M.

HAROON 2013243
MEHAK MUMTAZ 2013187
MISBAH ABBAS 2013195
AIMAN AAMIR 2013033

SUPPLY CHAIN MANAGEMENT

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INTRODUCTION
UNICEF promotes the rights and wellbeing of every child and works in 190 countries.
The UN General Assembly adopts the Declaration of the Rights of the Child, which
defines childrens rights to protection, education, health care, shelter and good
nutrition leading to UNICEF becomes permanent part of the UN in 1953.
Supporting child survival around the world, procured supplies of UNICEF are critical
in providing for childrens health, education and protecting them from abuse,
exploitation, and neglect. This insurance of high quality and good value of supplies
through fair and open procurement requires a well-managed supply chain. This
thereby helps to supports UNICEFs ongoing activities and aims to provide rapid
supply response to emergences.
Since UNICEF is committed to helping governments meet the immediate needs of
children through the provision of vital supplies, their national capacity in planning
and selecting supplies and equipment and the efficient local delivery and timely
distribution is further strengthened. The following shows UNICEF supply chain
model and how each of the parameters involved at each stage is effectively and
efficiently managed.

EXECUTIVE SUMMARY

This report focuses on UNICEFs procurement parameters associated with their

supply chain and thereby explains their current models along with some of the risks
associated with it. Various stages of procurement process is highlighted which help to
describe, identify and select the appropriate procurement strategies that can best
suited for a series of decisions. The report also focuses on how ERP systems are used
that aid to the handling of manufacturing, logistics, distribution, inventory, shipping
for an organization. Since UNICEF has extensively made use of e-procurement in the
procurement process, various risks and possible consequences are also enormously
emphasized upon. The model of e-collaboration proposed in the report sets a
foreground that basically focuses on the implementation of e-procurement system that
speeds up the flow of supply, making the process of order release faster. The model
suggested simulates the behaviour of a real manufacturing system that operates in a
make-to order environment. The purpose of the simulation is to analyse the behaviour
of the system following the implementation of the model of e-collaboration, in terms
of reduction of costs related to financial assets and penalties.

LITERATURE REVIEW
This paragraph presents an overview of the literature aimed at identifying both the
most common definitions of e-procurement (EP). The literature on this topic started to
appear in the nineties. Van Weele (1994) defines e-procurement as the use of Internet
technology in the process of providing goods and services. According to de Boer,
Harink and Heijboer (2002), EP can be defined as using the Internet in the purchasing
process. In a similar way Presutti (2003) defines EP as a technology solution that
facilitates corporate buying using the Internet and Knudsen (2003) emphasizes the
capability of electronic commerce to enhance the procurement process.
In recent years, many authors have focused their studies on the evolution of the webbased systems in the supply chain with a focus on growth, development and expected
trends related to the implementation of a platform for e-procurement. Leonard and
Spring (2002) define EP as a model of strategic purchasing. More specifically,
Balocco and Rangone (2002) provide a description of the role of e-marketplaces and
B2B applications, focusing their discussion on the various models and tools for
interaction based on the use of the internet.

THEORETICAL MODELS
MODEL 1:

E-procurement has been around for much longer than the term itself which first came
into usage after the establishment of the internet in the 1990s. At that time it basically
took the form of electronic data interchange (EDI) whereas nowadays it is supported
by internet technologies. This historical context of e-procurement is depicted in the
following chart.
EDI traditionally runs on value added networks or the closed networks while
internet is an open network.

Since UNICEF deals with external suppliers, its focus is on e-procurement which
thereby helps it to achieve its MDG goals. The six forms constituting e-procurement
is shown in the following diagram which explains each of them in the light of how
UNICEF carries its procurement.

The above model that UINCEF supports the E-sourcing which in turn supports
specification phase (suppliers are selected that can be used in the selection phase)
while E-tendering supports the selection phase which includes RFP activities, this in
turn helps to support the analysis and assessment activities. Meaning it acts as a
communication platform between the procuring organization and its respective
suppliers. This form results in equal treatment of suppliers and reduces legal errors
committed.
E-ordering and web-based ERP processes are also used that create and approve
procurement requisitions by using a software system based on the internet.
E reverse auctioning refers to the support the procurement model provides the
contract phase.
A phase that is not directly involved in the procurement process is E-informing where
procurement information is gathered from internal and external sources via internet.

