PLUMPY NUT (RUTF)

SUPPLY CHAIN ANALYSIS

Jayashankar M. Swaminathan

Joint work with Wendell Gilland, Vidya Mani,

Corrina Moucheraud-Vickery and Anthony So
 Increasing Demand for
RUTF (Plumpy Nut)
• The recent adoption of guidelines from WHO, WFP,
UNSCN and UNICEF that endorse the introduction of these
new products to reach severely malnourished children
through community-based treatment approaches,
• Rising food and fuel prices worldwide that are increasing
food insecurity and, consequently, rates of malnutrition; and
• A myriad of local circumstances—in Kenya and Somalia
these include flooding, droughts and civil unrest—that
affect rates of malnutrition.

Photo: Brandon Bannon

A Joint Statement by the World Health Organization, the World Food Programme, the United Nations System Standing Committee
on Nutrition and the United Nations Children’s Fund (2007). Community-based Management ofSevere Acute Malnutrition.
Increasing UNICEF demand for RUTF

Table: Steve Jarrett, UNICEF. 2008.

 Supply Chain of RUTF Kenya-specific processes in green
Somalia-specific processes in purple

UNICEF UNICEF NGO Ministry of RUTF Kuehne + Freight

UNICEF CO Children Donors
ESARO SD partners Health producer Nagel forwarder

time

PLAN

PROCURE

PRODUCE
DELIVER
Kenya

Flow of RUTF
Somalia Flow of information
Malnourished
children Flow of funds
Supply Chain Challenges

 Challenge 1: Inefficient flow of information and funds

forces supply chain to be reactive, not proactive
 Forecastsare inconsistent in methods and quality
 Flow of money does not necessarily coincide with need

 Causes ordering of RUTF to be uneven

Supply Chain Challenges

 Challenge 2: Long lead times and high variability

across the supply chain
 Low production capacity, spikes in ordering and lumpy
demand make it hard to achieve consistent lead times
 Margin of error compounds at each delivery point in supply
chain, making it difficult to project accurate lead times
 High variability leads to low trust in the supply chain
Supply Chain Challenges

 Challenge 3: Mismatch between ordering amount and

actual need
 Amounts ordered inconsistent with number of children served
 Scarcity of supply, uncertainty in targeted arrival dates and
limited fund flow make it hard for COs to rely on the supply
chain  May lead to orders being inflated.
Supply Chain Challenges

 Challenge 4: Information systems and flows could be

improved
 Backward information flow, including information on
handover and feedback on quality, is either unavailable or
nontransparent
 Exception handling capabilities not present

 Information may be inconsistent

Supply Chain Challenges

 Challenge 5: The future of RUTF demand is

uncertain
 RUTF demand will vary depending on level of long
term success and with short term spikes in demand due
to local crises.
Current and Future Work
 Recommendation for changes in the current supply
chain
 Articulation guidelines and supply chain analysis
 UNICEF Plumpy Nut Supply Chain case
 Analytical models for strategies and insights