Developing Supply Chain Talent and Innovation in Africa

Briefing to the Global Logistics Cluster MeetingJune 1, 2018

1

Content

• [10 m inutes] P resent resu lts o f a study sponsored by the B ill and M elinda G ates Foundation (BM G F) to characterize the socia l and econom ic benefits that can be rea lized in N igeria and its econom ic reg ion through advanced education and research in supply chain m anagem ent

• [10 m inutes] D escribe a path to sca le up supply cha in education using edX a long w ith susta inable in -country academ ic capacity

• [5 m inutes] Share a proposed p lan to develop a N igeria C enter o f Excellence (C O E) and recent updates on com m itm ents to support the launch

• [15 m inutes] O pen d iscussion regard ing the potentia l for academ ic engagem ent in develop ing ta lent and innovation in A frica

2

Various stakeholders converged to study how supply chain education and research can im prove public , private, and developm ent outcom es.• Private Sector Health Alliance of Nigeria (PHN)

• History: formed in 2012 (https://www.phn.ng/evolution)

• Leadership: Aljhaji Aliko Dangote, Founding Patron; Dr. Muntaqa Umar-Sadiq, CEO (https://www.phn.ng/board-of-directors)

• Mission: mobilize business and corporate leaders towards improving health outcomes;

focus on innovation, partnership, advocacy, and impact investment

• The Bill and Melinda Gates Foundation provided a grant for PHN to:

• establish the Africa Resource Centre (ARC) for public health supply chains

• explore creation of an academic center of excellence in supply chain

• PHN and ARC commissioned a study from MIT CTL to explore the potential of an MIT Global SCALE center of excellence based in Nigeria

• Broad focus on supply chains across sectors

• Research to improve supply chains for health and other areas, shaped by trustee input

• Education for locally sustainable talent development through partnership with universities,

leveraging STEM education to cultivate management science skills that shape practice

3

Supply chain education, research, and innovation is a ligned w ith N igeria’s econom ic grow th p lan .

N ig e ria k e y s tra te g ic p rio ritie s , 2 0 1 7 -2 0 2 0

S O U R C E : E co n o m ic R e co ve ry & G ro w th P la n , 2 0 1 7 -2 0 2 0

S ta b ilis e th e

m a c ro e c o n o m ic e n v iro n m e n t

A c h ie v e

a g ric u ltu re a n d fo o d s e c u rity

Im p ro v e

tra n s p o rta tio n in fra s tru c tu re

E n s u re e n e rg y

e ffic ie n c y in p o w e r &

p e tro le u m

p ro d u c ts

D riv e

in d u s tr ia liza tio n fo c u s in g o n

S M E s

H o w c a n S C M s e rv e a s a n e n a b le r?

§ R e d u ce co s t o f d o in g b u s in e ss

§ U n lo ck n e w a ve n u e s fo r re ve n u e g e n e ra tio n th ro u g h va lu e -a d d in g

se rv ice s

§ Im p ro ve th e a b ility o f sm a llh o ld e r

fa rm e rs to re a ch la rg e r/m o re d is ta n t m a rke ts

§ In c re a se e xp o rta b ility o f m a ss -

p ro d u ce d c ro p s

§ B u ild /im p ro ve w a te rw a y a n d ra ilw a y

in fra s tru c tu re to in c re a se fre ig h t tra n sp o rta tio n ca p a c ity a n d fle x ib ility

§ U p g ra d e p o rt in fra s tru c tu re to in c re a se

th ro u g h p u t§ O p tim ize u se o f a ll tra n sp o rta tio n

m o d e s to d e -co n g e s t ro a d n e tw o rk

§ B u ild ca p a c ity fo r lo ca l re fin in g

§ D e cre a se g e n e ra tio n a n d d is tr ib u tio n co s ts

§ O p tim ize u se o f a lte rn a tive p o w e r

so u rce s to e n su re co ve ra g e a n d in c re a se se rv ice

§ Im p ro ve ch a n n e l co o rd in a tio n b e tw e e n

S M E s a n d s tra te g ic p a rtn e rs (e .g ., la rg e r p la ye rs )

§ In c re a se fin a n c in g o p tio n s fo r S M E s

4

The grow ing transportation and log istics in frastructure in N igeria w ill require sound expertise to m axim ize econom ic benefit.

SO U R C E: Pw C , Project w ebsites, http://lagosftz.com /, http://lam ata-ng.com /rail/

K e y lo g is t ic s in f r a s t r u c t u r e - L a g o s

Lekki Deep

Seaport*

Dangote

Refinery / Petrochemical

Park

Murtala

Muhammed Airport

Deepest in SS Africa

Capacity of 2.7M TEU

5th busiest in Africa

6,000,000 passengers annually

Apapa

container terminal

Island power

Akute power

Lagos Urban

Rail network*

Combined capacity of 21.9

Megawatts

About 805 hectares of land

allocated for development

Lekki Free

Trade Zone

N W Z

N E Z

N C Z

F C T

S E Z

S S Z

S W Z

NOT EXHAUSTIVE

4th largest in Africa

625,000 TEU annually

Capacity of 650,000 barrels

per day

Planned to consist of 7

railway lines with the blue line carrying between 400,000 – 700,000 daily

Case in point is Lagos State

5

C om panies have a clear need for supply chain expertise and w elcom e opportunities to train their existing w orkforce.

