

Services Sector into

the spotlight!

5

TTBizOpp 2013! 7

Let ERP solutions

minimize your losses! 8

Contact JA-T&T

Trade Facilitation Desk NOW!!!

8

Editorial:

Resolving trade issues between Jamaica and Trinidad & Tobago… (1/2)

The Jamaica-T&T Trade Facilitation Desk was estab-

lished in May 2012, to encourage a healthy balance

of trade between T&T and Jamaica. This initiative

was driven by the foresight of the Bermudez Group

Ltd (BGL), which has operations in many Caribbean

islands and believes in the strength of the region as a

whole. The BGL was also the sole sponsor of the

Trade Desk, until June 2013, when the Associated

Brand Industries Ltd agreed to partner and provide

financial support. This partnership was deemed neces-

sary to maintain the Trade Desk‟s operations and en-

sure that these specialised support services remain

available for Jamaican firms. The Trade Facilitation

Desk was also developed to leverage business oppor-

tunities for Jamaicans, as a response to the perception

of Jamaican firms that the T&T‟s market entry re-

quirements were burdensome.

From inception, the Trade Facilitation Desk has gone

above and beyond to ensure businesses overcome the

current trading difficulties, while creating a way for-

ward to improve the volume of trade in goods, as well

as services between Jamaica and T&T. Due to the

recent developments between T&T and Jamaica, we

are encouraging closer partnership across the region.

These problems cannot be solved with traditional pol-

icy measures. Innovative solutions are clearly needed.

It‟s time for meaningful, diplomatic and financially

sound discussions on a public and private sector level,

to attempt to rectify the strained relationship that ex-

ists.

We look forward to the JA-T&T Trade Facilitation

Desk remaining a strong, respected voice and advo-

cate for Jamaican businesses in T&T. This mechanism

for trade support is already assisting companies with

the following and would be willing to do much more

if the opportunity presents itself:

Assessing their export-readiness,

Becoming compliant with the local market,

Providing information on the T&T business envi-

ronment and regulatory requirements,

Searching for suitable distributors or agents,

Organizing visits to T&T,

Acting as a liaison to share prevailing percep-

tions with the various trade institutions and

regulatory agencies, in order to improve busi-

ness relations.

It is clear that there is a wide range of services that

can be offered and therefore we reiterate our call to

all Jamaican businesses to use or continue utilizing

the Trade Facilitation Desk as much as possible, in

order to voice their concerns and maximize market

penetration.

T&T may appear as a difficult market to penetrate

due to a great variety of products offered and avail-

able to the consumer. Furthermore, the transporta-

tion of goods across the region, and especially be-

tween the T&T and Jamaica is not an easy task,

although necessary for a healthy trading system.

However, a few Jamaican companies have over-

come the burdens with great success, and been trad-

ing with T&T for several years.

We cannot deny that over the last four years, the

relationship between both islands has worsened and

no drastic move has been made by our respective

Governments to resolve the situation. However, we

need to bear in mind that while government and

policy changes could strongly affect business, in-

dustry is the foundation of economic growth.

Therefore, despite this, public and private sector

leaders must work together in creating an enabling

environment for business and foster sustainable

growth for the region.

In keeping with the spirit of the revised Treaty of

Chaguaramas, the relationship between T&T and

Jamaica needs to improve. This adage captures it

perfectly: “If you want to go fast, go alone, but if

you want to go far, go together.”

It is important to highlight that states such as the

USA, Canada, Europe are interested in conquering

the Caribbean, not just Jamaica or T&T. Our indi-

vidual markets are insignificant, but together we

are an excellent market for these suppliers,

due in large part to the fact that demand for

imported food products is largely inelastic.

P A G E 2

The 37th meeting of the Council on Trade and

Economic Development (COTED) was held

from Tuesday, 5 November 2013 to Satur-

day, 9 November 2013. At this forum, sev-

eral issues were discussed and resolved.

These issues included external economic

trade relations, intra-regional trade and the free movement

of CARICOM nationals.