MODEL 2:

A survey analysis showed that UN organization size, in terms of numbers of

employees or annual budget, was not significantly related to propensity to adopt eprocurement. In hindsight, it may have been beneficial to find a way to measure
organizational size that relates more closely toe-procurement, such as in terms of
number of purchases. The type of operation was related to e-procurement adoption,
with those agencies planning to implement e-procurement being significantly more
likely to be development agencies that work in developing countries over time (e.g.
UNDP) or having a high-logistical component to their operations (e.g. WHO have
pharmaceuticals shipped to developing nations).

FINDINGS
The implementation of e-procurement system, allows to speed up the flow of supply,
thus making the process of order release faster and more efficient. This
implementation leads to some of the risks associated with the e-procurement tools as
well as the strategies it implements.
One of the risks can be UNICEF missing out the opportunities to implement strategies
that improves procurement management without the need for further investment in eprocurement.
Similarly over-investing in e-procurement tools that do not deliver expected benefits.
So this inadequate evaluation of the adoption or enhancement tools increases risk
associated with procurement in supply chain.
Delayed requisitions can create false emergencies thus leading to increase in the total
cost of acquisition. Inappropriate procurement strategies can be selected based on this
risk and that can affect the result and providing UNICEF with inappropriate results.

RECOMMENDATION
Due to the risks associated with e-procurement currently used by UNICEF,
suggestions are proposed that make use of a simulation model. This model serves the
purpose in a way that it analyses this model.
The model of e-collaboration, through implementation of e-procurement system,
allows to speed up the flow of supply, making the process of order release. The model
developed simulates the behaviour of a real manufacturing system that operates in a
make-to order environment.
The purpose of the simulation is to analyse the behaviour of the system following the
implementation of a model of e-collaboration, in terms of reduction of costs related to
financial assets and penalties.

The production system described is composed of two chains of events: order picking
in warehouse, purchase orders. Purchase orders are characterized by an emission time
that varies according to the number of positions, of the amount and the monetary
value of purchase orders.
After the order release and the subsequent shipment, the materials are in stock to be
picked up.

Another suggestion that this report proposes is the use of ERP systems in a way that
UNICEF is able to strengthen its supply chain even more.
Following is a diagram that shows ERP model and the streamline it shows.

Although the diagram focuses on the streamlined process that shows the entire
departments the firm has in their organizational structure however similar ERP system
can be modelled in a way that adds value to the procurement of the supply chain.
Resources and other constituting factors are to be considered and a prototype model
should be designed that specifically aids to the need of UNICEF in particular.
The need to assess the current needs associated with the firm have to be chosen the
right way so that the implementation of this doesnt hinder in the objectives of
UNICEF.
This leads UNICEF to carry out internal needs assessment as well.

The future of ERP system encourages and balances the global perspective and adds to
the contribution of all the supply chain activities involved. Hence it is not specified
towards procurement in general but can be a vital point that its relationship with
suppliers, as well as consumers, all the while adding value to the global help they
provide.

Conclusion
UNICEF is functioning all over the world and creating a huge difference for the world
today. The traditional system that they are following will allow them to function for a
certain amount of time but the future does not look that bright. The scarce resources,
political problems and the external problems are increasing day by day. There is a
need in developing a strategy and re generate a program that will last a decade and
will set as an example for other institution to follow.
The advancement that our team has suggested will not only benefit the efficiency rate
of UNICEF but will help create a suitable and environment for it to expand and help
more and more people of the world today. The objectives of a Global NGO will be
met easily and as mentioned above, it will help other organizations in establishing
themselves and provide services locally.
The main motive for an NGO is to create a difference in peoples lives, by focusing
towards E-procurement the faster services and easier distribution channels will allow
UNICEF to function in a productive way which will be profitable for them as well as
the people that they are targeting.

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