Feed the Future Bangladesh Aquaculture Activity (BAA) is a five-year project of USAID to intend to improve nutrition through growth in the aquaculture sector growth. BAA works in 21 districts of southwestern Bangladesh and two districts in the southeast.
Fish feed is the largest cost item for most pond-based fish farms at 70-80 percent of variable costs. This means there is a large supply chain which brings feed from the producers to the farms. This supply chain is very inefficient, and this inefficiency results in both higher prices to the farmers and lower profits for the suppliers.
Operational management of the chain is a major challenge for feed companies largely due to the lack of ‘Information Integration’ as sales and distribution information is not linked. That is, inventory levels and sales reports are not brought together in a way that makes re-ordering feed efficient.
Stock at retail outlets is either too high or too low, and production runs do not sync with orders. A sort of 'bull whip effect' takes hold as producers and sellers swing from surplus to shortage. Producer profits suffer as production capacity is under-utilized, and retailers and farmers can run out of feed.
A system to connect sales information, inventory levels, and production schedules would solve these problems. A near-time or just-in-time system is possible with a digital supply management platform which connects dealers and the producer and provides real-time information on orders, inventory, and sales.
BAA is looking for a private organization or feed company with the willingness and vision to establish and test a digital feed operation management system.
The partner selected will develop and launch a digital operation management system to track inventory and sales in a test market area.
- Detailed plan of a digital supply management system and its operation
- Copies of MOUs signed with IT and other partners and suppliers
- Regular financial and narrative reports
Who can apply?
Only qualified applicants should apply. "Qualified" means an established company with a track record in fish feed production and good market share with an efficient distribution network. You must have a strong information technology unit or partner to implement this activity listed in your proposal.
Applicants should understand that this is not an offer to hire their services, but rather this is intended to be a partnership. This means that
(A) at least a minimum 50% cost-sharing will be an important consideration in making this award, and
(B) this activity is intended to be the catalyst for continued work of this without additional support.
If selected for the grant, the partner will be required to show:
- A certificate of incorporation (for individual companies, a trade license);
- Joint-stock registration certificate (if applicable);
- An organizational organogram of key personnel, inclusive of the names of such personnel;
- Tax Identification Number (TIN);
- VAT registration number;
- Proof of a segregated account (providing the name and address of such an account);
- Other valid papers (provided by government institutions).
- The consulting firm must bear all annual income tax (AIT).
- The percentage of VAT and the total amount of VAT should be mentioned in the proposal.