As the end of the CARIBCAN draws to an end, both CARI-

COM and Canada are negotiating the CARICOM and Can-

ada Trade and Development Agreement. Unfortunately, it is

highly unlikely that the negotiations would conclude before

31 December 2013, when they were expected to be con-

cluded. In this regard, CARICOM would be seeking an ex-

tension of the conclusion date of negotiations to the 30 June

2014. This extension would be sought by the Chairman of

the Prime-Ministerial Sub-Committee on External Negotia-

tions to the Prime Minister of Canada. Additionally, each

member state was mandated to submit any outstanding

documentation to the Office of Trade Negotiations, as the

reason for the slow progress was linked to the late submis-

sion of positions.

Both Cuba and Venezuela have approached CARICOM,

each with the view of expanding the volume of trade be-

tween the parties. While the Agreement on Trade, Eco-

nomic and Technical Cooperation between the Caribbean

Community and the Government of the Republic of Vene-

zuela is limited in scope, the Trade and Economic Coopera-

tion Agreement between CARICOM and Cuba covers a

wider range of goods. However, both the Venezuelan and

the Cuban governments have expressed their respective

interests in increasing the number of goods that is afforded

preferential treatment. In both instances, meetings of the

Joint Council under both agreements will be convened to

address the modification of the agreements. Thus, each

CARICOM member state is required to submit its position

on topics which should be addressed at the meetings.

Among the items discussed pertaining to intra-regional

trade included the suspension of the Common External Tar-

iff for petroleum. Jamaica, as a signatory to the PetroCaribe,

benefits from a supply of petroleum products (such as crude

oil, gasoline, diesel oil, kerosene, fuel oil and jet fuel)

from Venezuela. However, each of these products at-

tracts a duty when being imported extra-regionally. Thus,

Jamaica requested that the CET be suspended on these

products. In accordance with Article 83 of the Revised

Treaty of Chaguaramas, the suspension of the CET can

be granted once there are no producers of the product

within the region, the quantity produced is insufficient,

or the quality produced is not of Community standard.

The suspension was granted, as Jamaica gathered the

support of all member states for its request. While Trini-

dad and Tobago is a producer of these products, the twin-

island state is fully cognisant of the importance of these

products to any manufacturing community, and sup-

ported a 3-year suspension of the CET.

The free movement of nationals was raised at the

COTED, with specific focus on the recent court ruling on

the Shanique Myrie vs. the State of Barbados case.

It was indicated that the procedures to which immigra-

tion officers adhere to are important, especially when a

potential immigrant is denied entry. Procedures such as:

Written reasons for a decision given by the im-

migration department;

Access to meaningful judicial review for a deci-

sion by the denied immigrant;

The notification of the denial of entry by the

immigration department (this notification

should be the denied CARICOM national‟s

member state, as well as the CARICOM Secre-

tariat),

were deemed to be matters of good governance in treat-

ing immigrants. While the issue focused on Shanique

Myrie, other pertinent issues were raised, including:

Bahamas and Montserrat not being party to the

Revised Treaty for this aspect;

The requirement for visas for Haitian national

for intra-regional travel.

Thus, member states are required to review the immigra-

tion procedures at the port of entry, so that such an inci-

dent would not be repeated.

An article written by Mr. Christian George– TTMA Re-

search Officer, Trade Unit. Email: trade@ttma.com

37th Meeting of the Council on Trade and Economic Development (COTED)

… Resolving trade issues between Jamaica and Trinidad & Tobago (2/2)

While these leading countries may

be hesitant to trade with one Mem-

ber State, they might be enthusiastic

to get an opportunity to do business

with the whole of CARICOM, and

then the investment is almost cer-

tainly worth it.

Jamaica and Trinidad & Tobago

belong to a beautiful, rich, diverse and resourceful Carib-

bean. This region has the capacity to astound the world with

its strength through the commonality of our struggle for an

independent identity.

