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Supply Chain Improvement Plan. Supply chain costs constitute about 80% of emergency expenses. Total Spent in FY2006 = $ 646 Millions (CARE USA) Supply chain constitutes about 60-80% of the emergency programs costs. Warehousing Staffing Transportation Relief supplies. Food - PowerPoint PPT Presentation
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Supply Chain Improvement Plan
Supply chain costs constitute about 80% of emergency expenses
• Total Spent in FY2006 = $ 646 Millions (CARE USA)
• Supply chain constitutes about 60-80% of the emergency programs costs.
-Warehousing
-Staffing
-Transportation
-Relief supplies
-Food
-Gifts-in-kind (GIK)
-Equipment$102 - 136M
Our Challenges
● Generally ad hoc operations with a “separate” supply chain operation for each response,
• No standardized systems & tools,
• Lack of supply chain visibility,
• Inadequate monitoring & oversight of operations.
We need to improve
Why CARE Approached UPSWhy CARE Approached UPS• Atlanta based Organization
• Logistics - Core business
• Global Operations
• Significant warehousing and transport asset
• Has been supporting CARE’s emergency operations for past few years
• Interested in humanitarian aid support UPS Foundation communicated its intention to evaluate appropriate support in supply chain and logistics capability
UPS Exploration
• Visited 3 CARE country offices to see operations & realize challenges,
• Interviewed 4 Country Directors to understand field needs,
• Interacted with emergency staffs during Bangkok workshop.
Recommendations
• A set of 24 small and big projects to be introduced in a phased manner
• Priority I – 5 Critical projects (immediate implementation)
• Priority II – To be introduced in the medium term (12 to 18 months)
• Priority III – To be introduced in the longer term (18 to 24+ months)
Project # 1Supply Chain UnitSupply Chain Unit
Objective:
To be responsible for all supply chain business processes and tools & their continuous improvements by providing oversight and monitoring to ensure compliance and accountability.
Approach –• Review other SCM model• Define unit structure/plan• Define resource reqmt.• Mobilize & implement
Benefits –• Strong logs. Capability• Standard processes• Improved response
Project # 2Inventory & Warehouse Mgmt.Inventory & Warehouse Mgmt.
Objective:
To define in-bound and out-bound logistical processes while standardizing all warehouse and inventory management practices.
Approach –• Storage guidelines• Warehouse layout plan• Inv. Mgmt. procedures• In & Out bound processes• Training materials
Benefits –• Consistent procedures• Improved inventory and
warehouse management
Project # 3Commodity Tracking SystemCommodity Tracking System
Objective:
To provide accountability and visibility of all commodities and support efficient management of supply chain operations
Approach –• Gather requirements• Identify system• Customize system• Pilot system• Train & roll out
Benefits –
• Global visibility
• Improved accountability
• Systematic tracking of commodity transactions
Project # 4Relief Supply Pre-positioningRelief Supply Pre-positioning
Objective:
To leverage strategic partnerships to mobilize resources for timely and effective emergency responses
Approach –• GIK policy• Relief supply catalog• Strategic partnerships• Source/Mobilize and pre-
position relief supplies
Benefits –• Increased response speed• Improved supply quality• Cost effective
Project # 5Access to partner resourcesAccess to partner resources
Objective:
To enhance preparedness and capability to respond to emergencies using strategic alliance partner logistic spare capacities
Approach –
• Map partner spare capacities
• Develop partners’ operational protocol
• Establish CARE protocol to access partner’s resources
Benefits –• Increased warehouse and transport capacity• Improved responsiveness• Broadened logistic scope