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Supply Chain Improvement Plan

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

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Supply Chain Improvement Plan

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  1. Supply Chain Improvement Plan

  2. 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

  3. 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.

  4. We need to improve

  5. Why 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

  6. 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.

  7. 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)

  8. Project # 1Supply 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

  9. Project # 2Inventory & 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

  10. Project # 3Commodity 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

  11. Project # 4Relief 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

  12. Project # 5Access 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

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