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PLUMPY NUT (RUTF) Supply Chain ANALYSIS

PLUMPY NUT (RUTF) Supply Chain ANALYSIS . Joint work with Wendell Gilland, Vidya Mani, Corrina Moucheraud-Vickery and Anthony So. Jayashankar M. Swaminathan. Increasing Demand for RUTF (Plumpy Nut).

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PLUMPY NUT (RUTF) Supply Chain ANALYSIS

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

  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. 2008.

  4. 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

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