Humanitarian Supply Chain Management and Lean

6 important questions on Humanitarian Supply Chain Management and Lean

What drives a Non Governmental Organisation?

Non profit , equity (fairness) ,effectiveness (doing the right things), drive for efficiency and quality (not enough donor for all needs so logistically efficient planning to achieve the goals are set up)

Managing humanitarian supply chain (why is it more difficult?)

Who is the customer?
How to achieve and measure equity?
Strive for equity and effectiveness in line with coverage?
Many stakeholders influence process: performance for whom?
RELATIONSHIPS MATTER..

The Kralijc Matrix - product classification

Profit impact versus supply risk

Strategic items - High Profit impact and High supply risk - difficult to buy high importance of purchasing Kralijc






Bottleneck low - importance difficult to buy. Low profit impact high supply risk

Non-critical items- low profit impact and low supply risk

Leverage items -  low supply risk and high profit impact
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Challenges for lean supply chain management in humanitarian operations (3)

- uncertainty : what? how much? when? where?
- resource constraints: financial -> equipment, manpower, modes of transport
- global operations: distance, diversity of operations

Key ideas on successful Supply Chain Management

Need to understand the nature of the demand for a product/ service
Need to tailor SCM solutions to the demand characteristics of a product/service
Need to find the right strategy for the configuration of the supply chain

P/S - Matrix

Speculation(decentralised inventories) postponent (Centralized inventories and direct distribution)

Speculation (make to inventory)
Postponent (make to order)

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