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Operations Article | "Supply Chain Issues in Disaster Management "

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Supply Chain Issues in Disaster Management

- by G. Vamsee Chandra *

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Relief Supply Chains

Relief supply chains involve delivery basic and essential commodities to the victims at the right place in the lowest time. In this context, the relief supply chain includes commercial supply chain activities such as planning, forecasting, procurement, logistics, warehousing and delivery. Apart from these, activities such as appeal to donors and resource mobilization also need to be carried out for relief purposes.

Commercial Supply Chain vs Relief Supply Chain

A comparison between the commercial chains and a relief chains brings out the points of correlation and differences between the two types of supply chains. Typically, Relief supply chains are characterized by -

  • Highly responsive supply chains (almost zero lead time)

  • Lack of existing supply chains/logistics systems to the affected areas

  • Inadequate existing infrastructure at the affected areas

  • Non-optimization of supply chain strategies due to insufficient information flow

  • Non-coordination between Supply Chain participants

  • Mutual existence of Multi-commodity supply chains

  • Ad-hoc and poorly structured operational setups

  • Variable levels of technology availability

  • Commercial and Relief supply chains are mainly differentiated by the supply chain flow. Figure 2 represents the two supply chains vis-à-vis Physical Flow of goods, Flow of finances, and flow of information. It is evident that relief chains lack flow of information between the customer and the organization. Moreover, donors provide financial and physical support to the organization.

    Supply Chain Parameter Commercial Supply Chain Relief Supply Chain
    Demand Pattern Relatively stable demand, Demand forecasting possible. Demand is generally for a product/set of related products Unpredictable in terms of timing, location, type, and size. Demand requirements are estimated after they are needed, based on an assessment of disaster characteristics.
    Lead Time Lead time determined by the supplier-manufacturer-DC-retailer chain. Approximately zero lead times requirements (zero time between the occurrence of the demand and the need for the demand), but the actual lead time is still determined by the chain of material flow.

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    * Contributed by: -
    G. Vamsee Chandra,
    IIM, Lucknow.


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