Suppply Chain In Disaster

EXECUTIVE SUMMARY

With the rapid changes in the environment due to man induced or otherwise forces the world as is now, today is susceptible to dramatic overtures resulting in widespread disasters. In the wake of the above, it has become necessary to apply management practices for mitigation and relief processes. The present paper deals with the role, structure & major problems arising in the purview of Supply chain management in the domain of disaster management.

The paper begins with an account of the importance of disaster management in contemporary times. This is followed by the description of supply chains in the disaster relief operations & how they differ from commercial supply chains. (Note: throughout the text, the terms supply chains & relief chains are used interchangeably for the sake of brevity). This explains the point that there are several aspects of commercial supply chains that can be imparted to relief chains whereas there could also be some pitfalls that are to be avoided.

When human lives are at stake, time becomes the prime factor of concern. How to quickly set up a relief chain, what all is to be considered while planning the structure, logistics and distribution network is aptly illustrated there in. The structure, components & a model of a relief chain are detailed therein.

Communication becomes a major problem during disaster relief. This could be tackled by using mass media in conjunction with relief process. Likewise, the paper deals with a number of major issues/problems faced while setting up & operating a relief chain. Then follow the various recommendations for the aforementioned problems.

The paper then concludes with a look into the future of the relief chains and how disaster preparedness & mitigation should go a long way in ensuring that the effects of natural disasters be minimized. Few suggestions along way are also put in.

We hope that this paper has met its purpose of answering the questions posed and will provide an insight into the subject of supply chain management in disaster relief.

Note: Important insights & suggestions are highlighted

Supply Chain Issues in Disaster Management

Introduction:

At 7:58 AM, 26 December 2004, a 9 magnitude earthquake off the coasts of northwest Sumatra produced a series of giant waves traveling at 600 miles per hour. Fourteen hours and twelve countries later the waves reached the eastern coast of Africa. After the water receded, an estimated 300,000 people were dead or missing, placing the Tsunami among the most deadly natural disasters.

The 2004 South East Asia earthquake and Tsunami was exceptional in that it was a multi country, multi continent event that came and went very quickly. However, all the disasters have certain things in common: loss of property and lives, moreover the long term economic impact of the disaster is difficult to measure. It might take years before the exact extent of economic damage is known. With 2005, declared as the year of natural disasters, the world has realized that the effective and efficient management of relief chain is imperative to minimizing losses.

The supply chains for disaster management aim to deliver the right supplies to the right people at the right time in the right quantities (Cottam, Roe & Challcombe, 2004; WFP, 2005). It is clear that the relief has to be supplied, but the how is rather less clear. This paper aims to list the issues that might come up during the assessment, deployment, sustainment and restructuring of supply chains during the times of disaster management. It also tries to enlist the solutions to these questions.

Comparison between Supply chains "Commercial vis-Ðo-vis Relief Chains"

"Extreme Situations demand extreme measures". Disaster relief differs entirely from a commercial supply and so do the supply chain handling them. The movement, procurement deployment and replenishment of relief in the form of men, materials along with distribution networks is the main focus of supply chain management in the disaster hit areas. Haghani and Oh (1995) describe the disaster supply chain/relief chain as a multi commodity, multi modal network flow problem with time windows. A typical relief chain has the following basic components:

Fig.1 Relief Chain (Thomas, 2004)

Traditional supply chain activities such as planning, forecasting, procurement, transportation, warehousing and delivery are supplemented by appeal and mobilization in disaster relief chains. Preparedness corresponds to planning and assessment to forecasting while others are common to both. Below mentioned table states the major differences between a commercial and a humanitarian relief chain or a relief chain.

Table1. Differences between commercial & relief chains

Setting up a Relief Chain: A Generic Model

Though the above table clearly specifies the differences between a commercial & a relief chain, still there are many lessons to be learnt from the usual supply chain design. Certain basic questions about how to set up a supply chain in minimum time, what its structure should be, how the distribution network should be functioning, inventory control issues, procurement uncertainties etc. have to be addressed before we can move in to the more detailed discussion about the issues which will come during disaster management.

Formation: Time is the key

Ideally the time to help is "before disaster happens" so the time to build relationships for effective planning and collaboration in a response effort is before the incident. It is too late when the disaster occurs. However, in case the worst has already happened following steps should be taken to put up a relief chain promptly.

* Identify the needs, the approach should be "need based" rather than "supply based".

* Identify Key distribution networks available along with available transport mechanisms.

* Prioritize and time phased i.e. when needed & what priority.

* Describe the above in logistics terms.

* Collect, consolidate & organize supplies (warehousing