C oncerns expressed by local com panies about SC M practice in N igeria Potential ro les for a C oE, as expressed by private com panies

“An organization like th is could am plify the

voices of com panies expressing their needs”

-C O O , local pharm a com pany

“Support the public sector to quantify and

understand the im plications of policy m easures re lated to SC M ”

-C EO , logistics tra in ing organization

“Serve as a centra l p latform for researchers

to share activ ity and publications”-Professor of O perations M anagem ent

“H elp im prove the ease of doing business

from a supply chain perspective”-H ead of Supply C hain, g lobal pharm a

com pany

“Provide a new pool of com petent and

re levant ta lent”-M D , logistics com pany

“W ork w ith governm ent to stim ulate local

m anufacturing”-H ead of Supply C hain, g lobal pharm a

com pany

“W e don’t recruit supply chain people [because there

are none]. W e recruit people, and then w e tra in them to be supply chain people.”

-H ead of supply chain, large C PG

“If there w ere high-quality local tra in ing options

available, that w ould be a better option than the current practice of sending staff abroad”

-M ultip le m ultinationals

“W e struggle to find funding for research”

-M ultip le academ ic institutions

“There is no interaction betw een academ ia and local

industry”-P rofessor of O perations M anagem ent

Res

earc

h/

eng

agem

ent

Rec

ruit

men

t an

d t

rain

ing

SC

M p

rofe

ssio

nal

izat

ion

“M ost people do not understand that SC M is a

profession”-C EO , logistics tra in ing organization

“In N igeria, people have historically becom e logistics

m anagers ‘by accident’, rather than ‘by expertise’ ”-C EO , logistics tra in ing organization

“You don’t have people practic ing m edicine w ho did

not study m edicine. The sam e w ith law . But w hen it com es to transportation, you have people w ho have

studied literature, English, etc. m aking key decis ions.”-R egulatory body

“SC M is not a form al d iscip line here.”

-Industry um brella body

SO U R C E: Local stakeholder interview s 6

A recent W orld B ank study confirm s the shortage of log istics staff and m anagers, w hich as a negative im pact on in ternational trade.

M c K in n o n , A la n ; F lö th m a n n , C h r is to p h ; H o b e r g , K a i; B u s c h , C h r is t in a . 2 0 1 7 . L o g is t ic s C o m p e te n c ie s , S k ills , a n d T r a in in g : A G lo b a l

O v e r v ie w . W o r ld B a n k S tu d ie s ; . W a s h in g to n , D C : W o r ld B a n k . h ttp s :/ / o p e n k n o w le d g e .w o r ld b a n k .o r g / h a n d le / 1 0 9 8 6 / 2 7 7 2 3

U niversities in N igeria are not a ligned w ell w ith industry or governm ent needs in supply chain /log istics.

SO U RCE: N ational U niversities Com m ission, U niversity w ebsites

§ T h e re is lim ite d v is ib ility

o n e x is tin g p ro g ra m s

a m o n g in d u s try p ra c tit io n e rs

§ S C M -re le v a n t p ro g ra m

o ffe r in g s a re h o s te d in a

w id e ra n g e o f d e p a rtm e n ts a c ro s s

d iffe re n t in s titu tio n s (e .g .,

B u s in e s s A d m in is tra tio n , T ra n s p o rta tio n ,

G e o g ra p h y , C iv il

E n g in e e r in g )

§ In a d d itio n to th e fiv e S C M p ro g ra m s , 2 6 u n iv e rs it ie s

a ls o o ffe r d iv e rs e

n u m b e r o f e d u c a tio n a l p ro g ra m s in re la te d

f ie ld s , m o s tly fo c u s e d

o n tra n s p o rta tio n

69

117

44

25

40

26

U n iv e rs it ie s w ith

a p p ro v e d p o s tg ra d u a te

p ro g ra m s

A ll u n iv e rs it ie s U n iv e rs it ie s w ith

d e g re e p ro g ra m s

d e d ic a te d to S C M

1 5 3

6 8

5

1 3

(P u b lic ) fe d e ra l u n iv e rs it ie s

(P u b lic ) s ta te u n iv e rs it ie s

P r iv a te u n iv e rs it ie s

NOT EXHUSATIVE

8

Supply chain m anagem ent is a relatively new but grow ing fie ld w ith gaps in academ ic capacity but a lso opportunities for partnership .

