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  1. Introduction to Humanitarian Supply Chain
  2. Presentation Outline o Introduction o Types of disasters. o Impact of disasters on people. o What is Humanitarian Supply Chain o Key Supply Chain Concepts and Terminology (SCM, Logistics, Procurement etc.) o Disaster management cycle. o Characteristics of humanitarian supply chain o Challenges in Humanitarian Logistics. • Disaster Management Cycle and Supply Chain • Challenges in humanitarian Logistics • Humanitarian Supply Chain Performance Measures.
  3. History of Humanitarian Organisations • The concept of humanitarian organizations (HOs) has ancient roots and is admired in both Western and Eastern civilizations. In 1859 during the Second Italian War of Independence, Henri Dunant witnessed the battle of Solferino, and he took action to treat the soldiers who were suffering in the battle. Dunant is credited as the founder of modern humanitarianism and the founder of the International Red Cross and Red Crescent Movement [Bürger 2015]. • A common theme of HOs is to provide service to humanity in a spirit of impartiality and neutrality without discrimination • The abiding prime objectives of HOs are to deal with disasters, to protect human rights, to provide relief services and promote the universal desire for personal and collective safety, security, respect, and dignity without any view to profit [Doyle, Gorman, Mihalkanin 2016].
  4. Humanitarian Organisations • HOs are highly dependent on their logistics and supply chain management which represents approximately 80% of total relief budgets Soratana K., 2019. • Thus sound, knowledgeable management of logistics and supply chain operations is vital to the successful achievement of HO objectives • Humanitarian Organizations Logistics and Supply Chain Management (HO-LSCM) operation cost is known to be approximately 25% higher than comparable business supply chain management operations
  5. Disasters, types and management cycle oDisasters ( natural and man- made) are on the increase in today’s world and they are becoming more complex. They are also occurring at a time when donor support is also unpredictable (Van Wassenhove 2006). Disaster can be distinguished on the basis of: oMan-Made. Eg. Coup D’etat, War, terrorism etc oNatural. Eg. floods, hurricanes, earthquakes It can further be refined with respect to the predictability and speed of occurrence: oSudden-Onset. oSlow –Onset. oDisasters come to test the reactivity of our systems.
  6. Disasters, types and management cycle cont’d Disaster Management Cycle oMitigation-This mainly relates to the framework, laws and mechanism that are put in place principally by the government to reduce social vulnerability and impact. oPreparation- Operations that occur before disaster occurs and this stage is quite important in terms of aspects such as physical network planning, I&CT and bases for collaboration. oResponse- refers to various operations which are instantly implemented after a disaster occurs. oReconstruction- activities in the aftermath of a disaster eg. rehabilitation.
  7. Defining humanitarian SCM/Logistics • Humanitarian Logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of goods and materials as well as related information from the point of origin to the point of consumption for the purpose of alleviating the suffering of vulnerable people. Absent from this definition is the notion of profit which is typical of all commercial supply chains(Van Wassenhove 2006:476). • Humanitarian supply chain involves a set of logistical activities carried out during disaster response operations with the aim of attaining coordinated logistics excellence (Herrmann 2007) • It consists of a network of interaction between donors, governments, international and locally based agencies, suppliers and numerous other stakeholders that coordinate and oversee the flow of supplies, services and information for responding to beneficiary needs (Chari & Ngcamu 2017) o Since disaster relief is about 80% of logistics, it would follow that the only way to achieve this is through slick, efficient and effective logistics operations and more precisely, supply chain management (Van Wassenhove 2006:475). Success or failure in terms of intervention is a function of logistics management. o Disasters come to test the reactivity of our systems.
