It is a paper about supply chain process in the United Nations.Paper done for supply chain management t SUNYMARITIME College

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By :Ms. Dribki Kaoutar
Professor : Dr.Larry Howard
Supply Chain Management
9 December 2011
UNITED NATIONS
Supply Chain Process in The UN
Supplying missions of UN &View of the contract ofDanoffice Supplier of Digital camcorders

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Abstract:
In the following is a study about the supply Chain process in the UN and how far is applied to
the main component of supply chain process referring to Christopher book. We took the case of
supplying digital cameras by Danoffice from Denmark to identify part of the supply Chain
process with UN and the main applicable steps .

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Vocabulary :(Please see also Annex 9)
BINUB: united Nations integrated Office in Burundi
MINURCAT: United Nations Mission in the Central African Republic and Chad
DFS:Department Of field Support
DO: DanOffice
UNLB : United Nations Logistics Base
UNDP :United Nations development Programme

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Plan:
I.Introduction
-The organizational structure of DPKO
B-Procurement Division:
Role & responsibilities
Customers&activities
Major Goods &services
C-Supply Section
Main areas of commodities
Supply Chain :Operation management
a) Demand Planning and Forecasting
b) Supply Network Planning
II.Application: Supply of digital equipments
 Background of the company in this business
 United Nations & Global impacts
 United nations digital equipment proposal
 Warranty , quality of products & delivery time
 Logistics & packing of goods
 Payment & Manufacture authorizations

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I.Introduction:
This paper will take on the supply chain process in The UN which is an international
organization dealing with different entities around the world. The Global strategy of the
organization aimed at transforming service delivery to the field missions ,building on existing
tools and mechanisms and it is geared toward improved service delivery to 35 field presences
served by the department of Field support. There are many challenges that confront the support
of the fields.The main part of the Department of Field support that deals with the supply process
is The procurement division that maintains most of contracts and financial Operations That the
supply division and the logistics division request.
-The Organizational Structure of the DPKO
At present the DPKO is divided in 2 offices; the Office of Operations, which essentially takes
care of political issues and the Office for Mission Support (OMS). The OMS in turn is again
divided in two divisions; the Logistics Division and the Administrative Division. The Logistic
Division is responsible for the coordination of activities related to information,
Telecommunication, health, engineering, transportation (air and land), and supply of materials
for construction and maintenance of missions. The proposed organization for the Logistic
Division of the OMS for 2006-2007 includes some 182 persons and is structured in three
Services : the Operational Support Service; the Specialist Support Service and the
Communications and Information Service Technology.
The Office of Aviation Safety controls the flight security through external contractors

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as the United Nations itself does not possess any aircraft. This unit is not a part of the Air
Transportation Section, in order to assure its objectivity and transparency.
The Operational Support Service too is divided in two sections: Logistic Operations
and Logistics Policy. The former coordinates the logistic operations of interfaces (such as
engineering and materials flows) between troops (also referred to as the Blue Helmets) and
the civil administration of the United Nations. The latter takes care of the definition of the
policies and technical normative of the intervention.
Specialist Support Service (SSS) is constituted of seven sections: Air Transport;
Surface transport; Medical; Supplies; Contingent Owned Equipment (COE); and Engineering
and Cartography. The Air Transport section assists the missions in the activities arranging air
transport, conducted by external contractors, in all contractual aspects. The Surface Transport
Service has similar functions, although in this case the vehicles actually belong to the United
Nations. The Medical Support Service, other than the complex exercise of coordination of
several missions, has a normative task of standardization of doctors, budget preparation,
contracts, and location of the doctor-sanitary materials and management of refresher courses.
The Supply Service takes care of (a) the preparation of the technical detailed lists of material
demands for the exercise of peace operations (e.g., food supplies, potable water, gasoline); (b)
administration of this material and the contractual aspects. The activities of procurement and
contract bids are directed by an external office to the DPKO belonging to the Department of
Management of the Secretariat. For each mission a decentralized office of procurement
handles amounts up to $200.000, operating independently from Headquarters in New York.
Materials management (COE) belongs to troops participants to missions and coordinates the
complex negotiations and technical detailed lists between troops of the Member States and those

