Short Term Consultant – Retail B2B Digital Payments and Distribution Chain Finance Vacancy Announcement e-MITRA

URGENTLY REQUIRED

Short Term Consultant 

SCOPE OF WORK

Short Term Consultant – Retail B2B Digital Payments and Distribution Chain Finance

Project Background: 

GBI is an alliance between USAID and NetHope dedicated to advancing the deployment and use of broadband communications networks, including enhanced mobile networks. GBI works to leverage the extension of such networks for delivery of network-enabled support across USAID’s development portfolio, including Mobile Financial Services (MFS). As part of GBI’s work, NetHope has been selected to staff and manage a MFS implementation Unit, e-MITRA, in Indonesia to help support further development of a robust MFS ecosystem. The program is designed to assist in the development of strategies that lead to the growth and scale of MFS platforms in Indonesia, provide concrete tools to create MFS strategies and, ultimately, help drive momentum for private sector offerings of economically viable MFS products and digital payments.  Innovations in payments are presenting opportunities to enhance the efficiency of supply and distribution chains in the retail sector of many emerging markets, particularly Indonesia. Large sections of retail are still dominated by small and informal shopkeepers without access to efficient payments infrastructure. To get consumer goods to the end consumer and collect payment, fast moving consumer goods (FMCG) firms have built sophisticated supply chains. But they are still frequently reliant on significant cash processing at the end of this chain. Replacing cash with electronic payment can help to reduce transaction costs, including fraud. Moreover, greater use of electronic payments can also improve cost effective access to other banking services such as credit, potentially increasing efficiency in the retail sector more broadly. Rising interest from FMCG firms comes at a time when private and public sector actors are also making efforts to increase adoption of electronic payments by consumers and households. The extension of payment networks is increasingly seen as an important means to extend broader access to finance.  The payment needs of the informal supply chains match well to the electronic banking and payment solutions now possible thanks to the increasing adoption of information and communication technologies, notably mobile phones. 

The direct benefits to retailers and their suppliers are clear:

• Less cash in the system and costs of its management

• Less exposure to theft

• Opportunity to optimize turnover management

• Linking mobile payments to order-entry and inventory management 

In the longer term, the indirect benefits hold even greater promise. Through data that can be derived from electronic transactions, retailers and the supporting supply chain can benefit from:

• Building a form of credibility to gain access to credit or factoring solutions

• Clearer and faster market demand knowledge for manufacturers and wholesalers

• Optimizing distribution shipping loads and routes

• Making transparent the organic/informal supply chains in order to leverage existing networks instead of expensive task of replacing

 • Introduce loyalty/incentive mechanisms to drive electronic payment adoption among entirely new consumer set 

All of these benefits can be made possible by unlocking the wealth of data in these informal supply chains and transactions. In spite of these benefits, there are few examples of a comprehensive product offering for retailers that have been tested in the market. This assignment proposes to develop such a product offering and furthermore, to test the product offering through a pilot.  

To date, e-MITRA in cooperation with IFC and other private organizations have developed foundations on which to begin operational implementation of two work-streams to support: 

Retail B2B digital payments 

Distribution chain finance 

A strategy and business case approach has been developed. A survey of small retailers has been conducted, providing empirical insight into the management and financial profile and behavior of small retailers. And an implementation approach has been developed and shared with stakeholders for the two work streams. 

The project is now entering a phase of implementation for which for appropriate technical and project management support is required. e-MITRA is seeking a consultant to provide project management support.

Project Objectives:

The next phase of the project will focus on a specific scope of work for two program components: 

1. The Retail B2B Digital Payments Market Practice Group  This working group will be formalized through an appropriate Charter and an organizational and executional body (Program Management Office) established to support the Retail B2B Payments Market Practice Group (Practice Group). The first task of the Group will be to finalize and begin implementation of the work-plan for the initial phase of design work.  

2. Retail Distribution Chain Finance Within the scope of this Scope of Work, the consultant will develop relationships with selected distribution partners to evaluate the feasibility of developing credit scoring based on their data on retailers and on this basis develop an appropriate model for improved lending facilities to small retailers. 

