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Narath Bhusiri, Ruth Banomyong, Puthipong Julagasigorn, Paitoon Varadejsatitwong and Nirpa Dhami
The impact of supply disruptions from unplanned events can cause goods shortage, limited responsiveness and high opportunity cost thus compromising development aid…
The impact of supply disruptions from unplanned events can cause goods shortage, limited responsiveness and high opportunity cost thus compromising development aid programmes' achievement targets. These situations force humanitarian aid agencies to develop new strategies for effectively managing their supplies. The purpose of this paper is to illustrate the foundation of humanitarian supply chain resilience through the development of an adapted Kraljic portfolio model.
Action research was used to adapt and validate the Kraljic portfolio model to the development aid context. The research team worked with a humanitarian aid agency in developing criterions and used Analytical Hierarchical Process (AHP) in weighting those key criterions.
The adapted portfolio model was able to evaluate purchases done by the aid agency by incorporating different perspectives related to the strategic importance of purchase and supply vulnerability. In particular, development aid programmes require large supplies annually. Better classification offers improved visualisation of purchases, leading to a more precise adoption of mitigation strategies and policies to minimise supply disruption risks.
Adapting the Kraljic portfolio model is a stepping-stone to building humanitarian supply chain resilience. The proposed humanitarian supply chain resilience framework is based on the foundation that current humanitarian supply chain needs to be re-engineered. In order to re-engineer, the supply base strategy must first be revisited.
Many aid agencies do not have a holistic view on their purchases and commonly apply a transactional classification of purchases that only considers the consumption values. Purchasing strategies mostly focus on cost minimisation, whereas risk mitigations have been disregarded. The proposed portfolio model overcomes these drawbacks. Societal impact may be limited but development aid agencies will be able to offer more reliable aid delivery as part of their mandate.
The proposed portfolio model is among the first tool to guide humanitarian aid agencies to develop procurement strategies to alleviate supply disruptions and increase development aid programmes resilience.
Ruth Banomyong, Puthipong Julagasigorn, Paitoon Varadejsatitwong and Pairach Piboonrungroj
An understanding of the “AS-IS” stage of a relief operation is the basis for further action in humanitarian supply chain management. The purpose of this paper is to…
An understanding of the “AS-IS” stage of a relief operation is the basis for further action in humanitarian supply chain management. The purpose of this paper is to develop a toolbox called the Humanitarian Supply Chain Assessment Tool (HumSCAT). This toolbox is comprised of a set of basic tools which can be classified into each phase of disaster relief.
The HumSCAT is proposed by paralleling frequently used tools in commercial supply chains with the objectives and characteristics of relief phases. A case study was used to validate the HumSCAT along with six tools provided in the preparation phase.
The HumSCAT consists of seven tools in the preparation phase, nine tools in the response phase and ten tools in the recovery phase. The case study illustrates how to use the HumSCAT and the six tools. The latter were found to be useful for improving the relief chain.
The list of tools is not exclusive. Other tools might be applicable as long as they meet the objectives and characteristics of the phase. A tool should be adjusted accordingly to the contexts. Tools in other phases should be validated in future research.
The HumSCAT may serve as a reference toolbox for practitioners. Its output can be used for further designing of the “TO-BE” status of humanitarian relief chains.
The HumSCAT is proposed as a toolbox for academics and practitioners involved in humanitarian supply chains.