SUPPLY CHAIN MANAGEMENT

A CHANGE MANAGEMENT INITIATIVE

AnneMarie van den Berg | Director, Logistics Support Division

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CHANGE MANAGEMENT

Who wants change?

Everybody wants change – Change is good!

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CHANGE MANAGEMENT

Who wants to change?

As long as change is for others ……

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CHANGE MANAGEMENT

Who wants to lead the change?

Any volunteers?

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CHANGE MANAGEMENT

Introducing change means going through different stages

Change is part of daily life, also in organisations

Organizations go through
different stages on the way to
achieving their strategic
objectives:

• Despair
• Denial
• Resistance
• Acceptance
• Experimentation
• Renewal

UNITED NATIONS | FIELD SUPPORT

 CHANGE MANAGEMENT

Leading change - eight steps to transforming your organisation

By John P. Kotter


 Examine market and realities
Establishing a sense of urgency  Identify and discuss crises, potential crises or opportunities


 Assemble a group with enough power to lead the change effort
Forming a powerful guiding coalition  Encourage the group to work together as a team


 Create a vision to help direct the change effort
Creating a vision  Develop strategies for achieving that vision


 Use every means to communicate the new vision and strategies
Communicating the vision  Teach new behaviors by the example of the guiding coalition


 Get rid of obstacles to change
Empowering others to act on the vision  Change systems or structures that seriously undermine the vision
 Encourage risk taking and non traditional ideas, activities and actions


 Plan for visible performance improvements
Planning for and creating short-term wins  Create those improvements
 Recognize and reward employees involved in these improvements


 Use increased credibility to change systems, structures and policies that don’t fit the
vision
Consolidating improvements and producing still more change  Hire, promote and develop employees who can implement the vision
 Reinvigorate the process with new projects, themes and change agents


 Articulate the connections between the new behaviors and corporate success
Institutionalizing new approaches  Develop the means to ensure leadership development and succession

UNITED NATIONS | FIELD SUPPORT Slide 6

CHANGE MANAGEMENT

Development of supply chain management in DFS started with GFSS

Substantive change takes time

January 2010
July 2015
Global Field Support Work begins on SCM
Strategy initiated March 2012 Blueprint and four pilot
High-level review
conducted of DFS
January 2015 November 2015
supply chain
Completion of the Global First SCM Conference
Field Support Strategy held in New York
April 2012
UNMISS becomes the
2011
first mission to trial SCM December 2014 April 2016
UNLB and Umoja Missions instructed to Issuance of
conduct separate restructure and begin Centralised
processes for SCM implementing centralised Warehousing
strategy development warehousing by July Guidelines V1.0

January July January July January July January July January July January July January July
2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016

May 2015
USG DFS signs off May 2016
on SCM Vision, Publication of
Strategy and SCM

February 2016
June 2014
Second SCM
Field Supply Chain
Conference held
Development
Working Group

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SUPPLY CHAIN MANAGEMENT VISION

Our Vision for Supply Chain Management

We’re not there yet Responsibility, Accountability, Flexibility

(We strive to implement …) A well managed and agile supply chain

to support UN field missions with effectiveness and efficiency

For whom we are doing this Right Product, Right Time, Right Place, Right Cost

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SUPPLY CHAIN MANAGEMENT STRATEGY

The SCM Strategy

Four building blocks

End-to-end
Clearly defined Different Different situations,
functions, roles & Supply Chain customer needs,
responsibilities Supply Chain and challenges
Management
Solutions
Process
Well Managed and
Agile
Supply Chain

Performance
Solutions for Organization Ensure
infrastructure, Management effectiveness and
technology, & Enablers efficiency
and resources Framework

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POWERFUL GUIDING COALITION

Compact of USG for Field Support for 2016

Supply Chain Management is a top priority for DFS

A. Priority initiatives that will be critical to our success in 2016:

1. Supply chain management, including completing the blue print and implementing four agreed pilot projects
2. Environment
3. Conduct and discipline
4. High-Level Panel on Peace Operations follow-up

B. Objectives to help us deliver for clients and stakeholders:

 To enable mandate delivery
 To improve operational planning
 To meet client expectations
 To steward resources responsibly
 To deliver within rules and regulations
 To respect UN norms and values

UNITED NATIONS | FIELD SUPPORT Slide 10

 POWERFUL GUIDING COALITION

Stakeholders – the guiding coalition

Critical support for success
Executive Level Stakeholders
Executive Level Stakeholders maintain informational awareness of program status and health and resolve issues escalated by Program Level Stakeholders or the
SCM Program Lead.

