Proceedings of 10th Asian Business Research Conference

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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
Developing A Framework To Study The Various Issues of
Humanitarian Supply Chains
Akhilesh Barve and Devendra K. Yadav
Humanitarian supply chain is the flow of relief aid and the related information between the
beneficiaries affected by disaster and the donors so as to minimize human suffering and
death. Humanitarian supply chain mostly undergoes due to poor strategic planning that
leads its inability to deliver the goods and relief aid during disasters. Several recent
disasters have highlighted the actuate need for tractability in humanitarian relief activities.
In this article, various criteria and sub criteria of effective humanitarian supply chain are
identified from the literature, and analytical hierarchy process (AHP) is used to develop an
analytical framework that would facilitate the study of these identified criteria and sub
criteria. The proposed framework would integrate various perspectives of humanitarian
supply chain and arranged them into a hierarchical structure on priority basis. This
hierarchical structure may provide a guidance to academicians and practitioners to offer
better strategy to mitigate and to achieve quick relief to those made vulnerable.
Keywords—humanitarian supply chain; disaster relief; analytical hierarchy process (AHP).
Supply Chain Management
1. Introduction
One of the most serious problems affecting the modern world is the vulnerability of nations or
regions to natural disasters (earthquakes, flood, and drought) or man-made crises (civil unrest,
war, political/tribal disturbance) (Pettit and Beresford, 2005). Latest prominent level disasters
(e.g., 2001 Gujarat, India Earthquake, 2004 Asian Tsunami, 2005 Pakistan earthquake, 2010 Haiti
earthquake, June 2013 Uttarakhand, India flood and land sliding, 2013 Odisha, India ,Cyclone,
2013 Philippines cyclone) and relief efforts explored the necessitate for enhanced logistics in the
field. The trends in the number and impact of disasters and the massive scale of recent global
relief efforts have brought growing attention to the need for effective and efficient disaster
(Beamon and Balcik, 2008). A disaster is the result of a vast ecological breakdown in the relation
between man and his environment (Caunhye et al., 2012). The numbers of disasters and the
people affected by disasters have increased over recent years (Balcik and Beamon, 2008). In a
disaster context, it is of course important to ensure efficient and effective delivery, such that the
appropriate commodities and people reach the victims. As a consequence, it would be a need to
identify various criteria and their sub-criteria of a responsive humanitarian supply chain that
constitute an overall relief process. With an extensive literature survey, various criteria and subcriteria to improve the responsiveness of humanitarian supply chain are identified, and AHP is
used to evaluate the priorities of these criteria to assist the government and practitioners as a
procedural guidance.
____________________________________________________________________________
School of Mechanical Sciences, Indian Institute of Technology Bhubaneswar, IIT Bhubaneswar, Samantapuri
Campus, Bhubaneswar, India- 751013, akhilesh@iitbbs.ac.in, dky10@iitbbs.ac.in, Tel: +91-674-2306277, Fax: +91674-2306283
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
The main objective of this research in context of a responsive humanitarian supply chain is 1) to
discuss various issues of humanitarian supply chain; and 2) to develop a hierarchical framework of
selected criteria and sub-criteria of humanitarian supply chain.
2. Humanitarian Supply Chain
Humanitarian supply chain is a growing field and literature in this domain are scarce. Humanitarian
supply chain is also recognized by the terms like disaster management, emergency management,
humanitarian logistics, and relief management. Therefore, literature available on these keywords
scanned to explain how a humanitarian supply chain will become more responsive. Most of the
authors stressed on strategic planning (Caunhye et al., 2012; Balcik et al., 2010), infrastructure
development (Oloruntoba and Gray, 2009; Sheu, 2007; Beamon and Balcik, 2008), coordination
and communication among various actors involved (Sheu, 2007; Davis et al., 2011; Davis et al.,
2013) and other continuous improvement like performance measurement system (Beamon and
Balcik, 2008), training (Ergun et al. 2009) and setting of institutions (Oloruntoba and Gray, 2009)
to promote the disaster relief practices. 2004 Tsunami provided evidence that the effectiveness of
the emergency aid response hinges on logistics speed and efficiency (Pettit and Beresford, 2005).
Thereby in humanitarian relief operations, the role of logistics is continuously increasing (Van
Wassenhove, 2006).
