Humanitarian Supply Chain

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Table of Contents

1. Executive Summary

2. Introduction

3. Literature Review

1. Risk Management in Humanitarian Relief Operations

2. Commercial Supply chain and Humanitarian Supply Chain – A Comparative Study

4. Case Study

1. The Yogyakarta Earthquake – Humanitarian Relief Operations through IFRC’s Decentralized Supply Chain.

5. Areas to focus for Future Research

1. Sourcing and Supplier Management

2. Performance Management

3. Transportation, Model Choice and Routing

4. Distribution Planning

6. Conclusion

7. References

1. Executive Summary

The reported number of disasters has increased in recent years. The number of people affected by these disasters has risen rapidly and obviously they are expecting some helping hands. Due to changing nature and well developed warning systems there is a decrease in number of people who get affected to 75%, as per the report of IFRC (International Federation of Red Cross Red Crescent Societies) world disaster report. This means there is more number of people out there who are in need of local, regional and global Humanitarian assistance. This made the world on the strong dependence on Humanitarian Supply Chains.

The study below will explain how humanitarian supply chain prepare themselves in a risk management, how they perform with respect to the areas that has been affected in the relief operation and how they perform in humanitarian aid operations. Also further explains about the risk factors, drivers and consequences. Disasters happen anywhere, anytime. So on the whole it explains how the humanitarian supply chain handle a difficult situation of the damage and their flow in supply chain for relief operations. This study has a discussion on the literature review and also has a case study to explain how efficient and effective a humanitarian supply chain can be.

2. Introduction

Disaster can either be naturally that occurs or by manmade. The example for natural occurrence is like Tsunami, Earthquake, and Hurricane etc. Where in the manmade are considered to be something like Terrorist attacks or any other damage caused by human. The global warming report 2009 says there will be a double fold of natural disasters in the upcoming years. Therefore it is necessary for a humanitarian supply chains to gear up themselves all the time to give up a timely response for the disasters that happen. It is easy for any supply chain to work under normal circumstances but it does matters a lot while working under an emergency.

With the increasing number of disasters every year it should be understood that the work from humanitarian supply chains is different from normal business oriented supply chains. The effective transformation should be handled in the flow of materials (Boxes), information (Bytes) and cash (Bucks). These are normally referred to as 3B’s in supply chain process. Humanitarian logistics is the process of normal supply chain, but it is done for the purpose of meeting the end beneficiary’s requirement (Thomas & Mizushima 2005). The main reason to focus on Humanitarian logistics is, the 80% of disaster relief operations in logistics cost. The following report explains the effective measures in handling risk management in humanitarian Supply chain.

3. Literature Review

This section specifies the terminologies used by the researcher in better understanding of the subject. The humanitarian supply chains should be good in managing the flow of goods and services. They should also be efficient in information sharing and getting financial assistance from the donors. This was stated by (Kovacs and Spens, 2007). Prevention is better than cure. Some areas like Sumatra – Indonesia, Japan are more used to occurrence of natural disasters very often....
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