121618314251545962

116153164

16341919241612516

128

G h a n a K e n y a U g a n d a Ta n z a n ia

2 ,6 2 9

U S A U K R w a n d aS o u t h

A f r ic a

E g y p tN ig e r ia M a la w i M o r o c c o S e n e g a l

U niversities w ith SC M degree program s

A ll accredited universities

0.070.170.170.34

0.01

0.490.520.58

0.220.03

0.250.40

0.17

S e n e g a lU KU S A M a la w iR w a n d aE g y p tTa n z a n iaU g a n d aK e n y aG h a n aS o u t h

A f r ic a

N ig e r ia M o r o c c o

N u m b e r o f u n iv e rs it ie s o ffe r in g S C M -re la te d d e g re e p ro g ra m s in s e le c te d c o u n tr ie s

S C M u n iv e rs it ie s p e r c a p ita in s e le c te d c o u n tr ie s

U n iv e rs it ie s p e r m ill io n p o p u la tio n

5% 10% 3% 10% 26% 41% 35% 18% 2% 13% 17% 38% 8%

SO U R C E: N ational accreditation bodies, U niversity w ebsites, W orld Bank

C ontent

• [10 m inutes] P resent resu lts o f a study sponsored by the B ill and M elinda

G ates Foundation (BM G F) to characterize the socia l and econom ic

benefits that can be rea lized in N igeria and its econom ic reg ion through

advanced education and research in supply chain m anagem ent

• [10 m inutes] D escribe a path to scale up supply chain education using edX along w ith sustainable in -country academ ic capacity

• [5 m inutes] Share a proposed p lan to develop a N igeria C enter o f

Excellence (C O E) and recent updates on com m itm ents to support the

launch

• [15 m inutes] O pen d iscussion regard ing the potentia l for academ ic

engagem ent in develop ing ta lent and innovation in A frica

10

M IT C TL in tegrates supply chain education, research, and outreach and has labs focused on cutting edge topics.

• $ 1 5 M R e s e a r c h B u d g e t

• 1 5 F u l l - T im e R e s e a r c h e r s

• 2 0 + A c t iv e R e s e a r c h P r o je c t s

• 6 0 + F a c u lt y & R e s e a r c h e r s A c r o s s M IT

• 4 - T ie r P a r t n e r s h ip M o d e l

• 5 0 + M e m b e r C o m p a n ie s

• In d u s t r y - D r iv e n

W o r k s h o p s & S y m p o s ia

• S u p p ly C h a in M a n a g e m e n t P r o g r a m ( R e s id e n t ia l & B le n d e d )

• M ic r o M a s t e r s in S u p p ly C h a in M a n a g e m e n t

• E x e c u t iv e E d u c a t io n

• P h D in L o g is t ic s

Research Outreach

Education

H u m a n ita r ia n

R e s p o n s e L a b

R e s p o n s ib le S u p p ly

C h a in L a b

M e g a c ity L o g is tic s L a b

A g e L a b F re ig h tL a b

T h e N a tio n a l C e n te r o f

E x c e lle n c e fo r A v ia tio n

O p e ra tio n s R e s e a rc h (N E X T O R )

S u p p ly C h a in S tra te g y

L a b

S u s ta in a b le L o g is tic s

In it ia t iv e

R e s e a rc h la b s w ith in C T L

11

MIT CTL established the SCALE Network in collaboration with governments and companies around the world to develop talent and drive economic performance.

▪ E s ta b lis h e d in 2 0 0 3 in Z a ra g o z a , A ra g o n , S p a in

▪ lo c a te d in th e h e a rt o f P L A Z A , th e la rg e s t lo g is tic s p a rk in

th e s o u th w e s t o f E u ro p e th a t s e rv e s a s a w o rk in g la b o ra to ry to tra n s fe r n e w k n o w le d g e a n d w o rk in g

p ra c tic e s

▪ O ffic ia lly re c o g n iz e d a s a K n o w le d g e T ra n s fe r O ffic e (K T O ) b y S p a n is h M in is try o f E d u c a tio n a n d S c ie n c e in

2 0 0 8

▪ E s ta b lis h e d in 2 0 1 6 a s a n in d e p e n d e n t, d e g re e -g ra n tin g

a c a d e m ic in s titu tio n e s ta b lis h e d a s a jo in t in it ia tiv e

b e tw e e n M IT a n d th e g o v e rn m e n t o f N in g b o , C h in a

▪ E s ta b lis h e d in 2 0 0 8 b y p r iv a te s e c to r (L O G Y C A /G S 1

C o lo m b ia )

▪ P a rtn e rs h ip s in p la c e w ith s e v e ra l u n iv e rs it ie s in th e re g io n to o ffe r G ra d u a te C e rtif ic a te in L o g is tic s (G C L O G ) a s a

c o m p le m e n t to e x is tin g d e g re e o ffe r in g s

▪ E s ta b lis h e d in 2 0 1 1 in p a rtn e rs h ip w ith th e P r im e

M in is te r ’s o ff ic e (re c e n tly re c e iv e d g o v e rn m e n t

fu n d in g to s u p p o rt in d u s try p ro je c ts ) ▪ S e t u p a s a s ta n d a lo n e , d e g re e -g ra n tin g

in s titu tio n

▪ E s ta b lis h e d in 2 0 1 6 w ith in th e U n iv e rs ity o f

L u x e m b o u rg (h o s te d w ith in th e F a c u lty o f L a w ,

E c o n o m ic s a n d F in a n c e )

SO U RCE: M IT CTL 12

The launch of educational program s seeks to quickly scale capacity to

m eet the urgent needs for supply chain ta lent.