The harmonization of our collective ideas, innovative

capacity and will can be converted into economic

growth. To fulfill this, we must refuse to be constrained

by the shackles of nationalistic insularity, pay more than

mere lip service to our integration tenets and find a way

to harness our regional identity. The world is yet to see a

united Caribbean and what it is able to produce.

Let‟s work together to promote the CARICOM region!

2014 is an opportune year of positive change...

Article written by Mrs. Naika Pichi-Ayers– TTMA Ja-

maica Trade Desk Officer. Email: tradeassist@ttma.com

P A G E 3

The issue of traffic conges-

tion is a growing global

phenomenon with which

we all have to contend. As

transportation is a funda-

mental part of how we live

and do business, the ways

in which we move people,

goods and services have

various unintended and

harmful side effects on the economy. This is evident

through the occurrence of increased levels of congestion

on the Trinidad & Tobago roadways – resulting in lower

levels of productivity and higher costs for the local busi-

ness community, especially the manufacturing sector.

Overview of traffic congestion in T&T

Generally, traffic congestion is characterized as a road

system in which one experiences increased road trip times,

slower vehicle speeds and increased vehicle lineups. In

T&T, this phenomenon is fostered by several factors, in-

cluding an inadequate road management system, an ineffi-

cient public transportation system and the fuel consump-

tion subsidy.

Statistics reveal that at peak hours there are over 30,000

vehicles per hour on the main roads and highways. Fur-

thermore, on an average work day over 500,000 vehicles

transit the city of Port of Spain, the hub of government

offices and other essential service providers.

Despite, the recent developments in highway infrastruc-

ture, many are concerned that such developments have not

kept pace with the number of vehicles that are being im-

ported into the country. Data from the Ministry of Trans-

port unofficially indicates that 3500 private vehicles are

licensed on a monthly basis. This fate, coupled with highly

subsidized fuel prices, begs the question of whether our

economy can sustain this increasing rate of vehicular traf-

fic.

Conceptually, through the provision of mass transporta-

tion, the public transportation system should ease the traf-

fic woes, by reducing the number of private vehicles on

the roadways. However, the system‟s inefficiency inevita-

bly compels commuters to utilize/purchase private vehicles

for reliability and efficiency.

The implications of traffic concession of the manufac-

turing sector

The occurrence of traffic congestion impacts negatively

on the operations of the manufacturing sector. From a

social standpoint, research indicates that traffic conges-

tion has a damaging impact on an individual‟s health. As

such, the extensive time spent in traffic on a daily basis

is associated with increased levels of stress, fatigue and

high blood pressure of workers which ultimately can

result in lower levels of productivity - especially in la-

bour intensive jobs, increased inefficiency – due to loss

in man hours, and higher costs – including additional

salary payments to workers to compensate for overtime

hours worked.

From an economic standpoint, the average manufac-

turer, actively engaged in importing and exporting, gen-

erally has to contend with a potpourri of challenges in

the arrangement for pickup and deliveries of goods to

and from his warehouse/port/customers. These chal-

lenges range from sea congestion, affecting the berthing

of cargo vessels at the port, to regulatory issues with the

Customs and Excise Division, especially in terms of

having goods inspected for clearance; the challenges

involved in clearing the border are numerous. This proc-

ess is then compounded by the added costs involved in

transporting these goods on land, which adds incremen-

tally especially during peak hours, due to traffic conges-

tion.

Furthermore, when one considers the large percentage of

business persons who utilize (and will continue to util-

ize) the Port of Port of Spain, for delivery and pickup of

their containerized cargo, it intuitively indicates that

there is/will always be a severe bottleneck around the

city hub that reduces the movement of cargo to snail‟s

pace. All of this contributes to the high „cost of doing

business‟ and stymies our climb up the Global Competi-

tiveness and Logistics Performance Indices.

It is evident that traffic congestion on our roadways can

result in the combined effect of rising transport costs and

lower productivity, which in itself increases the unit

production cost of output. Inevitably this can lead to

inflationary pressure and reduced competitiveness in the

economy.

