Supply Annual Report 2020 Extraordinary Operation at Scale Cover photo: After being retrieved by robots from the storage area, life-saving supplies are packed in emergency kits to be dispatched from the world’s largest humanitarian warehouse, the UNICEF Global Supply Hub in Copenhagen. Their journey to the hands of children and their families, teachers and health workers begins here The High Bay fully automated storage area of the UNICEF Global Supply Hub in Copenhagen is 24 metres high, 60 metres wide and 150 metres long and can store up to 36,000 pallets of supplies. At any point, UNICEF supply hubs have enough emergency supplies to meet the needs of 250,000 people for three months 5 FOREWORD ACHIEVING RESULTS 8 Procurement overview 10 Commodity groups 12 Services 13 Country of supplier/ Region of use 14 Savings overview EXTRAORDINARY OPERATION AT SCALE 18 COVID-19: Mobilizing supply operations at scale 20 Building local supplier capacity to manufacture personal protective equipment 22 Scaling up an innovation during a pandemic 24 Getting COVID-19 diagnostic tests into the hands of health workers 26 Championing innovative freight solutions to transport routine vaccines 30 Scaling up local production to increase access to hand hygiene Contents supplies 32 COVAX: The largest vaccine supply operation ever RESPONDING TO EMERGENCIES 36 UNICEF on the front lines 38 UNICEF supply and logistics response in the highest-level emergencies in 2020 42 Supporting natural disaster response 44 Immediate supply response to the Beirut explosions 45 Tigray region of Ethiopia The tangram is a seven-piece dissection puzzle. Just like a ANNEXES WORKING TOGETHER box of supplies, it becomes so much more in the hands 58 UNICEF global procurement statistics 48 The UNICEF Supply Community at the forefront of our results of its end users. Throughout the report, tangram shapes 50 Supply Community testimonials are used to illustrate 52 Strategic collaboration the extraordinary global movement of supplies. 54 Partnerships Foreword “The supply and logistics challenges of 2020 were not only unprecedented, For UNICEF, 2020 was a year unlike any other – a year in which an outbreak escalated into a pandemic reaching all corners but extremely complex. Together with of the world, propelling the organization to the front lines of an emergency response of historic magnitude. We have collectively witnessed the speed at which a virus can change the world. COVID-19 has cost lives and battered health partners, UNICEF leveraged its strengths systems. It has disrupted markets and devastated economies. It has damaged livelihoods and upended childhoods. The to continue sourcing, procuring and pandemic also brought with it a series of hugely complex supply and logistics challenges. The UNICEF Supply Function was delivering life-saving supplies, despite tested like never before, yet its commitment, resilience and drive were never more evident. the magnitude of the COVID-19 crisis.” Extraordinary magnitude In 2020 the value of the goods and services that UNICEF procured on behalf of countries rose to its highest in the Henrietta H. Fore organization’s history: $4.468 billion. Driven in part by the exponential demand for COVID-19 related supply items, this figure represented a nearly 17 per cent increase compared to 2019, and a 27 per cent increase since 2016. UNICEF Executive Director But numbers alone cannot do justice to the ingenuity and perseverance of the teams behind these efforts, even in the most pressing circumstances. Staff who not only maintained regular operations but devised creative and flexible solutions as never before to address the steep and unprecedented challenges related to COVID-19. Extraordinary ingenuity As the COVID-19 pandemic evolved, so did the challenges. Each day brought new complexities, ranging from soaring demand and prices for supplies to border closures, export bands and disrupted global freight capacity. Month after month, our teams addressed these emerging challenges with innovative strategies and solutions. Among the many key highlights, we: ϐ Led a collaborative joint tender on behalf of 13 agencies, pooling technical and commercial expertise to establish long- term arrangements (LTAs) for quality personal protective equipment (PPE) ϐ Convened a landmark logistics industry consultation to align stakeholders around a logistics strategy for the COVID-19 response ϐ Devised solutions to maintain deliveries of vaccines for routine immunization, such as multi-stop charter flights using a single aircraft to deliver vaccines to hard-to-reach countries ϐ Championed local production of quality PPE in South Asia to expand options for local sourcing ϐ Scaled up an oxygen therapy project to deliver oxygen equipment for COVID-19 patients