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028+O ffering

PhD program

Full-tim e M aster’s program

Blended M aster’s program

Part-tim e M aster’s program

Blended M aster’s program

G raduate certificate

P rogram (G C LO G )

U ndergraduate certificate

program (U C LO G ) 1Support

program s in partner

universities2

G raduate

degrees3

1 C ould involve a com bination of M IT undergraduates and local undergraduates

2 C ould be developed in partnership w ith M IT and/or one or m ore local universities 3 Subject to further evaluation based on uptake of early offerings

Short courses

Executive-in-residence

program s

Executive

Postdoctoral fe llow ships

SC ALE N igeria faculty

co-advise PhD students in SC ALE netw ork

R esearch exchanges/

fe llow ships

R esearch

exchanges

The MIT MicroMasters in Supply Chain Management is a cutting edge, scalable platform for credit toward degree programs, and a basis for new programs.

+

AnalyticsSC0x

FundamentalsSC1x

DesignSC2x

TechnologySC4x

Proctored Final ExamCFx

=

Anyone Anywhere

DynamicsSC3x

Stand Alone Credential or Pathway to MIT M. Eng.

14

O ur vision for A frica is s im ilar to SC A LE Latin A m erica, w hich has developed a netw ork of 29 leading universities across the continent.

• The Graduate Certificate in Logistics and Supply Chain Management (GCLOG) is an elite program hosted at MIT for students pursuing a master’s program in a partner university.

• The Undergraduate Certificate in Logistics & Supply Chain Management (UCLOG) is a new program hosted in Colombia for outstanding undergraduate students.

15

An MIT SCALE Center can drive value for public and private entities, and the broader economy, in Nigeria and across Africa.

6 Centers of Excellence

10+ Educational Programs

80+ Researchers & Faculty

150+ Corporate Partnerships

170+ Current Students

1000+ Alumni Worldwide

1 Global NetworkSC A LE

C enter

16

W e propose to create the first SC A LE C enter in A frica as an independent entity supported by industry, governm ent, and academ ic partners.

A c a d e m ia

▪ S u p p le m e n t e x is t in g e d u c a t io n a l

p r o g r a m s

▪ P la t fo r m to c r e a te n e w p r o g r a m s th a t le v e r a g e th e w o r ld ’s le a d in g

s u p p ly c h a in c u r r ic u lu m a n d

e d u c a t io n a l p r o g r a m d e v e lo p m e n t /

d e l iv e r y ( r e s id e n t ia l , M O O C )

▪ C o lla b o r a te w ith le a d in g a c a d e m ic s

o n g r o u n d b r e a k in g r e s e a r c h

▪ C o n n e c t w ith le a d in g - e d g e

c o m p a n ie s a n d e x e c u t iv e s

P r o f e s s io n a l b o d ie s

▪ A c c e s s to a b r o a d n e tw o r k o f

p r o fe s s io n a ls a c r o s s

in d u s t r ie s

▪ S o u r c e o f c o l la b o r a t io n o n

in i t ia t iv e s to a d v a n c e th e

S C M p r o fe s s io n

In d u s t r y

▪ S t r e a m o f in n o v a t io n : n e a r -

te r m e x p e r im e n ta l, lo n g - te r m

s t r a te g ic

▪ C o - d e v e lo p v a lu e - c r e a t in g

m a n a g e m e n t p r a c t ic e s

▪ U p g r a d e e x is t in g ta le n t

▪ A c c e s s to a g r o w in g p ip e l in e

o f w o r ld c la s s ta le n t

▪ In v ita t io n to c o n v e n e w ith

th o u g h t le a d e r s fo r c r o s s -

in d u s t r y d ia lo g u e

G o v e r n m e n t

▪ In n o v a t io n to g u id e a n d

le v e r a g e in f r a s t r u c tu r e

in v e s tm e n t

▪ C a ta ly s t fo r fo r e ig n d ir e c t

in v e s tm e n t ( F D I )

▪ In d e p e n d e n t e v id e n c e a n d a d v ic e o n p o l ic y a n d in v e s tm e n t

▪ H u m a n c a p ita l d e v e lo p m e n t

▪ S o c ia l im p a c t th r o u g h im p r o v e d

d e l iv e r y o f e s s e n t ia l g o o d s a n d

s e r v ic e s

D e v e lo p m e n t o r g a n iz a t io n s

▪ H u b fo r d e v e lo p m e n t in th e

b r o a d e r e c o n o m ic r e g io n

▪ In d e p e n d e n t e v id e n c e o n th e im p a c t o f in v e s tm e n t

▪ H u m a n c a p ita l d e v e lo p m e n t

▪ S o c ia l im p a c t th r o u g h im p r o v e d

d e l iv e r y o f e s s e n t ia l g o o d s a n d

s e r v ic e s

R e s e a rc h

Inn

ov

ati

on

an

d

Ex

ch

an

ge

E d u c a tio n

SC A LE

N igeria

17

C ontent

• [10 m inutes] P resent resu lts o f a study sponsored by the B ill and M elinda G ates Foundation (BM G F) to characterize the social and econom ic benefits that can be realized in N igeria and its econom ic reg ion through advanced education and research in supply chain m anagem ent