  8. Key Stakeholders in HSCM • Beneficiaries- vulnerable communities, people affected by disasters • Governments- host Gvt and other friendly governments • Inter-Governmental Organizations eg SADC,EU etc • UN Agencies- eg UNDP,WFP,UNHCR,UNICEF etc • Non Governmental Organizations- IRC, CARE International, MSF (Doctors without borders), Goal, HALO Trust etc • Donors- these are the main funders of humanitarian operations. Mainly governments, companies and individual well wishers
  9. Basic Functions of Humanitarian Logistics • preparedness, • planning, • procurement, • transport, • warehousing, • Tracking and tracing, and • customs clearance from point of origin to point of consumption
  10. Planning • Planning and anticipation are vital to an effective logistical system. The plan must be based, first of all, on a good working knowledge of the geographical, social, political and physical characteristics of the area where the operations are to take place. • Such a plan must not only be well thought out in advance, so that it can run smoothly—it must, above all, be clearly understood and accepted by all stakeholders in any future relief operation The plan must provide clear answers to the following questions • Which tasks must be carried out? How do they relate to all the other activities, and what are the correct sequences for carrying them out? • Who will be responsible for performing such tasks? (Rather than individuals, what must be identified here are organizations or departments.) • Who will be in charge of the overall coordination of the logistical system? • What resources are needed? How, when, and where can they be procured? • What alternative actions can be implemented if the system is somehow disrupted?
  11. Preparedness After these questions have been answered satisfactorily, we must draw up a list of preparatory activities. The more time and effort we invest in such activities, the greater the return in terms of our knowledge of the theater of operations, our weaknesses and those of our partners, eventual needs, and alternative solutions depending on different scenarios. Preparatory activities must include the following Assessing the vulnerability of key infrastructure- The goal is to identify the strengths and weaknesses of public works and strategic structures of the country or region—highways, water supply systems, schools, hospitals—as well as alternative actions that may be required should the infrastructure collapse. • Analyzing the historical meteorological records of the country or region to determine the impact that severe weather might have on the capacity of the transport system at different times of the year Determining the availability of strategic resources for logistical support- These resources are constantly changing, so they must be reviewed frequently to keep the information as up-to-date as possible. Taking into account availability of key supplies needed
  12. Preparedness (Cont’d • Assessing potential sites for logistic bases, supply distribution centers, and fuel distribution points—including public and private facilities, large storage complexes, factories, and other facilities that might be adapted to these purposes • Reviewing government policies, plans, and preparations—It is very important for international agencies and nongovernmental organizations to know the government’s emergency response policies and plans
  13. Procurement • Procurement is the process of acquiring goods and services by purchasing, renting, or leasing • The purpose of the procurement process is to make sure that the organizations involved in relief management have the resources needed to meet identified needs. • This in turn requires identifying the sources of those goods and services and the way in which they will be acquired.
  14. Transportation • Transport is the means whereby supplies reach the places where they are needed. • A transport strategy must not only take into account the means of transport but also the actual possibilities of getting supplies from point A to B, as well as alternatives for the prompt, safe delivery of relief assistance • Transportation of in-kind goods is important • Movement of personnel to field of operation is equally important.
  15. Warehousing and distribution • Storage-The purpose of storage is to protect the emergency supplies in an organized, systematic fashion until they can be delivered to their ultimate recipients. It must also take into account reserve supplies, or stockpiles, for future or unforeseen needs. • Distribution- The chief goal of the logistics chain in relief operations is delivering aid to the people affected by a disaster, or at least to the organizations entrusted with managing emergency supplies, in a way that is proportional to existing needs, fair, and properly controlled to prevent abuses or waste.
  16. Putting it all together • It is important to underscore the fact that all of the above components are closely linked. • The failure or ineffective functioning of any of the links in the chain will affect overall performance. For instance, if the transport of a load of supplies has been organized correctly, but upon arrival it turns out that no provisions were made for storage, the efficiency of the transport effort will have been to no avail. • Alternatively, if there are enough resources to cover the needs of an affected area, but no transport to take them where they are needed, the success of the other efforts will be, for all practical purposes, moot, because they were not properly synchronized with the transport component.
