XVII.9.3.2 Emergency Supply Chain Planning

 

Role of the OSL team in SRP and JOP

90           The OSL team should be involved in the planning process and is responsible for confirming planning assumptions and resource requirements on supply chain and logistic matters for the SRPs and the JOPs.

Role of the OSL team in WHO Operation Plans

100         The OSL team should produce a concept of operations (CONOPS) (see XVII.9.1.2 OSL Standard Workflow). The CONOPS is the formal plan that sets out OSL's main objectives and activities.  The supply chain component of OSL CONOPS must be driven by the needs and the requirements of other IMST pillars to implement the SRP and JOP. It should integrate the following:

• a Supply Plan with indications of supply quantities and sourcing options (global or regional stockpiles, international or local procurement), as well as the geographical areas covered; and 
• a warehousing and stockpile strategy based on the information contained in the supply plan.

• an estimated price list of goods;
• an estimated volume of goods by temperature requirement;
• an estimation of delivery lead time from global or regional stockpiles, local and international procurement by air and surface freight;
• available in-country stock; and
  
• estimated shipping rates for each means of transport.

• The necessary means to transport and store the goods are identified to implement the operational plan, for example, human resources, vehicles, aircraft and sea vessels, cold chain and warehouses and the necessary long-term agreements (LTAs) or other contractual arrangements to be in place and maintained throughout the response.
• The necessary budget is allocated to perform logistics tasks.
  
• The process flow for importation requirements is developed, such as documentation, approvals, and a detailed list of steps and entities involved.

Outputs of the supply planning

150         As a result of this planning process, the OSL team and the SME should have the following in place:

• A Supply Plan is a document summarizing which products are required and at what time. The supply plan should be reviewed and updated frequently based on new information/data acquired (at least quarterly). The list of items and quantities to be included in the supply plan should be defined by the SME based on operational needs (in alignment with the operational plan). In some cases, when needs are unclear, the historical data can be a useful signpost to define quantities. 
  

• An order chronogram is a type of Gantt chart which summarizes roughly the time for issuing purchase orders, supplier lead time, transit time, receipt and distribution.
• A budget allocated for the logistics tasks, OSL activities and any other logistics activities managed by OSL.
• A Standard List of Items considered critical by the SME and for which particular attention should be paid. Such items will generally be held in stock at the country level to avoid shortage.

Emergency SCM and resource mobilization

160         To implement the emergency plan, WHO mobilizes external funds from donors. Contribution agreements signed between WHO and donors usually specify the scope of work, implementation period, and reporting requirements for each contribution received. An award is established based on a signed agreement.

170         While the plan provides an overview of planned activities, agreements are time bounded and represent a firm engagement with donors. It is mandatory to have a clear and realistic timeline; therefore, OSL approval is required before the donor agreement is finalized.

180         Each type of funding has its own characteristics (e.g. donor's procurement guidelines, timelines, item sourcing, etc.), which must be factored into operational planning and considered to ensure compliance and fulfilment of the requirements. In addition, an award/donor matrix should be developed that details the amount of funding, intended use, implementation timelines, and procurement needed for quantities, types, and intended distribution locations. The OSL role in the resource mobilization process is essentially an operational feasibility study.

190         For each donor's proposal, we should have a procurement plan and a distribution plan:

• A Procurement Plan is a document based on the supply needs detailing what products will be acquired, from which source, at what point in time and how this will be done. This plan is created with the procurement specialist and should include value and volumetric requirements by temperature. The procurement plan is prepared at the development phase of the proposal plan and should be adjusted according to the donor's approvals. The procurement plan should include commodities sourced from local, regional or global stockpiles and subject to funds recovery.
• A Distribution Plan is a document linked to the procurement plan listing what quantity of products will be distributed, to which destination, at what point in time and how this will be done. This plan should be developed in collaboration with the partner that is the recipient of the supplies or is responsible for the distribution. A crucial component for successful logistics operation, the distribution plan should be developed before issuing purchase orders and include the estimated volume of goods to ensure that the necessary arrangements are in place when the goods arrive, including necessary storage space, human resources and transport requirements.
  
