Title: PLUMPY NUT (RUTF) Supply Chain ANALYSIS
1PLUMPY NUT (RUTF)Supply Chain ANALYSIS
-
- Jayashankar M. Swaminathan
Joint work with Wendell Gilland, Vidya Mani,
Corrina Moucheraud-Vickery and Anthony So
2Increasing Demand for RUTF (Plumpy Nut)
- The recent adoption of guidelines from WHO,
WFP, UNSCN and UNICEF that endorse the
introduction of these new products to reach
severely malnourished children through
community-based treatment approaches, - Rising food and fuel prices worldwide that are
increasing food insecurity and, consequently,
rates of malnutrition and - A myriad of local circumstancesin Kenya and
Somalia these include flooding, droughts and
civil unrestthat affect rates of malnutrition.
Photo Brandon Bannon
A Joint Statement by the World Health
Organization, the World Food Programme, the
United Nations System Standing Committee on
Nutrition and the United Nations Childrens Fund
(2007). Community-based Management ofSevere Acute
Malnutrition.
3Increasing UNICEF demand for RUTF
Table Steve Jarrett, UNICEF. 2008.
4Supply Chain of RUTF
Kenya-specific processes in green Somalia-specific
processes in purple
UNICEF CO
UNICEF ESARO
UNICEF SD
NGO partners
Ministry of Health
RUTF producer
Kuehne Nagel
Freight forwarder
Donors
Children
time
PLAN
PROCURE
PRODUCE
DELIVER
Kenya
Flow of RUTF
Somalia
Flow of information
Malnourished children
Flow of funds
5Supply Chain Challenges
- Challenge 1 Inefficient flow of information and
funds forces supply chain to be reactive, not
proactive - Forecasts are inconsistent in methods and quality
- Flow of money does not necessarily coincide with
need - Causes ordering of RUTF to be uneven
6Supply Chain Challenges
- Challenge 2 Long lead times and high variability
across the supply chain - Low production capacity, spikes in ordering and
lumpy demand make it hard to achieve consistent
lead times - Margin of error compounds at each delivery point
in supply chain, making it difficult to project
accurate lead times - High variability leads to low trust in the supply
chain
7Supply Chain Challenges
- Challenge 3 Mismatch between ordering amount and
actual need - Amounts ordered inconsistent with number of
children served - Scarcity of supply, uncertainty in targeted
arrival dates and limited fund flow make it hard
for COs to rely on the supply chain ? May lead to
orders being inflated.
8Supply Chain Challenges
- Challenge 4 Information systems and flows could
be improved - Backward information flow, including information
on handover and feedback on quality, is either
unavailable or nontransparent - Exception handling capabilities not present
- Information may be inconsistent
9Supply Chain Challenges
- Challenge 5 The future of RUTF demand is
uncertain - RUTF demand will vary depending on level of long
term success and with short term spikes in demand
due to local crises.
10Current and Future Work
- Recommendation for changes in the current supply
chain - Articulation guidelines and supply chain analysis
- UNICEF Plumpy Nut Supply Chain case
- Analytical models for strategies and insights