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PLUMPY NUT (RUTF) SUPPLY CHAIN ANALYSIS Jayashankar M. Swaminathan Joint work with Wendell Gilland, Vidya Mani, Corrina Moucheraud-Vickery and Anthony.

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Presentation on theme: "PLUMPY NUT (RUTF) SUPPLY CHAIN ANALYSIS Jayashankar M. Swaminathan Joint work with Wendell Gilland, Vidya Mani, Corrina Moucheraud-Vickery and Anthony."— Presentation transcript:

1 PLUMPY NUT (RUTF) SUPPLY CHAIN ANALYSIS Jayashankar M. Swaminathan Joint work with Wendell Gilland, Vidya Mani, Corrina Moucheraud-Vickery and Anthony So

2 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 Children’s Fund (2007). Community-based Management ofSevere Acute Malnutrition. 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 circumstances—in Kenya and Somalia these include flooding, droughts and civil unrest—that affect rates of malnutrition. Increasing Demand for RUTF (Plumpy Nut)

3 Table: Steve Jarrett, UNICEF Increasing UNICEF demand for RUTF

4 Supply Chain of RUTF UNICEF CO UNICEF ESARO UNICEF SD NGO partners Ministry of Health RUTF producer Kuehne + Nagel Freight forwarder Donors PLAN PROCURE PRODUCE time Kenya Somalia DELIVER Children Malnourished children Flow of information Flow of RUTF Flow of funds Kenya-specific processes in green Somalia-specific processes in purple

5  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 Supply Chain Challenges

6  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 Supply Chain Challenges

7  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.

8  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 Supply Chain Challenges

9  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.

10 Current 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


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