1 PLUMPY NUT (RUTF) Supply Chain ANALYSIS Jayashankar M. SwaminathanJoint work with Wendell Gilland, Vidya Mani,Corrina Moucheraud-Vickery and Anthony So
2 Increasing 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; andA myriad of local circumstances—in Kenya and Somalia these include flooding, droughts and civil unrest—that affect rates of malnutrition.Photo: Brandon BannonA 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.
3 Increasing UNICEF demand for RUTF Table: Steve Jarrett, UNICEF
4 Malnourished children Supply Chain of RUTFKenya-specific processes in greenSomalia-specific processes in purpleUNICEF COUNICEF ESAROUNICEF SDNGO partnersChildrenMinistry of HealthDonorsRUTF producerKuehne + NagelFreight forwardertimePLANPROCUREPRODUCEDELIVERKenyaFlow of RUTFSomaliaFlow of informationMalnourished childrenFlow of funds
5 Supply Chain Challenges Challenge 1: Inefficient flow of information and funds forces supply chain to be reactive, not proactiveForecasts are inconsistent in methods and qualityFlow of money does not necessarily coincide with needCauses ordering of RUTF to be uneven
6 Supply Chain Challenges Challenge 2: Long lead times and high variability across the supply chainLow production capacity, spikes in ordering and lumpy demand make it hard to achieve consistent lead timesMargin of error compounds at each delivery point in supply chain, making it difficult to project accurate lead timesHigh variability leads to low trust in the supply chain
7 Supply Chain Challenges Challenge 3: Mismatch between ordering amount and actual needAmounts ordered inconsistent with number of children servedScarcity 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 Supply Chain Challenges Challenge 4: Information systems and flows could be improvedBackward information flow, including information on handover and feedback on quality, is either unavailable or nontransparentException handling capabilities not presentInformation may be inconsistent
9 Supply Chain Challenges Challenge 5: The future of RUTF demand is uncertainRUTF 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 chainArticulation guidelines and supply chain analysisUNICEF Plumpy Nut Supply Chain caseAnalytical models for strategies and insights