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Martijn Blansjaar Laura Rock Kopczak April 08, 2011

WASH Cluster Stockpile project 5, phase 3 Supply Chain and Operating Concept Design and Implementation . WASH Stockpile April 2011 update and key issues. Martijn Blansjaar Laura Rock Kopczak April 08, 2011. This session. Recap of previous phase outcomes. Current work.

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Martijn Blansjaar Laura Rock Kopczak April 08, 2011

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  1. WASH Cluster Stockpile project 5, phase 3 Supply Chain and Operating Concept Design and Implementation WASH Stockpile April 2011 update and key issues MartijnBlansjaar Laura Rock Kopczak April 08, 2011

  2. This session • Recap of previous phase outcomes. • Current work. • Key design issues and decision

  3. Phase 2 Objective Design the best feasible supply chain and operating concept for a proposed WASH Cluster emergency materials stockpile and prepare the implementation of a 2 year pilot.

  4. Design principles • WASH cluster agreed-upon standard items and modules to meet full set of WASH needs • Pre-funded interagency stockpile and transport and replenishment costs • Trigger and allocation done by the WASH cluster • Fast decision-making and execution result in early response • Leverage of existing proven logistics processes of WASH agencies to support this new approach

  5. WASH Stockpile Processes Donor Funding Deploy Use Trigger Technical Specification and Input to Sourcing Replenish FOCUS OF PHASE 2

  6. Materials: Six Modules The global stockpile consists of ten units of each module. Each unit supports 5,000 beneficiaries. The Global stockpile supports 50,000 Beneficiaries. The minimum deployment quantity Is two units of each of the six modules – enough to support 10,000 beneficiaries. There are six modules. Each module is composed of several items. The entire kit of six modules will be deployed.

  7. Annual Demand Scenario • 1 big emergency (50K) • 50% chance in Africa and 50% in Asia • May hit anytime throughout the year • 3-4 small/medium emergencies totaling 45,000 • 2 in Africa • 1 in Asia • 1.5 in Latin America • The stockpile inventory is expected to turn over approximately twice a year.

  8. Recommended Oxfam – IFRC supply chain. IFRC LRMD Strengths: In-country presence through Nat. Societies. . IFRC LRMD Strengths: Regional locations, Storage and dispatch on behalf of NS’s, Innovative supply chain Engineering Storage &dispatch Local receipt &dispatch Procurement Oxfam Strengths: Supplier relationships, Procurement, Engineering support, Field knowledge, Sells WASH items to other agencies. UPSTREAM SUPPLY CHAIN DOWNSTREAM SUPPLY CHAIN IN-COUNTRY SUPPLY CHAIN

  9. Key issues under discussion at end of Phase 2 • Stock ownership • In-country receipt • Contracts and funds flows • Reporting

  10. Project Organization (Phase III)

  11. Current Status • IFRC agreed to collaborate with Oxfam on the supply chain. • A mini-pilot project was funded in December 2009, as a practical continuation of detailed preparations and ‘road-test’ of the scheme so that it will be “ready to go” and “proven”. • It was envisioned that the mini-pilot would be done in parallel with donor consultations. • ‘On hold’ during 2010

  12. Mini-Pilot Activities Objectives • To ensure all systems developed (upstream &downstream) for the Global WASH Cluster Stockpile - complete the detailed design of an agreed interagency Global WASH Cluster stockpile procurement and delivery mechanism and complete a full trial run (‘mini-pilot’). This includes provision of a limited amount of WASH material to an implementing agency through the WASH Cluster coordination in an actual emergency response.

  13. Three Sets of Activities to Realize the WASH Stockpile Mini-pilot Project Obtain Funding To Run the Stockpile For 2-3 Years Develop And Pilot Supply Chain Processes Develop and Pilot Program Processes

  14. Activities Required Engagement Of Donors Program Logistics • Trigger process • Allocation process • Reporting process / measuring success • Donor consultations • Funds flow and financial reporting worked out • Donor proposal for main 3-year pilot completed (and agreed…) • Complete demand & transport analysis • Definite design & physical location choice • Agreed stock ownership and transfer • Contract and fund-flows between participants established • Information flow and management agreement • Limited amount of material bought, stored and delivered

  15. Design choices Customs Regional WASH Stockpile Receipt Dispatch Use

  16. Three Options to Consider Start: one consolidated shipment made by air. OPTION 1 Direct Shipment (Multiple Consignees) Allocation Before Dispatch Shipment Through an Intermediate Agency (Single Consignee) OPTION 2 Single Consignee Allocation Before Dispatch OPTION 3 Single Consignee Allocation After Receipt

  17. OPTION 1 – Direct ShipmentMultiple Consignees, Allocation Before Dispatch Requirements: Each consignee = agency to whom WASH has allocated… • Is registered in-country • Will use the goods in their own program; may decide themselves to transfer some goods to their own partners • Formally & practically is able to take ownership, receive, import, store & move goods • Can get tax exemption • Will not charge a fee to the scheme • Will guarantee and report on use to donors and host government Limitation: Import and tax exemption paperwork must be done by each consignee before dispatch. If one agency is late with paperwork, shipment/receipt/use of the whole cargo may be delayed.

  18. OPTION 2/3 – Shipment Through An Intermediate Agency Requirements – the single consignee: • Is registered in-country • Formally & practically is able to take ownership, receive, import, store & move goods and hand them over to other agencies • Can get tax exemption • Will charge a reasonable fee • Will guarantee and report on use to donors and host government Requirements – the “allocated” agencies: • Are registered in-country • Will use the goods in their own program • Will not charge a fee to the scheme • Will guarantee and report on use to the single consignee Limitation: Documentation of ownership transfer, liability, unproven concept

  19. Three Options: Legal Differences START: One consolidated shipment will be made by air. OPTION 1 Direct Shipment (Multiple Consignees) Allocation Before Dispatch Shipment Through an Intermediate Agency (Single Consignee) The consignees guarantee and report on proper use. OPTION 2 Single Consignee Allocation Before Dispatch OPTION 3 Single Consignee Allocation After Receipt The single consignee guarantees and reports on proper use. ?? The single consignee guarantees and reports on proper use. ??

  20. Three Options: Logistical Differences START: One consolidated shipment will be made by air. Shipment Through an Intermediate Agency (Single Consignee) OPTION 1 Direct Shipment (Multiple Consignees) Allocation Before Dispatch • Goods flow directly to • consignees. OPTION 2 Single Consignee Allocation Before Dispatch OPTION 3 Single Consignee Allocation After Receipt Consignee stores and delivers/ hands over goods as they are allocated, in effect, running a warehouse. The single consignee stages and delivers/ hands over goods

  21. Comparison of the Three Options

  22. Recommended Next Steps for Mini-Pilot • Proceed with the mini-pilot using the “Direct to Consignees” approach with allocation before dispatch.

  23. Next steps

  24. Mini-pilot TOR covers logistics activities Covered by Minipilot TOR

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