1. PLUMPY NUT (RUTF) Supply Chain ANALYSIS
Jayashankar M. Swaminathan
Joint 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; and
A myriad of local circumstances—in Kenya and Somalia these include flooding, droughts and civil unrest—that 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 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 RUTF
Kenya-specific processes in green
Somalia-specific processes in purple
UNICEF CO
UNICEF ESARO
UNICEF SD
NGO partners
Children
Ministry of Health
Donors
RUTF producer
Kuehne + Nagel
Freight forwarder
time
PLAN
PROCURE
PRODUCE
DELIVER
Kenya
Flow of RUTF
Somalia
Flow of information
Malnourished children
Flow of funds

5. Supply 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

6. Supply 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

7. Supply 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.

8. Supply 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

9. Supply 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.

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