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Supply chain optimisation The demand for supplies to support programmes for children is at unprecedented levels. Increased international funding is being made available to help countries achieve the MDGs, new products are being developed to more effectively achieve results for children, and dynamic partnerships and innovative approaches are tackling market issues to help achieve improved value for money and sustainability, and to meet demand.
As programmes scale up and focus more acutely on reaching unreached children and communities, the complexity and weakness of a variety of supply chains become more apparent. Overcoming the inherent challenges that multiple products, a range of partners, different demand patterns and varied localised contexts present is difficult. It involves not only efforts to improve individual supply chain sectors, but also the interplay between each so as to mitigate bottlenecks and supply barriers. UNICEF’s efforts related to overall supply chain improvement are managed through three strategic components: optimising UNICEF’s supply chains, optimising supply chain interfaces between governments, partners and UNICEF, and capacity development and professionalisation of the supply chain.
Although supply chains vary according to the commodity group, the main segments of each supply chain are described below:
Definition of need Working with governments to design programmes and identify which supplies are needed and in what quantities
4 Supply Annual Report 2012
Budgeting & planning Identifying the amount and timing of the required budget and funding sources, and scheduling orders to ensure supplies arrive when and where needed
Procurement Buying the right products at the right price and quality via detailed specifications, competitive tendering, smart contracting and innovative funding mechanisms
Delivery & clearance Arranging transportation from UNICEF warehouses or direct from suppliers to the port-of-entry and customs clearance