  Please note that the procurement and distribution plans are internal documents. In most cases, donors do not require them; an overview per category of items (e.g. trauma, primary health care, non-communicable diseases) is sufficient to support the proposal. This offers WHO some flexibility to adjust the implementation as per evolving needs.

Role of the OSL team in resource mobilization

200         At the proposal development phase, OSL must be consulted to input and validate costing, operational feasibility (e.g. lead times, transport and customs, warehousing constraints) and goods sourcing options (e.g. stockpile and market availability). The SME should provide a list of activities, locations and timelines, as well as a list of items and quantities.

210         Even if the donors do not require a detailed list of supplies and final consignees, this good practice should be promoted. It will contribute to developing clear procurement and distribution plans.

Emergency SCM and grant implementation and monitoring

220         Managing and monitoring emergency grants requires diligence. WHO Country Offices (WCOs) should set up robust monitoring systems to monitor their emergency grants and track the implementation status.

Role of the OSL team in grant implementation and monitoring

230         OSL should understand the donor conditions well and participate in regular programme/project management meetings with the grant manager and technical officers to provide logistics updates and flag potential issues. OSL should anticipate potential bottlenecks or delays which could impact the supply chain and potentially delay programme implementation. These could include last-minute orders based on available supplies or available funds rather than actual needs, overstock of irrelevant items, storage of an increasing number of expired products, capacity at manufacturers' levels to keep up with demand, increased transport costs, etc. OSL will monitor the implementation of the Procurement and Distribution plans to regularly provide the technical units and donors with delivery updates: by item, funding source, value, destination, date etc. In addition, the OSL team could be requested to brief donors when there is a conflict between the award implementation period and the estimated delivery of supplies.

Emergency SCM and preparedness/readiness

240         The planning cycle begins before an event and starts with preparedness and surveillance. The emergency preparedness phase refers to the state of readiness and human and material resources capacity of an organization put in place through anticipatory measures to ensure a rapid and effective response to an emergency.

250         Supply chain preparedness mechanisms at all levels are put on alert when a potential event is identified and monitored. In terms of emergency health supply chain activities, this includes the following:

• Developing advanced supply plans to enable fast dispatch of equipment and teams in the PUSH phase of responses.
• Maintaining stocks of emergency items (kits and essential items) that can be deployed within 72 hours of the initial request. The stock content is regularly revised to meet emergency response needs.
• Developing a 24/7 emergency shipment capacity with the required expertise to dispatch items in the fastest and most efficient mode when and where required.
  

Roles of Headquarters and Regional Offices

260         The principal role of the HQ/ROs is to support the Incident Management Team (IMT) in developing an SRP, to develop a WHO Operational Plan and to provide details on the logistical support that will contribute to the overall operational plan.

270         The OSL team lead at the regional level should validate all CONOPS (technical validation) produced in their respective region.

280         For international procurements, it is recommended that the in-country OSL team seeks the advice of procurement experts and/or OSL at the regional level. Regional OSL team analyses the needs and assesses whether the required commodities are available in stock, can be sourced regionally or should be escalated to OSL HQ.

290         In the specific case of WHO emergency health kits (website), the planning function is centralized under HQ/OSL in close coordination with the Department of Procurement and Supply Services Quality Assurance (SUP QA), SUP/Global Procurement and Logistics (GPL) and the Dubai Logistics Hub. The RO should reach out directly to OSL HQ for kits procurement planning.

300         An additional role for HQ/ROs is to optimize inventory and stock holdings, including developing contingency plans at the regional and global levels. The main element of contingency planning is the holding or pre-positioning of stocks, volumes of which will be determined by an appropriate inventory strategy and global planning of the most required commodities.

310         Note that during the first phase (acute) of an emergency, it is the responsibility of OSL at RO and HQ to deploy the first teams, equipment and supplies on a PUSH approach based on standard OSL scenarios for a given emergency and/or through a response plan prepared in advance during the preparedness and readiness stage. The IM should validate this push at the respective level from where the push is initiated, both on the operational and financial sides, before departure. The IM validating at his/her level (HQ or RO) should ensure agreement with the WCO IM.

