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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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Page - 8

Demand Pattern and Lead Time

  • In a relief chain, materials should be supplied before the actual demand is estimated. Uncertainty in demand estimation may lead to oversupply/undersupply of materials

  • Demand variation typically lasts until the situation stabilizes at the disaster site, post which demand can be estimated better

  • The lead time for a relief chain is almost zero. The material flow in the supply chain and the related operations need to be speeded up

  • Disaster being a one time event, the supply chain setup is temporary. Moreover, any previous supply chains that may have existed might have been destroyed due to the disaster

  • Multi-Commodity Chain

  • Relief chain is a multi commodity chain. Different commodities have different lifespan, different production times, but use the same distribution, logistics, warehousing resources. Optimizing these supply chains for efficiency in supplying all these commodities is a challenge.

  • Other Operational Issues

  • Donating / Supplying what is perceived as needed against what is actually needed
          * Leads to spending time on sorting these items
          * Logistics being clogged with uncritical items
          * Resources wasted in destroying spoilt / unnecessary / duplicated items

  • Framework to Overcome Issues in Relief Supply Chains

    Relief supply chains are impacted by many factors, both internal and external to the supply chain. Issues arising due to these factors can be addressed not only by internal analysis of supply chains, but also by considering overarching environment. A framework has been developed which identifies internal and external environment of the supply chain from which learnings, improvements and modifications can be sought to improve the efficiency and responsiveness of relief chains.

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


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