Supply Annual Report 2003

Highlights

In January 2003, Supply Division presented a report on its operations to the UNICEF Executive Board. The report reviewed the UNICEF supply function in the context of the organizational priorities. It also considered other aspects of the Division’s work including Procurement Services. The report recommended steps to improve the efficiency of the UNICEF global supply operation, and addressed several future challenges, including the issue of vaccine security. It was favourably received by the Executive Board.

During the year, UNICEF procured approximately $709 million of supplies, excluding freight. Offshore procurement totalled $561 million. In addition, UNICEF received and distributed over $9 million of donations in kind (including $8 million of vitamin A). The notable increase in offshore procurement since 2002 is attributable to higher procurement volumes for vaccines and emergency supplies for Iraq, Afghanistan and Liberia. Although the volume of emergency procurement increased, it did not impede procurement operations to regular country programmes. Seven of UNICEF’s top 20 supplier countries continue to be countries where UNICEF supports programmes for children. Indeed, one third of UNICEF’s total procurement is from suppliers in developing countries.

In 2003 UNICEF procured vaccines for 40 per cent of children in developing countries, the equivalent of 2.5 billion doses annually, worth $347 million. The organization remained the largest buyer of mosquito nets in the world, procuring nearly 4.8 million mosquito nets, including 1.5 million long-lasting insecticidal nets, for a value of nearly $14 million. The organization procured antiretroviral medicines for 25 countries. With a total value of $56 million, UNICEF also expanded significantly its role in the procurement of educational supplies.