welcome dissemination of sop for market and cash in asia learning event:1 14 august 2014
TRANSCRIPT
WelcomeDissemination of SoP for Market and Cash in Asia
Learning Event:1
14 August 2014
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Agenda for the day(Learning Event 1)
Knowing the team
Introducing Blackboard Collaborate
Introduction to SoP
Market System concept Market concept its assessmentEMMA and the Web How to make response programme decision (in-kind/CTP/Combination)?
Linking Market findings with CTP
Duration: 60 min
Rajesh Dhungel,EFSVL Regional Capacity
Builder
Susiana Ananta Adi (Susi),Regional Logistics Coordinator
Chaniganda Chalaruk (Gift), Regional Finance Coordinator
Seybou Djibo BACHIR,Supply and Logistics Field
Adviser
Emily Henderson, EFSVL Advisor - Market Lead
Rajesh Dhungel,EFSVL Regional Capacity
Builder
Seybou Djibo BACHIR,Supply and Logistics Field
Adviser
Emily Henderson, EFSVL Advisor - Market Lead
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The objectives of the Learning event
• The Managers, Programme and Business Support Team feel comfortable in ensuring CTP in Asia is in line with SoP
· Humanitarian Team (Managers, Programme, Distribution, Finance, Security and Logistics) in the Region and countries in Asia are aware of their roles and responsibilities in cash and market based programming
· Develop common understanding among programme, logistics and finance team in understanding market and involving vendors in CTP, particularly for voucher programming
Why do we need SOPs?• Evolution of humanitarian programming: Significant increase
in CTP work (2.5% in 2009 to 20% in 2013)• Oxfam’s ambition, across sectors, as a tool of market based
programming to address basic needs / right and resilience building
• New area of work for many humanitarian teams / functions• Lack of cross-functional understanding of the modalities in
cash & market based programming• In- Consistency in decision making, Process & Risk
Management• Lack of clarity on process and roles • Initially Finance guidelines but need to clarify and detail role of
other teams arose
Their development
• As part of ECHO funded ERC consortium (Oxfam, Intermon, Save the Children and Concern) => 5 posters are inter-agency
• Guidance developed by multi-sector Oxfam team under the lead of a manager
• Considers donors requirement for CTP justification
Who are the SOPs for?Humanitarian teams:• Managers• Logistics• Programme• Finance• Security• Funding• Audit
• In HQ, Regions and countries
What’s in it?Terminology (p6)
Per PCM step, SOPs + Topline ChecklistsSummarised in Poster 3 (p 12)
Per PCM step and per SOP, Guidance Notes on how to deliver them
Decision making instruments: Market Channels (Poster 1 p10), Risk analysis (Annex 1), and Decision tree (Poster 4 p 22)
Roles and Responsibilities between CTP team members and sectors (Posters 2 and 5 – p 11 & 42)
Annexes
An example: Step 1, SOP 1, checklist
THE CTP TEAM
• Humanitarian team for CTP responses must comprise: a Finance Manager/ Officer, a Logistic Manager/Officer, a Technical/Cash Team Leader and a Programme Manager/Humanitarian Coordinator.
• The levels of the roles must be defined based on the categorisation of the crisis and the complexity of the CTP.
cash and market programming: agree or disagree?• Is it risky to deliver emergency relief through cash
transfers as markets take time to recover after a crisis (and it might create inflation)
• Delivering cash is more risky for people’s safety than in-kind
• When delivering cash transfers one is not sure of how people use aid
• The choice between cash and in kind depends on needs, markets and risk analysis
Kalimati fire : Veg supply may be hit; prices likely to go up KANTIPUR March 04, 2012
Kalimati vegetable market resumes operation KANTIPUR March 05, 2012
Fruit, vegetable prices stable despite fears of price rise REPUBLICA March 05, 2012
What is Market System
“A market system is a network of actors that are involved in various market functions of particular item or service. It includes various forms of infrastructure, input providers, and services. And it operates within the context of rules and norms that shape this system’s particular business environment”
Designing the response: deciding on modality and delivery mechanisms
Q&A
04/18/23
Working with Markets and Cash
Standard Operating Procedures
- MARKET CHANNELS -
GREEN CHANNEL
RED CHANNEL
AMBER CHANNEL
Key ProcessesKey ProcessesResponse Modality
Response Modality
Definition of Actor
Definition of ActorDelivery MechanismDelivery MechanismMarket Status (may
vary by commodity)
Market Status (may vary by commodity)
Produced by Emily Henderson and Rebecca Vince, Oxfam GB Sept 2013Produced by Emily Henderson and Rebecca Vince, Oxfam GB Sept 2013
GREEN CHANNEL
LOCAL AREA MARKET HAS CAPACITY TO SUPPLY THE
COMMODITIES / SERVICES TO
QUANTITY AND TO QUALITY
RED CHANNELLOCAL AREA
MARKET DOES NOT HAVE CAPACITY,
EVEN WITH SUPPORT
SUPPLY FROM OUTSIDE
MARKET(S)
AMBER CHANNEL
LOCAL AREA MARKET HAS
SOME CAPACITY BUT NEEDS
SUPPORT TO SUPPLY THE
COMMODITIES / SERVICES TO
QUANTITY AND TO QUALITY
Key ProcessesKey ProcessesResponse Modality
Response Modality
Definition of Actor
Definition of ActorDelivery MechanismDelivery MechanismMarket Status (may
vary by commodity)
Market Status (may vary by commodity)
Produced by Emily Henderson and Rebecca Vince, Oxfam GB Sept 2013Produced by Emily Henderson and Rebecca Vince, Oxfam GB Sept 2013
Key ProcessesKey ProcessesResponse Modality
Response Modality
Definition of Actor
Definition of ActorDelivery MechanismDelivery MechanismMarket Status (may
vary by commodity)
Market Status (may vary by commodity)
Green Channel:
•Local Area Market is functioning for the required commodity / service.
