Standard 12: Effective management of goods throughout the supply chain.
Manage the supply chain effectively and efficiently, through close collaboration among program, finance, and other operations teams, to source, store, maintain, and deliver project goods either to beneficiaries or for internal consumption.
Collaboratively update and execute supply chain management plans in line with project objectives and the DIP.
While the project detailed implementation plan (DIP) provides guidance for overall project activity and schedule management, in many cases, it is necessary to develop a more detailed supply chain management planThis is particularly important when the supply chain is complex and includes items like food commodities or medicines and the project team needs to consider questions like how to position stock to facilitate mass distribution of items? How to maintain the proper temperature throughout the process of moving goods requiring a cold chain? How to avoid pipeline breaks?
to fully prepare for and execute the procurement, transport, storage, and distribution of project goods (including goods for CRS and partner use in project implementation and management). Program, finance, and operations staff all have information that can affect this detailed supply chain management planning. Preparing supply chain plans through a collaborative, cross-discipline approach:
- Ensures CRS and partner project staff have the supplies and equipment they need to manage the project effectively.
- Ensures that the right goods reach the right people at the right time.
- Promotes good stewardship of project resources.
- Primary responsible: Supply chain manager or equivalent
- The supply chain manager (or other supply chain staff if there is no supply chain manager) quantifies and costs goods and services, designs logistics and supply chain plans, and leads implementation of plans.
- Others involved: Project manager or chief of party (PM/CoP); supply chain staff;Monitoring is an essential part of successful execution of supply chain management plans; for details on supply chain monitoring, see Standard 12, key action 2.
finance manager (FM); project staff; partner staff
- The PM/CoP establishes parameters for supply chain planning based on project targets and the project detailed implementation plan (DIP) and coordinates distribution of project goods with program staff and partners;
- The FM ensures that country program spending plans and resources reflect supply chain plans;
- Project staff (including the distribution team(s)) work with supply chain staff and partners to successfully plan and executeSupply chain management (SCM) roles include the supply chain manager, procurement manager, warehouse manager, logistics manager, transport officer, and others. For more information about SCM roles, see Chapter 2: Roles and Responsibilities in the SCM Handbook, and the Standard JD Site. procurement, warehousing, and distribution.
- Ongoing, throughout implementation, cyclically with monitoring of supply chain (see Standard 12, key action 2)
This key action builds on supply chain management plans developed during early project start-up and refined through the detailed implementation planning process. Follow these steps to ensure regular updates to and effective execution of supply chain management plans (including procurement plans):
- Supply chain management staff communicate closely with the PM/CoP throughout project implementation to review, refine, and update project supply chain management plans, including the distribution plan, based on up-to-date project information.
- In addition to formal reviews of project plans and requirements as part of quarterly and annual project review and planning, the PM/CoP communicates to supply chain management staff any changes affecting project procurement and other aspects of supply chain management as soon as the PM/CoP learns of these changes.
- The procurement manager updates the project Procurement Plan developed in early start-up, based on the information from the PM/CoP (for more information see the P2P Procurement Manual).
- The PM/CoP submits timely Purchase Requisition Forms for items in the procurement plan throughout project implementation.
- For projects where supply chain management activities do not include distribution of goods beyond basic project equipment and supplies, while the more detailed distribution and dispatch plans described below may not be required, the PM/CoP must work with operations staff (e.g., the fleet manager) to develop transportation schedules as needed and make other arrangements to ensure that project goods are in the places they are needed, at the times they are needed, to implement the project per the detailed implementation plan (DIP).
Detailed supply chain management planning for projects with distribution components
- After consulting with distribution teams and other relevant stakeholders, the PM/CoP reviews and updates the distribution requirements (goods required; item quantities; beneficiary numbers and locations/service delivery points (SDPs), if applicable; and dates of delivery) captured in the project Distribution Plan,See Chapter 11 in the Supply Chain Management Handbook for more information about the distribution plan. and shares the updated plan with the supply chain manager (or equivalent).
- Use information from the annual detailed implementation plan (DIP) and distribution planning exercises organized with the project team and partners to update the Distribution Plan.
- The logistics manager uses the Distribution Plan developed by the PM/CoP to create a Dispatch Plan and cross-checks this plan with the warehouse manager to determine if items are in stock or if additional items need to be procured.
- Include information for the loading, transport, and (if relevant) storage of goods in specified locations (warehouses, service delivery points (SDPs)) after goods are dispatched from warehouses or received from suppliers.
