An EXCITING ……(hence the fireworks) New Agency Initiative! INTRODUCING: 1

An EXCITING……(hence the fireworks)

New Agency Initiative!

INTRODUCING:

1

Supply Chain Management System

Nicole S. Balliette

Commodity and Supply Chain Management Director

March 28, 2012

ICT4D Conference

Kigali, Rwanda

Creating Value Through ICT4D Partnerships

Supply Chain Management System (SCMS)

Outline:

1. Who am I?

2. What is the SCMS?

3. Why/how did this all come about?

4. What’s in it for YOU?

5. Who’s involved?

6. Huh? (or, What is it, again?)

7. How awesome will it be? (conclusion part A)

8. What should you remember and tell others? (conclusion part B)

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1. Who am I?

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Commodity and Supply Chain Management Unit (CSCMU)

supports the agency’s systems for proper planning, delivery, tracking and utilization of material resources, as well as accountability

mechanisms to ensure strong stewardship.

Housed in:

Management Policy and Information (MPI)

Housed in:

Overseas Support Department (OSD)5


2. What is the SCMS?

(introduction)

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SCMS Overview

The Vision:

A supply chain management system that facilitates significant improvements in the management of ALL material resources (as well as services) procurement, including:

• Food Commodities• Non-Food Commodities (NFIs, etc)• In-kind Donations • Etc (even office supplies!)

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SCMS Overview: Scope • Provision and implementation of a single global

IT application system to manage the CRS supply chain

• Standardization of Global Supply Chain Management operating processes

This will entail a Significant Change Management & Communication Effort!!!

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SCMS Overview: Goals • Increase Supply Chain Visibility

– Know where material is in the supply chain– Detect problems earlier– Improve accounting for material receipt and distribution

• Improve Decision Making– More efficient use of resources– Enhanced tools for SCM planning

• Increase Operational Efficiency– Reduce supply chain costs– Improve donor reporting– Eliminate one-off system implementations

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SCMS Overview: Specifics

• Planning: includes forecasting and reconciling material demand & supply, and planning modifications to logistics networks needed to meet forecasted needs.

• Generating & fulfilling material requests: includes assessing available inventory, purchasing, shipping, receiving, storing & distributing materials.

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SCMS Overview: Specifics

• Managing resources: includes inventory, fleets and fixed assets.

• Notifying and reporting supply chain activities: includes workflow management, tracking material requests from initiation through fulfillment, and generation of standard and ad-hoc reports.

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3. Why/how did this all come about?

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1. The Haiti Earthquake happened! Followed fast by questions like:

1. What do we need?!

2. What do we already have?!

3. What do people want to give us?!

4. How do we get it there fast?!

5. Where is it all now?!

6. Where are the expert tdy-ers to help manage it all?!

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And, 2. Audit findings happened (and USG becoming increasingly strict)!

Recent A-133 audit reports have recommended things like:

• Review policies and procedures and ensure needed revisions in response to audit findings.

• Ensure that staff understand and are able to comply with required policies and procedures (especially related to commodity management).

• This means tools (and systems) as well as trainings are needed. 14


As a result:

• In 2010, Carol Bothwell was tasked with setting up a core team, with the responsibility to assess the current (“as is”) CRS Supply Chain processes, develop the desired (“to be”) processes and establish the corresponding requirements.

• A request for proposals (RFP) was developed around those requirements and sent out for bid. Aidmatrix was selected.

• The Execs and RDs approved that decision and all the key steps in this process, and decided that the SCM system would be implemented across the agency.

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4. What’s in it for YOU?

(note: you=us!)

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What’s In It for You/Us:

• End-to-end visibility (know where your materials are)

• More reliable forecasts (possess better information for planning, decision making and timely response)

• Lower risks associated with material losses

• Strengthened competitive edge with donors

• Reduced negative impact from staff turnover (standard SCM system and approach)

• Improved strategic decision making and response time. 17


5a. Who’s involved?(now)

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Now: SCMS Project Team Executive Sponsors

Sean Callahan & Mark Palmer

Chief Knowledge Officer

Carol Bothwell

CSCM Director/Project Manager

Nicole BallietteGKIM Liaison & Program

Office Director

Deborah Lynn Edwards

Project Management Specialist

ADP Consultant

Sr. Commodity Advisor

John Service

Steering Committee & Working Group

Subject Matter Experts and senior implicated staff

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nballiet

I made slight changes here.

Now: SCMS Steering Committee & Working Group

The Steering Committee and Working Group are responsible for:

– Guiding the implementation of a standard agency-wide SCM process and system, and

– Contributing to the design of the SCMS to ensure that it is appropriate, easy to use and meets our needs.

