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Logistics and Procurement issues of the FISP, Charlie Clark (Logistics Unit)


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Logistics and Procurement issues of the FISP, Charlie Clark (Logistics Unit)

  1. 1. SUBSIDY PROGRAMME REVIEW Logistics Unit Presentation
  2. 2. Role of Logistics Unit • Assist in identifying beneficiaries by producing recording documentation. • Monitor arrival of fertiliser into SFFRFM depots. • 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.
  3. 3. Identified Weaknesses • 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 selection. 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.
  4. 4. Fertiliser Distribution Delays CAUSES • Late award of fertiliser contracts • Inappropriate awards • Lack of storage space RESULTS • Late delivery of fertiliser to farmers
  5. 5. Ideal Programme operation April May June July August September October November Fertiliser tender period Evaluation and award delivery Transport notice and tender period Evaluation and award Uplift to markets Sales Village list update Beneficiary selection registers beneficiary selection beneficiary register production Voucher distribution
  6. 6. 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 past.
  7. 7. Demands of Present Fertiliser Programme • 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 empty. • Police personnel have to be committed to project to ensure fertiliser security.
  8. 8. Seed Programme •No upfront payment by Government •No need for Government to find warehouse accommodation •No transport costs met directly by Government. •No need for police to provide security
  9. 9. Fertiliser distribution vs Seed Distribution 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