  17. Balancing efficiency and responsiveness • Logistics is all about balancing efficiency and responsiveness, it is only that decisions behind that differs in humanitarian logistics as compared to commercial supply chains. • In commercial supply chains, the choice of being either responsiveness or efficiency is determined by the organization’s choice of competitive strategy/ customer choice. • However, in humanitarian supply chains, the choice is determined by the criticality of the requirement in relation to the suffering of beneficiaries. • In most cases, especially in sudden onset disaster, humanitarian logistics is required to move goods and services at all costs to alleviate the suffering of beneficiaries. This implies that, humanitarian logistics
  18. Phases of Supply chain Disaster response There are three phases if logistics response to disaster • Phase 1- Pre-disaster/Preparedness phase • Phase 2-Operation/Response phase • Phase 3- Post Disaster phase
  19. Phase 1- Pre-disaster/Preparedness phase • In the pre-disaster response phase or the preparedness phase, the historical profile of the disaster and its geographical information is being collected and analysed for the beneficiaries • Past data regarding the suppliers, logistics providers and donors are noted down and a database is being prepared. • Preparedness phase defines the responsiveness of the relief activities. • Prepositioning is key:This refers to the strategic deployment and stationing of inventory, facilities and putting in place transport decisions in anticipating of a disaster to improve the response and efficiency of the relief network (Simchi-Levi et al 2008). • Pre-positioning happen before the disaster occurs in case of sudden
  20. Cont’d • Pre-positioning involves setting up of facilities and warehouses in areas close to where the disaster is anticipated. • It also involves moving relief equipment and inventories that will be used during disaster response. It also go beyond facilities, materials and equipment and take into consideration mobilizing funding to be used during disaster response well in advance. • So pre-position requires setting aside finances that will be used. Balcik et al (2008), also identified pre-positioning as improving the cost effectiveness and the overall responsiveness of the relief supply chain and it is commonly used in humanitarian supply chains. • In other words, this is the process of mobilizing the resources and pre- assembling the resources in anticipation of a disaster.
  21. Con’t During Preparedness phase: • Determine who is supposed to do what in the context of supply chain: assessing the capacity of personnel • Carry out frequent meetings and coordination activities to decide and even rehearse what is to be done before, during, and after an emergency; • Carry out inventory management plan • Exchange information about resources that may be useful in the event of an emergency, whether the resources are in the hands of participating organizations or come from another source
  22. Phase 2- Operation/Response Phase • In the operation phase, demand and stock available have to be reconciled in order to get a clear idea about the stock details. The stock details include both stock in-transit and stock in-warehouses. The cost of each operation has to be tracked to balance the needs and the incoming donations. • The actual distribution plan must be effectively and efficiently executed. • It is important in this phase to develop systems that are reliable. • Monitoring key logistics performance indicators e.g cost, delivery lead times, agility, coordination with other cooperating partners etc
  23. Phase 3: Post Disaster Phase • Alternatively called the withdrawal phase • In the post operation phase, accountability of the donations has to be done to maintain the transparency in the system. Also, the preparedness of the relief operation has to be analysed to see how quick it was. The loss and damage has to be registered for accountability and claims. • The withdrawal plan must be already in place to facilitate the movement of goods, people and services from field of operations • Evaluating the logistics response ( key performance indicators) • Document lessons learnt
  24. General Challenges of Humanitarian Logistics In understanding the challenges, it may be critical to understand the characteristics of humanitarian logistics as put forward by Balcik and Beamon (2008: 102) and these are: o Unpredictability of demand , in terms of timing, location, type and size. o Suddenness of occurrence. o High stakes associated with the timeliness of deliveries. o Lack of resources eg. people, technology, transportation etc o Lack of collaboration among different organisations. Humanitarian organisations may involve UN agencies, the Governmental Organisations (Military) , donors and other private commercial players. They are different in sizes, operational policies and mandate. Failure to leverage on each other ‘s comparative advantages may spell disaster for humanitarian organisations eg. failure to use fedex , UPS and DHL in logistics. o Inadequate training.
  25. Cont’d oLow recognition of the strategic role of In Haiti, 12 January 2010 UN Office of the Co-ordination of Humanitarian Affairs cited lack of logistics and transport as key constraints for delivery of aid. oInadequate infrastructure. oLack of standards. oEarmarking of funds- donors dictate how the funds are going to be used, not beneficiaries. oPoor communication
  26. The End!!!!!! Further Reading: oTommasini, R.M and Van Wassenhove, L.N.,2009. From preparedness to partneships: case study research on humanitarian logistics. International Transactions in Operational Research. oLarson, P.D. and McLachin, R. 2011. Building humanitarian supply chain relationship:Lessons from leading practitioners. Journal of Humanitarian Logistics & Supply Chain Management. oSpens, K and Kovacs, G., 2009. Identifying challenges in humanitarian logistics. International Journal of Physical Distribution and Logistics Management. Vol 39, Issue 6, pp 506-528