The report covers:
Supply chain optimisation: UNICEF is introducing new tools, approaches and technical capacities to optimise the supply chain activities we manage. Performance objectives such as reduced stock-outs, lower transport costs and timely delivery have been established and monitored regularly. In partnership with governments and other stakeholders, we are optimising national supply chains by improving key interfaces and dependencies, testing temperature-controlled sea shipments, streamlining packaging and deliveries, using text messages to warn of temperature breaches along the cold chain, improving the traceability and monitoring of products via barcoding and strategic tendering for local transport provision to realise these goals.
Strengthening end-to-end supply chains: The report identifies countries where UNICEF Supply Division has been involved in end-to-end supply chain projects. These activities were led by government counterparts and supported through UNICEF Country Offices. A case study on comprehensive supply chain engagement in Malawi on the procurement and delivery of ARVs highlights the challenge and complexity involved in building sustainable in-country supply chains.
Strengthening in-country cold chains: Cold chain systems require investment and revitalisation to keep pace with the ever increasing capacity required for the safe storage and transport of vaccines. Examples of UNICEF collaborations in Bangladesh, Peru and Tanzania demonstrate UNICEF's support in providing procurement advice and technical assistance in meeting governments' objective that all children have equitable access to vaccines. New technologies in cold chain equipment: for example the use of solar direct drive refrigerators and freezers, are also making an impact.
Ensuring equitable access to vaccines in Middle Income Countries: Access to vaccines requires affordable prices, effective cold-chain infrastructure and government commitment. In 2012, UNICEF worked with governments, donors and suppliers to prepare and implement a procurement strategy to support Middle Income Countries in achieving equitable access to new vaccines and assuring a sustained supply and better pricing. The report explains key elements of the strategy including: aggregation of MICs' vaccine demand forecasts, pooling countries' vaccine procurement, working with industry in setting reference prices for MICs, publishing results of vaccine market analyses on the www.unicef.org/supply site.
Supply emergency response in 2012: UNICEF Supply Division delivered $47 million in off-shore emergency supplies to 47 countries in 2012. The majority of efforts focused on complex emergencies in Syria and the region, and in the Sahel. In a related feature, the Report details how collaborative efforts around defining need, planning and accurate forecasting of RUTF has resulted in significant efficiency gains. IN 2012 the volume of RUTF shipped by UNICEF as over 21,000 MT, but the total cost of shipping dropped by 25 per cent. Nearly 45 per cent of the total RUTF procured in 2012 originated from suppliers in Africa which UNICEF and partners in the past ten years, helped strengthen in terms of production capacity and meeting international quality standards.
Product and technological innovation: UNICEF launched its website www.unicefinnovateforchildren. The Report summarises the status of major product and technological innovations. Among many examples include: improved emergency tent, new technologies to test for bacteria in water, improved menstrual hygiene management and education, phase change material to overcome freezing vaccines, improved pneumonia detection device, a child-friendly latrine accessible by disabled children, a digital "school in a box", web-based vaccine stock level monitoring.
Savings and value for money in vaccines, ARVs, RUTF and bednets. Procurement strategies aimed at increasing the availability and affordability of essential commodities have contributed to $197 million in actual savings in 2012. Based on current contracts and demand, the projected savings in the next five years will be a minimum of $810 million.