• [10 m inutes] D escribe a path to sca le up supply cha in education using edX a long w ith susta inable in -country academ ic capacity

• [5 m inutes] Share a proposed p lan to develop a N igeria C enter o f Excellence (C O E) and recent updates on com m itm ents to support the launch

• [15 m inutes] O pen d iscussion regard ing the potentia l for academ ic engagem ent in develop ing ta lent and innovation in A frica

18

Faculty & students engage in applied research d irectly sponsored and

basic research that is supported by strateg ic investm ent.

SO U R C E: D istilled from Feasib ility S tudy discussions

E s s e n tia l s u p p ly c h a in s :

h e a tlh , a g r ic u ltu re , e tc .

S u p p ly c h a in v is ib ility

M e g a c ity /u rb a n lo g is tic sIn te rn a tio n a l

T ra n s p o rta tio n

F re ig h t

S C M fo r S M E s

In b o u n d L o g is tic s

P o te n tia l re s e a rc h fo c u s a re a s w ith in S C A L E N ig e r ia

N e tw o rk o p tim iz a tio nH e a lth c a re

C P G

F o o d /B e v e ra g e

M a n u fa c tu r in g s tra te g y

In v e n to ry m a n a g e m e n t

S u p p ly c h a in

s u s ta in a b ilityL o g is tic s

R e ta il S u p p ly c h a in f in a n c e

P ro c u re m e n t/s o u rc in g

s tra te g y

R is k m a n a g e m e n t

S u p p ly c h a in te c h n o lo g y

R e v e rs e L o g is tic s

3 P L /o u ts o u rc in g

C o n tra c t d e s ig n

E -C o m m e rc e

O il & G a s

K e y in d u s tr ie s G e n e ra l to p ic s S p e c ia l th e m e s

C h e m ic a ls

A g r ic u ltu re

E n e rg y in fra s tru c tu re

T ra n s p o rta tio n

in fra s tru c tu re

In te rn a tio n a l tra d e

H u m a n ita r ia n c r is e s

S c e n a r io p la n n in g

E c o n o m e tr ic a n a ly s is

W o m e n in s u p p ly c h a in

19

SC A LE N igeria can catalyze a netw ork of researchers across A frica to drive innovation in the reg ion develop theory for g lobal application .

Example: MIT SCALE formed what is now the largest academic conference for supply chain academics in Latin America

M ajor challenges in N igerian healthcare system

A vailab ility and Equity o f A ccess to C ritical C om m odities:

▪ Essentia l goods are frequently unavailable at the point of service, reducing the quality of care available to patients

▪ Public health supply chains are severely fragm ented, w ith uncoordinated planning and procurem ent processes

com pounded by a com plex governance environm ent▪ W arehouse m anagem ent and distribution p lanning processes

are p lagued w ith w eakness, particularly in re lation to m anaging a stable cold chain for tem perature-sensitive

com m odities▪ H ealth facilities are poorly p lanned and unevenly d istributed,

resulting in access challenges for m uch of the population▪ Staff are poorly tra ined (often w ith no form al logistics tra in ing),

particularly in areas such as: ‒ inventory m anagem ent

‒ outsourcing/contract m anagem ent

D ata/visib ility▪ D ata/records are underutilized and poorly m anaged, resulting

in poor v is ib ility at various levels and creating “b lind spots” for p lanning offic ia ls

A SCALE Africa Center will help transform healthcare supply chains in Nigeria based on lessons from SCALE’s past healthcare experience

Supply C hain M apping and Segm entation Exercise (in

partnership w ith JS I)▪ G hana w as faced w ith a num ber of vertical supply chains

m anaged separately by d ifferent public health program s ▪ SC ALE researchers com pleted a segm entation exercise,

c lassify ing com m odities according to product and custom er factors to eventually create three distinct segm ents based

on dem and and geography. Ideal frequency of delivery and re lative safety stock level w ere determ ined for each

segm ent▪ The exercise resulted in s ignificant reduction in stockouts

and losses, reduced cost of the overall system , and reduced the adm inistrative burden at service delivery points

Forecasting dem and for health com m odities (in

partnership w ith Partners in H ealth )▪ The scale of P IH ’s operations has grow n dram atically over

the past decade, p lacing a stra in on existing storage space ▪ M IT ’s H um anitarian R esponse Lab (H R L) developed a

spreadsheet m odel that used historical consum ption data to forecast dem and over a three-year period. This analysis w as

used to show that P IH could re lieve the stra in on its centra l w arehouse by transitioning from an annual order process to

a m ore frequent one

H ealth and H um anitarian Logistics C onference▪ H R L is a co-organizer of th is annual conference, w hich

brings together academ ia, N G O s, private sector, and governm ent agencies w ith an interest in im proving the

practice of logistics in health system s and hum anitarian em ergencies

SO U R C E: M IT C TL

R elevant healthcare w ork w ith in SC A LE

21

A SCALE Africa Center is uniquely positioned to address infrastructure challenges in Nigeria