Traffic congestion dampens local business development… (1/2)

P A G E 4

Recommendations

Traffic congestion is a national problem and it requires

concerted national attention. The solution may be derived

from a combination of the following measures:

The government should carefully review the policy

and tax structure for imported foreign used vehicles.

The age and quantity of used vehicles entering the

country on a monthly basis is highly unsustainable

and militates against transit efficiency on all levels.

Improve the public transport service to increase usage.

The fuel subsidy ought to be removed gradually, the

savings from which can be transferred and targeted

towards the sophistication and development of en-

hanced the mass transit services.

The government can identify ways in which their

services can be decentralized to reduce the need for

users to access them in Port of Spain. This should

be followed up by proper sensitization to ensure that

the public is fully aware of the new arrangements.

The government should ensure that the public is

fully aware of and empowered to use their elec-

tronic services (which are in fact being actively de-

veloped) to reduce dependence on transiting into

Port of Spain.

Business persons (and by extension haulers, ship-

ping lines and agents) should be encouraged to util-

ize the Port of Port of Spain‟s night time opening

hours to reduce traffic from heavy goods vehicles in

the day time.

Incentives should be given to persons choosing to

car pool; on the other hand, a tiered tax structure

can be developed for persons who wish to register

multiple vehicles in their name. There should be a

direct relationship between owning more vehicles

and the tax paid, i.e. the more you own, the more

you are taxed.

Contribution from Ms. Arianne Phillip & Mr. Marc

Sandy– TTMA Research Officer, Business Develop-

ment Unit. Respective emails: researchdesk@ttma.com/

research@ttma.com).

… Traffic congestion dampens local business development (2/2)

Guidelines for import of food and beverage into T&T...

The Jamaica-T&T Trade Facili-

tation Desk is pleased to an-

nounce that the “Basic guide-

lines for import of food and

beverage into Trinidad &

Tobago” has been completed

early November 2013.

This was done with the active collaboration of the Chemis-

try, Food & Drugs Division (CFDD) of the Ministry of

Health, as well as the Trinidad and Tobago Manufacturers‟

Association (TTMA). The document was disseminated

widely to Ministries‟ Representatives, Business Support

Organizations, Regulatory Agencies and Businesses from

Jamaica and T&T.

This project was initially launched by the Trade Desk Offi-

cer, Mrs. Naika Pichi-Ayers, with the main objective to

assist Jamaican companies, among others, in getting a

better understanding of the labelling requirements, so

as to ensure that the import flow into T&T becomes

much smoother.

It was also initiated in an effort to strongly collaborate

with the TTMA, which has been lobbying the Govern-

ment of T&T over the years, by addressing the CFDD’s

lack of transparency and efficiency, and by extension

of the Republic of the twin-islands.

The guide was designed to be user-friendly and give a

clear and simple vision of the regulatory requirements

on food and beverages in T&T, in an effort to facilitate

trade and ease movement of goods within T&T.

If you wish to download the PFD version, please click

on the link below:

h t t p : / / w w w . t t m a . c o m / a t t a c h m e n t s / B a s i c %

20Guidelines%20For%20Import%20of%20Food%

20and%20Beverage%20in%20Trinidad%20%20and%

20Tobago-%20October%202013.pdf

If you need any clarification on this guide, please feel

free to contact Mrs. Naika Pichi-Ayers, Jamaica-T&T

Trade Desk Officer via email: tradeassist@ttma.com

P A G E 5

TTCSI… Putting the Services Sector into the spotlight! (1/2)

How do you honour

dedicated and resource-

ful service providers?

Well, since 2008 the

Trinidad and Tobago

Coalition of Services

Industries (TTCSI) has

been dedicating the first

week of November to

highlighting the contribution of the services sector to the

economy of Trinidad and Tobago. This year was no differ-

ent. TTCSI hosted its 6th Annual National Services Week

2013 from November 5th to 9th. The theme for the

week-long events was “Services Export; Dream it, Do

it.” The week of events began with the 3rd staging of the

Excellence in Services Award on November 5th at the

Trinidad Hilton Hotel, where several service providers

were recognised and awarded.