Assistance in planning

WHO Catalogue items

320         Using the WHO Catalogue to procure items can speed procurement substantially. The WHO Catalogue is a list of globally available and corporately supplied items made available through LTAs with a supplier established by SUP that have already satisfied the scrutiny of quality control and technical evaluations. The items in the WHO catalogue often offer the most competitive prices compared to the open market. In some cases, the LTA holders might have a long lead time; therefore, before issuing a catalogue requisition, it is recommended to first check with OSL HQ or SUP/GPL. If the lead time is not satisfactory, non-catalogue sources should be preferred. For more detail on LTAs, see Procurement Handbook Chapter 11. For more detail on the WHO Catalogue, please refer to https://intranet.who.int/tools/wcat/QuickSearch.aspx.

Emergency Standard Lists of Items

330         The OSL Emergency Standard List is comprised of items that can be requested to support emergency operations. These standard lists simplify the expression of the need by standardizing items' weight, volume and estimated prices. This benefits resource planning because standard lists avoid ambiguity in the nature and specification of the item, which has a beneficial effect on all stages of the supply chain.

340         These standard lists group items according to their nature. For example, sample tubes are also found in the laboratory standard list.

• The WHO Catalogue is already a standardized list of globally available and corporately supplied items.
  
• The Emergency Standard List of Items identifies the most commonly used and highly recommended items for any emergency operation. Items can fall into the categories of logistics supplies, medicine, medical supplies and medical equipment, and it complements the WHO Catalogue. Please note that not all requested items may be available through an LTA (WHO Catalogue); therefore, specific purchases will need to be made for products not listed in the Catalogue.
• An emergency standard list held at the WCO level is a tailored list for that country that identifies the most commonly used and highly recommended items for that country and complements the HQ list. It can be comprised of internationally or locally available items.
  

350         WHO has developed various guidance on items required specifically for emergencies that can be found online. For example, the Diseases Commodity Packages (DCPs) are available at https://www.who.int/emergencies/disease-commodity-packages.

List of suppliers/items

360         An important "best practice" planning activity for supply specialists at the WCO level is to establish and maintain a local supply and services database where suppliers, logistics services providers and partner organizations are identified as part of normal contingency planning and their potential contribution to support an emergency is assessed, pursued and developed.

Stockpiles

370         Local, regional and global stockpiles should be considered when drafting a Supply Plan and a Procurement Plan. Their use can speed up grant implementation, as there is no additional QA check or competitive process to be performed.

GSM/BMS Business Intelligence

380         The Business intelligence (BI) of the Global Management System (GSM)/ Business Management System (BMS) can provide various financial and procurement information. The procurement module is of great interest to OSL as it can produce substantial data for reporting and analysis. A summary of the amount spent per supplier or lists of all items procured with supplier names, Incoterms, and unit prices can be extracted. Further details can also be extracted through the WHO Procurement Dashboard.

Forecasting/quantity to order

390         In the absence of consumption data at end-user place, the distribution data can play a crucial role in planning by helping determine trends and forecasting quantities. Distribution data needs to be shared with the health operations and information management teams. Historical data on purchase orders issued by the WCO can be useful for developing a forecast and target stock coverage to the extent possible.

Rules of WHE supply chain planning

400         In support of the production of the logistics and procurement plans, the "rules" below have been developed. Many may appear obvious, but they can be easily forgotten when faced with the complexities of managing the supply chain/procurement interface:

• Plan ahead as far as possible and review frequently. Use historical data where possible and applicable.
• Plan to ensure that reliability, responsiveness, agility, compliance and cost are considered for the Organization's best interest.
• Understand the bigger operational context (internal and external factors), including the award–operational funding, contribution from other humanitarian actors, and the supply chain tasks and considerations that apply to it.
• Leverage internal stock holdings to speed up sourcing and delivery and help renew stock (by avoiding or reducing expiries).
• Where possible, use Standard Lists of Items.
• Consider the impact of choosing non-Catalogue items over Catalogue items.
• Be aware of lead times and their impact on a procurement route.

410         Consider the importance of Quality Assurance (QA) and supplier evaluation and seek advice from procurement experts when producing the Supply Plan and Procurement Plan.