Nutrition Value Chain Articulation Guideline

Project Planning

What is supply chain analysis?
A supply chain is a network of companies, or independent business units, that are involved in getting a product or service from the original supplier to end users. A supply chain analysis is a full assessment of the effectiveness and efficiency of supply chain operations in meeting supply chain goals. A supply chain analysis examines the “processes, people, technology” (1) and interactions between parties in the supply chain to identify things that are working well and areas where the supply chain might need improvement.

The analysis involves selecting the supply chain to be analyzed, identifying areas for improvement, developing processes or recommendations for improvement, outlining an implementation plan and ensuring that these can be sustained by developing the appropriate metrics to measure supply chain performance.

Why conduct a supply chain analysis?
Studies show that there is a strong relationship between well-managed supply chain operations and the efficient use of  resources (2,3). A lack of operational efficiency can increase costs or reduce the effectiveness of the supply chain in meeting goals.
Supply chain analysis can help the whole network assess the current state of operations and develop strategies to better manage costs, mitigate supply chain risks, reduce response time, and be more responsive to changes in demand or disruptions in the supply chain. A supply chain analysis can also help to identify where misaligned incentives may be adversely affecting the supply chain. Stakeholders can use the results of the analysis to create an effective total systems approach strategy for supply chain management.

Strategic Issues in Supply Chain Analysis

1. Select the supply chain: Selecting a supply chain for analysis is an important activity. This is especially true where a single organization handles multiple products and/or serves different customer bases. Additionally, it is important to understand the depth and breadth of the target supply chain. While some organizations may control supply chains through to the end customer, others might only operate until downstream distribution points. Some supply chains may share logistic providers or storage locations, while others might be dedicated to a particular product.
2. Identify and articulate the needs of the end customer: A supply chain is most effective when it is geared to meet the needs of its end customer. This can be a complicated assessment, especially for humanitarian organizations. There may be a prominent goal, perhaps related to the mission of the organization (for example, reaching a maximum number of children), alongside logistic objectives like minimizing cost or meeting need as quickly as possible. There may also be different goals within an organization, for example between program staff in the field and people making decisions at a strategic level.
3. Outline the goals of the project: The most important part of the project mission is to clearly identify the goals of the project. This may involve making a choice between focusing on improvements that are more upstream and strategic, versus those that may impact the day-to-day operations of the supply chain, because it may be difficult to implement improvements that maximize performance on both these dimensions. The goals for the analysis should also include a measurable component so that improvements resulting from the project can be assessed by all members of the supply chain.