A Framework for
Emergency Public Procurement
during
Natural Disasters
Tanmoy Kundu
Sparsh Lunkad
Sumeet Gupta
Parikshit Charan
(IIM Raipur)
Introduction
 Responses to disasters are usually multi-faceted and involves
preparedness activity and enormous public procurement of
products and services.
 In this respect the conventional procurement policies by the
government may not be applicable as the lead time or the
response time is very short, hence direct procurement plays
an important role in instantaneous supply of desired product
and services.
 The present work proposes a model of direct procurement and
disaster preparedness activity which is transparent and
effective and can harbor radical changes in the present
emergency procurement process.
What is Public Procurement ?
 Public procurement is the process of purchase of goods, services
and technologies by government bodies to render the needs of the
public authority.
 The entire process consist of identifying potential suppliers through
open tendering or direct sourcing, purchasing and delivering
products and services to users or beneficiaries.
 It is a tool for promoting and sustaining economic growth and
socioeconomic development.
 But In Emergency situation, Due to shorter lead time, instantaneous
supply of products and services are needed. Hence the most time
efficient way is direct sourcing of product and services.
Humanitarian Logistics and Relief Chain (HLRC)
 Logistics is the vital element in any disaster relief effort, and it is the
one that makes the difference between a successful and a failed relief
operation.
 Humanitarian logistics is defined as “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” (Thomas and Kopczak,
2005)
 Humanitarian logistics is the bridge that brings transition between
disaster and relief work and forms a disaster relief supply chain.
 The general supply chain architecture is transformed into customized
supply chain architecture for the disaster relief and is known as
Humanitarian logistics and Relief chain (HLRC).
The HLRC consists of following elements1. Suppliers or Donors ( NGOs, International aid, Donation from other
States)
2. Emergency Public procurement Unit (P)
3. Strategic Distribution unit (D)
4. Beneficiaries (B)
SUPPLIERS
P
D
DONORS
PRODUCT FLOW
INFORMATION FLOW
B
The humanitarian efforts during impact of any disasters are organized along
following broad lines (Kovacs and Spens, 2007):
1. Disaster relief
2. Continuous aid work.
The various steps in the Humanitarian Logistics Relief Chain and
Disaster Management Cycle are as follows:-
PREPAREDNESS
RELIEF TO
BENEFICIARIES
ASSESSMENT
RESOURCE
MOBILIZATION
PROCUREMENT
DISTRIBUTION
TRACKING
TRANSPORTATION
Three C’s of Disaster Relief operation:
Communication
Collaboration
Coordination
Proposed model
 The purchase of goods and services at the time of disasters is necessary
for smooth operation of relief activities and also to reduce the effect of
contretemps.
 Emergency Procurement is a part of preparedness activity and is carried
out using the allocated budget for any disaster prevention scheme by the
government or available financial resources or credit.
 The goal of procurement in relief operations is to enable orders to be
placed and delivered on schedule at a good price with zero lead time.
 The best possible way preferred is to buy locally to avoid delay times.
 However, according to Wassenhove et al. (2010) some organizations
prefer to use their regular suppliers to guarantee the quality and
standardization of their supplies, or to get better prices.
The dominating characteristics that bring additional complexity and unique
challenges to humanitarian relief chain design and management as
identified by Beamon (2004) are: Demand pattern
 Lead time
 Distribution network configuration
 Inventory control
 Information system
 Strategic goals
 Performance measurement system
 Demand characteristics
Preparedness Activity
 The humanitarian logistics and relief chain structure includes predisaster procurement, stock pre-positioning, post-disaster
procurement and transportation.
 It is necessary to prepare pre-procure plans and identify strategic
location near the disaster prone areas for prepositioning of relief
supplies.
 Prepositioning can be one of the important strategic decisions in the
humanitarian relief chain as it can increase the budgeted relief fund
allocated by the government.
 Although prepositioning is done by some developed countries and
humanitarian organization but it need a lot of effort in mimicking
the same in developing nations.
In order to cope up with the stated complexities involved in designing
humanitarian logistics & relief chain a risk management framework can
be developed which involves: Identification of products and services needed at the time of natural
disasters, such as:
Products- Food, Medicines.
Services- Temporary Housing, Reconstructions
Mechanism for direct sourcing of products and services
 Emergency procedures may include purchasing of only that which is
necessary to cover the requirements of the emergency.
 Procurement planning can reduce the need for using emergency
procedures.
 Each government bodies and humanitarian aid agency should prepare
and maintain a current list of local sources of goods and services that
might be needed in an emergency.
 Information on rates and charges should be established and agreed upon
in advance.
 In addition, some specialized procurement activity such as “on call,” or
“as needed” annual contracts for various services may be competitively
bid to expedite action, ensure adequate support, and reduce the cost of
meeting emergency requirements (Mustafa and Buyurgan, 2011).
For Emergency procurement/Direct sourcing:
 A supplier database portal can be created with reference to the
humanitarian aid relation network and maintained by the state
government on a centralized platform and the database can be
merged with other states portal on national level for the better
utilization of resources.
Group of names
SUPPLIER DATABASE
MEDICINE
SUPPLIERS
MEDICINES
RECONSTRUCTION
SERVICES
MILLERS / PACKED
FOOD SUPPLIERS
FOOD
TEMPORARY HOUSING
PWD SUPPLIERS
NGO / DISASTER
MANAGEMENT
AGENCIES
NGO &
INTERNATIONAL
AID & AID FROM
OTHER STATES
CLOTHES
VICTIM MANAGEMENT
The portal containing supplier database envelopes all
facets of humanitarian aid, such as:
 The list of medicine and packed food suppliers and transportation
providers at each and every district level and the amount donated
goods in stock.
 List of NGOs and humanitarian aid agencies.
 Also the portal will be regularly updated with the information
flows between the field, headquarters and donors during any
disaster.
 The portal will also maintain records of donations for effective
utilization and for public knowhow.
CONCLUSION
 Procurement of necessary product by the government is of utmost
importance during the onset of any disasters to provide the victims
with the necessary products.
 Hence emergency public procurement forms an important element
of the humanitarian logistics chain.
 The design and operation of a humanitarian logistics and relief
chain play a significant role in gaining an effectual immediate
response.
 In order to achieve better improvement in future for pre-disaster
preparation and post-disaster response, the training and education
needs of humanitarian logisticians should be a part of academic
programs.
 Hence, need of the hour is in developing better procurement
strategies and distribution network in order to meet the needs of the
end beneficiaries more effectively and efficiently in that order.
Tanmoy Kundu, Sparsh Lunkad, Sumeet Gupta, Parikshit Charan
IIM Raipur