Emergency Relief: More Efficient Supply Chains Mean More Help for Every Euro Donated
A new study conducted by Prof. Dr. Maria Besiou, Professor of Humanitarian Logistics at Kühne Logistics University (KLU), has revealed that supply chain management accounts for 75% of the costs involved in delivering humanitarian aid. By implementing focused savings measures throughout the supply chain, more money can be allocated to areas affected by catastrophes, providing urgently needed help.
The Importance of Supply Chain Management in Humanitarian Aid
The study analyzed data from 14 disaster response operations conducted by five international aid organizations between 2005 and 2018. It concluded that procurement, transport, and human resources are the main sources of costs within supply chain management. These findings highlight the significant role of supply chain decision-makers in ensuring efficient and successful relief operations.
The Impact of Wars, Pandemics, and Natural Disasters
The study found that logistics costs were particularly high in disaster response operations involving military conflicts, global pandemics, and natural catastrophes. This emphasizes the need for effective supply chain management in overcoming logistical challenges during crises.
Cost-Saving Approaches for Humanitarian Aid Organizations
The study also proposed new approaches to reduce logistics costs for aid organizations. These approaches include providing training to local staff in advance, establishing long-term agreements with suppliers, and implementing money-and-voucher programs. Collaborative efforts among aid organizations, such as capacity sharing and joint procurement strategies, can also help reduce supply chain management costs.
The Role of Supply Chain Managers in Disaster Response
The study emphasized the importance of involving supply chain managers in the planning phase of relief operations. By including experienced logistics specialists on the Executive Boards of aid organizations, donated funds can be optimally utilized to provide efficient and effective aid on-site.
Conclusion
Efficient supply chains play a crucial role in delivering humanitarian aid. By focusing on cost-saving measures and involving supply chain managers in decision-making processes, more funds can be directed towards providing urgent help to areas affected by catastrophes.
More information:
Jonas Stumpf et al, Assessing the value of supply chain management in the humanitarian context—An evidence-based research approach, Journal of Humanitarian Logistics and Supply Chain Management (2022). DOI: 10.1108/JHLSCM-03-2022-0039
Provided by:
Kühne Logistics University
Citation:
“Emergency Relief: More Efficient Supply Chains Mean More Help for Every Euro Donated” retrieved 17 June 2023, from https://phys.org/news/2023-06-emergency-relief-efficient-chains-euro.html
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Shambhu Kumar is a science communicator, making complex scientific topics accessible to all. His articles explore breakthroughs in various scientific disciplines, from space exploration to cutting-edge research.