The activities of „„planning, implementing and controlling the efficient, cost-effective flow of and
storage of goods and materials as well as related information, from point of origin to point of
consumption for the purpose of alleviating the suffering of vulnerable people‟‟ are known as
„„humanitarian logistics‟‟(Thomas and Kopczak, 2005). Humanitarian supply chain and
humanitarian logistics are used interchangeably in many studies (Ertem et al., 2010). In fact,
though the logistics are more focused on moving something or someone from a point of origin to a
destination, supply chain management mainly focuses on relationships among the actors that
make such movement possible (Cozzolino, 2012). The humanitarian supply chain is specialized in
managing large scale risks (Cozzolino, 2012), managing the relationship between disaster relief
actors (Kovács and Spens, 2009; Cozzolino, 2012), performing needs assessment, evaluating the
impact of distributed supplies (Howden, 2009), and monitoring of various ongoing relief activities.
A disaster response is often hampered by procedural confusion and by policies, and that does not
facilitate the effective relief management. In this context, after a brief study of various disaster
reports and the problem associated with humanitarian is analysed, and explained in further
sections.
3. Responsive Humanitarian Supply Chain
A humanitarian supply chain targets to reduce, or avoid the probable losses from disasters,
through appropriate assistance to sufferers and offers rapid and effective recovery. Activities and
measures taken in advance to ensure effective response to the impact of disasters, including the
issuance of timely and effective early warnings and the temporary evacuation of people and
property from threatened locations. It has been found from literatures and discussion with
humanitarian experts that effective response during a disaster depends upon various factors.
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
These various factors are categorized in this research as criteria and sub-criteria of an effective
and responsive humanitarian supply chain are shown in figure 1, and also explained here in brief.
3.1 Strategic Planning
For a supply chain to succeed strategic planning addressing long-term decision making is vital
and will therefore need to be dealt with at the utmost level of an organisation (Pettit and
Beresford, 2009). Disaster management is a key factor that drives the successful execution of
relief efforts, and it begins with strategic process design (Tomasini and Van Wassenhove, 2009).
It has been experienced that tsunami relief effort were adversely impacted by the lack of
available trained and experienced humanitarians (Thomas and Kopczak, 2005). Knowledge
about the risk posed by identifying hazards becomes the basis of preparedness planning and
mitigation actions (Haddow et al., 2011). Strategic planning will also assist aid agencies in
developing more effective inventory management and may lead to approaches such as prepositioning (Matthews, 2005).
3.1.1 Risk management
The concept of risk is a central issue for policy in areas as diverse as health, environment,
technology, finance and security. Living with natural processes that are periodically hazardous
means that people have choices to make, even though differences in social and cultural beliefs
and characteristics may result in some communities and individuals having many more options
open to them than others, and these choices can have consequences for themselves and others.
It is because these consequences are uncertain, and may leave us better or worse off, that we
talk about „risk‟ (Richard Eiser et al., 2012). Disaster risk management is a broader concept and
practices as a pre-disaster stage (Bass et al., 2008). The process of risk management in context
for humanitarian supply chain looks at how this value, human safety, which is threatened by
disasters, and modified by vulnerabilities (Fekete, 2012).
3.1.2 Advance Technology
Humanitarian needs robust equipment that can be set up and dismantled quickly. It‟s very
unfortunate that logisticians often have to work with aged and fragmented i.e. poor early warning
system (Van Wassenhove, 2006). A warning system must empower individuals, communities and
businesses to respond timely and appropriately to hazards in order to reduce the risk of death,
injury, property loss and damage. Warnings must get the message across and stimulate those at
risk to take action (Rozer and Tsirkonov, 2011).
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
Fig. 1. Hierarchical model for the study of responsive humanitarian supply chain
Risk management (A1)
Advance technology (A2)
Strategic Planning (A)
Need assessment (A3)
Preparedness (A4)
Responsive humanitarian supply chain
Transport infrastructure (B1)
Fleet management (B2)
Infrastructure development (B)
Facility location design (B3)
Logistics Service Providers (B4)
Coordination among various players (C1)
Government’s policies (C2)
Coordination and communication(C)
Communication resources (C3)
Local communication (C4)
Training (D1)
Institution (D2)
Continual Improvement (D)
Performance measurement system (D3)
Collaborations with agencies (D4)
3.1.3 Need Assessment
Need assessment after a disaster refers to identify and quantify the resources needed for
rehabilitation, recovery and reconstruction. Proper needs assessment facilitates identification of
existing opportunities for future development and charting a recovery strategy that goes beyond
restoring what existed prior to the disaster (Khasalamwa, 2009).
3.1.4 Preparedness
Preparedness in the field of disaster management can best be defined as a state of readiness to
respond to a disaster, crisis, or any other type of emergency situation. Preparedness consists of
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
four basic elements: preparing a plan, acquiring equipment, training to the plan, and exercising
the plan (Haddow et al., 2011).