R elevant in frastructure w ork w ith in SC A LE N etw orkM ajor in frastructure challenges in N igeria

Transportation in frastructure:

▪ R oads: The road netw ork is overburdened, w ith over 90% of internal and cross border fre ight traveling by road (in addition to

passenger traffic . Poor m aintenance, overloaded vehic les, and the presence of huge cargo loads on the roads create a need for

frequent repairs. Just 18% of the tota l road netw ork is paved ▪ W aterw ays: N igeria has 3,300 km of navigable in land w aterw ays,

but a lack of dredging and unavailability of m odern vessels m eans they are hardly used for cargo transportation

▪ R ail: The ra il system is severely underutilized, w ith <1% of transportation services in the country. In 2010, the am ount of

fre ight carried by ra ilw ays w as equivalent to <0.1% of the throughput of the ports

▪ Seaports: The biggest seaport (Apapa, Lagos) is heavily congested, w ith productiv ity ~50-60% low er than international

standards and truck cycle tim es 5-6 tim e higher than international standards

▪ A irports: M ost a irports can only operate for 12 hours daily due to a lack of the lighting facilities required for n ighttim e operation. The

entire a irline sector faces severe financing challenges, and infrastructure (e.g., m odern navigational a ids, runw ays, and

storage) fa il to keep pace w ith the grow th of a ir traffic§ Im provem ent of transportation infrastructure across all m odes is

h indered by poor p lanning and financing/ investm ent roadblocks

Energy/Pow er In frastructure▪ Available pow er generation capacity lags behind insta lled capacity,

and insta lled capacity fa lls far short of the population’s consum ption needs. D istribution and transm ission are ineffic ient,

leaving m ost households w ith a need to self-generate in order to fill gaps in access to e lectric ity

▪ U tilization of o il, gas, and hydropow er and renew able resources to increase generation capacity has been low

Strengthening Trans-Pyrenees R ailw ay In frastructure

▪ SC ALE researchers analysed fre ight traffic conditions in the Iberian Peninsula, w ith a focus on flow s of incom ing cargo

and onw ards transit to Europe▪ The analysis of bottlenecks lent support to the construction of

a new high-capacity ra ilw ay link across the C entra l Pyrenees (w ith precise location to be decided based on environm ental

and other factors) and highlighted the need for im proved effic iency of short sea shipping transport

Logistic M odels for H ydrogen D istribution and Supply

§ SC ALE researchers analysed the production and distribution of hydrogen fuel from renew able resources in Spain. They

used a decis ion support m odel to optim ize the configuration of the hydrogen supply chain, w ith the aim of identify ing the ideal

strategy (based on effic iency, susta inability , and cost-effectiveness) to m eet various dem and scenarios

§ This w ork a lso assessed strategies for hydrogen supply chain infrastructure developm ent (e.g., trade-offs betw een

centra lized and distributed production)

D igital P iem onte: Transform ing R egional M obility W ith In form ation A nd In tegration

§ SC ALE researchers explored the developm ent of technological in frastructure for logistics in the P iem onte region

of north-w estern Ita ly§ A feasib ility study w as conducted to assess the potentia l

establishm ent of a system for d ig ita l regional m obility m anagem ent. Such a system w ould take inputs of real-tim e

data and leverage rapid ly evolv ing sensor, tracking, com m unication and re lated technologies to m onitor and

contro l the flow s of goods, services, and indiv iduals

SO U R C E: W orld Bank, A fD B, M IT C TL, Zaragoza Logistics C enter22

MIT SCALE can develop evidence for strategic guidance and wise investment. Case study: U.S. transportation infrastructure

The US Department of Transportation sponsored MIT CTL to provide the planners at the federal, state, regional, and local levels with a better method of strategic planning for freight infrastructure investments.

Some Simple Statistics:>1 M miles of Federal highways>100 K miles of railway>10 K miles of waterways>50 M tons of freight moved every day (>$30 B)

23

A SCALE Africa Center can leverage previous humanitarian research to address challenges relevant to Nigeria’s ongoing crisis

R elevant hum anitarian response w ork w ith in SC A LE N etw orkM ajor challenges related to hum anitarian crisis in N igeria

The Boko H aram insurgency has caused crippling instability in

northeastern N igeria, w ith three states (Adam aw a, Borno, and Yobe) h it particularly hard. M illions of people are affected; in particular,

▪ 1.8M people have been displaced by the ongoing hum anitarian cris is (June 2017)

▪ 5.2 M food-insecure people are in need of em ergency food assistance, w ith 50,000 facing fam ine-like conditions (June-Aug

2017)

The m ost pressing challenges include the fo llow ing:

D isruption of econom ic activity and dam age to existing structures/services:

