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