3.2 Infrastructure Development
In general, humanitarian operations largely use road and air transport. However, we must
evaluate how best to use other modes in order to efficiently support the distribution activities in
both the strategy of shipment and logistical support for the operations. Inadequate infrastructure
is identified as a major challenge of disaster relief activities and infrastructure repair and
construction of hospitals and shelters are treated as critical activities (Kovács and Spens, 2009).
3.2.1 Transport Infrastructure
The disasters affect the infrastructure of transport, communications and logistical support,
besides causing an interruption of fuel supply, a crucial factor for limiting all response activities
(Costa et al., 2012). Sudden-onset disasters have a strong negative impact on the physical
infrastructure of the region, destroying transport infrastructure such as bridges and airfields,
electricity networks and communication infrastructure (Kovács and Spens, 2009).
3.2.2 Fleet Management
It is the selection, management and maintenance of vehicles and logistics assets with the aim of
providing the effective and efficient movement of goods and personnel to achieve the operational
goals of the delegation (ICRC, 2004). Its aim in the context of the humanitarian supply chain is to
transport of relief items in-country and to beneficiaries, transport of staff and materials related to
development programs (Balcik and Beamon, 2008).
3.2.3 Facility Location Design
Facility location and stock pre-positioning decisions in a humanitarian relief chain responding to
quick-onset disasters. Facility location decisions affect the performance of relief operations, since
the number and locations of the distribution center and the amount of relief supply stocks held
therein directly affect the response time and costs (Balcik and Beamon, 2008). A demand point is
treated as covered only if a facility, or a set of facilities, is available to provide the required
service to the demand point within a required distance or time (Murali et al., 2012).
3.2.4 Logistics Service Providers
Logistics is an essential humanitarian supply chain activities for shipping goods and relief
resources. Potential benefits like efficient shipping of relief resources can be achieved through
cooperation between logistics service providers (LSPs) (Schulz and Blecken, 2010).
3.3 Coordination and Communication
Coordination is a practice of individual understanding towards a common goal to avoid
communication and information within and among organizations. Cozzolino (2012) examined
various coordination practices, and provide an overview of coordination issues associated with
humanitarian logistics operations. A road network management model was proposed to generate
information for the improvement in its resilience to natural and man-made disasters (Heaslip et
al., 2012). Humanitarian logistics information systems improve the effectiveness of logistics units
throughout the disaster management cycle and can provide continuity throughout the various
disaster phases (Howden, 2009).
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
3.3.1 Coordination among Various Players
Despite various advantages the coordination among various NGOs, international organizations,
donor governments, and military forces is often difficult (Cozzolino, 2012). Because, in
developing a disaster risk management system, no single agency can provide a fully
comprehensive solution. It is essential that agencies work together and with stakeholders to
narrow knowledge gaps and to advance disaster risk management plans using a coordinated
attitude (WMO, 2010).
3.3.2 Government Policies
Policy decisions and actions taken during prevention and mitigation have enormous and far
reaching impacts on all stages of post disaster management. The government should produce a
long-term policy for monitoring disasters, risk analysis and procurement of latest equipment
(Bang, 2012). Good governance is encouraged by robust legal and regulatory agenda and
reinforced by a long-term political commitment and effective institutional arrangements. Effective
governance arrangements should encourage local decision-making and participation which are
supported by broader administrative and resource capabilities at the national or regional level
(Rozer and Tsirkonov, 2011).
3.3.3 Communication Resources
A good communication and information system can play an important role in delivering the right
information to support resource allocations by humanitarian (Taniguchi et al., 2012). Long and
Wood (1995) suggest that the management of information during a crisis “is the single greatest
determinant of success.” As it assists in integrating activity and providing information to allow the
supply chain to operate more effectively (Pettit and Beresford, 2005). Communication is an
important aspect of any aid operation and utilizing the existing telecommunications infrastructure
is as important as other communication methods. Real time communications are “the most
important method of reacting quickly for effective coordination” (Long, 1997). Achieving a balance
in the use of communication systems is important.
3.3.4 Local Communication
The problems that arise during disaster relief operations may differ depending on various factors,
such as the type, impact, and location of the disaster, and local conditions in the affected regions
(Balcik and Beamon, 2008). As the disasters affect the infrastructure of transport,
communications and logistical support, lack of knowledge about the local language and nearby
safe place, causes a major challenge to relief agencies and NGO‟s. Moreover, it has also
become difficult to communicate the pre-disaster warning, as disaster affected area are hilly,
coastal, and at remote locations.
