WHAT DISTINGUISHES PROJECT
FROM SIMILAR PROJECTS?
We are NOT aware of any models
that could be pointed at, saying:
“HERE is the way that a Producer
in the 3rdWorld can succeed to
become strong and self-sufficient;
a successful model of production,
one that emanates from artisans,
and a way for the disadvantaged
craftspeople to gather strength.”
HOW ARE UNDERPRIVILEGED
PERSONS ADVANTAGED?
Hundreds of village boys and men
have departed for the United States
to work as wetback laborers.
Women have been left to endure
more of the family burden
Employment opportunities in production
and opportunity to advance into
computation and administration
contrasts with their dependence
upon men who have migrated North.
EXECUTIVE SUMMARY
Artcamp Co-op produces inexpensive, quality handcrafted jewelry;
it designs and develops new styles, makes original models and molds,
matches colors, administrates the village cottage-craft industry.
Goal: To generate a successful model of functional artisan-owned distribution.
Looks Like: Shelves, Tables, Inventory, Shipping Materials,
Computer, Data Base,
Website Product Catalog, CDROM Product Catalog,
Laser Print Catalog Sell Sheets
System calls for 20 – 30 packages to ultimately be shipped at the same time
in order to optimize the ship/import cost by consolidating export shipments.
A weekly shipment 25 packages X $200usd = $5000weekly sales = $300,000usd/yearly sales
For average under one kilo packages, cost would be about $7usd + $4usd/Priority Mail = $11usd
(does NOT include either insurance or proof of delivery)
Add $1one usdollar for the handling
where the master import is broken into individual shipments
$12usd is the factory-to-door through-Customs delivered price,
once an optimum ship level is reached.
1. Retailer places order from an Artcamp Catalog via FAX or email.
2. Order is checked against existing inventory
Of finished and semi-finished pieces
3. The portion of the order that is not available in stock, is set into the production sequence;
4. A determination is made
of whether and how many extra pieces to make for stock.
Just so, the production capacity of the shop
is integrated into the stock inventory position.
Orders come in and are fulfilled from the shelves
and/or the orders are set into production;
A modern data base is applied to every aspect of over-all flow
- orders through packing list
. HERE IS WHAT IS TO BE DONE
a. Artcamp installs shipping/fullfillment facility
at its workshop in Taxco Guerrero Mexico
b. Artcamp holds finished and partly-finished inventory
in stock for immediate shipment
c. Artcamp generates a data base
to integrate sales, production, inventory, order fulfillment.
d. Artcamp executes a sophisticated, modern internet-based marketing campaign
WHAT THE FINISHED PROJECT LOOKS LIKE
An Internet based catalog and a system of product offers;
with Traditional Distributor shipping/fulfillment capability.
Four types of customer
a. Distributor b. Retailer c. Individual d. Fundraiser
Marketing Avenues
a. Publicity b. Search Engines c. Product Reps d. Trade Shows
Marketing Measures
a. E-mail b. Newsletter c. Outbound Telephone d. Fashion Mag Advertising
Product Catalog
a. Digital on Artcamp website b. CDROM digital 3. Offset print 4. Print Brochure
Orders Arrive
a. E-mail b. FAX c.Telephone d. Walk-in
Order Processing
a. Check Inventory b. Production Order c. Casting Order d. Special Orders
Stock Room
a. Shelves b. Parts Bins c. Labeling d. Inventory
Shipping Room
a. Tables b. Boxes c. Packing Material d. USPS Envelopes e. DHL Airway Bills
Fulfillment
a. Purchase Order b. Inventory Report c. Production Report d. Projected Shipping Report
Computer
a. Data Base of cash flow, inventory, parts, materials, tools, per/hour labor data etc.
Personnel
a. Data Base Development b. Data Entry c. Stock Manager d. Stock Assistant
This is an historic effort and opportunity. The idea is show the model works,
to define a functional system, making that available to other producer groups.
Stage One is to demonstrate the efficacy of the Direct Distribution system,
by exercising it in practice as a function of Artcamp’s Production business.
Stage Two is to identify the key components of the AODD Model
and the composition of a Manual, in Spanish,
to assist other Third World Producer Groups to replicate its success.
PROJECT BACKGROUND AND JUSTIFICATION
Tecalpulco is a traditional crafts-producing village
that was extremely successful in the 1980s
when the local artisans created the alpaca abalone
jewelry that became popular all over the world.
In the 1990s however, the markets disappeared,
and the local cottage industry was devastated.
About 1990, a group of rural women joined together
to try and organize a Cooperative to defend themselves
and they worked informally together for ten years.
