Evaluation of Procurement Objectives (RUTF bid 2013)

RUTF Industry Consultation, 2 July 2015

Jan KomrskaUNICEF Supply Division

RUTF Bidding Overview

Year of issue 2001 2006 2008 2010 2012 2013

ITB/RFP

Reference

16012 500418 500890 501480 501715

Invitees 1 16 31 31 29

Response 1 13 27 23 25

LTAs Established 1 1 7 14 11 13

Procurement Objectives

• Long term:– Achieve affordability and local availability of

Ready-to-use Therapeutic Food.

• Bid objectives:– Identify reliable supplier base capable to respond

to growing demand at competitive price.

– Support development of sustainable supplier base in programmatic countries.

– Support 2014 – 2017 OMP objective to source 50% of RUTF from manufacturers located in programmatic countries by 2017.

RUTF Procurement

• Supply Division Procurement

• Country Office Procurement

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Quantities (MT) and Ordering Countries

By Country Offices By Supply Division

Bid Accuracy Rate

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2009 2010 2011 2012 2013 2014 May-15

Forecasted and Ordered Quantities of RUTF

Orders Forecast

Bid Accuracy Rate

Type of purchase

Bid Forecast

(MT)Orders (MT) %

Off Shore 20,500 20,821 102%

Local 7,500 8,164 109%

TOTAL 28,000 28,986 104%

Type of purchase

Bid Forecast

(MT)Orders (MT) %

Off Shore 22,000 30,422 138%

Local 10,000 3,144 31%

TOTAL 32,000 33,566 105%

Type of purchase

Bid Forecast

(MT)Orders (MT) %

Off Shore 24,500 24,307 99%

Local 10,500 6,134 58%

TOTAL 35,000 30,441 87%

Monthly RUTF Orders

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

RUTF Orders Annual Trend Analysis

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 average

Objective 1a: Reliable supplier base

Result: Number of companies capable tomanufacture and supply RUTF for a global markethas increased from 11 in 2013 to 13 in 2014/15.

Before 2008 2009 - 2010 2011 - 2012 2013 2014 2015

Africa 2 5 4 6 6

Americas 3 5 4 4 4

Asia 1 2 2 2 2

Europe 1 1 2 1 1 1

TOTAL 1 7 14 11 13 13

RUTF Long Term Arrangements - Supply Division

2015 RUTF Sources

Location 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Africa 1 2 2 7 9 10 13 11 10

Americas 1 3 3 5 6 5 4

Asia 1 2 2 2 2

Europe 1 1 1 1 1 1 2 1 1 1

Total 1 2 3 4 11 14 19 22 19 17

Original Bid Volume Distribution

23,500 MT distributed / 1,000 MT – free for distribution10,500 MT for local supply

Bid Quantity: 35,000 MT

Nutriset, France

Mana Nutritive, USA

Tabatchnick, USA

Diva, South Africa

Compact, India

Insta Products, Kenya

Edesia, USA

Nutrivita Foods, India

Societe JB, Madagascar

Power Foods, Tanzania

Hilina, Ethiopia

Samil Ind., Sudan

Meds for Kids, Haiti

Adjusted Bid Volume Distribution

26,000 MT distributed

Nutriset, FranceDiva, South AfricaMana Nutritive, USATabatchnick, USACompact, IndiaInsta Products, KenyaEdesia, USANutrivita Foods, IndiaSociete JB, MadagascarSTA, NigerHilina, EthiopiaSamil Ind., SudanMeds for Kids, Haiti

Production Capacity Development

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Before 2008 2009-2010 2011-2012 2013

RUTF production capacity in MT

Africa Americas Asia Europe

MT

Procurement by Vendor Type

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 May-15

RUTF Procurement by Vendor Type

Nutriset, France Nutriset Franchisees Generic Suppliers

Vendors by Location

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

RUTF Orders by Origin of Manufacturer

Africa America Asia Europe

MT

Reliable Supplier Base = Well Performing Supplies

0%

20%

40%

60%

80%

100%

120%

2012 2013 2014 2015

Timeliness on PO Agreed Delivery

Compact Diva Edesia Insta Mana

Nutriset Nutrivita Societe JB Tabatchnick

Objective 1b: Competitive priceWAP 2010 2011 2012 2013 2014 May 2015

SD orders 49.94 50.51 48.16 48.84 49.45 44.37

Local orders 59.56 57.32 54.08 57.06 56.84 50.31

49.94 50.51 48.16 48.84 49.45

44.37

59.56 57.32

54.08

57.06 56.84

50.31

2010 2011 2012 2013 2014 MAY-15

Price per carton in USD

Objective 2: Supplier base in programmatic countries

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 May-15

Orders by Vendor Location

Non Programme Programme

Objective 3: Sourcing RUTF in Programmatic Countries

Exports from Programmatic Countries

SOUTH AFRICA

INDIA

MADAGASCAR

NIGER

SUDAN

HAITI

KENYA

DOM REPUBLIC

5,600 MT of RUTF was manufactured and exported from programmatic countries in 2014

Conclusion

• Procurement objectives of 2013 bid were partially achieved (LTAs are still on-going)

• Areas for future work:

– Performance (including local orders!)

– Lead times/prepositioning

– Batch release, PDI, testing, packing list

– Carton strength/container loading

– Supplier base development in countries of interest to UNICEF

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000Top 15 Ordering countries

2012 2013 2014 May-15

cartons

Priority countries

• Thank you!