ASIA FAIR TRADE FORUM

Financial Planning and Management Information Programme

Asia Fair Trade Forum (AFTF)

Start: 2001

Field of action: across Asia, Bangladesh, China, India, Nepal, Philippines, Indonesia, Sri Lanka, Thailand and Vietnam

The requirement for more focused, region-specific capacity-building services – especially in light of the crisis in craft products – was the main motivator for the Asian IFAT members to start their own regional organization. The Asia Fair Trade Forum (AFTF) recognised that its members needed to strengthen their organizations in all areas of business skills if they wanted to emulate the success of their colleagues in the food sector. In particular, they would need to progressively enter the huge European mainstream gift and fashion accessories market. However, such an entry will only be successful through strengthening their organization and identifying new trade partners in the mainstream market. This move is motivated by the belief that the sales volume generated by the world shop network in Europe is simply too limited. In short, the South wants access to wider markets than world shops alone and needs the skills to gain this access.

Context

AFTF found the funding it needed to launch a programme using volunteer management consultants from the mainstream market. One of their general findings was that almost all the member businesses had an unhealthy degree of dependence on northern IFAT members and generally lacked the commercial skills to break out into additional markets by themselves. Southern fair traders have relatively little experience with the mainstream markets in the North since they sell mainly through the channel of world shops; as such, they have little experience in preparing full marketing plans and budgets.

Additionally, given this lack of relevant “performance data”, they were not equipped with the skills necessary to set meaningful objectives or individual or team performance targets.

These basic business processes are an integral part of creating a “performance culture” that is so necessary if one is to drive the business forward in an entrepreneurial manner (without harming any fair trade principle).

Trade is all about fostering independence, and giving real meaning to the words “Trade - not Aid”, the AFTF Board decided to take measures that would strengthen the commercial (and design) capacities of their members.” (Lawrence Watson, consultant to the Asia Fair Trade Forum)

Identifying business trends

In order to fill this gap, the support from the Fair Trade Centre consists of creating the teaching material and organization of a five-day residential workshop for the AFTF members’ Managing Directors and their Financial Managers. This workshop is followed by an implementation training session (targeting junior staff) in the relevant software and support. In this way, essential business processes can be created and implemented in member companies.

This programme was conceived by the volunteer consultant working with a principal member of the AFTF, assisting the organization with its own challenges in the area of financial management, and at the same time gaining the insights necessary to create a credible programme for the members.

The programme allows, for instance, for creating monthly sales data according to product range and to export customer, and for showing the evolution compared to the previous year and compared to the budget. Delivery performance (often criticised within fair trade companies) is tracked allowing “hotspots” to be identified early.

With this data, management will be able to observe promptly the evolution of their business and take remedial action in time. They will also be in a position to have meaningful discussions, based on accurate and timely data, with their management team, their existing partners in the North and their new partners on the mainstream markets, and to identify early on business trends, products and lines that are more profitable and popular. It is an essential tool for the successful management of a business.

“This is the first time I have attended a fair trade workshop where I actually learnt something – most are endless philosophical or political discussions about how to save the world. Here we had “hands-on” techniques to help us build a better business for the benefit of the producer groups for whom we work.” (AFTF-workshop participant)