▪ 2/3 of health facilities and up to 75% percent of w ater and sanitation infrastructure has been destroyed in affected areas. O ver 1,000

schools have been dam aged or destroyed, w ith a further 1500+ schools c losed due to ongoing security threats. Access to shelter

and basic services has been severely d isrupted▪ Availability of food is severely restricted due to 1) lim ited

agricultura l activ ity, w hich has been affected by security threats, and 2) congestion at Lagos port, w hich s low s delivery of food aid

▪ R egional trade, restricted m ovem ent, and closure of m arkets and trade routes has ended m any live lihoods and m ade residents

dependent on aidC hallenges to aid delivery

▪ Som e areas rem ain inaccessib le to hum anitarian a id w orkers because of security threats. Access problem s are further

com pounded during the ra iny season, w hen m any roads becom e im passable

▪ D isruption to te lecom m unications infrastructure and other enablers further h inders the ability of hum anitarian organizations to operate

Transportation for H um anitarian A ssistance in Eth iopia (in

Partnership w ith W FP):▪ Transportation costs constitute a m ajority of the cost of re lief

operations for international organizations delivering food aid. H R L com pleted a study to identify the determ inants of transportation

tariffs for W FP’s transport of food aid v ia th ird parties in E thiopia▪ Intensity of com petition w as identified as a leading predictor of

shipping rates particularly on international corridors, but a lso on dom estic corridors

▪ This suggests that a longside investm ent in transportation infrastructure, governm ent should consider m easures to

encourage and facilita te com petition. Exam ples include low ering the barriers to entry for trucking com panies and increasing

inform ation transparency

Planning for Post-d isaster H ousing (in partnership w ith FEM A ):▪ M IT ’s H um anitarian R esponse Lab (H R L) is supporting the U S

Federal Em ergency M anagem ent Agency (FEM A) to address short-term housing and reconstruction needs for fam ilies affected

by recent hurricanes in the U S

Supply C hain M odelling for C ash and Voucher Program s in D arfur (in partnership w ith W FP):

▪ In 2013, W FP and H R L undertook a project to better understand the supply chain for com m odities present in th is W FP funded-

project▪ The study had three com ponents: a transportation analysis, the

collection of data on the current supply chain and the behaviors of the actors in the supply chain, and m odeling the supply chain for

s ix com m odities using available data on pric ing, production, and the collected data

SO U R C E: W H O , W FP, U N IC EF, U N O C H A, M IT C TL 24

SCALE’s work at the macro- and micro levels can help spur growth of local and regional economic activity in Nigeria

R e le v a n t tra d e -re le v a n t w o rk w ith in S C A L E N e tw o rkM a jo r tra d e -re le v a n t c h a lle n g e s in N ig e ria

Policy/regulatory/enabling environm ent

▪ C om panies are at the m ercy of frequent changes to governm ent ru les and regulations, yet receive lim ited

guidance and support for im plem entation ▪ C om panies across industries c ite a “h igh cost of doing

business” due to varied and unpredictable roadblocks▪ N igeria ’s potentia l as a regional/g lobal hub has not been fu lly

realized. Internal and external p layers are not leveraging the distinct advantages that N igeria offers to g lobal supply

chains

Finance/forex bottlenecks:▪ H uge instability in the value of the local currency has ra ised

the price of key inputs, led to a cautious stance from foreign investors, and even driven som e com panies out of the local

m arket

D ata unavailab ility:▪ C om panies are im pacted by inadequate data on the

custom ers they serve, ranging from geographic (e.g., address/postal code system ) to financia l (e.g., credit h istory)

Increasing In ternational C argo Transit Through Zaragoza A irport

▪ SC ALE researchers explored the options for increasing dem and at Zaragoza airport (ZAZ) by analysing the airport’s capacity and ro le in

trade activ ities and exploring m arket segm ents that could potentia lly benefit from greater use of the a irport. Secured transit of goods and

effic iency of custom s procedures w ere identified as tw o potentia l areas of d ifferentiation for ZAZ

▪ A separate SC ALE study dem onstrated the potentia l benefit of routing h igh-value reta il and tech cargo through a regional a irport such as

Zaragoza (even w ithout security protection) rather than through frequently targeted transit hubs (e.g., LH R or C D G ) as a potentia l

counterm easure to com bat cargo theft, w hich causes com panies losses of 2-5X the value of goods lost

Econom ic grow th and increased com petitiveness fo llow ing the

establishm ent of the Zaragoza Logistics C enter▪ In 2003, the first SC ALE C enter w as established in the heart

of PLAZA, the largest logistics park in southw estern Europe. SC ALE researchers have actively w orked to im prove com m unication betw een

ZLC , the m arket, and society w ith the aim of creating a c lim ate favorable to business in itia tives and supported by

technology/know ledge transfer▪ They have also w orked on increasing global com petitiveness of

Spanish com panies. Activ ities have included:– research on techniques and m ethods to im prove the effic iency of

supply chains and transport netw orks– m odelling and sim ulation of supply chain behavior, developm ent

of advanced tools for supply chain m anagem ent and tools to increase the vis ib ility of flow s

– analysis of the im pact of in frastructure on logistics effic iency in order to facilita te decis ion-m aking for com panies, particularly

re lated to the design of their supply and distribution netw ork

SO U R C E: M IT C TL, Zaragoza Logistics C enter 25

N ig e r ia n M S M E in it ia t iv e s

S C A L E re la te d M S M E in it ia t iv e s

MIT SCALE research on supply chains for micro, small, and medium enterprises (MSME) aligns with various initiatives in Nigeria.

