3.8 The distribution plan
The distribution plan is a document providing the warehouse manager and distribution staff with information about the quantity of inventory to be dispatched, the time period in which to dispatch it, and the destination (see Annex 19.4 Distribution plan format, and Annex 19.5 Distribution plan sample). Specifically, the distribution plan must include:
- warehouse from which inventory will be dispatched
- destination (i.e. name of receiving warehouse, organisation, institution or distribution site)
- time period for dispatch
- type of inventory (item name or commodity type)
- shipment number
- donor name
- per person/household allocation or ration
- total number of recipients (based on the Master Recipient List) total quantity of inventory (number of units or kilograms) to dispatch
- number and type of transport vehicles required.
Distributions should be scheduled so that inventory (goods and commodities) arrive at the destination site at least two weeks before site-level stocks are expected to end, providing that it is safe to do so.
It is best to plan distributions for only what is in stock and not what is expected, but frequent distance and communication problems between warehouses and distribution sites may require managers to estimate stock levels for planning purposes.
All planning must take into account seasons during a year (e.g. rainy seasons) when regular transport to programme sites will be delayed or suspended. In these cases, extra time must be allotted for transport or additional inventory pre-positioned at programme sites (where there is storage capacity).
Distribution schedules should be staggered between regions so that all sites do not run out of inventory at once.
Minimum standards:
- To ensure segregation of duties and adequate controls over inventory are in place, warehouse managers or storekeepers never determine where inventory will be distributed or arrange for its dispatch on their own.
- All distributions are based on a written plan approved and authorised by management. The distribution plan includes quantities of each good or commodity to be sent to each distribution point for a specified period of time.
- A distribution plan, unless otherwise approved by the donor, is based on the ration size for recipient set out in the programme proposal approved by the donor.
Transport requirements for distributions must be closely planned with the logistics team.
There are three key elements for determining transport requirements:
- the ration scale for each commodity (in the case of food expressed in grams per person per day)
- the number of planned recipients (expressed in individuals or in households, depending on the unit of distribution)
- the length of time the ration must cover (expressed in days).
For large quantities of inventory dispatched to few locations:
- Calculate weight to be dispatched (expressed in MT) for each destination:
| Weight to be dispatched = Ration x Total number recipients x distribution frequency (number of days) – excess stock already at site |
- For NFI: ration is total weight of per person or per household allotment. The estimated weight of NFI should be available from the supplier. If items are bulky, add an additional 10-15 percent to the estimated weight
- For food commodity: ration is per person, per day quantity expressed in grams
- To convert grams to MT, divide by 1,000,000.
- Calculate vehicle turnaround time (TAT) for each destination (expressed in days or fractions of days). TAT is the amount of time it takes a vehicle to load, travel to its destination, unload, and return to load for the next trip
- Calculate daily transport capacity required (expressed in metric tonnes (mt) per day):
| Daily Transport Capacity = Total weight to be dispatched in mt / (number of days in delivery period / Turn Around Time in days) |
- Determine capacity of a single truck, i.e. how many tons a truck can carry. Because many distribution sites are located in remote areas, short-haul trucks with a maximum capacity of
8 mt will make the majority of the deliveries - Determine number of trucks needed each day:
| Number of trucks needed each day = Daily transport capacity (in mt) / Capacity of a single truck (in mt) |
- Include number and capacity of trucks needed per day to other data on distribution plan, and submit to management for verification and authorisation.
For small quantities of inventory dispatched to many locations. When quantities per destination are less than the capacity of available trucks, and destinations are situated in close proximity, one truck may be able to deliver to multiple sites before returning to the warehouse for reloading. Follow the instructions above for calculating the weight to be dispatched, then:
- determine capacity of a single truck, i.e. how many tonnes a truck can carry. As many distribution sites are located in remote areas, short-haul trucks with a maximum capacity of
8 mt may make the majority of the deliveries - group destination sites that can be serviced by a single vehicle in a single day. Ensure adequate time for loading at warehouse, off-loading at each site, and return to warehouse
- assuming each group can be completed in one day, calculate the number of trucks needed each day:
| Number of trucks needed each day = number of groups of distribution sites / number of days in a cycle |
- Increasing the number of trucks available per day means distributions to all groups can be completed in a period of time less than the distribution cycle (or number of days in cycle)
- Include number and capacity of trucks needed per day to other data on distribution plan, and submit to management for verification and authorisation.