Conducting value chain analysis and development of action plan for implementation
The performance of CSI is constrained by various factors that prevent them from realizing full potentials and surviving in a competitive environment. For these reasons, in additions to the Startup & CSI Flagship Program, the Department intended to play an active role of facilitator and catalyst in creating an enabling environment for CSI Development. Under the supervision of the UNDP Bhutan Country Office and the Chief of Enterprise Development Division, DCSI, APECS undertook value chain analyses for the three products and develop a comprehensive action plan.
Following were the major scope of the assignment:
• Gather, review and summarize the main statistics on production, domestic trade, exports and consumption (prices) of the three products and their close substitutes, from various sources.
• Identify and map the main actors in the selected products and their value chains, their main issues and missing linkages along the VC and propose recommendations to mitigate them.
• Identify potential suitable producers’ groups, and other potential private sector players. Assess current market dynamics, and map the supply and demand of these products.
• Determine the existing and potential bottlenecks and gaps in the policy, legal, regulatory and institutional environment for each value chain flow and provide recommendations and enabling measures for institutional and capacity development programmes/ measures.
• Assess promising value addition opportunities and product differentiation opportunities. Assess the potential of the domestic market and selected overseas markets, and assess the comparative and competitive advantage, as well as shortcomings of the selected products in these markets,
• Analyze the supporting functions that are required to make the value chain work, including both existing and missing support functions (e.g. infrastructure, information, related services)
Development of Business Model for Operation & Management of CSI Market Outlet in Changzamtok, Thimphu.
Access to market has been a top constraint to Bhutanese cottage and small industries. In line with the programme under the CSI Flagship Program, APECS helped DCSI develop a comprehensive operation and management plan to operate Bhutan’s first CSI Market based in Thimphu following a PPP mode.
Following were the major scope of the assignment:
• Conduct a baseline of the expected products to be featured in the center including acceptance and rejection procedure and criteria
• Solicit informal EOIs and seek recommendations from CSIs on the preferred models of operation
• Conduct literature review of similar SME outlets and practices
• Recommend suitable business structure at the center;
• Review applicable PPP models for contracting out the facility
• Recommend operation and management modality of the marketplace; and
• Study and recommend appropriate marketing & financial plan that would cater to the highest level of efficiency within the marketplace;
• Prepare organizational structure including the human resource requirements;
• Study and recommend the viability and sustainability in operating the market place.
• Develop Request for Proposal for selection of Operator
• Develop Contract Documents for execution between Operator and DCSI