In 2000, Artcamp was legally constituted
As Producer Cooperative. Handcrafts production
is how the women of Artcamp try to make a success
and secure a renewed future for their young children
PROJECT OBJECTIVES
The Project Objectives are to establish a functional,
Mutually profitable relationship
between Artcamp and USA and European Retailers.
The Project Goal is to demonstrate
a practical and effective model
Of Artisan-Owned Direct Distribution.
Artcamp will market, collect payments,
administrate and fulfill orders;
effectively executing the additional function
of factory-to-your-door Direct Distributor
The Project is completed with the publication
of an Artisan-Owned Direct Distribution Model Manual
in the Spanish language for the benefit of other
Producer Groups in the Third World.
INFORMATION TECHNOLOGY
1 Communications via E/mail and Internet Based Telephone
conducted via a satellite connection.
2. Artcamp website www.artcamp.com.mx
Serves as a stable address and location
where potential customers can find Artcamp
and a reference point for prospects
who are interested in learning more
about the company and its products
3. CDROM Catalog
A convenient format for presenting
Artcamp’s extensive product lines.
4. Data Base Data base development project
Objective: to fully integrate
the Production Process
with the Fulfillment Function
Much data has already been collected on Excel spreadsheets;
it will hardly be starting from scratch to build the Data Base.
PROJECT BENEFICIARIES
The community of Tecalpulco is the beneficiary.
This project revitalizes the cottage craft industry
that economically sustains families in the community.
In 2002 Artcamp organized the donation of valuable Medical Equipment
to the local Public Hospital getting DHL to fly it in from Ohio, to Taxco.
Artcamp works with the village water commission of Tecalpulco on projects
to relieve the severe dry season conditions by tapping new fresh water sources.
Anything that makes Artcamp stronger,
immediately benefits the local community
of Tecalpulco and the other local villages
which can observe and learn from Tecalpulco’s example.
PROJECT SUSTAINABILITY
The Artcamp Cooperative is a creative and a productive element;
Mexico needs models of ways to exit from this devastating Crisis.
The key strength of this situation is that the women are Producers;
they transform raw materials with handskilled labor into Products.
Once they have been connected to the Market on the level of Retailers
and Individual Customers, Fundraising Schools, Teams, Clubs, etc,
the Producer Cooperative readily sustains itself by way of Product Sales
Product Sales are all it takes to have this project be fully sustainable;
this orientation will insure that growth is always along solid ground.
PROJECT METHODOLOGY
Data base development (60 days) (90 days)
Shelving, Parts bins, Shipping Materials, Desk, Tables, Terminal
Produce to Stock - Inventory
Artcamp Website captures Prospects and Customers
Outbound Marketing as needed.
This Artisan-Owned Direct Distribution Model Plan
transcends the limits of Artcamp’s normal business.
By selling and shipping directly to Retailers in the USA,
Artcamp is learning the best ways to perform this process.
As capital becomes available for investment, Artcamp invests
it into 1. Data Base development 2 Shippable Inventory Stock
DATA BASE
Much of the data is already on the daily-updated Excel spreadsheets
that are routinely employed at Artcamp to track production progress.
Probably the entire data-base building process can be accomplished
In six weeks, if everything goes smoothly. So say, 2-3 months for it.
INVENTORY IN STOCK
Shelves, parts bins, secure cupboards,
postal scale, desk, lamp, table, chairs...
An inventory list is proposed;
the list of produce-to-stock is reviewed.
The critical quantitative measure
is to improve velocity of stock turns.
Best-selling pieces are produced to stock;
some pieces are held semi finished in stock.
Some pieces are waiting to see which gem to glue in;
some pieces will be made entirely from the start.
MARKETING
Trade magazine advertising for dealers in fashion products;
Pay-per-click advertising to drive traffic to the website.
Outbound telemarketer calls stores in sweetvoiced
broken English establishing new accounts with Fair Traders
Incoming order processing is real time test against which
Data Base is designed; its all happening at the same time.
On the Color Laser Copier, gorgeous sell-sheets are being printed;
These catalog pages are sent out by mail to new prospects
Customers use the sell sheets to take orders from their own customers.
TIMETABLE
Data base development (60 days) (90 days)
Shelving, Parts bins, Shipping Materials, Desk, Tables, Terminal
(as $$$$ permit)
Produce to Stock – Inventory (as $$$ permit)
Artcamp Website captures Prospects and Customers
Outbound Marketing as needed. (the $$$$ come back)
Within three months the process is fully underway and functioning.
PROJECT OUTPUTS
The Direct Distribution system achieves optimally efficiency
when the Producer Group ships at least 50 packages a week.
