As a means to support the broad and deep development of the transport and logistics sector in Georgia and to introduce state-of-the-art training, knowledge, technology and best practices from around the world, the USAID Economic Prosperity Initiative is supporting the establishment of the very first Supply Chain Council (SCC) regional chapter in Georgia for the Caucasus and Central Asia. Chapter establishment will be transformational in the development of the transport and logistics sector in Georgia, while embracing the goals of the Government of Georgia to turn Georgia into a regional logistics hub. As a result Georgia will become more connected into regional supply chains that span from Central Asia to the Middle East and Europe.
Background
The Economic Prosperity Initiative is supporting the competitiveness of agricultural, manufacturing and service value chains in part by supporting cross-cutting areas that can have a real and immediate impact on the competitiveness of Georgia’s private sector. One such area is the Georgian transportation and logistics sector. The objective of this consultancy was to initiate the establishment of a Supply Chain Council (SCC) Chapter in Georgia for the Caucasus and Central Asia which will deliver access to the SCC’s global network of members in addition to state-of-the-art training and transfer of knowledge, technology and best practices from around the world. The result can be near immediate improvements in efficiencies that will enable those Georgian companies that adopt these practices and techniques to demonstrate more competence and reliability to potential international buyers, investors, and partners.
This report is presented in six main sections below. The first section provides a background on the current transportation and logistics situation in Georgia laying the basis for the need to establish a Chapter of the SCC. This is followed by the methodology used to prepare this report. The next sections present the findings including the transportation and logistics support structure in Georgia and detailed discussion on establishing the Caucasus Chapter of the SCC. A report on the Istanbul Logitrans Exhibition is included, which the EPI team visited, and finally the recommended next steps in establishing the Chapter and further strengthening the transport and logistics sector in Georgia, making the country a key link in
the development of the Caucasus Trade Corridor.
Georgia’s growing transportation and logistics sector has been developing despite the challenging economic conditions in the region and across the globe. Continued growth for Georgian companies will require interaction with global players along with further development and strengthening of the foundations within the logistics structures in Georgia. Policies and approaches that directly target improved international transit and logistic connections and the international flow of goods into and out of Georgia can contribute significantly to enhancing the international ‘connectedness’ of Georgian supply chains leading to hastened economic growth.
Establishing the Supply Chain Council (SCC) presence in Georgia, closely followed by the introduction of the Supply Chain Operations Reference (SCOR) will be transformational in the development of supply chains through Georgia, while providing a platform from which to connect to international supply chains and markets for Georgian producers, transporters and logistics service providers. The SCC is the world’s leading trade group focusing on transforming and advancing state-of-the-art supply chain management systems and practices. The global reach of its membership, many of them major corporations, institutes and key government agencies makes the SCC an ideal partner in supporting Georgia’s aspirations of becoming a vital regional logistics hub and corridor. The SCC is recognized by the US Government as a leader in advancing best practices in supply chain and logistics management around the world and the U.S. Department of Defense claims tens of billions in savings from partnering with the SCC in introducing the concepts of the SCOR approach.