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of the United Nations. Engineering takes care of technical norms and policies for the
standardization of the engineering activities; technical detailed lists for bids; technical
assistance to the missions; training of the staff; and the management, through a computing
network, of engineering materials of the SDS. Cartography supplies cartographic technical
assistance and logistic assistance in the field (e.g.: identification of optimal sites for the
construction of military encampments). Communications and Information Technology
operates and manages, through UNLB, all computer telecommunications equipment. This
Service maintains in real time databases relative to materials and staff.
The Peacekeeping Operations of the United Nations:
The logistics of the Intervention
Within the United Nations, the power and responsibility to institute and maintain peace
keeping operations rests with the Security Council. At the operational level, the Department
of Peace Keeping Operations (DPKO), instituted in 1992, has the mandate for the planning,
preparation and directing these peace operations, which are considered the United Nations’
instrument to help countries suffering from conflicts to create conditions for sustainable
peace.
At present, there are sixteen ongoing peace keeping missions and two political
missions (Fig. 1). Since the creation of the United Nations in 1945, 62 of such missions have
taken place, 15 prior to1990 and more than 40 ever since). During these missions, military
contingents and/or military observers that are provided by the member states of the United

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Nations.
fig:1
Seven of these missions have a more permanent character. Some of the missions are
financed with the regular budget of the United Nations
Supply Chain Context in the UN:
In the Supply Chain context, the main operational performance drivers relate to the
management of inventory, transportation, facilities and information. these four drivers are
described as follows:
(1) Inventory – Inventory refers to all the raw materials, work in progress and finished goods
of the organization. Inventory levels are a powerful tool that influences the supply chain’s
efficiency and responsiveness. Through their reduction organization become more

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efficient as it lowers their inventory carrying costs. However, maintaining minimum
inventory levels may compromise the organization’s ability to respond to sudden surges in
requirements. Maintaining higher levels of inventory contributes to an organization’s
ability to respond promptly. However these additional inventories increase the overall
costs by locking up capital in inventory carrying costs. In addition, they also increase the
risk of product damage obsoleteness.
(2) Transportation – Transportation refers to the movements of inventory from one point in a
supply chain to another. Reducing minimum shipping quantities might benefit immediate
response time but it will decrease transport efficiency and increase costs.
(3) Facilities. The facilities in the supply chain context encompass all places in the network
where inventory is stored, assembled or fabricated. A higher density of facilities will
enhance responsiveness but reduce efficiency by increasing costs. In the particular context
of humanitarian relief case, dispersing inventory over a wider geographical area
potentially implies facing additional safety concerns that might further increase costs due
to a greater need for security.
(4) Information. Finally, the information consists of data and analysis regarding the inventory,
transportation, facilities and customers throughout the supply chain. Information is
potentially the biggest driver of performance in the supply chain as it directly affects each
of the other drivers. In environments prone to instability, such as the ones in our case, a
highly dispersed network strongly increases the need for information yet at the same time,
it increases the threat of an obstructed flow of accurate and timely information.
Table 1 shows how the application of leanness and agility approach influences an
organization’s supply chain performance drivers. To make its supply chain leaner,

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organizations attempt to reduce their inventory levels and increase minimum shipping
quantities (so as to reduce transportation costs). Less dense networks of facilities contribute to
elimination of waste and reduce the exposure to potentially hostile elements (stealing/attacks).
Gaining more precise and detailed information on the requirements and preferences of
different members of the supply chain facilitates supply chain officers’ ability to optimize the
supply chain performance drivers, regardless of whether the organization aims to have lean or
agile operations.
Table 1: Application of the leanness and agility paradigm to the supply chain performance
Drivers Lean Agile
Inventory levels Decrease Increase
Transportation costs (Minimum order quantity) Increase Decrease
Facilities density Decrease Increase
Information Increase Increase
In short, supply chain officers are appointed to enhance organizations’ effectiveness
by managing the supply chain drivers such as to reduce waste whilst assuring responsiveness
to demand fluctuations. The appropriate management of these drivers, furthermore, helps
keeping costs associated with operating the supply chain at lowest possible levels whilst
avoiding erroneous deliveries, undesired supply delays or full stock-outs.
The ideal supply chain, however, is likely to embody both lean and agile principles to
ensure the highest level of responsiveness combined with low costs and efficient processes.
The particular supply chain configuration that describes such upstream processes has been