The elements of the project encompassed by this Scope of Work are expected to run from April 1, 2014 to July 31, 2014. By the end of this phase, the project should have achieved the following key results indicated below:  

• Payments Work stream
• Practice Group charter established and signed by at least 6 primary members as well as at least 5 observer members
• Practice Group work-plan developed and approved for Phase 1 
• Resources procured and detail planning and project management established for the scope of work to be executed on behalf of the Practice Group; initial work within this plan initiated.
• Formal role and funding for the project and its Project Management Office defined and confirmed o Legal agreement between members and sponsoring organizations1 established. 
• Retail Distribution Chain Finance Work stream
• Agreement signed with at least 2 distributors for provision of technical assistance and within the framework of this work stream’s objectives
• Evaluation of at least 2 distributors’ retailer data conducted and recommendations for next step formulated
• Formalised approach and methodology defined for evaluation of distributor data
• Business case and business model assessment and proposal for next steps 

Activities:

The project requires the support of an experienced consultant with appropriate technical knowledge, relationship and management skills as well as project implementation experience.

The Consultant will conduct the following activities:

• Payments
• Develop detailed objectives and work-plan, organization and resources for first phase of work proposed to the Practice Group
• Develop terms of reference for support from appropriate external experts
• Support e-MITRA and its collaborators in securing members to the Practice Group and their sign-off to the Practice Group’s Charter. 
• Retail Distribution Chain Finance
• Support e-MITRA and its collaborators in securing agreements with distributors for credit scoring feasibility study
• Define framework and work-plan for the feasibility study with selected distributors
• Support e-MITRA and its collaborators in procuring and managing additional resources required for data review, analysis and scoring model recommendations
• Define next steps work-plan, resources and budget for potential pilot development
• Sponsoring members refers the bodies that will provide initial structure for the Project Management Office or any other proxy institution deemed appropriate. This is expected to be USAID/e-MITRA, IFC, and combination of associated development partners

Deliverables:

The Consultant will be responsible for final deliverables for this project that will include:

1. Signed Practice Group Charter and Work-plan

2. Detailed Terms of Reference and update on execution for the Practice Group of Phase 1 work scope 3. Feasibility study report for credit scoring with distributors

4. Report on potential business and operating models for implementation of credit scoring and retail distribution chain finance 5. Proposal for credit scoring pilot development and implementation plan agreed upon with selected distributors 

Timeframe:

The work should begin as soon as the Consultant is contracted. It is expected that the phase of work outlined within these Scope of Work will extend from April 30th to July 31, 2014. The level of effort for this assignment is a maximum of 50 business days and the assignment must be completed during the period outlined above.  It is expected the Consultant will perform the work in Indonesia for at least 20 business days.       

Consultant’s Qualifications:

The Consultant should have the following qualifications:

• Extensive experience with product development and piloting e/m-banking products.

• Experience working with financial institutions, Telcos, fast-moving consumer goods (FMCG) distributors and payment service providers.

• Experience with operational aspects of delivering e/m-banking products to a largely unbanked population.

• Strong analytical skills and ability to transform research into understandable results that can impact business decisions.  

• Demonstrated capability in conducting high quality program analysis in the area of m- banking and/or mobile payments.

• The consultant must demonstrate their ability and willingness to respond to questions/feedback/ comments on the study design and plan in a timely manner- including the ability to meet tight deadlines. 

• Interested consultants should provide information on their core expertise and years in business. Preference would be given to individuals having prior experience in doing similar assignments.

• Familiarity with USAID and World Bank Group and its range of products and services.

• Working knowledge with Indonesian market and major stake

How to Apply :  

If you believe you are the consultant candidate we are looking for please submit your  CV/Resume to: Afandy.Djauhari@Nethope.org and stated : Sort Term Consultant  on the subject of your email. 

Latest date for application will be on 28 April 2014 

Only short-listed candidates will be contacted.