The shipments are of average value $200usd, the product is
handcrafted fashion jewelry, candle-holders, and giftware
This amount gets DHL’s best rate for international delivery.
The first objective of the Project is to ship 50 packages/week
MONITORING AND EVALUATION
Artcamp was audited for 2001 by Fair Trade Assistance,
part of Fair Trade Organizatie of Holland
The results of that FTA report demonstrate
the financial starting point of the Artcamp Cooperative.
The results of the Artisan-Owned Direct Distribution Model project
will be measurable in two ways
1. in the number of good jobs available,
2. in improving real income of the artisan producer families.
PROJECT SCALABILITY AND REPRODUCEABILITY
The principle objective of the Artisan-Owned Direct Distribution Project
is to demonstrate a model of a practical and efficient
of jumping-over Importer/Distributors by selling directly to the Retailers.
The Project is not complete
until a Manual has been published in the Spanish language;
the idea is to make the method available
to Producer Groups all around Ibero-America.
PROJECT STAFFING
1 Data Base Builder – she is to be a woman from Tecalpulco,
Leticia Serrano Garcia.
The village women
have proven to be very quick and competent on the computer.
Leti learned Excel when she was 15,
now she is 22 washing dishes in Phoenix Arizona.
Once the data base has been built
Leticia will maintain the system
and perform data entry functions.
2. Stock and Shipping person –
she is to woman from Tecalpulco, Rocio Corral Rosales
her job will be
to stock and count and sort and record and pick and package and shipping.
Twenty years ago Rosi was the village town clerk
for executing birth and marriage documentation.
Today she has two children, no husband,
she lives with her old mother and pa in Tecalpulco.
In the plan, Rocio handles physical aspect of the fulfillment process,
working from reports
that are generated from the database
as to what is required to complete the various orders.
3. Erasto Hernandez Toribio – he is a man from the village of Landa;
his job is to maintain the integrity of the computers network
and to make certain that it works right.
As systems manager, Erasto oversees the hardware and software,
back-ups and security.
Erasto will also train a campesina worker to make images,
then how to arm webpages.
Customer Contact Person –
This will be a woman with English language skills whose job
Will be to respond to inquiries, telephone calls, broadcast emails, and tele-market outbound.
Not only a few women know English in Taxco
as it is an international city. Some village women have lived in the USA
like Leti and her sister Martha have been there three years.
PARTNERSHIPS
Artcamp as a producer cooperative
could ally with other Producer groups in IberoAemrica
by sharing its experience and methods,
Artcamp could become a role model of success.
By providing a Manual
and a proven working method and format for communications,
The Artisan-Owned Direct Distribution Model Project
will have created giant benefits.
This is the most attractive area of possibility for Partnerships –
with other Artisan Groups,
where not only marketing methods may be shared,
but also cooperation in technical areas.
Good possibilities exist for Partnerships
between Artcamp and the Fair Trade Retailers;
these stores trade on the benefits to,
and relationship with, the Producer communities.
An association of Fair Trade Retailer customers of Artcamp
to further the Artcamp brand
and combine ideas and experience regarding FAQ,
point-of-purchase display, and bestsellers.
CURRENT SOUCE OF FUNDS
Sales of handcrafted jewelry merchandise
to commercial Importer/Distributor customers
and to a few Fair Trade Retail Stores
POSSIBLE BENEFITS FROM FUNDER/PARTNER
It could advance Artisan-Owned Distribution
It could be help in refining this presentation.
It could be a source of computer equipment.
It could be introduction to market connections
It could connect grant funding or loan guarantee
It could be a source of good publicity
It could be the source of good advice
It could be the source of a good idea
It could be the source of good will and friendship
IMPACT
In the 1980s when Tecalpulco was very successful
with the alpaca abalone shell jewelry it had created,
hundreds of sources of employment were generated.
Tecalpulco was then the supplier of fashion goods
that went all over the world, and this AODD project
is the honest effort to create another success like that.
With the cottage industry revival the AODD Project furthers
- at least 200 families will gain their primary livelihood.
SPONSORING GROUPS
1.
Global Marketplace, non profit corporation
Chartered to serve artisans in the Third World
Gary Bond, founder of USA Fair Trade Federation,
Runs an Internet website to market 3World products
2.
Artisan-Owned Direct Distribution Model International Committee (AODDMIC)
Melissa Hand, Fair Trade designer and social worker
With a history of involvement in Fair Trade sector
Anthony Lopresti, Fair Trade businessman and student
Of the Fair Trade ideal as well as fair trade in practive.
Melanie Grimes, Fair Trade Retailer, on the Board
of Directors of the Fair Trade Federation, and a
special interest and involvement in LatinAmerican arts