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Evaluation of the supply chain network design at United Nations Population Fund (UNFPA) - Through the development of a performance measurement system

Petersson, Olof LU and Andersson Wiking-Lima De Faria, Emilia LU (2012) MTT820 20121
Engineering Logistics
Abstract
Background: UNFPA is a subsidiary organ to the United Nations (UN) with a primary focus on population and development strategies, sexual and reproductive health and gender equality. In March 2005 the UNDP/UNFPA Executive Board had realized that for the UNFPA Procurement Services Branch (PSB) to operate in line with its mission, focus would need to be directed specifically towards improvements in the areas of procurement, supply and logistics. Several studies were conducted that resulted in a recommendation to implement regional warehouses. However, the conclusion of the studies was that further quantitative analysis was needed in terms of performance measures for transportation, warehousing costs and lead-times to make an informative... (More)
Background: UNFPA is a subsidiary organ to the United Nations (UN) with a primary focus on population and development strategies, sexual and reproductive health and gender equality. In March 2005 the UNDP/UNFPA Executive Board had realized that for the UNFPA Procurement Services Branch (PSB) to operate in line with its mission, focus would need to be directed specifically towards improvements in the areas of procurement, supply and logistics. Several studies were conducted that resulted in a recommendation to implement regional warehouses. However, the conclusion of the studies was that further quantitative analysis was needed in terms of performance measures for transportation, warehousing costs and lead-times to make an informative decision. PSB now has an opportunity to utilize United Nations Humanitarian Response Depots (UNHRDs) as regional warehouses.

Purpose: The purpose of this study was to develop a performance measurement system for PSB’s supply chain network design. In addition, the purpose was to use the performance measurement system in an evaluation of the alternative supply chain network design with regional warehouses.

Research questions: 1. Which performance measures need to be considered when developing a new performance measurement system for PSB?
2. Should PSB keep its current supply chain network design or switch to a supply chain network design with regional warehouses in the UNHRDs?

Method: First, exploratory interviews were held to get an understanding for PSB, its supply chain and where to direct the focus for this study. Second, several interviews were held with employees at PSB regarding PSB’s supply chain, supply chain strategy and performance measurement system. A performance measurement system could thereby be developed through these interviews and the frame of reference developed for this study. Third, order data from PSB’s information was used to determine the performance for the current and alternative supply chain. Finally, the performance of the two supply chain network designs was compared and a recommendation regarding PSB’s supply chain network design was presented.

Conclusions: A new performance measurement system was developed for PSB. It was developed to contain measures from the three categories; resource, output and flexibility. The developed performance measurement system was used to analyze and compare the current supply chain network design to a supply chain network design with regional warehouses in the UNHRDs. It was found that the supply chain network design performed better or equal to the current supply chain for 11 out of the 13 performance measures. The supply chain with regional warehouses scored high in the areas that PSB had expressed as important to their strategy such as freight performance, responsiveness and customer satisfaction. All regional warehouses except for the one in Brindisi were found suitable. Therefore, the authors recommend PSB to start utilizing the UNHRDs in Accra, Dubai, Panama and Subang. (Less)
Abstract (Swedish)
Bakgrund: UNFPA är en underorganisation till Förenta Nationerna (FN). UNFPA fokuserar på populations- och utvecklingsstrategier och jämlikhet mellan könen. I mars 2005 bestämdes det i UNDP/UNFPAs styrelse att UNFPAs inköpsavdelning (PSB) skulle behöva förbättras om de skulle nå upp till sina mål. Flera studier har genomförts och resultatet av dessa visade bland annat på en rekommendation att införa regionala lager för att kunna minska ledtiderna mot kund. De visade dock också på att en mer kvantitativ analys skulle behövas med avseende på potentiella transport- och lagerkostnader innan ett informativt beslut skulle kunna tas.

Syfte: Syftet med denna studie var att utveckla ett system med mätetal för att utvärdera PSBs försörjningskedja.... (More)
Bakgrund: UNFPA är en underorganisation till Förenta Nationerna (FN). UNFPA fokuserar på populations- och utvecklingsstrategier och jämlikhet mellan könen. I mars 2005 bestämdes det i UNDP/UNFPAs styrelse att UNFPAs inköpsavdelning (PSB) skulle behöva förbättras om de skulle nå upp till sina mål. Flera studier har genomförts och resultatet av dessa visade bland annat på en rekommendation att införa regionala lager för att kunna minska ledtiderna mot kund. De visade dock också på att en mer kvantitativ analys skulle behövas med avseende på potentiella transport- och lagerkostnader innan ett informativt beslut skulle kunna tas.

Syfte: Syftet med denna studie var att utveckla ett system med mätetal för att utvärdera PSBs försörjningskedja. Syftet var också att med hjälp av detta system utvärdera fördelarna och nackdelarna för PSB att ha regionala lager för att slutligen kunna ge en rekommendation angående huruvida PSB ska börja lagra produkter i UNHRDs eller ej.