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termed as “leagile” 1. Lean processes upstream facilitate a low cost and low risk supply chain
whilst agile processes downstream assure high levels of
responsiveness to the needs in the field. The agility of the latter processes is achieved through
creating higher strategic buffers (inventories) at the lower end of the supply chain and the
postponement of product customization. In other words, an organization might simultaneously
operate the leanest agile system and the most responsive lean system. In humanitarian relief
environments, the optimal position on the lean-leagile-agile continuum will differ from item
to item and from mission to mission. The definition of the best approach will therefore require
continuous revision. What might be the optimal approach for one field operation might not be
adequate for another. Ultimately, the choice of the main focus of the supply chain
management efforts (be it lean or agile) depends on the composition of the market
winners/market qualifiers2. Market qualifiers refer to competitive pre-requisites which represent
a base level of performance, whilst order winnersrefer to critical differentiating factors.
A- Procurement division
Role & responsibilities :
The division acquires of appropriate goods and/or services at the best possibletotal cost of
ownership to meet the needs of the purchaser in terms of quality and quantity, time, and location.
1
By Naylor, J. B., M. M. Naim, D. Berry. 1997. Leagility: Integrating the lean and agile
manufacturing paradigms in the total supply chain. International Journal of Production
Economics, 62, 107-118.
2
By Christopher M., D. Towill D. 2000. Supply chain migration from lean and functional to agile
and customized. International Journal of Supply Chain Management. 5(4), 206-213

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Corporations and public bodies often define processes intended to promote fair and open
competition for their business while minimizing exposure to fraud and collusion.
Procurement Division provides responsive, effective, and quality expert procurement services
and business advice to UN Headquarters, peacekeeping missions, and other UN organizations,
while achieving best value for money and ensuring a competitive, fair and transparent process in
accordance with established regulations, rules and procedures.
Customers & activities:
• The main customers of the UN that they are in contact with the Organization through the
division in studies are varied regarding the goods or the services required:UN
Headquarters Departments in New York:
 Office of Information and Communications Technology (OICT)
 Facilities Management Service ( FMS)
 Information, Political Departments
• DFS HQs and Field Missions:
 Logistics Division at New York
 Peacekeeping and Political Missions throughout the world
• Offices Away from Headquarters (OAH) & Other organizations seeking procurement
support services (External companies)
Major services & goods:
will identify the services and goods requested by fields .
Structure & supply responsibilities:
it develops each sub-structure of the procurement division and the main role of
each part .the main parts are:

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*Supply team –IT communication team-infrastructure team-Management services Team-Field
supply team-Field support-Engineering team-Vehicles Team-Air Charter-Strategic Cargo
Movements .” wealth without work, pleasure without conscience, knowledge without
character, COMMERCE WITHOUT MORALITY, science without humanity, worship
without sacrifice, and politics without principle”. By M. Gandhi
B- Supply Section :
Main areas of commodities :
The supply services in the UN mainly develop the following area in the supply
section :
• Sourcing
• Strategic Deployment Stocks
• UN Reserve
• Systems Contracts
• Inter-mission Transfers
• Member States
Fig.2

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Supply Chain Process:
Elaboration of the explanation of the following chain that provide the image of the Supply chain
process takes on :
1. The flow chart above fig .2shows a typical manufacturing supply chain work flow
detailing which areas of the business are involved.
2. The sales department identifies a need for a product. The sales department tell the marketing
department about their idea and provide any supporting information / data.
3. The marketing department use business analysts to support the project and to complete the
research.
4. Data and supporting evidence is passed back to the marketing department for completion of a
business plan.
5. A fully detailed business plan is forwarded to the Business Unit Manager / Directors.
6. This unit comprises of the senior business directors or managers who make a decision on the
project.
7. After approval the plan is passed back to the analysts to prepare and implement the
manufacturing process.

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8. Details of raw materials and components passed to purchasing.
9. Purchasing work with logistics and transport to plan the purchase and delivery of the materials
to the manufacturing plant.
10.Suppliers receive orders for product and then dispatch on agreed transport on agreed dates.
11. Carriers approved by the business transport the raw materials and components to the
manufacturing site.
12. Products are received into the warehouse and then moved to manufacturing.
13. Finished products are moved from manufacturing to the finished goods warehouse which
might be situated locally or in a remote location.
14. Finished goods are put into inventory awaiting orders. The company computer system is
updated. Product is now available to sales.
15. Customers place orders through customer services.
16. Customer Services take orders and input them to the company computer system.
17. The central computer system maintains transaction records and provided visibility of product
for sale.
18. An order is completed and a pick list sent to the warehouse.
19. A copy of the order is sent to the export department for completion of export documentation.

