1. Linkages 1 SEED-Linkages Program October 2002 European Movement

2. Linkages 2  SEED IS is a regionally based consultancy working under the management of IFC – the world’s leading frontier market investor  SEED’s overall remit in the region is to support the development of viable SMEs through direct consultancy work, training and other support  ADP is an affiliate of Accenture, one of the World’s leading management consultancies, established to apply high quality business and technology consulting skills within a development context SEED & Accenture Development Partnerships Jointly we are developing a Linkages Programme to assist SMEs surrounding a large company in the optimisation of their internal operations, in order to achieve mutual benefit for both the SME and the large company ….

3. Linkages 3 Linkages helps different types of SMES within an emerging economy affected in different ways by the intervention of Foreign Direct Investment (FDI) in a large company Linkages Program: Background

4. Linkages 4 MakeBuy Move Sell Make Make/ Provide How do I Set up as a New SME? Business Plan Sourcing of Funds Training & Technology How do I Set up as a Spun Off SME? Business Plan Sourcing of Funds Training & Technology How do I Spin Off or Outsource my Non-Core Assets while ensuring I adhere to Corporate Social Responsibility principles? SEED provides a range of related support services following the spin off of Non Core Assets aimed at assisting both the Large Company as well as the new and spun off SMEs affected by this process Spin Off-Related Consulting Services Non-Core Asset Assessment & Feasibility Study Outplacement program for Redundant Workers Generation of New Business Ideas Feasibility Study for New Businesses New Businesses Large Company Spun Off Non Core Assets Spin Off/ Outsource Establish as New

5. Linkages 5 Supply Chain Consulting Services – Supplier Focus Suppliers SMEs must focus on developing certain key functions in order to maximise the value chain throughout the supply chain network Supplier Hyper-Market Customer SME Core Business How can I be a good supplier? Competitive Pricing Quality Products On-time Delivery Provide Buy Sell

6. Linkages 6 Supply Chain Consulting Services – Distributor Focus Distributor SMEs must focus on developing certain key functions in order to maximise the value chain throughout the supply chain network Factory Distributor SME Core Business How can I be a good distributor? Focus on Sales & Marketing Effective Merchandising Excellent Customer Service Make Move Sell Suppliers

7. Linkages 7 The Linkages Program begins with a business assessment during which all aspects of the SME/Large Company are analysed, followed by a phase during which recommendations are made for the implementation of tools, technology and/or training Implementation Recommendations Tools Training Technology Business Assessment Business Assessment Business Assess ment Process Reengi neering Score Cards Data Models Metho dology ERP Trans- port Mngt Order Mngt Ware- house Mngt Supply Chain Planning SCM Overview Course Quality Mngt Sales & Market- ing Finan- cial Mngt General Manage ment Implementation Recommendations Tools Training Technology Business Assessment Business Assessment Business Assess ment Process Reengi neering Score Cards Data Models Metho dology ERP Trans- port Mngt Order Mngt Ware- house Mngt Supply Chain Planning SCM Overview Course Quality Mngt Sales & Market- ing Finan- cial Mngt General Manage ment Linkages Program: Methodology Overview

8. Linkages 8  SEED will analyse existing operating practices across and within the SME/Core Business Supply Chain to identify the key issues faced both upstream and downstream. For example: Upstream: Competitive Pricing Quality Products On-time Delivery Downstream: Focus on Sales & Marketing Effective Merchandising Excellent Customer Service  SEED will produce a report recommending ways to overcome the issues SEED Offerings – Business Assessment

9. Linkages 9 Accenture & SEED - Implementation:TECHNOLOGY  SEED Staff will be skilled in implementing business software solutions (specific to the region) for SMEs  Software will be implemented by the SEED local consultant network and will typically cover some or all of the following modules:

10. Linkages 10 Example of Materials - Supplier Side Training Courses  Introduction to SCM  Management of service contracts  Cost accounting  Quality control management  Production planning  Business Strategy IT Systems  MIS  Inventory Control  Production  Financial Mngt System Consultancy Services  Supplier Selection and Evaluation Program  Organisation Design  HR Management  Product Standards  Compliance with Buyer’s purchase criteria  ISO Accreditisation

11. Linkages 11 Training Courses  Retail/Store Operation Management  Marketing Concepts  Customer Relations  Sales Motivation  Business Strategy IT Systems  POS  Inventory Control  Transportation System  Financial Mng System Example of Materials - Distribution Side Consultancy Services  Incentive Program  Merchandising  Marketing/Promotion Design & Implementation  Organisation Design  Sales Network Design  HR Management

12. Linkages 12 Tigar: A Linkages Case Study  Product:Automobile Tyres & Tubes  Annual Turnover:> US$ 70 million  No. of Employees:> 4,000  Location:Pirot, Serbia  Date Established:1935  Legal Status:Privatized, 1991  Joint Venture set up:  Tigar Holding65%  Michelin25%  IFC10% New Business Work with Tigar Management to help develop new business ideas for outplacement of staff affected by spin off or outsourcing program Spin Off/Outsourcing Assessment of Non-Core Assets in order to determine Spin Off or Outsourcing Strategy for each Supply Chain Business Assessment to recommend solutions to existing issues and future strategy of spun off sales network (Tigar Trade)

13. Linkages 13  Product:Automobile Tyres & Tubes  Annual Turnover:> US$ 70 million  No. of Employees:> 4,000  Location:Pirot, Serbia  Date Established:1935  Legal Status:Privatized, 1991  Joint Venture set up:  Tigar Holding65%  Michelin25%  IFC10% Tigar: A Linkages Case Study

14. Linkages 14 Workers catering Flourmill Bakery shop Pasta Production Business restaurant Animal Food Mountain House Business restaurant Workers catering Animal Farm Retail stores Syndicate catering Tigar INCON Tigar Tours Construction Transportation Insurance Catering Business Services Division Babusnica Tigar: Outsourcing & Spin Off Program Assessment of Non-Core Assets in order to determine Spin Off or Outsourcing Strategy for each

15. Linkages 15  Laundry Facility  Mini Cattle Farm  Herbal Product Processing Tigar: New Enterprises Program Work with Tigar Management to help develop and conduct feasibility study into new business ideas for outplacement of staff affected by spin off or outsourcing program

16. Linkages 16  Work methods in the network  Warehouse utilization and logistics  Management Information Systems and tools  Merchandizing, product specialization in the stores  Store profitability  Introduction of new services  Franchise system Business Assessment to recommend solutions to existing issues and future strategy of spun off sales network (Tigar Trade) Tigar: Supply Chain Network Program