•Our market and purchasing strategy is to buy locally.
•This can mean choosing to split procurement volume to allow greater access from smaller vendors.
•This should be handled as a derogation from procurement procedure and authorised internally and externally before being processed.
GREEN CHANNELLOCAL AREA MARKET HAS CAPACITY TO SUPPLY THE COMMODITIES / SERVICES TO QUANTITY
AND TO QUALITY
G1 Cash
Grants & / or CFW
G2 Vouchers
(commodities or
cash)
Key ProcessesKey ProcessesResponse Modality
Response Modality
Definition of Actor
Definition of Actor
Local trader(s) supply
commodities to beneficiaries for
vouchers
Cash / CFW delivered to beneficiaries (directly or
implementing partner NOT
trader)
Cash / CFW delivered by local
trader(s) to beneficiaries
Standard Procurement Process – competitive
OR decentralise
d
Pure Trader – Cash
Pure Trader
– Commodities / Cash
INGO / Implementing Partner
Partnership Agreement
Standard Procuremen
t Process decentralised to multiple
traders
Delivery MechanismDelivery MechanismMarket Status (may vary by commodity)
Market Status (may vary by commodity)
AMBER CHANNELLOCAL AREA MARKET HAS
SOME CAPACITY BUT
NEEDS SUPPORT TO SUPPLY THE
COMMODITIES / SERVICES TO
QUANTITY AND TO QUALITY
Beneficiary selection process
Beneficiary selection process
Key ProcessesKey Processes
A3 Vouchers
+ Integrated
Market support
Response Modality
Response Modality
Definition of Actor
Definition of Actor
Support to Selected Local traders to
rebuild their market activity
Support to Selected Local traders to
rebuild their market activity
Support to Selected Local traders to rebuild
their market activitywho also supply commodities to beneficiaries for
vouchers
Support to Selected Local traders to rebuild
their market activitywho also supply commodities to beneficiaries for
vouchers
Cash / CFW delivered by local trader(s) to
beneficiaries
Support to Selected Local traders to rebuild
their market activitywho also supply cash
to beneficiaries
Support to Selected Local traders to rebuild
their market activitywho also supply cash
to beneficiaries
A2 Cash grants & / or CFW + Integrated
Market support
Beneficiary
Traders
Beneficiary
Traders
Beneficiary
Traders
Beneficiary
Traders
Pure Trader -
Cash
Beneficiary
Traders
Beneficiary
Traders
Cash delivered to beneficiaries (directly
or implementing partner NOT trader)
Delivery MechanismDelivery MechanismMarket Status (may vary by commodity)
Market Status (may vary by commodity)
A1 Cash Grants & / or CFW + Separate Market
Support
Standard Procurement
Process decentralised
to multiple traders
INGO/ Impleme
nting Partner
Partnership Agreement
Beneficiary selection process
Beneficiary selection process
Beneficiary selection process
Beneficiary selection process
RED CHANNEL
LOCAL AREA MARKET
DOES NOT HAVE
CAPACITY, EVEN WITH
SUPPORT SUPPLY FROM
OUTSIDE MARKET(S)
R1 Direct Commodit
y Purchase (outside markets)
Key ProcessesKey ProcessesResponse Modality
Response Modality
Definition of Actor
Definition of Actor
Commodities purchased and supplied from
outside the affected area nationally /
regionally / internationally
Pure Trader – Commodities
Standard Competitive Procurement
Process
Delivery MechanismDelivery MechanismMarket Status (may vary by commodity)
Market Status (may vary by commodity)
Q&A
04/18/23