Ask a donor what a nutrition programme spends money on and the answer will be the food. Ask a logistician and the answer is a list: freight forwarding, port handling, customs brokerage, inland transport, warehouse rental, pallets, insurance, loss in transit, fuel, vehicle maintenance, and drivers who need somewhere to sleep on a three-day route.
This is not overhead in the pejorative sense. It is the physical act of delivery, without which the commodity is a purchase order. But because it is invisible in appeals, its cost is routinely read as inefficiency when it appears in accounts.
The stages, and what drives cost at each
| Stage | Cost driver | Main risk |
|---|---|---|
| Manufacture and ex-works price | Ingredient prices, order volume, number of qualified suppliers | Small orders pay more per unit; single-source supply removes negotiating room |
| International freight | Sea versus air, container utilisation, route congestion | Air freight is many times the cost of sea and is used when timing has already failed |
| Port handling and customs | Fees, brokerage, documentation, duty exemptions | Delay; goods sitting in a yard accrue storage charges and lose shelf life |
| Inland transport to a central warehouse | Distance, road quality, fuel, security escort where required | Landlocked destinations can double or triple this leg |
| Warehousing | Rent, staff, pest control, stock management | Under-warehousing means nothing is available when access closes |
| Final distribution to clinics and sites | Vehicle type, road condition, number of sites, frequency | The most expensive kilometres per tonne in the entire chain |
Rain, roads and the cost of being late
In many of the places where acute malnutrition peaks, the peak coincides with a rainy season that turns unpaved roads into impassable ones. This produces a specific and expensive sequence: demand rises, road access falls, and the only remaining options are pre-positioned stock or air transport.
Pre-positioning costs warehouse rent and ties up capital months in advance. Air transport costs many times sea freight per tonne. An organisation that failed to pre-position is not choosing between cheap and expensive delivery; it is choosing between expensive delivery and none.
Customs is a timing problem
- Duty and tax exemptions for humanitarian goods usually exist but must be applied for, and approval timelines vary from days to months.
- Documentation errors are the most common cause of delay, and they are not always the importer’s fault — specification requirements change.
- Nutrition and medical commodities can require regulatory clearance from a health authority in addition to customs.
- Storage charges accrue while goods are held, so a delay converts directly into cost.
- Shelf life is finite. Goods cleared with a short remaining life have to be distributed faster than the programme may be able to absorb.
Cold chain: when it applies and when it does not
Vaccines and some medicines require unbroken refrigeration from manufacture to administration, monitored with temperature loggers, with any excursion potentially invalidating the product. Maintaining this in areas without reliable electricity requires solar refrigerators, cold boxes, ice packs, trained staff and a monitoring system.
Therapeutic food deliberately avoids this requirement. Its very low water content makes it shelf-stable at ambient temperature, which removes an entire category of cost and failure from nutrition supply chains. This is a genuine engineering achievement and one of the underappreciated reasons outpatient treatment became feasible at scale.
Loss, and reporting it honestly
Some proportion of goods does not arrive. Damage in handling, water ingress, pest infestation, theft, road accidents, and diversion at checkpoints all occur, and a supply chain with zero recorded loss is more likely to have poor recording than perfect performance.
- Commonly reported
- Quantity procured
- Less often
- Quantity delivered
- Rarely
- Loss in transit
- Almost never
- Reason for each loss
The gap between the first and second row of that table is the single most useful thing a donor can ask about. An organisation that tracks both is running a supply chain. An organisation that only knows what it bought is running a procurement function and hoping.
Questions that reveal whether logistics is under control
- Ask for delivered cost, not commodity costThis single clarification makes cost-per-child figures comparable between organisations and usually surprises the person asking.
- Ask where stock is heldA named warehouse location and an approximate quantity indicates real pre-positioning rather than an intention to buy when funds arrive.
- Ask about the last customs delayEvery importing organisation has had one. The answer indicates whether they are managing the process or being processed by it.
- Ask about loss in the last shipmentA specific figure with a cause is a sign of functioning stock control. Zero without records is not.
- Ask what proportion of freight was airHigh air freight is a symptom of late funding or poor planning, and it is worth knowing which.
HopePlates is a small project working on child malnutrition relief and therapeutic nutrition, and we do not operate a regional logistics network. Where we procure, we aim to publish what was ordered, from which supplier and where it went, on the transparency page, because a delivery described in units is the only version of this that a donor can check.
Frequently asked questions
Why does delivery cost so much compared to the goods?
Because cost per tonne rises steeply as shipment size falls and road quality worsens. The final short leg to a clinic is often the most expensive part of the entire journey, and it cannot be avoided or consolidated the way sea freight can.
Is spending on warehousing wasteful?
No. Stock held near a population is what makes delivery possible when roads become impassable. Warehousing has a real carrying cost and is usually cheaper than the air freight required when nothing was pre-positioned.
Does therapeutic food need refrigeration?
No. Its very low water content makes it shelf-stable at ambient temperature, which is one of its key design features and removes cold-chain cost and risk from nutrition supply chains.
Why is air freight used if it is so expensive?
Because it is what remains when sea and road timing has already failed, or when access closes. It is a symptom of late funding or blocked routes rather than a preference.
Should losses in transit make me distrust an organisation?
Recorded losses with stated causes are evidence of stock control. What should raise questions is an organisation that reports only quantities purchased and has no figure for quantities delivered.
Sources and further reading
- Logistics Cluster and WFP operational guidance on humanitarian supply chains and pre-positioning
- UNICEF Supply Division documentation on procurement, packaging and shelf life of nutrition commodities
- WHO guidance on vaccine cold chain and temperature monitoring
- Sphere Handbook — supply chain management and accountability standards
- HopePlates transparency page — suppliers, quantities and destinations