Operations Program Adjustments: Sample Steps Below is part of a contingency plan from a cash-based program. Note the possible operations steps that need to be taken to adjust the program for each scenario. Risk: Observed Determined cause Possible program Approximate Sample operations actions to be taken market impact adjustments resource requirement Prices of one Intervention: Shift to working Low/ Use “vendor selection” process to identify new vendors commodity rise vendors are not with larger vendors Medium Prepare and sign new contracts significantly and able to respond to remain high in increase in demand intervention Stagger electronic Low/ Minimal. Ensure that vendor payments are made on markets voucher Medium time. (Contrary to distributions historical and national prices) Provide small grants Medium Revise contracts of existing small vendors, or create new to vendors to ones increase their stocks Prepare and track new payments Supply shock: Local Shift to larger Low/ Use “vendor selection” process to identify new vendors production levels are vendors who can medium Prepare and sign new contracts unable to support source from other demand. regions Shift to partial High Terminate or suspend existing vendor contracts if distribution necessary Use procurement process to identify in-kind vendors Reference EFOM to identify warehouse space, plan for shipping, monitor for quality, and make payments Prepare and train distribution teams; set up distribution calendar Lead distributions and monitor distributions
Operations Program Adjustments: Sample Steps Below is part of a contingency plan from a cash-based program. Note the possible operations steps that need to be taken to adjust the program for each scenario. Risk: Observed market impact Determined cause Possible program adjustments Approximate resource requirement Sample operations actions to be taken Prices of one commodity rise significantly and remain high in intervention markets (Contrary to historical and national prices) Intervention: vendors are not able to respond to increase in demand Shift to working with larger vendors Low/ Medium Use “vendor selection” process to identify new vendors Prepare and sign new contracts Stagger electronic voucher distributions Low/ Medium Minimal. Ensure that vendor payments are made on time. Provide small grants to vendors to increase their stocks Medium Revise contracts of existing small vendors, or create new ones Prepare and track new payments Supply shock: Local production levels are unable to support demand. Shift to larger vendors who can source from other regions Low/ medium Use “vendor selection” process to identify new vendors Prepare and sign new contracts Shift to partial distribution High Terminate or suspend existing vendor contracts if necessary Use procurement process to identify in-kind vendors Reference EFOM to identify warehouse space, plan for shipping, monitor for quality, and make payments Prepare and train distribution teams; set up distribution calendar Lead distributions and monitor distributions