- The supply chain manager reviews and adjusts the dispatch plan as needed before signing off on it and provides a copy to the PM/CoP and warehouse manager.
- See Chapter 3: Forecasting and Planning, Chapter 9: Dispatch, and Chapter 11; Distribution in the Supply Chain Management Handbook for more information.
- The transport officer, with the assistance of the logistics manager, creates the Transport Schedule.
- See Chapter 3: Forecasting and Planning and Chapter 10: National Transportation in the Supply Chain Management Handbook for more information).
Partner management of service delivery points (SDPs): If project goods will be stored at SDPs managed by partners, the supply chain manager and logistics manager, in coordination with partners, should confirm that storage locations meet CRS’ minimum criteria (see the inspection checklist under “Tools”). As necessary, CRS should invest in partner capacity to effectively manage last-mile storage and distribution.
- Throughout project implementation, the supply chain manager and PM/CoP coordinate to conduct training/refreshers on CRS’ best practices for distributions (see Chapter 11: Distribution in the Supply Chain Management Handbook).
- Schedule capacity-building events in the project DIP and ensure they are informed by project capacity assessments (Standard 6, key action 4) as well as ongoing reflections on any supply chain management (SCM) issues and challenges (see Standard 12, key action 2, and Standard 11, key action 4).
- The PM/CoP factors the distribution and dispatch plans and the human resources and materials (e.g., communications materials, distribution items such as scales, bags, etc.) needed for distribution events into project financial planning (spending forecasts and cash forecasts).
- See Standard 13, key action 1 for guidance on preparing project financial projections.
- If applicable, the supply chain manager, with support from the warehouse manager, prepares a replenishment methodology and schedule for the movement of goods from CRS’ central warehouse to partner warehouses or SDPs based on the distribution plan and associated dispatch plan.
Execution of supply chain management plans for projects with distribution components
- The warehouse manager dispatches goods to SDPs or other storage locations according to distribution plan.
- The distribution team:
- Receives goods and sets up the distribution site according to CRS best practice (see Chapter 11: Distribution in the Supply Chain Management Handbook).
- Distributes goods to recipients, according to CRS best practice (see Chapter 11: Distribution in the Supply Chain Management Handbook).
- Ensures that damaged or unused goods are returned to the warehouse or supplier in accordance with the terms and conditions of the contract.
- The PM/CoP confirms that the quantities of distributed items compared to items damaged or returned matches the documents tracking the movement of goods from warehouse or supplier.
When CRS is a sub-recipient
- In projects which include distribution of goods to beneficiaries, partners often play the lead role in implementing distribution events, and have the best access to the networks and facilities needed to transport and store project goods. As such, the PM/CoP and CRS supply chain staff must facilitate partners’ full and active participation in planning, executing, and reflecting on how to improve distributions (see Standard 12, key action 2).
- In some projects, CRS holds the title to goods but stores those goods in partner warehouses. Such arrangements and the expectations of partners in managing goods stored in their warehouses should be clearly stated in CRS’ sub-recipient agreement with the partner. As needed during implementation, review these expectations and requirements, including the importance of maintaining data related to key performance indicators (KPIs) for monitoring and managing the effective movement and distribution of goods.
- When CRS is a sub-recipient, consult with the prime on the process above, unless CRS has specific procurement or distribution responsibilities for items within the grant. If CRS maintains primary procurement and distribution responsibilities, follow the process above.
- Follow the same process for emergency projects.
- If you are working on a large-scale emergency where several Caritas Internationalis (CI) Members are responding and/or supporting a response of the national Caritas, please refer to the Caritas Internationalis Protocol for CI Coordination in Emergency Response, Emergency Framework and Toolkit for Emergency Response documents. The Toolkit includes resources on procurement, distribution, logistics, warehousing, and other supply chain management resources in English, French, and Spanish. If you are not registered on the CI Baobab site, please register here.When registering for the CI Baobab site, CRS staff should select "Caritas United States - CRS" as their organization and list the Humanitarian Response Department and email@example.com as the reference contact. If you have any questions, please contact CRS’ Humanitarian Response Department (firstname.lastname@example.org).
- If there are changes to the scope of supply chain management activities during the emergency response, the PM/CoP should engage relevant stakeholders (e.g. CRS operations staff, distribution partners, etc.) to update plans as needed (for additional guidance on supply chain management in emergencies, see the CRS Emergency Field Operations Manual).
Tools and templates
Policies and procedures
- Primary responsible: Supply chain manager or equivalent