3.4 Continuous Improvement
It is recognised that if commercial supply chain solutions are to meet the needs of the “market
place,” organisations need to focus on having a holistic and continuous improvement approach to
meeting the needs of the customer (Power et al., 2003). There is no reason to believe that HA
organisations could not learn from this approach like performance measurement system to
measure the effectiveness of the whole supply chain (Pettit and Beresford, 2009). Establishing
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
institutions, training to vulnerable communities and collaborations with other agencies help in
order to improve the effectiveness of their distribution and response networks.
3.4.1 Training
Creating specific and standard disaster response training geared towards the higher perception
of a Logistician‟s role in general. This consequently will help humanitarians to achieve the overall
goal of humanitarian aid (Thomas and Copaczak, 2005). The unpredictable nature of
emergencies makes it difficult to retain well trained employees, and those who have been trained
are often volunteers who can only work for short periods before they must return to their “real
world” jobs (Heaslip, 2012).
3.4.2 Institutions
Natural calamities have a more devastating impact in various Asian countries due to inadequate
policies and lack of institutions related to disaster management. Hence, disaster mitigation
requires involvement of government institutions with operational planning, education and training
(Metri, 2006).
3.4.3 Performance Measurement System
A performance measurement system plays an important role in managing a business as it
provides the information necessary for decision-making and actions. Performance measurement
for the humanitarian relief chain by comparing different organizations was developed by (Beamon
and Balcik, 2008). The authors develop a simulation model and a relief-specific performance
measurement system to identify system factors that contribute most significantly to overall
performance.
3.4.4 Collaborations with Agencies
The Collaboration refers to work done along a single organization's supply chain or in
cooperation with another agency. Collaboration within the HA supply chain can work in a number
of ways. In the context of humanitarian supply chain, it is needed to expand the collaborations for
sharing resources with or by other NGO‟s, INGO‟s, WHO, UNESCO, IFRC, and academia too.
Aid agencies do collaborate with commercial logistics organisations in order to improve the
effectiveness of their distribution networks.
4. Methodology
It has been found from literatures and discussion with humanitarian experts that effectiveness of
relief aid is the function of various criteria. To analyse such qualitative criteria problems AHP is
used as it is capable to quantify both the experts' objective and subjective judgments. Various
authors have also been used AHP successfully in the areas like supplier selection (Chan, 2003),
green supply chain management (Shen et al., 2013), reverse logistics (Barker and Zabinsky,
2011), project risk management (Nieto-Morote and Ruz-Vila, 2011). The AHP starts by
decomposing a complex, multi-criteria problem into a hierarchy where each level consists of a
few manageable elements which are then decomposed into another set of elements (Wind and
Saaty 1980). Also the AHP is a systematic procedure for representing the elements of any
problem in the form of a hierarchy (Muduli and Barve, 2013). Owing to its simplicity, flexibility,
and logical consistency (Shen et al., 2013) this research, also used AHP to study the various
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
criteria and sub-criteria of a humanitarian supply chain. In this hierarchy a responsive
humanitarian supply chain as a goal occupying the top level and various criteria and sub-criteria
occupy positions at the subsequent levels.
5. Discussion
Humanitarian supply chain is gaining attention throughout the world due to its unpredictable
nature and the complexity associated with it. Various types of disaster (flood, earthquake,
cyclone, tsunami and hurricane) have been affected millions of lives in the recent years.
Moreover, post disaster activities like relief, recovery, rehabilitation, also affect the economy of
the particular country. In this context, this research makes an attempt to improve the response
stage of the disaster management cycle. Following are the some insights of this research.
 The hierarchical model of this research can be helpful in identifying the relative gap
between the current practices and desired state of humanitarian supply chain.
 This research can be helpful in identifying the various factors those can be helpful to
improve the response to the disasters.
 The hierarchical representation of the various criteria and sub-criteria related to a
responsive humanitarian supply chain can allow decision-makers to easily observe the
effect of the change of the priorities in the upper level on the priorities of criteria at the
lower levels (Shen et al., 2013).
 The analysis can help governments and practitioners to structure their disaster relief plan
by focusing on its different aspects rather than limited aspects.
6. Conclusion
The numbers of natural disasters and the people affected by disasters have increased over
recent years. The objective of disaster response in the humanitarian relief chain is to rapidly
provide relief (emergency food, water, medicine, shelter, and supplies) to areas affected by large scale emergencies, so as to minimize human suffering and death. Since the count of disasters is
increasing, it has become an area of research to help those make vulnerable. This paper has
made an attempt to identify various success criteria for a responsive humanitarian supply chain.
An AHP approach has been used to represent the existing interrelationship between them in a
structured manner. This hierarchical model can be used by governments and practitioners to
enhance the relief practices.
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