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WFP Supply Chain Annual Report 2015 (September 2016)

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Foreword

To reach the people we serve and assist partners, our supply chain operates a complex network of sourcing, contracting, storing and transporting food, goods and services. Our planning, logistics and procurement capacity is core to our success.

Following a consultative and analytical review process, recommendations to institutionalise integrated supply chain management across the organization were put forward during the 2013 Business Process Review. Since then WFP has embraced this approach, and established the Supply Chain Division in November 2015.

Despite insecure and volatile operating environments, we have demonstrated how end-to-end supply chain management supports operational excellence in WFP’s largest and most complex emergencies. For instance, WFP was able to considerably reduce lead times in Syria by 40 days since the start of the operation, leveraging corporate facilities such as the Global Commodity Management Facility (GCMF). In addition, we achieved significant cost savings by optimizing our global delivery network and sourcing strategies.

Now it is time to apply an end-to-end supply chain approach to our global operations. The Supply Chain Division has four objectives:

  1. to ensure reliability while also targeting savings across global supply chain operations;

  2. to flexibly respond to changes in demand and switch between transfer modalities as required;

  3. to maintain quality and safety throughout its operations, products and services; and

  4. to help governments and local markets strengthen their ability to achieve Zero Hunger.

Through these ambitious objectives, we aim to enhance WFP’s ability to deliver food, cash, services and equipment within hours of an emergency being declared, anywhere in the world.

To reach and maintain a world without hunger, WFP must continue to adapt in order to meet the often complex, and constantly evolving, humanitarian needs. We are therefore re-engineering our business model to support WFP’s strategic shift to enhance its engagement with national systems and governments; strengthen local supply chains to enable the scale-up of cash-based transfers, including e-vouchers and multi-purpose cash; and ensure WFP retains its longstanding direct operational capacity and excellence in food assistance logistics and supply chain management.

The creation of the Supply Chain Division comes at the right time. Leveraging our global presence and expertise, we have a unique responsibility to ensure the operational capacity, partnerships and networks are in place to support governments make Zero Hunger a reality.

Corinne Fleischer,
Director, Supply Chain Division