Evaluating Alternative Supply Chain Models for the Provision of Tarpaulins Supplies to Africa Dr David Taylor Senior Research Fellow Logistics and Operations Management Section Cardiff University Business School UK
Evaluating Alternative Supply Chain Models for the Provision of Tarpaulins Supplies to Africa Dr David Taylor Senior Research Fellow Logistics and Operations.
Dec 18, 2015
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Evaluating Alternative Supply Chain Models for the Provision of
Tarpaulins Suppliesto Africa
Dr David Taylor
Senior Research Fellow Logistics and Operations Management Section
Cardiff University Business School UK
Reltex/ Cardiff University Value Chain Analysis Project
To use a value chain analysis techniques to compare
Conventional methods of supplying NFI aid items from sources external to Africa
With
The local production model of manufacture in Africa combined with pre-positioned
stockholding
Value Chain Analysis
VCA - the method of applying ‘Lean Principles’ to supply chain improvement
‘Lean’ originated at Toyota
Now applied in many sectors beyond automotive
First application in humanitarian aid
Major stock locations outside Africa
Stock locations in Africa
Spaghetti Map
Value Chains Analysed
Uganda
Value Chain Analysis Assumed Area of Beneficiary Need
Value Chain OneChina Manufacture - NGO Warehouse Nairobi – Surface Transport
Nairobi
Mombasa
Qingdau
Singapore
Mombasa
Qingdau
Singapore
Dubai
Value Chain TwoChina Manufacture – Regional Warehouse Dubai - Surface Transport
Nairobi
Mombasa
Mumbai
Value Chain ThreeIndia Manufacture – Trading Company Nairobi - Surface Transport
Value Chain Four
Entebbe
Qingdau
Singapore
Copenhagen
Value Chain FourChina Manufacture – European Warehouse – Sea Transport
Nairobi
Value Chain Five : Advance Aid ModelManufacture Nairobi – PP Stock Entebbe
Entebbe
Value Chain
Current State Maps
Nairobi
NGO Warehouse
3500Inventory tarps
BeneficiariesRegion North of
Kampala
27Max factory
leadtime days
15-20kProduction Capacity /day Units
50000Inventory tarps
2-3
Port Transit
days
Qingdao Sing-apore
Mombassa
3Aver Transport time days
2-8Variability days
5500Container tarps
3-9 kInventory range tarps
0.25 day
4 day
26 days11 days
8 day
8 days
2-4W/h response days
3 days
3 days
$12 $0.66 $0.33 $0.73
Cost per container $4000Tarps per container 6000Cost per tarp $0.66
Cost / container $2000Tarps / container 6000Cost / tarp $0.33
Cost / container $4000Tarps / container 5500Cost / tarp $0.73
Cost
Lead Times
Supply Chain Structure & Operations
Carbon Footprint (Tonnes of Co2 per container with 6000 tarps)
12Aver Factory Leadtime
days
12 days
Supply Chain Structure
( & Risk Factors)
12439Distance kms
12No of links in chain .
3No of Ports .
5Transport legs .
0.2 1.82 2.54 1.53Carbon Footprint
6.38 Carbon tnns
Qingdao China
Tarpaulin Factory
2Min Factory Leadtime days
2 day
4-14
Port Transit
days 5-14
Port Transit
days
0.29
Unit value $13.00 Holding cost pa 10%Hold cost / tarp $1.30
$1.30
4947 kms 6400 kms 481 kms 541 kms
70 kms
daily Frequency .
8Aver Transport time days
5-14Variability day
6000Container tarps
? Frequency day
3Border crossings .
( 2 - 27 )
Average
(Min -Max) ( 2-3 ) ( 4-14) ( 5 - 14 ) ( 2 – 4) ( 3 - 8 )
Lead Time
77Whole Chain
days
57Min Time day
126Max Time day
6From Nairobi stock days
71To replinish Nairobi stock days
Tarp Costs
1.73Transport costs $
1.30Warehousing cost $
12.00Manufacture cost $
15.02Cost
Per tarp$
11Aver Transport time days
10 - 12Variability days
6000Container tarps
daily Frequency .
