The document discusses supply chain planning for peacekeeping operations by the United Nations. It covers several key areas:
1. It outlines the objectives of reviewing supply chain processes, developing strategic network planning, and summarizing supply chain management for UN missions.
2. It provides an overview of the global peacekeeping operations, including details on the number of current missions, supported personnel, annual expenditures, and average daily food and logistics costs per person.
3. It summarizes the focus on food quality and safety, standardizing catering processes to reduce waste, and standardizing overall supply chain operations and controls for peacekeeping missions.
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Supply chain process in the UN
1. State University Of
New York
Supply chain class
Fall 2010
Instructor :Dr.Larry
Howard
By :Kaoutar Dribki
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. Main Commodity areas in support
of the field mission
• General Supply
• Rations
• Fuel
• Digital cameras, military aids ..
4. 1.Sourcing
Strategic Deployment Stocks
UN Reserve
Systems Contracts
Inter-mission Transfers
Member States
2.Warehouse Operations
3. Distribution
5. Global view of Peacekeeping
operations
• 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. 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. •
• Supply Chain – Fuel
COE/UNOE
LOG
Base
Ship
Ship
Sector
Refinery
Main Tank
Terminal
SFR
Tank Farm
LR
Transportation
Main Main Storage SHQ Team Sites End Users
Source
TRANSPARANCY & REAL TIME INFORMATION
8. Beyond the linear supply chain
Logistics Process Model
Supplier
Location Plant
and storage
locations
Supplier Plant
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
11. Supply Chain Planning functionality sequence
Migration to Plan-driven Procurement
Planning horizon
Unconstrained Demand Planning (DP) Consensus Demand
Demand Monthly / Operational
Generate Safety Stock Levels (SNP) Days of Supply / Safety Stock
Constrained
Monthly / Strategic / Operational
Demand
Purchase Requisitions, Planned
(netted) Replenishment Planning (SNP) Orders, Stock Transport Requisitions
Monthly / Operational
Stock Transport Requisitions
Deployment Planning (SNP) (Movement Planning)
Weekly / Tactical
Available to
Demand Execution (Allocations and
Promise Demand Fulfillment (DF) Available to Promise
(prioritized to
Daily / Tactical
need)
Transportation Planning (TM) Consolidated Shipments
Daily / Tactical 11
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
transportation
SUPPLY CHAIN INTEGRATION
12
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. 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. 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. B - Supply Network Planning
• Safety Stock Planning
• Replenishment Planning
• Plan Deployment
16
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. 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 Inventory
Supply Chain Network Create Purchase Requisitions, Feasible, Executable
Stock transfer between inventory
Products / Services locations
Supply constrained
Distribution plans
Forecasts Supply Network Planning
Supply Sources (SNP)
Business Rules
Matches demand and supply
for sourcing
Generates Safety Stock Plan
Generates deployment plan
18
19. Supply Network Planning Overview
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
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. 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
locations
Supply Chain Network
Feasible, Executable
Products Supply Network Planning Supply constrained
Forecasts (SNP) Distribution plans
Supply Sources
Business Rules
Matches demand and supply
for sourcing
Generates Safety Stock Plan
Generates deployment plan
20
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. 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
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. 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. 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. 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. 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. Summary
In sum, peacekeeping
operations tend to be characterized by slower yet
longer deployments, implying the need for
leaner supply chains.
29
Enable functionality / infrastructure capabilities to deploy the Supply Chain solution in remote areas Manage Supply Chain scope to deliver the processes and functionalities at the same standard or better Leverage scale on procurement and logistics functions to optimize spend and utilization of goods and services Share goods and services across the UN Organization to optimize assets and to take an advantage of economies of scale Construct Supply Chain metrics to align the business processesIncrease the accuracy of demand forecasts Increase the accuracy of inventory holdingsReduce the volume of consumable inventory that reach expiration prior to usage