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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

SUMMARY OF PROPOSAL

Women’s Artisans Cooperative, Artcamp SC de RL
producers of handcrafted fashion jewelry products ,
proposes to establish own Distribution Company
to sell directly to Retailers in the USA and Europe.

WHAT PROBLEM DOES IT SOLVE?

The craftspeople of Tecalpulco sell to Distributors
Who mark-up the price by two or 2 and a half times
when re-selling it to their customers, the Retailers.

By being its own Distributor, the Producer Group
will earn a MUCH better profit margin,
at the same time offering better prices to Retailers.

HOW ARE UNDERPRIVILEGED
PERSONS ADVANTAGED?

Hundreds of village boys and men
have departed for the United States
to work as wetback laborers.

Women now have to get money
As well as raise the children,
Cook, wash clothes, and clean the house.

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 optimum ship level is achieved.

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 Magazine 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 a working model of 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 it.

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 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 other villages observing and learning 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.

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 semi-finished, wait to see which stone to set;
some pieces will be produced entirely from the start.

MARKETING

Trade magazine advertising for dealers in fashion products;
Pay-per-click advertising to drive traffic to Artcamp website.

Outbound telemarketer señoritas calling stores, establishing
accounts with Latino USA Retailers. Wise band satellite link.

Incoming order processing is real time test against which
Data Base is designed; its all happening at the same time.
Just have to set Data Base to actual production going on.

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.

We wish that were true, but they hired a 23-year old accountant from Cuernavaca to do the job, and
He botched it, still we have that official report, our own financial reports for 2001, and the receipts.

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.


PARTNERSHIPS

GlobalMarketplace is a 501c non-profit corporation charitable and education
based in Rockland California and chartered to assist Latinamerican artisans.

Artcamp as a producer cooperative is allied with Producer groups in Mexico,
by sharing its experience and methods, Artcamp becomes a 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, a founder of USA Fair Trade Federation,
Runs an Internet website to market 3World products
GlobalMarketplace which is a 501c non-profit corp.

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 Retailing

Anthony Lopresti, Fair Trade businessman and student
Of the Fair Trade ideal as well as fair trade in practise.