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Supply chain process in the UN


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Description of SC in UN , a project done for SUNY MARITIME COLLEGE

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Supply chain process in the UN

  1. 1. State University Of New YorkSupply chain class Fall 2010Instructor :Dr.Larry Howard By :Kaoutar Dribki
  2. 2. Objectives• Review the supply chain planning process maps in detail.• Develop the SNP ,Demand Planning and the LTCP• Summary about The SCM in The UN 2
  3. 3. Main Commodity areas in supportof the field mission • General Supply • Rations • Fuel • Digital cameras, military aids ..
  4. 4. 1.Sourcing Strategic Deployment Stocks UN Reserve Systems Contracts Inter-mission Transfers Member States2.Warehouse Operations3. Distribution
  5. 5. Global view of Peacekeepingoperations • Current Contracts: 13 Missions Supported strength: 98,000 • 3 International contractors • Yearly Expenditure: $ 380,000,000 • Cost per person / day: $ 11.00 inclusive food & logistics cost
  6. 6. Focus of operations Food Quality and safety Integration in rations operations – recipe card based menu plans, aligning catering processes to prevent waste Standardizing operations and controls
  7. 7. • • Supply Chain – Fuel COE/UNOE LOG Base Ship Ship Sector Refinery Main Tank Terminal SFRTank Farm LR Transportation Main Main Storage SHQ Team Sites End Users Source TRANSPARANCY & REAL TIME INFORMATION
  8. 8. Beyond the linear supply chain Logistics Process Model SupplierLocation Plantand storagelocations Supplier Plant
  9. 9. Planning integrates the Supply Chain function Master Data Management Source to Acquire Plan and Manage Four primary Contract Supplier Long-Term Management Collaboration Planning process areas (Level One)Financial Accounting Project Management Requisition to Supply Network Demand Planning Purchase Order Planning Low – Value Acquisitions Force Planning Secondary Force Deployment process areas to encompass Inbound Planning and Set Assembly Decommission Processing Dispatching and Execution and Disposal SCPL activities Equipment Warehouse and Equipment Storage Outbound Assignment Maintenance and (Level Two) Operations Receive to Distribute Employ to Dispose 9 Management Reporting
  10. 10.            10
  11. 11. Supply Chain Planning functionality sequence Migration to Plan-driven Procurement Planning horizonUnconstrained Demand Planning (DP) Consensus DemandDemand Monthly / Operational Generate Safety Stock Levels (SNP) Days of Supply / Safety StockConstrained Monthly / Strategic / OperationalDemand Purchase Requisitions, Planned(netted) Replenishment Planning (SNP) Orders, Stock Transport Requisitions Monthly / Operational Stock Transport Requisitions Deployment Planning (SNP) (Movement Planning) Weekly / TacticalAvailable to Demand Execution (Allocations andPromise Demand Fulfillment (DF) Available to Promise(prioritized to Daily / Tacticalneed) Transportation Planning (TM) Consolidated Shipments Daily / Tactical 11
  12. 12. Demand Planning • More than just forecasting, we will be incorporating information on new/old materials, events as well as information from past trends • Develop a ‘Demand Plan’ that is unconstrained by our ability to supply • Consensus based process with inputs from Requisitioning, Projects, Finance, LogOps Supply Planning  Use a combination of Reservations and the unconstrained Demand Plan to develop supply plans, deployment plans and planned production from our suppliers  Share plans with suppliers where feasible to enable collaboration/Evaluate supplier capacities and lead- times to constrain the plan Deployment Planning Plans the movements between locations &Optimizes the loads and modes of transportationSUPPLY CHAIN INTEGRATION 12
  13. 13. How far ahead should we forecast ? Long-term Capabilities Demand Plan Long Example: Strategic Plan 3-XX years Operational Demand Plan Medium Example: 6-18 months Supply Plan Annual / Bi-annual Budget Project Plan Tactical Demand Plan Short Example: 1-6 months Rapid Replenishment 13
  14. 14. A - Demand Planning and Forecasting• 1 - Gather and Clean Data Elements• 2 - Plan Lifecycle Management(green Supply Chain)• 3 - Generate Statistical Forecasting• 4 - Agree on Consensus Demand Plan• 5 - Infrequent Demand Model 14
  15. 15. The mission Solution – Generate Statistical Forecast Materials with repeatable demand pattern will be forecasted using this process Forecasting is performed at pre-defined levels of aggregation such as plant, regional level, UN-HQ, material, material category, etc. Statistical models will be applied to historical consumption patterns to identify trends, seasonality and causal factors to project future demand Alerts help with exception based management of issues related to data or forecast model or level of aggregation Ability to evaluate best forecast model that fits history based on commonly used statistical measures Accuracy of forecast can be calculated and monitored while calculating estimates of future demand Ability to provide manual corrections or updates to forecasts calculated by the system 15
  16. 16. B - Supply Network Planning• Safety Stock Planning• Replenishment Planning• Plan Deployment 16
  17. 17. What is Supply Network Planning ? • A planning approach to create Operational and Tactical Plans and Sourcing Decisions that takes the complete supply network into consideration Supply Network Planning Safety Stock Replenishment Planning Planning (DRP) Rough-Cut Capacity Deployment Planning (MPS)  Meet Consensus Demand and Actual Demand (Requisitions and Internal Orders by:  Optimal use of Manufacturing, Distribution and Transportation Resources  Consider all constraints in the supply chain
