Supply Annual Report 2015
Agile, resilient and sustainable supply chains for children
Improving accessibility, bridging financial gaps, generating savings and strengthening supply chains with governments
or 70 years, securing the health and wellbeing of children around the world has been at the heart of everything UNICEF says and does.
Between 2000 and 2015, the global community made great strides to improve the lives of children and their families – galvanized by the common objectives of the Millennium Development Goals (MDGs).
The collective commitment of governments, donors, partners and international institutions more than halved under-five mortality rates since 2000 (from 12.7 million to 5.9 million children); contributed to an almost 50 per cent fall in extreme poverty (from 1.9 billion to 836 million); provided access to water for 2.6 billion people; and helped 43 million additional children attend primary school each year – many of these are girls. But there is more yet to do.
In September 2015, world leaders committed to the Sustainable Development Goals (SDGs), a renewed global push, between now and 2030, to end extreme poverty, fight inequality and injustice and address climate change. The 17 SDGs include goals that are specific to the health and wellbeing of children and adolescents. Access to affordable, high-quality vaccines, medicines, water and sanitation and education supplies is critical to realizing the SDGs.
UNICEF remains one of the largest buyers of supplies for children and in 2015 procured over $3.4 billion in supplies and services. At the same time, UNICEF Supply responded to increased requests from governments for technical expertise, knowledge sharing and collaboration to optimize supply chains, prevent stock-outs, reduce costs and ensure timely delivery. UNICEF uses evidencebased strategies that focus on competition, transparency, special financing, special contracting and partner collaboration to tackle market issues to achieve value for money, sustainability and meet demand.
These efforts contributed to increased availability and declining prices in 2015:
Over $422.8 million in savings and cost avoidance was achieved in 14 commodity groups across the year, bringing cumulative savings since 2012 to $1.068 billion.
The rapidly growing supply financing area of UNICEF’s work is core to achieving the above and is the theme of this year’s annual report. Initially, UNICEF’s support in this area focused on securing bridge financing for countries experiencing gaps in the timely availability of funds to buy supplies. However, in the last five years, the work on supply financing solutions for children has expanded markedly. It covers special contracting arrangements that help address market uncertainties and contribute to lower prices; technical support to build countries’ budgeting, financing and procurement self-sufficiency; and efforts to encourage expansion of the local supplierbase. The report explains each of these financing interventions, and through country examples, illustrates the impact of these efforts on the lives of children.
Alongside efforts to establish agile, resilient supply chains, UNICEF Supply continued to respond to the needs of children caught in crisis and conflict throughout 2015. The Supply emergency response reached children in Burundi, the Central African Republic, Ethiopia, Guinea, Iraq, Liberia, Malawi, Nepal, Sierra Leone, South Sudan, Syria and Vanuatu. UNICEF Supply also supported migrant and refugee children risking their lives to find safety and education in Europe.
Despite this varying and often challenging operational environment, achievements across the year demonstrate the scope and value of UNICEF Supply and its potential to contribute to global efforts to ensure children and young people are healthy, safe, educated and empowered. The drive to integrate sustainability into supply chains for children is built upon ingenuity, perseverance and compassion – qualities that define UNICEF colleagues who procure and deliver supplies that help fulfil every child’s right to a full and healthy life.