Humanitarian supply chain management: How crucial is proper warehousing?
Warehouses act as the logistical backbone of humanitarian operations. In the final part of a four-part series, the author delves into how the strategic selection and effective management of warehouses are instrumental in saving lives and alleviating suffering during a crisis
The importance of warehousing in the humanitarian supply chain cannot be overstated. Warehouses serve as vital hubs where essential relief supplies are stored, managed, and dispatched to disaster-affected areas. They act as the logistical backbone of humanitarian operations, enabling the timely delivery of life-saving aid.
Practical examples abound, such as in the aftermath of a devastating hurricane, where pre-positioned warehouses filled with emergency food, water, and medical supplies can make the difference between immediate relief and prolonged suffering.
Therefore, the strategic selection and effective management of warehouses are instrumental in ensuring that humanitarian organisations can respond swiftly and efficiently to crises, ultimately saving lives and alleviating human suffering in times of need.
Inventory management plays a crucial role in humanitarian supply chain management, particularly in addressing disasters like cyclones and floods. Here's how it operates in various phases of the humanitarian cycle, along with practical examples:
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Preparedness phase: During this phase, inventory management involves the strategic stockpiling of essential relief items in disaster-prone regions. For instance, in flood-prone areas, humanitarian organisations may pre-position emergency kits containing water purification tablets, tents, and hygiene supplies. These strategically located inventories enable rapid response when floods occur, ensuring that affected populations receive immediate assistance.
Response phase: When a disaster like a cyclone or flood strikes, inventory management becomes critical for the rapid mobilisation of relief supplies. For instance, pre-stocked warehouses equipped with food, medical supplies, and clean water can be swiftly deployed to affected areas. Additionally, real-time inventory tracking and management systems help ensure that the right items are dispatched promptly to meet the evolving needs on the ground.
Distribution phase: Effective inventory management continues during the distribution phase. This includes monitoring the consumption rate of relief items, tracking inventory levels, and adjusting distribution plans accordingly. For example, if floodwaters recede and people return to their homes, the inventory focus might shift from immediate relief to providing recovery materials like construction supplies or livelihood support.
Post-disaster recovery: Inventory management extends into the post-disaster recovery phase. Surplus relief items can be stored for future use or redirected to support longer-term recovery efforts, such as rebuilding infrastructure or providing education materials to affected communities.
Mitigating stockouts and wastage: Proper inventory management helps mitigate stockouts, ensuring that aid remains available when needed most. Conversely, it also minimises waste by monitoring expiration dates for items like medicines and efficiently allocating resources to prevent spoilage or obsolescence.
In essence, inventory management in humanitarian supply chains serves as the linchpin for efficient disaster response. It enables organisations to maintain a ready supply of life-saving items, respond swiftly to emergencies, adapt to changing circumstances, and ensure that aid reaches those affected by cyclones, floods, and other disasters promptly and effectively.
Private organisations often find themselves in a favourable position to respond swiftly in times of crisis, offering valuable resources in the form of supplies, financial aid, and specialised expertise. Among those leading these efforts are supply chain managers, who play a pivotal role.
Indeed, corporations, in many cases, possess greater capacity than governments or nonprofit entities to provide essential support to disaster-affected individuals and communities. In Bangladesh, we have witnessed the active involvement of local conglomerates in such private sector initiatives.
A notable example can be found in Walmart's Emergency Operations Centre response to Hurricane Katrina back in 2005. This demonstrates the crucial role that private sector entities can play in disaster relief efforts, leveraging their resources and organisational capabilities for maximum impact.
However, it's equally crucial that humanitarian organisations and private-sector contributors align their values and recognise how their respective capabilities can contribute to achieving their shared goals. A deeper understanding of these values and capabilities is essential in determining whether a partnership is a genuine fit, particularly in the context of Bangladesh, where private organisations can make a significant difference in disaster response and recovery efforts.
In the United States, the Massachusetts Institute of Technology (MIT) has established the Humanitarian Supply Chain Lab, with a focus on enhancing the supply chain systems that underpin both public services and private markets to meet humanitarian needs. MIT employs a research approach blending observation, development, and practical application to enhance the effectiveness and efficiency of humanitarian supply chains.
Likewise, Bangladesh, a nation prone to disasters such as frequent and severe floods and cyclones, is gradually facing an increasing risk of earthquakes. Given the unpredictable nature of seismic events, the establishment of a supply chain and logistics lab would represent a significant asset from a national perspective.
Bangladesh boasts a wealth of experienced supply chain professionals who have garnered acclaim both locally and internationally. Collaborating with these seasoned experts holds the potential for substantial success in this endeavour.
Humanitarian supply chain management (HSCM) has garnered increasing attention worldwide in recent years. This specialised field ensures the timely provision of essential goods, including water, food, tents, blankets, and medicines, during natural and man-made disasters, spanning the three phases of preparedness, response, and recovery.
Contrasting with traditional supply chain management (SCM), which focuses on the efficient flow of goods and services, HSCM operates in the immediate aftermath of emergencies, prioritising the procurement and delivery of critical supplies and services to support survival, such as food, water, and shelter, all while maximising cost-effectiveness and value for money.
Mohammad Ashraful Islam Khan is the President of The Supply Chain Street and previously Head of Supply Chain Advisory Services at KPMG Bangladesh.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.
