1. Supply Chain Improvement Plan

2. 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.
Highlight amount involved and importance of efficient operation,
Warehousing
Staffing
Transportation
Relief supplies
Food
Gifts-in-kind (GIK)
Equipment
$ M

3. Our Challenges No standardized systems & tools,
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.

4. We need to improve

5. Why 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

6. 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.

7. 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)

8. Project # 1 Supply 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

9. Project # 2 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

10. Project # 3 Commodity 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

11. Project # 4 Relief 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

12. Project # 5 Access 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