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FINAL REPORT - USAID Macedonia

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Implementation of Supply Chain Management Program in Ruen IT<br />

In 2011, MCP designed and delivered a practical educational<br />

program for business executives in supply chain management in<br />

an effort to enhance competitiveness by adopting practices that<br />

reduce costs while increasing sales, efficiency and customer<br />

service. The program was provided through four modules and<br />

eight working days on-site at Ruen IT’s facilities in Kocani and<br />

involved 20 representatives from Ruen, Rade Koncar-<br />

Kontaktori I Relei, Laminati- Prilep, TE-TE Plast, Zavar and<br />

Progres Komerc. As part of the training, participants developed<br />

project to reduce inventories, lead times and capital assets<br />

utilized to serve customers in their own companies, allowing<br />

them to permanently reduce their product cost structure, as well<br />

as increase profitability through product differentiation,<br />

customer responsiveness, modularization and supplier<br />

collaboration. If implemented, the ideas presented by the<br />

“The supply chain management training<br />

organized by <strong>USAID</strong> Competitiveness Project<br />

was an outstanding program in terms of content<br />

and organization. It gave us valuable insights of<br />

our company’s operations looking at them from<br />

a higher level and another perspective. We got<br />

many ideas in terms of improvement plans, and<br />

we think there will be enough possibilities to<br />

implement them, thus creating higher sales<br />

while reducing costs of production and<br />

operations.”<br />

Irina Gapik<br />

Marketing and Communications, RUEN IT<br />

participants would result in average cost reduction of 20 percent, increase of sales and profit by 20 percent and<br />

25 percent respectively, reduced inventory of finished goods by 10 percent, and 20 percent increase in<br />

productivity.<br />

Design for upgraded CIRKO e-library and web portal<br />

MCP assisted CIRKO to create a web-based library for the tool-and-die industry, designed to help 75 member<br />

companies (primarily SMEs) provide faster and more accurate responses to potential buyers’ RFQs. As a result,<br />

a number of companies were able to provide quick and high-quality responses to potential customers’ requests,<br />

thus achieving tool exports of more than 250,000 euros to France, Sweden, Germany, and Russia. In addition,<br />

CIRKO’s Slovenian counterpart, TECOS, used the e-library to promote <strong>Macedonia</strong>n companies in Slovenia and<br />

to match Slovenian companies with <strong>Macedonia</strong>n counterparts.<br />

Activities in Other sub-sectors<br />

Market Linkages in the Furniture sector<br />

Although small, <strong>Macedonia</strong>’s furniture industry has high growth<br />

potential. MCP market research revealed that <strong>Macedonia</strong>n furniture<br />

producers compete well in domestic and regional markets, with<br />

Greece and Kosovo in particular, followed by Serbia, Slovenia, and<br />

Croatia. During the first half of the project, MCP worked with the<br />

Wood Processing Cluster, Ministry of Economy, and other partners<br />

to help furniture manufacturers carry out joint market linkage<br />

activities targeting regional buyers and retailers. Activities included<br />

subsidizing the costs of sales agents and engaging an<br />

aggregator/joint who could represent and market products from<br />

multiple companies at one time, targeting the Balkan region, which <strong>Macedonia</strong>n exhibitor at trade fair<br />

resulted in $100,000 in new sales. MCP also supported a the first<br />

International Wood Industry Conference in <strong>Macedonia</strong> during the Skopje Furniture Fair in March 2010, along<br />

with a B2B event with companies from <strong>Macedonia</strong>, Slovenia, and Kosovo.<br />

Participation of Demastil at Nurnberg Toy Fair 2010 and 2011<br />

Demastil, located in Kriva Palanka, is the only producer of children’s toy balls and professional balls in the<br />

Balkan region. Their main market is children’s balls made of PVC, which they export globally. MCP supported<br />

Demastil’s participation at the Spielwarenmesse International Toy Fair in Nurnberg, Germany in 2010 and 2011.<br />

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