The awards recognize and honour role models in the ser-

vices industries for their outstanding performance and con-

tribution to the growth and development of the services

economy. The aim is to inspire more service providers to

be innovative and competitive in their approach to ser-

vices. TTCSI Members, previous award winners, nomi-

nees, government officials, sponsors and other specially

invited guests gathered as service providers received

awards for Best Use of Innovation in Services, Service

Provider of the Year, Young Service Provider and Service

Exporter of the Year, among other categories. Speakers at

the event included Richard Young, Chairman of the Eco-

nomic Development Board, who noted that expanding into

services should provide a strong diversification thrust

away from oil and gas.

Also delivering remarks were Rabindra Jaggernauth,

President of the TTCSI, Gregory Camejo of One Carib-

bean Media, Arthur Lok Jack‟s Nirmala Harrylal-

Maharaj and TTCSI Chief Executive Offcer, Nirad

Tewarie. But the Excellence in Services Awards was

just the beginning! National Services Week also in-

cluded four other events that allowed stakeholders to

engage with expert panellists, and allowed secondary

school students to be involved in the activities sur-

rounding the week as well. It focused on building ca-

pacity to expand the services sector and promote ex-

ports.

On Wednesday 6th November, a discussion on the fi-

nancial services sector entitled “Creating the Future

you Want” was held at the same venue, where the audi-

ence got a chance to interact with Senator Larry Howai,

Minister of Finance, Varun Maharaj, Chief Executive

Officer of the International Financial Centre and Cen-

tral Bank Governor, Jwala Rambaran, who was able to

shed light on the CLICO financial crisis and reforms

planned for the Central Bank and financial regulation.

On November 7, the third event got underway, where

ICT venture capitalist Kamran Elahian and marketing

guru Stephen Arbeit helped participants in „Going

Global: Structuring your Winning Pitch for Growth‟.

Also delivering valuable insight was Honourable Min-

ister of Trade, Industry and Investment, Senator Vasant

Bharath, Senior Investor Sourcing Officer at InvesTT,

Renata Girod, CEO at National Entrepreneurship De-

velopment Company Limited, Ramlochan Ragoonanan,

Shaun Waldron of Exim Bank T&T and Christopher

Lewis, CEO at exporTT.

The winners of the Excellence in Services Award with TTCSI President and CEO, and other Board Members.

P A G E 6

… TTCSI… Putting the Services Sector into the spotlight! (2/2)

By far the most exhilarating event, Preparing our Children

for Future Education, Technology and Intelligence was

held on the Friday. TTCSI with the support of School of

Business and Computer Science (SBCS) hosted former

Advisor on Education Policy to the UK Government , Mr.

Richard Gerver, who was able to enlighten and entertain

the audience. He spoke at the event after doing a tour of

local schools and urged those in the room to “find a system

which is organic…constantly evolving, and relates directly

to the interests and purposes of our young people”. In his

view, teachers are the ones with the solutions to the prob-

lems facing the education system in Trinidad and Tobago.

He was joined by Director of Curriculum at the Ministry of

Education, John Roopchan, President of the Trinidad and

Tobago Unified Teachers Association (TTUTA),

Devanand Sinanan and Managing Director of SBCS,

Robin Maraj. After the event, Mr. Gerver held a session

with a smaller group of educators, which focused on meth-

ods of teaching.

The final event on Saturday encouraged secondary school

students to conceptualize a project that would create a

green space on their school‟s compound. Trinidad and

Tobago Green Building Council (one of TTCSI‟s mem-

bers) co-sponsored the “I AM Secondary Schools Environ-

mental Competition” which culminated in the prizing giv-

ing ceremony at the JFK Auditorium at the UWI St.