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20. Export department manages the final dispatch of the product and produces any export
documents.
21. Documents are sent to the warehouse to meet up with the finished order.
22. The order is dispatched by the warehouse.
23. The transport company collects the consignment and delivers it to the customer based upon
the INCO terms of carriage.
24. As stock has now been used the computer system generates a request for new stock.
25. The re-order process generates a request to the purchasing department to place new orders
with the suppliers.
The primary decisions made within the supply chain include:
Sourcing
o Quality of product
o Choosing suppliers
o Location of suppliers
o How much product to order
o Transportation channels
Production
o Location of production (domestic, international)
o Make vs. Buy

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o Capacity of plants
o Quality of the product (low cost leader, differentiation strategy)
Inventory
o How much inventory to hold (safety stock)
o how much to order
o when to order
Logistics
o Transportation - best way to get the product to the customer
 Truck
 Rail
 Air
 mode of transport
 shipment size
o Location of distribution centers in order to keep customer service high and costs
low
Some of the objectives of a supply chain manager include:
Increase communication along all nodes of the supply chain to create an uninterrupted
flow of materials.
Decrease inventory while still maintaining high customer service levels.
Reduce the supplier base and develop supplier relationships in order to reduce overall
costs.

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Standardize parts as much as possible in order to reduce the amount of inventory needed
to be carried.
Example for fuel distribution:
Supply Section, DFS
• Supply Chain – Fuel
COE/UNOE
LOG
Base
Ship
Ship
Sector
Refinery
Main Tank
Terminal
SFR
Tank Farm
LR
Transportation
Main Main Storage SHQ Team Sites End Users
Source
TRANSPARANCY & REAL TIME INFORMATION

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A) Demand supply and forecasting :
The UN Supply Network has grown in complexity. Planning the right material and/or service, in
the right place the right time has become more critical ,as we can notice from the planning of
Master Data Management
Source to Acquire Plan and Manage
Fi
Pr
n Contract Supplier Long-Term
Managemen Collaboratio Planning oj
a t n
ec
nc Requisition Supply Demand
to Purchase Network Planning t
ia Order Planning
Low – Value Force M
l Acquisitions Planning
a
A
n
cc Force
Deployment ag
o
Inbound Planning Set Decommissi e
u Processing and Assembly on and
Dispatching and Disposal m
nt
Warehouse
Outbound
Execution
Equipment Equipment e
in and Storage Assignment Maintenanc
e and nt
g Operations
Receive to Distribute Employ to Dispose
Management Reporting Fig.4
Integratins of supply Chain elements .Fig.4

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The integration planing of the strategy of the supply chain , the operations and the tactical plans ,
aim the following goals:
 Extension of the rolling operational plan with simulations for demand, supply and
capability analysis
 Material and or service life-cycle factors to drive strategic sourcing and fleet management
decisions
 Horizon of 10 years, coinciding with the second year of the Operational Demand &
Supply Plan and reviewed monthly
 Initiatives will be needed to close the gap between the LTCP plan and the monthly
operational demand & supply plan
 Review requirement for budget execution as operational plan becomes established and
credible(see fig.5)

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Strategy
Fig.5
Supply Networking Plan :
Supply Network Planning (SNP) ensures the optimal Use of Procurement,
Manufacturing , Distribution, and Transportation Resources to meet Forecasts and
actual Demand while considering all Constraints in the Supply Chain
Supply Network Planning plans Procurement, Movements and Manufacturing
throughout the entire Supply Network using Optimizing and Heuristic
Approaches
Demand Planning in The UN :
Demand Plan: A demand plan is differentiated from a forecast in that it is
considered a commitment to generate the future demand. This philosophy