MIT SCALE Small Firms SCM research• Improving efficiency and survival of

micro and small firms in emerging regions by leveraging their business and SCM expertise

• Support the economic development and reduce disparity

26

MIT SCALE puts research into practice through active exchange of new concepts, methods, and technologies within a community of partners.

SCALE Nigeria

Global SCALE Companies

Nigerian Companies

Government

Development organizations

Foundations

Professional bodies

Academia

Entrepreneurs

Investors

Supply Chain Exchange

Africa Supply Chain Innovation Hub

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SC A LE N igeria w ould establish a Supply C hain Exchange w ith partner com panies and organizations, m uch like C TL and other SC A LE centers.

E x c h a n g e P a r tn e rs

S tra te g ic P a r tn e rs

P rio r ity a c c e s s to S C A L E N ig e r ia fa c u lty , re s e a rc h e rs , a n d s tu d e n ts Y e s Y e s

R e g u la r e v e n ts in th e fo rm o f w o rk s h o p s , ro u n d ta b le s & s y m p o s ia Y e s Y e s

C o m p lim e n ta ry /d is c o u n te d a c c e s s to e x e c u tiv e e d u c a tio n (d e ta ils T B D b a s e d o n

c re a tio n o f c o u rs e s )Y e s Y e s

R e g u la r b r ie fin g m a te r ia ls a n d w e b in a rs o n re s e a rc h Y e s Y e s

S u b s c r ip tio n to S C A L E n e tw o rk e -n e w s le tte r Y e s Y e s

S tu d e n t re c ru it in g o p p o rtu n it ie s Y e s Y e s

N e tw o rk in g w ith in S C A L E N ig e r ia p a rtn e r c o m m u n ity Y e s Y e s

A c c e s s to M IT G lo b a l S C A L E n e tw o rk c e n te rs Y e s Y e s

A c c e s s to th e a n n u a l C ro s s ro a d s C o n fe re n c e a t M IT Y e s Y e s

R e s e a rc h c o n s o rtia p a rtn e r m e e tin g s to in te ra c t o n fra m in g a n d d r iv in g re s e a rc h

a g e n d aN o Y e s

E a rly a n d d e e p k n o w le d g e o f re s e a rc h c o n s o rtia m e th o d s a n d fin d in g s N o Y e s

O n g o in g re la tio n s h ip w ith re s e a rc h c o n s o rtia d ire c to rs a n d re s e a rc h e rs N o Y e s

S e n io r e x e c u tiv e ro u n d ta b le s N o Y e s

C o m p a n y D a y fo r te a m in te ra c tio n w ith fa c u lty a n d s ta ff a t th e N ig e r ia c e n te r N o Y e s

E x e c u tiv e -In -R e s id e n c e o p p o rtu n it ie s N o Y e s

A s s ig n e d re s e a rc h e r re la tio n s h ip N o Y e sT e s t s ite a n d c o lla b o ra tio n o p p o rtu n it ie s N o Y e s

P o te n tia l S u p p ly C h a in E x c h a n g e B e n e fits Supply Chain Exchange

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SCALE Nigeria would create an Africa Supply Chain Innovation Hub to link interdisciplinary research and entrepreneurs with and within African markets.

Africa Supply Chain Innovation Hub

Document the ingenuity of regional entrepreneurs and innovative organizations for global audiences through case studies,

articles, and teaching materials

Provide space for entrepreneurs, executives-in-residence, and

professors/researchers/students looking to develop their research

Create a platform to design, test, and adapt systems in both real and virtual environments

Host events, such as hackathons, TED talks, or an international academic

conference (e.g. with SCALE Latin America)

Curate of a working paper collection focused on supply chain management in Africa, and perhaps

more broadly in humanitarian, international development, and emerging market contexts

Host an online professional community (or communities) for supply chain innovation and knowledge sharing

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The SC A LE N igeria C enter is a foundation for grow th over the long term .

• SCALE education has the foundation to multiply talent through engagement with multiple universities

• Market demand for supply chain professionals• Interest among potential students in following this path• Untapped capacity of educational institutions to provide a supply of talent to match the demand

• SCALE research is poised to support Nigeria’s economic growth plan and pan-African development

• Stabilize the macroeconomic environment• Achieve agriculture and food security• Improve transportation infrastructure• Ensure energy efficiency in power & petroleum products• Drive industrialization focusing on SMEs

• SCALE innovation and exchange escalate the importance of supply chain to improve policy and stimulate investment

• Increase the availability of data and rigorous research• Rapid assessment of new concepts, methods, technologies, etc. • Rigorous evaluation regarding the socio-economic impact of policy changes• Curate case studies of innovation• Develop methods and tools to properly value the contribution of supply chains• Improve productivity and the ease of doing business• Position the region as a critical node in global supply chains

30