 DFS, Office of the Under-Secretary-General (DFS/OUSG)

DFS
DFS Leadership
Leadership  DFS, Office of the Assistant Secretary-General (DFS/ASG)
 DFS, Logistics Support Division (DFS/LSD)

Program Level Stakeholders

Program Level Stakeholders provide direct support to the SCM Program and the execution of Field Mission operations in alignment with guidance and vision of the
Executive Level Stakeholders. In support of the process mapping, high-level notional roles and responsibilities were created to facilitate the workflow between
groups.

SCM
SCM Program
Program Direct
Direct Staff
Staff SCM
SCM Program
Program Parallel
Parallel Staff
Staff

 SCM Chief  UNHQ Procurement

 Planners  DFS Budget Office
 Commodity Managers  GSC Brindisi
 Transportation Specialists  Field Mission

The following roles and responsibilities are not exhaustive, but representative of high-level operations for an optimized
future state; in order to fully define roles and responsibilities, an exhaustive organization assessment and design effort is
required
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EMPOWERING OTHERS

So many changes, so many stakeholders

It’s chaos!
Globa pira
Ins
l Serv Member
ice De State
livery
Mode
l
Staff

Missions
Department of Management
DPA
HIPPO

DPKO
Department of
Field Support

o ja
um Legislative
Supp
ly Ch
ain M
Bodies
anag
eme
nt

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IMPLEMENTING SUPPLY CHAIN MANAGEMENT

The SCM Blueprint: High-Level Process Flows

Developing the details of SCM

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IMPLEMENTING SUPPLY CHAIN MANAGEMENT

Many SCM processes are shared Examp

Various key processes run across missions, DFS and DM at HQ les of p
rocess
es

Example 1: Acquisition planning Example 2: Procurement

Development of Strategic Sourcing plan Execution of Solicitations and
establishment of Systems Contracts
DM

Review of submitted missions’ demand plans by Planning and preparation of requirements as input for
DFS

GSC and development of global acquisition plan solicitations for Systems Contracts
Missions

Development of mission demand plans Local procurement / processes and

Execution of purchase orders

We work together with all process owners to enhance processes and operations further.

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IMPLEMENTING SUPPLY CHAIN MANAGEMENT

Different Dimensions
Various linkages
End-to-end
Different Performance
Supply Chain Supply Chain
Organization
Management
Management & Enablers
Solutions Framework
Process

Processes Practices People Performance

Blue Print being finalized which documents the End State, incl. process maps, outlining roles and
Supply Chain Management Initiative responsibilities. Organizational structures will be adjusted, involving re-profiling of positions and
DFS/LSD, GSC, Missions, DM/CSS, CM/CSS/PD training staff skills enhancement are being developed. A set of KPI’s is also being developed.

Specific focus on workforce requirements,

Re-organization WG staffing profiles, skills enhancements and
DFS/LSD, FPD, GSC, Missions, DM/OHRM training to prepare for re-organization

Focus on a sub-set of processes: acquisition

HIPPO – Procurement & Logistics WG planning, sourcing and procurement. Review
DFS/LSD, DM/CSS, CM/CSS/PD of pain points such as LoA, EPF, etc.

Galileo decommissioning project started.

UMOJA & Other Support Systems Design of UE2++ planned for mid year. Other
UMOJA, PO’s, DM/ICT, CSS, OPPBA, DFS/LSD field solutions (eFMS, eRMS, AIMS).

The various efforts aimed at implementing supply chain management will provide for a model
Global Service Delivery Model which will fit perfectly well within the GSDM, albeit that the service is logistics (rather than
GSDM Team, PO’s, DFS/LSD, DM/CSS administrative) and oftentimes location dependent (rather than location independent).

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IMPLEMENTING SUPPLY CHAIN MANAGEMENT

Different Dimensions
Various Work Streams & Initiatives
Client Monitor Planning Sourcing Upstream Storage Downstream Delivery &
demand & control logistics logistics receipt

SCM Initiative
Acquisition Planning    
Central Warehousing  
INCOTERMS (Shipping Cell)      
East Africa Corridor        
HIPPO - Procurement-Logistics Working Group
Acquisition Planning    
Sourcing   
Procurement Processes   
UMOJA - Systems Support
Galileo Decomissioning Project    
Extension Two Plus Plus (UE2++)     
eFMS, eRMS, AIMS    
Global Service Delivery Model
End-to-End Service Delivery        
UNITED NATIONS | FIELD SUPPORT Slide 16
 CHANGE MANAGEMENT