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considers the reality that demand is influenced by the actions of the organizational
stakeholders and the plan must be supported by appropriate sales & marketing
activities. The Demand Planning (DP) module isused for forecasting
DP support following statistical forecasting methods
Univariate (Time-Series) models
Multiple LinearRegression
Composite forecasting (model combination)
Lumpydemand
External forecast
Forecast in days, weeks, months, quarters, years
Features
Statisticalforecasting
Life cycle management
Promotions planning
CharacteristicsBased Planning
Consensus Demand Planning(Please see fig.6)

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Aggregated historical data Planning levels: Future Demand Forecast
• Location
• Product hierarchy
• WBS
• Commodity Group
• Region
• Statistical Forecasting
• Collaborative Forecasting
Sales Goods • Corrections
Reservation
orders Issue • External Forecasts
• Market Intelligence
Fig.6
II.Application of Some Parts of Supply Chain Process : Case of Danoffice
Supplying the UN
Back ground of the company:
Danoffice Plc for the provision of digital camcorders is supply digital camcorders to the UN.The
contractor& it is corporate headquarters is located at
Englandsvej –Svendborg Denmark.The contract is made between the UN an intergovernmental
organization. Danoffice is Danish based IT company founded in 1995.Today counting offices in
Denmark and USA.They work closely with their partners not only while selecting the equipment
but throughout the entire process from analyzing the needs supplying and installing the

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services.DO offer one stop shopping concept with the possibility to mix products and brands
,They do supply IT services in more than 250 organizations all over the world.They are an
authorized value-added reseller of major brands such ,but not limited to HP
,Dell,APC,Powerware .Cisco. ,Fujitsu-Simens,IBM,Canon,Motorola,Codan..DO Work directly
with manufacturers and have the necessary backup to make things happen,The past 12 years in
business have further more given DO an in depth knowledge of how the manufacturers operate
and how their systems should be approached , in order to obtain timely deliveries and smooth
operation of long-term-Agreements.In 2008 ,Do expects to ship out some 4,000 consignments of
IT equipment going to +200 different organizations in more than 135 countries worldwide.Do
serve customers in Europe,the Balkans ,Africa,Middle East ,Far East.North –and South
America.Do expect to turnover of USA.
Partner solution concept:
This concept provide our partners the possibility to outsource their IT and telecommunication
procurement,training,call center..During the frame agreement . DO have regular meetings with
the client here we evaluate and improve our collaboration to common benefit.The 4 corner stones
of DO make it committed to Focused , Flexible,Fast& Friendly service to every customer.
Focused :The product knowledge and experience within exporting of IT,IS &
communication equipment to developing countries allo DO yo grow beyond the
supplier’s role and to function as a trusted partner.

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Fast: DO are open 24h/7days assistance from our certified technicians and sales staff is
available 24h and 7 days a week.DO deliver the products from their stocked warehouse
facilities and can expedite the order by fastest means of transport enabling your goods to
arrive within a week anywhere .
Flexible: Do work Closely with their customer not only while selecting the best solution
to their needs but throughout the entire process before during and after delivery.The
service selection include mode of transport ,appropriate packing ,pre-inspection on
quality and quantity ,pre-installation image,onsite installation of equipment,hands-
ontraining, warranty insurance and much more.Everything you need to get and your staff
up and running as quickly as possible,That's what we call a turnkey solution.
Friendly:In case of IT ,IS or communication issues do not hesitate to contact DO any
time.
Danoffice corporate Philosophy
Danoffice act responsibly to operate according the values they believe in donations and
voluntary work they strive for:
-A better world where nature and people live in peace and harmony
-Improving the quality of life for rhe mankind
--Humanity:Respect for all people regardless of nationality ,racereligion,class,or political
opinion. DO find that the social interaction between people and happiness are the most
valuable assets in life.
-Environment :Mother Earth is wonderful place which we must guard and hand over to
the future generations with care .DO work only with vendors with environmental
policies.

