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In disaster situation, the need is for short lead times and market is unpredictable. Agile supply chain is the one which addresses these issues. Some of its important characteristics are:

1. Market Sensitivity - capability of reading and responding to end-customer demand.

2. Network based - supply chain as a network of partners who have a common goal to collaborate together in order to respond to end-customer needs.
3. Process integration - viewing the network as a system of business processes instead of as individual process.
4. Virtual - use of information technology to share data between buyers and suppliers creates, in effect, a virtual supply chain.

Above all, the two controlling principles for the supply chain are:
1) Centralized control
2) Decentralized execution.

III. Implementing Supply Chain

The supply chain set up for disaster purposes have two distinct characteristics: -
1) They need to be set up fast and with a very short notice period. This requirement would be fulfilled if the first step in the relief chain is followed, i.e., preparedness. Authorities need to prepare a plan beforehand for such situations.
2) They are setup for a short duration of time. This feature has 2 implications. One is supply chain needs to be dismantled quickly too and second is fixed costs should be minimal.

The best way to accomplish these is extensive use of 3PL providers. Services that could be provided by 3PL providers are: -

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* Contributed by: -
Praneet Parate & Anusha Jain,
IIM Lucknow.