26Aver Transport time days
24 -30Variability days
6000Container tarps
daily Frequency .
( 10 - 12 ) ( 24- 30) ( 5-14)
Uganda Rub hall
Whole Chain KPI’s
Value Chain One : China Manufacture – NGO Warehouse Nairobi -- Surface Transport
QingdaoPort
SingaporePort
MombassaPort
Tarpaulin FactoryQingdao China
Supply Chain Structure& Operations
Key Performance Indicators (KPI’s) for each link in the chain
27Max factory leadtime days
15-20kProduction Capacity /day Units
50000Inventory tarps
12Aver Factory Leadtime days
2Min Factory Leadtime days
2-3
Port Transit
daysdays
Port Transit
4-14
Port Transit
days 5-14
Port Transit
days
70 kms
4947 kms 6400 kms
11Aver Transport time days
10 - 12Variability days
6000Container tarps
daily Frequency .
26Aver Transport time days
24 -30Variability days
6000Container tarps
daily Frequency .
The links in the chain
Nairobi
NGO Warehouse
3500Inventory tarps
BeneficiariesRegion North of
Kampala
27Max factory leadtime days
15-20kProduction Capacity /day Units
50000Inventory tarps
2-3
Port Transit
days
Qingdao Sing-apore
Mombassa
3Aver Transport time days
2-8Variability days
5500Container tarps
3-9 kInventory range tarps
0.25 day
4 day
26 days11 days
8 day
8 days
2-4W/h response days
3 days
3 days
$12 $0.66 $0.33 $0.73
Cost per container $4000Tarps per container 6000Cost per tarp $0.66
Cost / container $2000Tarps / container 6000Cost / tarp $0.33
Cost / container $4000Tarps / container 5500Cost / tarp $0.73
Cost
Lead Times
Supply Chain Structure
Carbon Footprint (Tonnes of Co2 per container with 6000 tarps)
12Aver Factory Leadtime days
12 days
Supply Chain Structure
( & Risk Factors)
12439Distance kms
12No of links in chain .
3No of Ports .
5Transport legs .
0.2 1.82 2.54 1.53Carbon Footprint
6.38 Carbon tnns
Qingdao China
Tarpaulin Factory
2Min Factory Leadtime days
2 day
4-14
Port Transit
days 5-14
Port Transit
days
0.29
Unit value $13.00 Holding cost pa 10%Hold cost / tarp $1.30
$1.30
4947 kms 6400 kms 481 kms 541 kms
70 kms
daily Frequency .
8Aver Transport time days
5-14Variability day
6000Container tarps
? Frequency day
3Border crossings .
( 2 - 27 )
Average
(Min -Max) ( 2-3 ) ( 4-14) ( 5 - 14 ) ( 2 – 4) ( 3 - 8 )
Lead Time
77Whole Chain
days
57Min Time day
126Max Time day
6From Nairobi stock days
71To replinish Nairobi stock days
Tarp Costs
1.73Transport costs $
1.30Warehousing cost $
12.00Manufacture cost $
15.02Cost
Per tarp$
11Aver Transport time days
10 - 12Variability days
6000Container tarps
daily Frequency .
26Aver Transport time days
24 -30Variability days
6000Container tarps
daily Frequency .
( 10 - 12 ) ( 24- 30) ( 5-14)
Uganda Rub hall
Whole Chain KPI’s
Value Chain One : Supply of Tarpaulins from China to Africa using Surface Transport
Average
Min - Max
Nairobi
NGO Warehouse
3500Inventory tarps
BeneficiariesRegion North of
Kampala
27Max factory leadtime days
15-20kProduction Capacity /day Units
50000Inventory tarps
2-3
Port Transit
days
Qingdao Sing-apore
Mombassa
3Aver Transport time days
2-8Variability days
5500Container tarps
3-9 kInventory range tarps
0.25 day
4 day
26 days11 days
8 day
8 days
2-4W/h response days
3 days
3 days
$12 $0.66 $0.33 $0.73
Cost per container $4000Tarps per container 6000Cost per tarp $0.66
Cost / container $2000Tarps / container 6000Cost / tarp $0.33
Cost / container $4000Tarps / container 5500Cost / tarp $0.73
Cost
Lead Times
Supply Chain Structure
Carbon Footprint (Tonnes of Co2 per container with 6000 tarps)
12Aver Factory Leadtime days
12 days
Supply Chain Structure
( & Risk Factors)
12439Distance kms
12No of links in chain .
