When disaster strikes, the supply chain becomes the key to life

Editor’s note: Vertical Voices focuses on specific verticals within the supply chain, highlighting the latest trends and news. It appears on the fourth Monday of each month. This month, we are looking at humanitarian supply chains. If you are interested in future topics, you can see a full list of upcoming topics on our Editorial Calendar.

After Hurricane Beryl struck the Texas coast and left flooding and millions without power in the state for days, the fears of the forecasting community were heightened. Colorado State University forecasts increased their prediction for the 2024 hurricane season—already forecast to be among the worst ever—to include an additional named storm. The new forecast calls for 25 named storms and 12 hurricanes.

 

“Hurricane Beryl, a deep tropical Category 5 hurricane, is also a likely harbinger of a hyperactive season," the forecast says.

Hurricanes, tornadoes, flooding and drought are among just some of the weather events that can trigger a humanitarian crisis. In times of need, while much of the focus shifts to donations of food, water, money and other essentials to help those affected, it is the ability of the supply chain to deliver that makes the difference between life and death.

Iana Shaheen, an assistant professor of supply chain management in the Walton College of Business at the University of Arkansas, has studied humanitarian supply chains . She spoke with the Talking Supply Chain podcast in 2023 to discuss the critical role humanitarian supply chains play.

“The private sector, even community-based organizations, military, police and firefighters—they all come together and respond to the disasters. Everyone has their protocols. They have some documents and routines that they follow. But in the end, the main goal for everyone is to help those in need because disasters are so unpredictable,” Shaheen said.

A unique supply chain

Shaheen said that, unlike typical supply chains where funds flow in one direction and goods in the other, humanitarian supply chains have the added complication of both funds and goods flowing in the same direction to the affected area, and in unpredictable ways.

“In our commercial supply chain, the demand is usually relatively stable … we have gotten really good about understanding how we can predict demand and how we can fix locations and set quantities,” she said. “In terms of demand for the humanitarian supply chain, the demand is really generated from random events.

“Humanitarian organizations needed to work very closely with for-profit companies in order to deliver for those in need,” Shaheen said.

FEMA’s role

The U.S. Federal Emergency Management Agency (FEMA) is usually the organization that is front and center during a disaster. But FEMA relies heavily on the private sector to deliver. In a guide about supply chain resilience, FEMA wrote that “delayed and uneven delivery can prompt consumer uncertainty that increases demand and further challenges delivery capabilities” before adding that to deliver the required relief supplies “requires a level of network understanding and a set of relationships that must be cultivated prior to the extreme event.”

Related Podcast

 

Talking Supply Chain: Humanitarian supply chains provide a lifeline for many

umanitarian aid is a lifeline for many people during times of crisis. But without an efficient supply chain, that aid never reaches its intended destination. Iana Shaheen, an assistant professor of supply chain management in the Walton College of Business at the University of Arkansas, has studied humanitarian supply chains and joins host Brian Straight on this episode of Talking Supply Chain to discuss what companies interested in helping during times of crisis can do today to be prepared.

Listen

 

While FEMA will coordinate response, the supply chain executes. There are several organizations that will help facilitate this, but the largest in the logistics space is ALAN. ALAN offers the Supply Chain Intelligence Center and Disaster Micro-Site during times of crisis to help connect those wishing to help with those in need of assistance.

The organization offers several tips for those wanting to help, including this key tip echoed by others: “Don’t self-deploy to disaster-impacted sites.” Many organizations head to disaster sites with supplies hoping to help, but the reality in most situations is that the response is heavily coordinated. ALAN suggests reaching out before any event to let it or any other organization involved in relief supplies know you are interested in helping.

Shaheen offered an example of what can happen when the private sector offers help without consulting those on the ground. Following Hurricane Maria, a Category 5 hurricane that ravaged Puerto Rico in 2017, private sector companies stepped up and sent a planeload of bottled water the island nation, she said. But, when the plane arrived, the water was unable to be delivered to significant damage to roads and bridges. The on-the-ground reality, Shaheen said, was that water filters would have been a better fit as the island had running water, it just wasn’t drinkable. And those filters could have been distributed easier than pallets of bottled water.

“Many times, effort is wasted or not the most efficient or effective simply because it's so hard to estimate the math pattern in advance and to understand the need,” she said.

Specialized training

Humanitarian supply chains even have their own specialized training. MIT’s Center for Transportation & Logistics offers a humanitarian logistics course taught by MIT Humanitarian Supply Chain Lab Director Jarrod Goentzel.

The course runs for 9 weeks and explores how supply chain management concepts and methods can be applied within dynamic, resource-constrained contexts. According to MIT, students learn how to professionally plan emergency operations that deliver essential goods and services to people affected by natural disaster, epidemic, pandemic, famine, armed conflict, complex emergency, and other humanitarian crises.

Georgia Tech, the Logistics Learning Alliance, and the Humanitarian Leadership Academy also offer certificates of specialized training in humanitarian supply chains.

Practical advice

Ultimately, the success of humanitarian supply chains depends on the private sector. Government organizations like FEMA, nonprofits like the Red Cross and industry associations like ALAN can coordinate resources, but it is ultimately up to the private sector to step up.

Related Resources

 

5 things supply chain managers can do to contribute to humanitarian relief

The earthquake that devastated parts of Turkey and Syria last year presented yet another challenge for supply chain managers attempting to expediently deliver humanitarian relief. And, unfortunately, it won’t be the last opportunity. The private sector often is well-positioned to respond with supplies, money, and expertise, and supply chain managers are at the forefront of these efforts. Here are five things it can do to help.

Read more

 

And it usually does, in a big way. But how?

Shaheen and co-author Arash Azadegan  a supply chain professor at Rutgers University and manages the Supply Chain Disruption Research Laboratory (SCDrl) at the Center for Supply Chain Management, have done extensive research on the topic.

“The private sector often is well-positioned to respond with supplies, money, and expertise, and supply chain managers are at the forefront of these efforts,” they wrote.

The authors offered five things supply chain managers can do if they want to contribute to humanitarian relief. They are:

1. Develop long-term relationships before disasters strike
2. Align on value proposition and capabilities
3. Understand risk-taking and perceptions of non-government organizations (NGOs)
4. Help NGOs with innovation
5. Be transparent and enable flexibility.

“The need to develop better public-private partnerships for meeting humanitarian needs is significant because of the sheer volume of challenges. From 2000 to 2019, for instance, the United Nations reports there were 7,348 recorded disasters resulting in more than 1.2 million deaths and trillions of dollars in economic loss. That doesn’t include non-disaster problems like homelessness and mental health issues, or the compounding effects from COVID-19,” Shaheen and Azadegan wrote. “The resources and expertise in the private sector—especially in supply chains and logistics—are critical to moving aid to the people who need it. And that only happens with effective partnerships.”

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