around the world ϐ Became the first United Nations agency to distribute COVID-19 tests at scale, drawing on our role as a global leader in the procurement of disease diagnostics ϐ Leveraged decades of experience in vaccine procurement and logistics to assume the role of lead Procurement Agency for the COVAX Facility ϐ Established a landmark charter, together with the World Economic Forum, signed by CEOs of 18 airline and logistics companies pledging support to UNICEF and the COVAX Facility Extraordinary collaboration The COVID-19 response has truly been an ‘all-hands-on-deck’ effort across the entire organization and across the many partners and private sector stakeholders who have come together to support UNICEF in taking forward the largest supply and logistics response in history. As we face the continued threat of variants, we must ensure all countries have equitable access to supplies to fight the pandemic regardless of their ability to pay. So much work remains as the world faces the unfolding challenges of the pandemic. But the solution is among us. We must navigate forward collectively and in solidarity – for solutions for both the short and longer term – and to build back better in this changing landscape and to make a post-pandemic world a reality for all. EtEtlevaleva KadilliKadilli Etleva ‘Eva’ Kadilli, Director of UNICEF Supply Division, with collegues at the UNICEF Global Director, UNICEF SupplySupply DiDivisionvisis on Supply Hub in Copenhagen that did not stop operating for a single day in 2020 ACHIEVING RESULTS A boy plays football in the village of Moussadougou, Côte d’Ivoire 8 ACHIEVING RESULTS UNICEF Supply Annual Report 2020 Procurement overview 2020 ACHIEVING RESULTS 9 Procurement overview 2020 SERVICES GOODS In 2020, the UNICEF supply and logistics function procured $4.468 billion $1.238 $4.468 $3.230 worth of goods and services for children in 155 countries and areas. billion billion billion $682.5 million GLOBAL SUPPLY HUBS THROUGHPUT EMERGENCY SUPPLIES $260.8 million procured for 143 countries and areas (see page 38) Copenhagen Brindisi Shanghai Panama City Dubai $1.808 Accra billion PROCUREMENT SERVICES on behalf 180,889 kits of governments and partners ϐ 92 self-financing governments PACKED AND SHIPPED ϐ Gavi, the Vaccine Alliance, 162,826 Copenhagen in 65 countries 16,859 Dubai ϐ United Nations agencies 706 Accra in 70 countries 498 Panama City ϐ Civil society organizations in 33 countries TO 85 COUNTRIES AND AREAS ϐ 63 countries financed by the Global Fund ϐ 28 countries financed by the World Bank and other development banks ϐ 20 countries financed by other international funding agencies The UNICEF Global Supply Hub in Copenhagen, Denmark 10 ACHIEVING RESULTS UNICEF Supply Annual Report 2020 Commodity groups ACHIEVING RESULTS 11 In Bienythiang, South Sudan, mothers Commodity groups carry their children and UNICEF-supplied long-lasting insecticidal nets (LLINs) – one of the most effective ways to protect against mosquito-borne diseases like malaria UNICEF procured $3.23 billion worth of goods in 2020. The eight highest value commodity groups and most common items procured within each are listed. $1.413 billion $172.4 million VACCINES/BIOLOGICALS NUTRITION SUPPLIES 1.9 billion doses of vaccines were procured for 102 ϐ 46,836 tons of ready-to-use therapeutic food (RUTF) countries to reach 45 per cent of the world’s children under to 70 countries, 71 per cent of which was sourced in 5 years of age. programme countries ϐ 583.6 million vitamin A treatments ϐ 178.4 million deworming tablets $830.6 million ϐ 620 million sachets of multiple micronutrients powder ϐ 553 million iron and folic acid tablets MEDICAL SUPPLIES AND EQUIPMENT ϐ 68,771 health kits for 65 countries $143.5 million ϐ 912.6 million immunization syringes PHARMACEUTICALS $103.8 million ϐ 10 million safety boxes $242 million* COVID-19 ϐ 4.2 million HIV rapid diagnostic tests, including 0.6 ϐ 40.4 million amoxicillin pneumonia treatments for COLD CHAIN EQUIPMENT million HIV/Syphilis Combo diagnostic tests infants, reaching 47 countries This includes $67 million in solar-powered systems. non-immunization supplies ϐ 11.5 million malaria rapid diagnostic tests to 20 countries ϐ 2 million packs of antiretroviral medicine to treat 74,166 In 2020, UNICEF shipped half a billion items of personal protective ϐ Half a billion COVID-19 non-immunization supplies (see adults and 12,289 children with first-line therapy for one equipment and other non-immunization supplies, including page 11) year in 44 countries ϐ 23.3 million Artemisinin-based Combination Therapy $43.2 million (ACT) malaria treatments 200 MILLION 195.3 MILLION EDUCATION SUPPLIES MEDICAL MASKS GLOVES ϐ 106.5 million cotrimoxazole tablets (treats a range of 101,755 education kits