3No of Ports .
5Transport legs .
0.2 1.82 2.54 1.53Carbon Footprint
6.38 Carbon tnns
Qingdao China
Tarpaulin Factory
2Min Factory Leadtime days
2 day
4-14
Port Transit
days 5-14
Port Transit
days
0.29
Unit value $13.00 Holding cost pa 10%Hold cost / tarp $1.30
$1.30
4947 kms 6400 kms 481 kms 541 kms
70 kms
daily Frequency .
8Aver Transport time days
5-14Variability day
6000Container tarps
? Frequency day
3Border crossings .
( 2 - 27 )
Average
(Min -Max) ( 2-3 ) ( 4-14) ( 5 - 14 ) ( 2 – 4) ( 3 - 8 )
Lead Time
77Whole Chain
days
57Min Time day
126Max Time day
6From Nairobi stock days
71To replinish Nairobi stock days
Tarp Costs
1.73Transport costs $
1.30Warehousing cost $
12.00Manufacture cost $
15.02Cost
Per tarp$
11Aver Transport time days
10 - 12Variability days
6000Container tarps
daily Frequency .
26Aver Transport time days
24 -30Variability days
6000Container tarps
daily Frequency .
( 10 - 12 ) ( 24- 30) ( 5-14)
Uganda Rub hall
Whole Chain KPI’s
Value Chain One : Supply of Tarpaulins from China to Africa using Surface Transport
Per tarp
Nairobi
NGO Warehouse
3500Inventory tarps
BeneficiariesRegion North of
Kampala
27Max factory leadtime days
15-20kProduction Capacity /day Units
50000Inventory tarps
2-3
Port Transit
days
Qingdao Sing-apore
Mombassa
3Aver Transport time days
2-8Variability days
5500Container tarps
3-9 kInventory range tarps
0.25 day
4 day
26 days11 days
8 day
8 days
2-4W/h response days
3 days
3 days
$12 $0.66 $0.33 $0.73
Cost per container $4000Tarps per container 6000Cost per tarp $0.66
Cost / container $2000Tarps / container 6000Cost / tarp $0.33
Cost / container $4000Tarps / container 5500Cost / tarp $0.73
Cost
Lead Times
Supply Chain Structure
Carbon Footprint (Tonnes of Co2 per container with 6000 tarps)
12Aver Factory Leadtime days
12 days
Supply Chain Structure
( & Risk Factors)
12439Distance kms
12No of links in chain .
3No of Ports .
5Transport legs .
0.2 1.82 2.54 1.53Carbon Footprint
6.38 Carbon tnns
Qingdao China
Tarpaulin Factory
2Min Factory Leadtime days
2 day
4-14
Port Transit
days 5-14
Port Transit
days
0.29
Unit value $13.00 Holding cost pa 10%Hold cost / tarp $1.30
$1.30
4947 kms 6400 kms 481 kms 541 kms
70 kms
daily Frequency .
8Aver Transport time days
5-14Variability day
6000Container tarps
? Frequency day
3Border crossings .
( 2 - 27 )
Average
(Min -Max) ( 2-3 ) ( 4-14) ( 5 - 14 ) ( 2 – 4) ( 3 - 8 )
Lead Time
77Whole Chain
days
57Min Time day
126Max Time day
6From Nairobi stock days
71To replinish Nairobi stock days
Tarp Costs
1.73Transport costs $
1.30Warehousing cost $
12.00Manufacture cost $
15.02Cost
Per tarp$
11Aver Transport time days
10 - 12Variability days
6000Container tarps
daily Frequency .
