Logistics and Procurement issues of the FISP, Charlie Clark (Logistics Unit)
SUBSIDY PROGRAMME REVIEW
Logistics Unit Presentation
Role of Logistics Unit
• Assist in identifying beneficiaries by producing
• Monitor arrival of fertiliser into SFFRFM
• Recommend payment for delivered fertiliser.
• Organise transport of fertiliser to sales points.
• Recommend payments for transporters.
• Record seed and fertiliser voucher returns.
• Recommend payments for seed companies.
• Identifying Beneficiaries Failure to make use of farm family database.
Failure to use beneficiary register in follow up.
• Monitoring of fertiliser deliveries. Lack of space in SFFRFM warehouses.
Changes to suppliers indicating initial poor
Late delivery of fertiliser.
• Fertiliser payment recommendations. Contentious payment clauses in contract.
Failure to meet payment within specified time.
• Transport to sales points Appointment of inappropriate transporters.
Late award of transport contracts.
Initial inadequate market space.
• Transport payment recommendations. Failure to meet payment within specified time.
Misleading wording of payment conditions.
• Payment of seed suppliers Unacceptable delays in payment.
Fertiliser Distribution Delays
• Late award of fertiliser contracts
• Inappropriate awards
• Lack of storage space
• Late delivery of fertiliser to farmers
operation April May June July August September October November
Fertiliser tender period
Evaluation and award
Transport notice and tender period
Evaluation and award
Uplift to markets
Village list update
Beneficiary selection registers
beneficiary register production
If the above programme was to be successfully
implemented, it would require the following:
a) The fertilizer contracts to be awarded by mid July and not end August
as has been the situation in the past.
b) SFFRFM to ensure 60% of their total floor space was available for
Government fertilizer from mid July.
c) Transport contracts to be awarded by end of July and not late
September as has been the past record.
d) ADMARC permanent markets to be empty of stock, and staff in
position ready to accept fertiliser at the beginning of August.
e) Beneficiary selection to be complete by the end of July and voucher
distribution commenced by mid August instead of October as in the
Demands of Present Fertiliser
• Government pays up front for fertiliser
• Government pays for transport to sales points
• SFFRFM ties up warehouse space
• ADMARC has to ensure rural markets are kept
• Police personnel have to be committed to
project to ensure fertiliser security.
•No upfront payment by Government
•No need for Government to find
•No transport costs met directly by
•No need for police to provide security
Fertiliser distribution vs Seed
Same farmers are serviced with both
commodities. Clearly the seed
distribution is accomplished with
much less strain on Government
resources than required for fertiliser.
Perhaps time has come to rethink
the fertiliser strategy