They are composed of representatives from:– 3 pilot regions (DRD/MQs, Commodity RTAs, RISAs)– 4 pilot countries (MQCs, Senior staff in Logistics/Commodity

Management, IT, Purchasing, Warehouse, Fleet, Programs, etc )– Impacted HQ functions (Finance, Shipping, Procurement,

OSD/EOPS/PQSD, GKIM, Audit)

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AIDMATRIX • The Aidmatrix Foundation is a nonprofit based in Dallas, Texas, USA.

• More than 40,000 business, nonprofit and government partners (including CARE and Save the Children) leverage their solutions to mobilize more than $1.5 billion in aid annually.

• Their SCM solution for NGOs is designed to help improve efforts to procure, manage and deliver assistance as well as to ensure transparency and facilitate collaboration within and among organizations.

• They work with their partners to adapt their existing solutions to meet the partners’ specific needs.

• Aidmatrix technology is Cloud based technical architecture.

• Aidmatrix is supported in part by grants from the Accenture Foundation, AT&T and the UPS Foundation, among others. 21


5b. Who’s involved?

(later)

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You, him, her, them

And oh yeah,

US (So, yes, basically, everybody in CRS!)

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6. Huh??Or, what is it, again?

(details on functionality and plan)

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PLAN

Forecast Demand

SOURCE

Request Materials

Assess Inventory

Purchase Materials

FULFILL

Ship Materials

Receive & Store

Materials

Distribute Materials

Manage Payments

MANAGE

Manage Inventory

Manage Vehicle Fleet

Manage Fixed Assets

NOTIFY & REPORT

Workflow & Events

Trace & Track

Report

Phase 1 SCMPhase 1 and Phase 2 SCM*

Phase 2 SCM

Plan Logistics Network

Forecast Supply

Reconcile Demand &

SupplyManage

Donations

SCMS Key Details: • System to be piloted and rolled out across the agency in 2 phases.

• Phase 1 includes basic Warehouse, Procurement and Fleet Management modules. Warehouse and Procurement modules are currently being tested by field and HQ-based staff. Fleet testing will begin next week.

• Phase 2 includes more advanced functionality including Demand and Supply Planning, Asset Management and Beneficiary Tracking.

• Phase 1 Pilots will be conducted in Ethiopia, Kenya, Burkina Faso and JWBG between May and September 2012.

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SCMS Rollout Plan:

• Phase 1 to be rolled out starting in FY13, and entire roll-out (Phase I and 2) to be complete by FY15.

• Aidmatrix responsibility for system set-up and training ends with pilots (maintenance support will continue).

• We intend to manage the post-pilot rollout with internal resources.

• Roll-out plan is under development; it will be shared with key staff for feedback before finalization.

• We expect to train a team of staff across the agency to lead/support the rollout in their countries/regions.

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We are focused almost exclusively on Phase 1.

Why, do you ask?

Because:

It’s a huge challenge, and we need to get it right before we move on to the more advanced

functionality of Phase 2.

Phase 1, Priority Focus

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Phase 1 ValueAnd also: Phase 1 addresses our self-identified priority

needs for improvement, including:– Tracking of food and non-food commodities (e.g.

continual system record from request to disbursement) – Local procurement practices (e.g. compliant processes and

documentation)– Maintaining fleet (e.g. standardized data base and easy

tracking)– Availability of information (e.g. more info available in

more ways and to more people)– Bench Deepening (e.g. skills more transferable as more

people trained in standard system and processes)29

Phase 1 ValueAnd also: Specific functionality and

corresponding training will address FY11 audit findings related to:

• Warehouse management (such as insufficient tracking documentation) and

• Procurement at local level (such as not following appropriate procedures).

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The Program Manager (“requestor”) selects this menu item to start the Purchase Requisition Wizard that can be used to submit or

upload the PR.

Example

The PR Wizard begins with some instructions. There are four steps in the wizard.

Example

Example: Procurement StatusPR Statuses PO Statuses

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7. How awesome will it be?

(conclusion, part A)

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It’s going to be really, really awesome…

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…Well, ok, as long as we:

Do all we can do to make sure it will be! Including:

1. Commit time, effort, resources at all levels in agency

2. Learn and Adopt the new technology and processes

3. Accept that it won’t be easy to do things differently (huge change management initiative)

4. Dedicate ourselves to overcoming the challenges

5. Take the long view, and keep eye on the prize

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8. What should you remember, and tell others?

(conclusion part B)

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SCMS Key Messages

1. This is coming in 2013 so get ready!

2. Phase 1 includes warehouse, procurement and fleet management functionality.

3. FY13 cost to be covered centrally, BUT CPs and regions should still expect to cover their costs (internal training, travel, etc) for system rollout.

4. We expect to train a team of staff (especially DRD/MQs, MQCs/IT) across the agency to lead/support the rollout in their countries/regions.

5. Everyone will be affected in some (beneficial!) way.

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Thanks for listening!!!

Questions?

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Documents

An EXCITING ……(hence the fireworks) New Agency Initiative! INTRODUCING: 1