26Aver Transport time days
24 -30Variability days
6000Container tarps
daily Frequency .
( 10 - 12 ) ( 24- 30) ( 5-14)
Uganda Rub hall
Whole Chain KPI’s
Value Chain One : Supply of Tarpaulins from China to Africa using Surface Transport
Per container ( 6000 tarps)
Nairobi
NGO Warehouse
3500Inventory tarps
BeneficiariesRegion North of
Kampala
27Max factory leadtime days
15-20kProduction Capacity /day Units
50000Inventory tarps
2-3
Port Transit
days
Qingdao Sing-apore
Mombassa
3Aver Transport time days
2-8Variability days
5500Container tarps
3-9 kInventory range tarps
0.25 day
4 day
26 days11 days
8 day
8 days
2-4W/h response days
3 days
3 days
$12 $0.66 $0.33 $0.73
Cost per container $4000Tarps per container 6000Cost per tarp $0.66
Cost / container $2000Tarps / container 6000Cost / tarp $0.33
Cost / container $4000Tarps / container 5500Cost / tarp $0.73
Cost
Lead Times
Supply Chain Structure
Carbon Footprint (Tonnes of Co2 per container with 6000 tarps)
12Aver Factory Leadtime days
12 days
Supply Chain Structure
( & Risk Factors)
12439Distance kms
12No of links in chain .
3No of Ports .
5Transport legs .
0.2 1.82 2.54 1.53Carbon Footprint
6.38 Carbon tnns
Qingdao China
Tarpaulin Factory
2Min Factory Leadtime days
2 day
4-14
Port Transit
days 5-14
Port Transit
days
0.29
Unit value $13.00 Holding cost pa 10%Hold cost / tarp $1.30
$1.30
4947 kms 6400 kms 481 kms 541 kms
70 kms
daily Frequency .
8Aver Transport time days
5-14Variability day
6000Container tarps
? Frequency day
3Border crossings .
( 2 - 27 )
Average
(Min -Max) ( 2-3 ) ( 4-14) ( 5 - 14 ) ( 2 – 4) ( 3 - 8 )
Lead Time
77Whole Chain
days
57Min Time day
126Max Time day
6From Nairobi stock days
71To replinish Nairobi stock days
Tarp Costs
1.73Transport costs $
1.30Warehousing cost $
12.00Manufacture cost $
15.02Cost
Per tarp$
11Aver Transport time days
10 - 12Variability days
6000Container tarps
daily Frequency .
26Aver Transport time days
24 -30Variability days
6000Container tarps
daily Frequency .
( 10 - 12 ) ( 24- 30) ( 5-14)
Uganda Rub hall
Whole Chain KPI’s
Value Chain One : Supply of Tarpaulins from China to Africa using Surface Transport
Supply Chain Structure
( & Risk Factors)
12439Distance kms
12No of links in chain .
3No of Ports .
5Transport legs .
3Border crossings .
