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Operations Article | "Supply Chain Issues in Disaster Management"

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Supply Chain Issues in Disaster Management

- by Madhuker Priyesh & Varun Ramanan *

This Paper was amongst top-10 winning entries in "Opsyrus 2006", the CoolAvenues.com - OIG (IIM Lucknow) Paper Writing Competition held during Oct-Dec 2006.

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Executive Summary

The UN conference on disaster reduction concluded on January 22, 2005 in Kobe, Huogo, Japan. The participants confirmed their commitment to natural hazards and adopted a plan of action for the next ten years. The reason for such importance to disaster management lies in the recent spurt of such havocs due to nature.
Tsunami and Katrina are examples of how the whole civilization can be rendered helpless by nature. While steps for reduction of such events need to be taken, a greater emphasis lies on the relief work and the immediate response to the disaster. It is in this respect that Supply Chain in the context of disaster management assumes significance.

An agile supply chain in such a scenario minimizes time for procurement and delivery of essential supplies. It helps bringing the situation under control by quick response for relief measures. Supplies of food, medicines and clothes need to reach the affected people in minimum time. Simultaneously the quality and speed of information flow must also be of acceptable standards.

The current model identifies the strategic fit of the supply chain in the environment which seeks responsive behaviour. Drawing on the differences of the responsive and efficient supply chains, and identifying the flow of material and information in the context of a disaster, the concept of Reverse Supply Chain is developed. The flow in this chain is the exact opposite of a normal supply chain. The four drivers of supply chain (facility, inventory, transportation and information) would influence the execution and operations aspects of the supply chain, while themselves being determined by the level of efficiency or responsiveness desired.

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* Contributed by: -
Madhuker Priyesh & Varun Ramanan,
IIM Lucknow.


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