The globalization of companies and supply chain management over the past two decades has brought various benefits to the business community and redefined its role within the global economy. Indeed, as leading companies have ventured overseas, many such as Cisco, Procter & Gamble, and Merck have reported to CGI that their operations can often help address global challenges in the fields of health care, education, and poverty, among others, while also building new, profitable markets. However, without the right strategy, corporations can also encounter numerous challenges when attempting to globalize their businesses. For instance, extended shipping times, extreme weather conditions, local customs, and a lack of general experience in developing countries can all reduce the productivity of some businesses and limit their potential to have a positive influence on poor communities.
To help companies ensure success of their operations abroad, AMR Research, a leading research organization in this field and CGI member, has been helping companies worldwide strategically craft their supply chain management approach by providing key advisory services. In doing this work, AMR Research has identified the need to develop a blueprint for such companies to better prepare them for their work in emerging markets, as well as to expose them to best practices and common challenges encountered by companies with extensive experience in such contexts.
“We found that Fortune 500 companies want to see and understand the experiences others have gone through before they will commit to their own initiatives in developing countries,” states Tony Friscia, president and chief executive officer of AMR Research. “This was a recurring theme among our discussions with members of the Clinton Global Initiative (CGI), of whom a majority expressed a desire to have access to a set of best practice case studies that would support their efforts in the field and ability to learn from each other.” To address this need, AMR Research made a CGI commitment in 2008 to build a repository of case studies that would highlight best practices across CGI’s portfolio of commitments and also among AMR Research’s broad network of clients. These studies draw on the vast experience of AMR Research’s members and will build a new library of resources for organizations implementing development initiatives worldwide.
CGI recently had the opportunity to interview Tony Friscia to learn more about this commitment.
Q. Why is AMR Research engaging in this commitment?
Three years ago, AMR Research committed to improve opportunities for local cooperative farmers in Africa and Asia by connecting them with multinational companies looking to source goods from these regions. However, we ran into several obstacles while trying to implement this project when dealing with local customs and intermediaries and when trying to get a high enough volume of products from local farmers to serve the needs of these companies. As a result of this experience and our multiple conversations with CGI members, we found that a large number of other corporations seeking to make a difference in developing countries were running into similar issues. Since the foundation of our business is to help companies solve these types of problems, we sought to leverage our research expertise and document the best practices of those who have done this type of work in developing countries, and have figured out ways to improve their bottom lines while making a positive difference in emerging economies.
Q. What will these case studies focus on?
The case studies will identify specific challenges encountered by CGI members and other companies we have worked with when implementing their commitments and initiatives, and the actions they have taken to overcome these and meet project goals. They will therefore highlight the diverse approaches these organizations have taken to address global challenges, as well as best practices and lessons learned. We will try to pull out common themes from these cases that all CGI members and external audiences can learn from.
Q. What criteria did you use to select the CGI commitments for this project?
Our expertise lies in the fields of supply chain management, technology, and skills required for operations excellence. Since many of CGI members’ commitments are often associated with a supply chain element (getting goods or services to those in need), this was a logical project for us to focus on. Moreover, we’ve also aimed to focus on the work of pertinent non-corporate CGI commitments through these case studies. In fact, we are finding that some of the biggest lessons learned are coming from the nonprofit sector. We’ve talked to many nonprofits such as the Drishtee Foundation, which is doing extraordinary work with very little resources. It’s currently providing goods and services to nearly 700 million people living in rural India. Meanwhile, we’re also focusing on corporate commitments such as Merck’s current work in Nicaragua to vaccinate children against the deadly rotavirus.
Q. How will CGI members benefit from this commitment?
Our experience as a research company has shown us that, despite our differences, we all share some common experiences. Whether it’s a nonprofit like the Global FoodBanking Network, which is trying to replicate the local foodbanking model globally, or a giant company like Procter & Gamble trying to bring clean water to the rural poor in Uganda, the basic supply chain challenges are the same. By documenting and highlighting how to overcome these challenges, we hope we can open doors for many more organizations, governments, and companies to make commitments and do well in the world. We also hope that these case studies will change past perceptions and jaded views about the role of the corporate sector in development, and shed light on the potential positive impact strategic and effective public-private partnerships can have in developing countries.
To learn more about the work from AMR Research, click here.