Lead Time
65Whole Chain
days
6From Nairobi stock days
59To replinish Nairobi stock days
1.28Transport costs $
6.02Intermediary Costs $
8.80Manufacture cost $
Tarp Costs
16.10Cost
Per tarp$
Carbon Footprint
5.5 Carbon tnns
Whole Chain Key Performance Indicators
Comparative Analysis
ManufactureChina
Aid Agency European
Warehouse
Uganda Distribution point
Kampala
Airport
ManufactureChina
Uganda Distribution point
MombasaPort Aid Agency
WarehouseNairobi
ManufactureIndia
Uganda Distribution point
MombasaPort Nairobi
Trading Co & Warehouse
Nairobi Manufacture
Uganda Distribution
point
Entebbe Ware/h
Value Chains Selected for Analysis
From China via NGO Nairobi warehouse
From India via Nairobi trading company
From China via Europeanwarehouse
Africa manufacture & pre-positioned stock
ManufactureChina
Dubai Warehouse
Uganda Distribution point
MombasaPortFrom China
via warehouse
in Dubai
VC 1
VC 2
VC 3
VC 4
VC 5
Lead Time From order placement to delivered Uganda
6
59
59
48
71
2
4
6
29
6
0 10 20 30 40 50 60 70 80 90
VC5: From Nairobi viaEntebbe
VC4: From China viaEurope
VC3: From India viaNairobi
VC2: From China viaDubai
VC1: From China viaNairobi
days
Stock replenishment LT LT from stock
Supply Chain Vulnerability
Risk of Disruption
Distance: Entire Supply Chains
30066
7642
16697
12439
641
0 5000 10000 15000 20000 25000 30000 35000
VC5: African manufacture
VC4: China via Europe
VC3: India via Nairobi
VC2: China via Dubai
VC1: China via Nairobi
kms
Supply Chain Vulnerability Factors with Potential for Disruption
0 2 4 6 8 10 12 14 16 18
VC5: African manufacture
VC4: China via Europe
VC3: India via Nairobi
VC2: China via Dubai
VC1: China via Nairobi
Number
Transport legs Ports Border crossings
Total supply-chain cost
Cost per Tarp - delivered Uganda ($ US)
11
12
8.8
12
12
0.35
24.83
1.28
2.52
1.72
1.65
1.2
6.02
1.35
1.3
0 5 10 15 20 25 30 35 40
VC5: African manufacture
VC4: China via Europe
VC3: India via Nairobi
VC2: China via Dubai
VC1: China via Nairobi
$ (US)
Manufacture Transport Warehousing
$ 15.87
$ 15.02
$ 16.10
$ 38.03
$ 13.18
Environmental Impact
Carbon Footprint Entire Supply Chains - delivered Uganda
1.8
104
5.5
9.1
6.4
0 20 40 60 80 100
VC5: African manufacture
VC4: China via Europe
VC3: India via Nairobi
VC2: China via Dubai
VC1: China via Nairobi
Tonnes Co2 per shipment of 6000 tarps
Summary & Conclusions
Total Lead Time : From order placement to delivered Uganda
6
59
59
48
71
2
4
6
29
6
0 10 20 30 40 50 60 70 80 90
VC5: From Nairobi viaEntebbe
VC4: From China viaEurope
VC3: From India viaNairobi
VC2: From China viaDubai
VC1: From China viaNairobi
days
Stock replenishment LT LT from stock
Cost per Tarp - delivered Uganda ($ US)
11
12
8.8
12
12
0.35
24.83
1.28
2.52
1.72
1.65
1.2
6.02
1.35
1.3
0 5 10 15 20 25 30 35 40
VC5: African manufacture
VC4: China via Europe
VC3: India via Nairobi
VC2: China via Dubai
VC1: China via Nairobi
$ (US)
Manufacture Transport Warehousing
$ 15.87
$ 15.02
$ 16.10
$ 38.03
$ 13.18
Summary
Supply Chain Vulnerability Factors with Potential for Disruption
0 2 4 6 8 10 12 14 16 18
VC5: African manufacture
VC4: China via Europe
VC3: India via Nairobi
VC2: China via Dubai
VC1: China via Nairobi
Number
Transport legs Ports Border crossings
Carbon Footprint Entire Supply Chains - delivered Uganda
1.8
104
5.5
9.1
6.4
0 20 40 60 80 100
VC5: African manufacture
VC4: China via Europe
VC3: India via Nairobi
VC2: China via Dubai
VC1: China via Nairobi
Tonnes Co2 per shipment of 6000 tarps
The Reltex Aid Model v
Conventional Supply Chains
Advantages Avoids long, costly & unreliable supply chains Reduces Carbon Impact Quicker & more responsive Creates local employment in Africa - sustainability
The Potential Benefits of Lean and VCA in Humanitarian Aid
Comparison of strategic alternatives
Analysis, measurement and improvement of existing supply chains
Evaluating Alternative Supply Chain Models for the Provision of
Non-Food Aid Products to Africa
Dr David Taylor
Senior Research Fellow Logistics and Operations Management Section
Cardiff University Business School UK
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