  18. 18. Overview of Supply Network Planning Supply Network Planning (SNP) ensures the optimal Use of Procurement, Manufacturing, Distribution, and Transportation Resources to meet Forecasts and actual Demand while considering all Constraints in the Supply Chain Supply Network Planning plans Procurement, Movements and Manufacturing throughout the entire Supply Network using Optimizing and Heuristic Approaches Planning Paradigm  Quantity based, cross-location finite planning  Leverage Supplier contracts  Vendor Managed InventorySupply Chain Network  Create Purchase Requisitions, Feasible, Executable Stock transfer between inventoryProducts / Services locations Supply constrained Distribution plansForecasts Supply Network PlanningSupply Sources (SNP)Business Rules  Matches demand and supply for sourcing  Generates Safety Stock Plan  Generates deployment plan 18
  19. 19. Supply Network Planning OverviewSupply Network Planning (SNP) ensures the optimal Use ofProcurement, Manufacturing, Distribution, and Transportation Resources to meetForecasts and actual Demand while considering all Constraints in the Supply Chain Supply Network Planning plans Procurement, Movements and Manufacturing throughout the entire Supply Network using Optimizing and Heuristic Approaches Configurable Profiles determine on how the System generates Supply and Demand within Short, Mid and Long-term Planning Supply Network Planning offers three competitive Algorithms: SNP Heuristics, Capable to Match (CTM) and SNP Optimizer
  20. 20. Overview of Supply Network Planning Planning Paradigm  Quantity based, cross-location finite planning  Leverage Supplier contracts  Vendor Managed Inventory  Create Purchase Requisitions, Stock transfer between inventory locationsSupply Chain Network Feasible, ExecutableProducts Supply Network Planning Supply constrainedForecasts (SNP) Distribution plansSupply SourcesBusiness Rules  Matches demand and supply for sourcing  Generates Safety Stock Plan  Generates deployment plan 20
  21. 21. Safety Stock Planning Safety Stock Planning enables automated replenishment of stock when safety stock values deviates from specified levels primarily due to consumption The frequency of safety stock calculation is linked with the material classification based on criticality of material Features:  Cost effective management of inventory to meet required service levels  Intelligently manage safety stock to decrease inventory carrying cost  Automated controls support detection of excess safety stock 21
  22. 22. Example of Mission Solution – Safety Stock Planning • Inventory Planner reviews forecast from the demand planning process, reviews supplier lead time and material classification and identifies materials that are at risk due to variations in supply and demand • Experience of Inventory Planner is leveraged in specifying the safety stock value for a material- location combination at critical locations in the UN supply chain. • Automated replenishment of stock when safety stock values deviates from specified levels primarily due to consumption • Safety Stock values and methods are published in Material Master • Supply Planner validates the safety stock values 22
  23. 23. Long term capabilities planning
  24. 24. Long Term Capability Planning  Gather Aggregate Data  Generate Long Term Demand Plan  Generate Long Term Supply Plan  Publish Long Term Capabilities Plan  Manage Performance  Manage Fleet Equipment 24
  25. 25. Generate Long Term Demand Plan • Establishes long term planning horizons - typically forward looking 3-10 years • Integrates review of program inputs, operational demand plans including events and fleet planning • Generates an initial long term demand plan and reviews for scenarios • Creates scenarios as required • Publishes an agreed long term demand plan 25
  26. 26. Generate Long Term Supply Plan • Establishes long term planning horizons for the supply side activities • Reviews the supply chain network • Reviews material classification and criticality • Reviews safety stock policies • Integrates review of production capabilities • Integrates review of strategic sourcing capabilities • Generates an initial long term supply plan and determines the scenarios required • Publishes a long term supply plan 26
  27. 27. Manage Performance• Gathers performance data from published long term capabilities plans• Monitors the performance against physical data such as resource availability, utilization and related resource performance metrics.• Identifies and determines if thresholds for planning have been met• Identifies root causes where thresholds have not been met• Develops alternative corrective actions• Documents corrective actions• When thresholds have been met identifies continuous improvement actions for purposes of improved long term supply and demand planning. 27
  28. 28. Manage Fleet Equipment• Identifies fleet categories from master data definitions• Creates fleet specific data• Defines fleet measurement in terms of defined metrics• Enables gathering of fleet consumption from automated dispatch and event capture• Provides input to Equipment Planners for fleet consumption data• Conducts fleet performance analysis in terms of wide ranging metrics such as utilization and availability for use in long term demand planning. 28
  29. 29. Summary In sum, peacekeepingoperations tend to be characterized by slower yet longer deployments, implying the need for leaner supply chains. 29
  30. 30. Thank you