Forskningsfrågor: 1. Vilka mätetal behöver inkluderas för att kunna utvärdera PSBs försörjningskedja med avseende på regionala lager?
2. Borde PSB behålla sin nuvarande design på försörjningskedjan eller ändra till en design som inkulderar regionala lager med UNHRD?

Metod: Inledande intervjuer hölls med anställda på PSB i studiens början för att få en djupare förståelse för PSB, dess försörjningskedja och var fokus skulle läggas. Ytterligare intervjuer hölls sedan angående PSB’s försörjningskedja, strategi och system med mätetal. Genom dessa intervjuer och det teoretiska rameverket kunde ett system med mätetal utvecklas. Detta system andvändes sedan för att mäta skillnaden mellan den nuvarande försörjningskedjan och den alternativa försörjningskedjan med regionala lager. Analysen av mätetalens resultat låg till grund för rekommendationen till PSB.

Slutsatser: Ett system med mätetal utvecklades för PSB utifrån de tre kategorierna; tillgångar, resultat och flexibilitet. Detta system användes för att analysera och jämföra PSBs nuvarande försörjningskedja med en försörjningskedja med regionala lager hos UNHRD. Resultatet visade att försörjningskedjan med regionala lager fick bättre resultat på 11 av de 13 mätetalen som användes i analysen. Försörjningskedjan med regionala lager fick höga poäng för mätetal som PSB hade uttryckt att de tyckte var extra viktiga, såsom leveranstid, möjligheten att snabbt kunna leverera akuta ordrar samt kundnöjdhet. Alla UNHRDs regionala lager ansågs vara passande förutom lagret i Brindisi på grund av för små och infrekventa ordrar. Författarna reklommenderar därför PSB att börja lagra sina produkter in UNHRDs lager i Accra, Dubai, Panama och Subang. (Less)
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author
Petersson, Olof LU and Andersson Wiking-Lima De Faria, Emilia LU
supervisor
organization
course
MTT820 20121
year
type
M1 - University Diploma
subject
keywords
Performance measurement system, performance measures, supply chain network design, regional warehouse, UNFPA
other publication id
5740
language
English
id
3463695
date added to LUP
2013-02-14 14:35:00
date last changed
2013-02-14 14:35:00
@misc{3463695,
  abstract     = {Background: UNFPA is a subsidiary organ to the United Nations (UN) with a primary focus on population and development strategies, sexual and reproductive health and gender equality. In March 2005 the UNDP/UNFPA Executive Board had realized that for the UNFPA Procurement Services Branch (PSB) to operate in line with its mission, focus would need to be directed specifically towards improvements in the areas of procurement, supply and logistics. Several studies were conducted that resulted in a recommendation to implement regional warehouses. However, the conclusion of the studies was that further quantitative analysis was needed in terms of performance measures for transportation, warehousing costs and lead-times to make an informative decision. PSB now has an opportunity to utilize United Nations Humanitarian Response Depots (UNHRDs) as regional warehouses.

Purpose: The purpose of this study was to develop a performance measurement system for PSB’s supply chain network design. In addition, the purpose was to use the performance measurement system in an evaluation of the alternative supply chain network design with regional warehouses.

Research questions: 1. Which performance measures need to be considered when developing a new performance measurement system for PSB?
2. Should PSB keep its current supply chain network design or switch to a supply chain network design with regional warehouses in the UNHRDs?

Method: First, exploratory interviews were held to get an understanding for PSB, its supply chain and where to direct the focus for this study. Second, several interviews were held with employees at PSB regarding PSB’s supply chain, supply chain strategy and performance measurement system. A performance measurement system could thereby be developed through these interviews and the frame of reference developed for this study. Third, order data from PSB’s information was used to determine the performance for the current and alternative supply chain. Finally, the performance of the two supply chain network designs was compared and a recommendation regarding PSB’s supply chain network design was presented.

Conclusions: A new performance measurement system was developed for PSB. It was developed to contain measures from the three categories; resource, output and flexibility. The developed performance measurement system was used to analyze and compare the current supply chain network design to a supply chain network design with regional warehouses in the UNHRDs. It was found that the supply chain network design performed better or equal to the current supply chain for 11 out of the 13 performance measures. The supply chain with regional warehouses scored high in the areas that PSB had expressed as important to their strategy such as freight performance, responsiveness and customer satisfaction. All regional warehouses except for the one in Brindisi were found suitable. Therefore, the authors recommend PSB to start utilizing the UNHRDs in Accra, Dubai, Panama and Subang.},
  author       = {Petersson, Olof and Andersson Wiking-Lima De Faria, Emilia},
  keyword      = {Performance measurement system,performance measures,supply chain network design,regional warehouse,UNFPA},
  language     = {eng},
  note         = {Student Paper},
  title        = {Evaluation of the supply chain network design at United Nations Population Fund (UNFPA) - Through the development of a performance measurement system},
  year         = {2012},
}