Augustine Campus. Specially invited guests, participating

schools, teachers and students who worked on the projects

were present at the ceremony, which featured entertain-

ment from 3Canal. The Honourable Ramona Ramdial,

Minister of State in the Ministry of Environment and Wa-

ter Resources gave the feature address and highlighted that

she was impressed with the quality of entries into the com-

petition. She pledged, on behalf of the Ministry, an

award of $5000 to each of the schools taking the top

three positions. This was in addition to the trophies and

prizes that the schools received. St. Joseph Covent San

Fernando, Bishop Anstey High School Port-of-Spain

and Naparima Girls‟ High School placed first, second

and third respectively. Special awards were given for

Best Drawing and Most Original Presentation, which

Queen‟s Royal College and San Juan South Secondary

School received respectively.

For the last six years the National Services Week

staged by the TTCSI has become an annual marquee

event that brings mainstream attention to the local ser-

vices industries. With the assistance of agencies such as

GIZ (German Agency for International Cooperation),

Caribbean Export Development Agency, SBCS, First

Citizens Bank, exporTT, invesTT, Guardian Group,

One Caribbean Media, Balroops, Tabletop Limited,

T&TIFC, Lifetime Solutions, IBL Bank, Ministry of

Education, Illuminat and Unversity of T&T, the week

exceeded expectations.

We hope that you could join us for National Services

Week 2014!

An article written by Ms. Aurelia Bruce, TTCSI Re-

search Officer. Ms. Dickson can be reached at (868)

622- 9229 or via email : dabruce@ttcsi.org

Dr. Driver Board member of TTCSI presents Christian Boucaud, Best Young Service Provider of the

Year 2013, while Diane Joseph, former treasurer of TTCSI shakes her hand.

P A G E 7

Learning more about Governments contracts in Trinidad & Tobago...

For small and micro companies government contracts can

seem complex and perhaps even intimidating. However,

there is tremendous potential for collaboration between the

private and public sectors. The Government buys typically

every type of product that is manufactured and service that

is offered, from soaps to military tankers to human re-

source consultant. Business Opportunities in Trinidad and

Tobago, referred to as BizOppsTT, is intended to provide

an information sharing avenue through which SMEs can

unlock their potential. The two day conference hosted by

the Trinidad and Tobago Chamber of Industry and Com-

merce took place on 27th & 28th November, 2013.

Business opportunities were presented from Water and

Sewerage Authority (WASA), Telecommunication Ser-

vices of Trinidad and Tobago (TSTT) and Ministry of Na-

tional Security just to name a few. Noteworthy was the

presentation on the FairShare Programme of the Ministry

of Labour, Small and Micro Enterprise Development

(MLSMED). The FairShare is an avenue for micro and

small enterprises and cooperatives that are at least 51%

owned by Trinidad and Tobago nationals, to access public

opportunities of a maximum value of $1 million. The

MSEs are required to first register with the MLSMED in

order to access the listing of procurement opportunities.

In addition to expounding on the business opportunities,

the presentations demystified the pre-qualification require-

ments for companies wishing to register for future procure-

ment opportunities.

Additionally, participants got an opportunity to hear

first hand from the Procurement Specialists the com-

mon errors that they should be mindful of when sub-

mitting a bid. While the tips may be obvious to some, it

was said that they are too often taken for granted by

some companies. The following tips were noted:

Have a packages of frequently requested docu-

ments always at hand;

Develop a format and checklist – ensure you fol-

low the format or checklist given. If one is not

provided create a clear format and checklist that is

easy to follow;

Have a protocol to deal with clarifications and

amendments;

Conduct a mock evaluation;

Ensure you attend the site visits.

For further information on the

BizOppsTT 2013 Conference

or how you can participate in

BizOppsTT 2014, please contact the Trade & Business

Development Unit of the Trinidad and Tobago Cham-

ber of Industry and Commerce at (868) 637-6966.