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-Ethics : Danoffice wishto be depreciable partner who always acts responsibly ,honestly
and fairly, whether dealing with customers ,vendors ,colleagues,investors or competitors.
- Good governance: Understanding the customer’s needs but also on side the customer’s
expectations .Do challenges ;Nothing is impossible .DO is enthusiastic about their
work”You may say we are Dreamers,but we are not the only ones,I hope someday you
will join us and the world will be as one”Inspired by John Lennon.
United Nations & Global impacts:
The natural part of our business to embrace , support an enact the 10 principles of the UN
Global compact.
Human right: Business should support and respect the protection of internationally
proclaimed human rights and make sure they are not complicit in human rights abuses.
Labor:-Business should uphold the freedom of association and the effective recognition
of the right to collective bargaining.
-The elimination of all forms of forced and compulsory labor
-The elimination of discrimination in respect of employment and occupation.
Environment: Business should have a precautionary approach to environmental
challenges.Encourage development and diffusion of the environmentally ,friendly
technologies.
Anti-corruption:Business should work against corruption in all its forms ,including
extortion and bribery.
In respect of system contacts with UN ,DO listed ongoing systems contracts with
different UN agencies including DPKO and UNPS ,in which the implementation and the

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handling support required documentation on the sales support of every mission as
following
United Nations Digital equipment proposal:
DO have strong relationship with the famous manufacturer as HP,Sony,Canon etc..As
contractor DO wil ensure that the products are boxed,marked and shipped insets.When a UN
units receive a digital camera it comes in a box containing camera , charger and 2 sets of
batteries ,4.GB memory & car charger.That will ensure that the set is delivered complete to each

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Unit of DPKO mission. Also we have to ensure that the products are supplied 100% genuine ,and
new unopened.
Warranty, Quality of products & Delivery time:
Working with international organization that operate in remote areas and developing
countries,DO are aware of importance of fast and efficient support.All Products under a Possible
LTA between UNPS/DPKO mission and DO will be covered by 1 year international
manufacturer’s warranty.For destinations without any local service provider or in case of a local
service provider not meeting with the expectations of DPKO missions , DO will ensure to give
the extended warranty service per hour.The Un will have full support by manufacture registered
service partners.Other Warranties offered by Danoffice in order to ensure stability and full
functionality at end destinations worldwide.
Quality assurance system(Quality of Products)
Referring to the request of The UN ,DO offered high quality products by Canon,BenQ,
and Sony that in accordance with your technical requirements(view annex 9 about
Manufacturer’s authorizations forms.
Delivery time:
Please refer to the following table about te delivery time in different location:

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Logistics and Packing Goods:
Do’s in House logistic team has in 2007 shipped out some 2750 consignments of IT
equipment going to 234 different organizations in 135 countries worldwide.Working only with
selected world known and well reputed shipping companies like
DSV,Nagel,Mahe,DHLetc.ensuring that The customers’ good arrive safely at the end
destination.The combination of using world know shipping companies combine with DO’s
experience in delivering IT equipment ,gives us a claim rate in 2007 below 0.8%.
Packing Good:
Through many years of experience with exporting to developing countries , we know the
importance of a strong and durable packing.A correct packing minimizes freight costs ,lowering
the risk of transport damage and theft.
DO offer various packing solutions to meet the different requirements by the customers
Please see the following figure

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DO will follow all international export regulations,and for selected destinations export
licenses are required regardless of the products and ECCN number.The following destinations
DO are by US regulations required to apply for export licenses Cuba,Iran ,Libya,North
Korea,Sudan and Syria.This process can take up to 6 weeks from date of filling the application to
US authorizations , UNPS might be requested to assist with supporting documentation subject to
certain procedures and upon notification by US authorities.
Payment & Manufacture Authorizations
The payment regulations are to be made by UNPS within 30 days after presentation of the agreed
documents.All DO documents will be marked with UNPS order number ,product description ,
serial numbers and DO banking details
Manufacture Authorizations:
See the following figures as an example from Canon Manufacture

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Annnex9

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Works Cited
Naylor, J. B., M. M. Naim, D. Berry. 1997. Leagility: Integrating the lean and agile
manufacturing paradigms in the total supply chain. International Journal of Production
Economics, 62, 107-118.
Christopher M., D. Towill D. 2000. Supply chain migration from lean and functional to agile
and customized. International Journal of Supply Chain Management. 5(4), 206-213.
Author’s last name, first name. “Title of Online Article.” Title of Online Publication Version
Example of UN contract with DanOffice Main document (Please see attached).
Web resources:
 2010 United Nation Logistics Base Webpage, www.unlb.org
 UN General Assembly 59th Session: Session Documentation,
www.un.org/ga/59/documentation/list2.hmtl (for all documents listed in the article).
 2010 ,Department of Peacekeeping operations (restricted access to just for members f UN
http://www.DPKO.com.