Leading change - eight steps to transforming your organisation

By John P. Kotter


 Examine market and realities
Establishing a sense of urgency   Identify and discuss crises, potential crises or opportunities


 Assemble a group with enough power to lead the change effort
Forming a powerful guiding coalition   Encourage the group to work together as a team


 Create a vision to help direct the change effort
Creating a vision   Develop strategies for achieving that vision


 Use every means to communicate the new vision and strategies
Communicating the vision   Teach new behaviors by the example of the guiding coalition


 Get rid of obstacles to change
Empowering others to act on the vision   Change systems or structures that seriously undermine the vision
 Encourage risk taking and non traditional ideas, activities and actions


 Plan for visible performance improvements
Planning for and creating short-term wins   Create those improvements
 Recognize and reward employees involved in these improvements


 Use increased credibility to change systems, structures, policies that don’t fit vision
Consolidating improvements and producing more change   Hire, promote and develop employees who can implement the vision
 Reinvigorate the process with new projects, themes and change agents


 Articulate the connections between the new behaviors and corporate success
Institutionalizing new approaches   Develop the means to ensure leadership development and succession

UNITED NATIONS | FIELD SUPPORT Slide 17

SCM Program Critical Success Factors
To enable the transition and adoption of the SCM Program, the UN should address the following critical areas and
activities
Program Governance Change Management
• Develop and adapt Strategic Plan to align • Develop a Change Management Plan to
with organizational vision and needs facilitate the transition to the future state
• Perform Compliance Management activities • Perform a Stakeholder Analysis to
to confirm adoption of the future state understand all stakeholders and their level of
• Measure operations performance and involvement
process adherence through aligned and • Develop and execute a Communication
actionable Metrics Plan that aligns targeted communications to
• Assess and manage Supply Chain Risk the proper audience(s)
through transition

Roles and Responsibilities Standardized Guidance

• Develop new Roles and Responsibilities to • Create a Standard Operating Procedure
align to future state processes and needs (SOP) outlining detailed SCM Program
• Create new Organization Structure to structure, roles and responsibilities, and
support future state operational overview
• Understand level of effort for each role and • Develop detailed Work Instructions to
corresponding workload assist staff in performing new functions and
• Develop and employ a Training Plan to tasks
support staff as they transition to future state

Slide 18
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 QUESTIONS?

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IMPLEMENTING SUPPLY CHAIN MANAGEMENT

GFSS called for introduction of new mission structures

 As part of implementing the Global Field Support

Strategy, the USG/DFS provided guidance in December
2014 on the introduction of revised Mission Support
Structures, including the introduction of an operations Mission Support
and service delivery pillar and supply chain
management pillar with intend to deliver stronger
performance in:
 Service delivery through demand side/need
management (i.e. identification of client requirements, Supply Chain
Service Delivery
Management
planning, client satisfaction), design of solutions,
requisitioning, contract management and, monitoring of
services;
 Supply chain management through a more integrated
approach to the sourcing, management and, distribution
of assets.

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EXERCISE SMART

Implementing supply chain management

Bringing order in the chaos

 Reading: 10 minutes
 Assignment part 1: 20 minutes
 Assignment part 2: 40 minutes
 Assignment part 3: 20 minutes

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EXERCISE SMART

Feedback Session
Take-aways

 Change is not just about moving boxes in the organizational chart

 Guidance is critical to achieve consistency
 Clear direction and vision of the end-state guides the work
 Communication to all stakeholders is key
 Quick wins maintain a momentum or renew the effort
 Everybody is part of the change
 Change is a process
 Change needs to be managed

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IMPLEMENTING SUPPLY CHAIN MANAGEMENT

Supply Chain Process as per SCOR®

Planning activities associated with supply chain operations
Plan • Gathering information on operational requirements and available resources
• Identify planning capabilities and methods to eliminate resource gaps

Order and receipt of goods

Source • Establishing contracts for purchase of goods and supplies
• Ordering, scheduling deliveries, and receiving products

Inbound and outbound logistics

Deliver • Creating, maintaining, and fulfilling orders
• Managing receipts, invoices, and shipments

Reverse flow of goods back from the customer

Return • Identifying, scheduling, and receiving returned goods
• Does not include actions such as repair and refurbish

Manage Supply Chain

Enable • Business rules, human resources, performance reporting, data and information
• Supply chain network, contracts, assets, regulatory compliance and risk
Source: Supply Chain Council, Supply Chain Operations Reference (SCOR®) model, http://supply-chain.org/scor, September 2011.

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