Senator the Honourable Larry Howai, Minister of Finance & the Economy, Honourable Carolyn Seepersad Bachan, Minister of Public Ad-

ministration, Mr. Moonilal Lalchan, President of the TTCIC, Ms. Catherine Kumar, CEO of the TTCIC, Mrs. Camille Sears Carter-Wells,

TTCIC Trade & Business Development Manager, pose with some sponsors and speakers at the Opening Ceremony of BizOppsTT 2013.

P A G E 8

Is anyone interested in exporting its products/services to T&T?

The Jamaica– T&T Trade Facilitation Desk is there for you:

Informing Jamaican businesses (among others) about import regula-

tions & entry requirements into Trinidad and Tobago, as well as rep-

resenting their interests;

Encouraging networking and facilitating business match-making

with T&T companies to boost investment and trade;

Addressing main areas of concern and key issues to the relevant trade institutions & regulatory agencies in T&T

and Jamaica (intermediating with such arms as customs, the standards authorities, and helping with negotiating

the bureaucracy) and offering support solutions;

Assisting in the coordination of visits and trade missions to T&T (planning, ground support and follow up);

Undertaking consultations with prospective exporters, business support associations and representatives of the

public sector institutions that play key roles in the export process in both countries.

If you need any additional information, you can contact Mrs. Naika Pichi-Ayers, Jamaica-

T&T Trade Desk Officer and Editor of the Newsletter at: (868) 675-8862 Ext. 239

Email: tradeassist@ttma.com Webpage: http://www.ttma.com/jamaicatt_trade_desk

Let ERP solutions minimize your losses!

With increased com-

petition comes in-

creased cost pres-

sures. This forces us

to find ways to

squeeze waste out of

our processes and

ensure we have an

optimized product

mix to meet cus-

tomer demand. Ob-

taining the necessary

information to ac-

complish this is one

of the benefits of an

enterprise resource planning (ERP) system.

I heard a story last year of a local company that found

they had been consistently selling a particular product

at a significant loss to a foreign customer. This hap-

pened for quite some time before the discovery was

made and the result was some emergency meetings

and a renegotiation of the price with the customer.

How could this happen? It turns out that costing was

done manually and some errors were made in that

computation.

In another situation, a company ran out of a raw mate-

rial and in order to fulfill a big order decided to use a

substitute. The problem was, the substitute cost sev-

eral times more than the ingredient they should have

used. The result was a loss of several hundred thou-

sand dollars which was only noticed at the end of the

month after it was too late to do anything about it.

When they told me about this I saw two issues. The

first was not having the right inventory when it was

required and the second is not having visibility to the

cost implications of such decisions.

With an ERP solution, costs of your raw material inputs

and labour inputs can be properly tracked to specific prod-

ucts. The result is the ability to perform detailed analysis

on the profitability of each product you manufacture. This

leads to appropriate manufacturing decisions, product pric-

ing and could lead to cancelling some products or lines

that are not contributing to the company‟s bottom line.

Based on sales forecasts an ERP system can also assist in

the timely acquisition of raw materials so products can be

manufactured to meet customer demand. The shortage of

one raw material can result in tying up a set of other raw

materials in your warehouse while also losing potential

sales. With the increased freight costs and long lead times

Caribbean nations have to live with, it makes this planning

even more important.

When it comes to selling your products, efficiency can

take the form of sales people entering orders on their

phone while visiting customers. The result is a reduction in

the cost of selling by eliminating the need to transpose

written orders into a system or the eradication of errors

from communicating them over the phone. The system

would also allow data mining customer order history to

look for trends which can form the basis for new market-

ing initiatives, pricing or up sell opportunities.

If your current system is not providing these benefits it is

time to start looking at new options. These systems can be

a significant investment. However, it does not take more

than a couple of errors like the ones I mentioned above to

cover the costs of such a system. The real question is can

you afford not to do it?

Contact Davyn today for a free ERP

Consultation at info@davyntt.com |

www.davyntt.com | (868)-674-9788

Derrick Villeneuve, DAVYN- Director

of Strategy