LA DIVERSIDAD DESDE LAS HUELLAS HISTÓRICAS.

Overall, in a business environment, strategic, tactical, and operational supply chain management techniques and strategies are well developed and this attribute of business supply chain management supports the achievement of the company‟s objectives and customer expectations. Hence, a relatively high transparency of processes can be achieved: in contrast to relief chain operations where there is often a lack of control over the activities due to the complex nature of an emergency situation (Kovacs & Spens, 2007).

Dispersion and complexity can be named as further characteristics that impede the accomplishment of logistics processes during relief operations (Tomasini & Van Wassenhove, 2009). Disasters can occur at anytime, anywhere, and claim any number of victims. This high uncertainty in humanitarian supply chains is manifested in unexpected changes to supply and demand, the unpredictable amount and quality of resources provided, sudden shifts in the operational environment, and transportation capacity limitations (Kovács & Spens, 2009).

While demand patterns of for-profit organisations generally include products and services, demand for disaster relief operations usually encompasses relief supplies and people (Beamon, 2004; Beamon & Balcik, 2008), the supply of which is often limited (Tomasini & Van Wassenhove, 2009). Hence, the required supplies in a disaster-struck region can only be accurately defined after the existing need is identified (Beamon, 2004; Beamon & Balcik, 2008) depending on the type and size of the catastrophe as well as the social and economic characteristics of the operating environment. In disaster relief, the pattern of demand is, therefore, rapidly changing due to timing, location and scale (Murray, 2005; Tomasini & Van Wassenhove, 2009). Arminas (2005) states that “purchasing and logistics for major disaster relief is like having the client from hell – you never know beforehand what they want, when they want it, how much they want and even where they want it sent” (p. 14).

Commercial organisations, in contrast, usually deal with relatively stable demand patterns from known customers and with a pre-assigned set of suppliers and manufacturers (Cassidy, 2003). Therefore, the order fulfilment procedures of aid agencies vary greatly from those of for-profit companies. First, zero lead time (no early warning) between the occurrence of a disaster (demand) and the actual

need for relief supplies can be considered as a factor that is in stark contrast to traditional commercial supply chains. According to Beamon and Balcik (2008) commercial companies often have lead times of a few days between their order placement and the actual need for the product. Second, the state of the distribution network is a further element that needs to be taken into consideration. Humanitarian aid agencies have to cope with a high degree of uncertainty about the demand location, which is a symptom of a range of causes including the damaged local infrastructure (Long & Wood, 1995), political instability (blocking of arrival of relief supplies), looting, and topographical challenges that obstruct access to the crisis region (Beam & Balcik, 2008; Kovacs & Spens, 2007).

In addition, the distribution network must be able to start and stop the supply of goods at very short notice due to the fact that both the source and the destination of relief supplies can shift rapidly (Long & Wood, 1995). Also, the infrastructure in disaster areas is usually poorly developed and not capable of handling the unexpected rise in demand or resources: with the result of a “lack of possibilities to assure quality of food and medical supplies” (Kovács & Spens, 2007, p. 108). Finally, each humanitarian operation brings together a completely new formation of organisations and teams that might have only imprecise links with each other and thus lack efficient cooperation and coordination.

Language barriers, not just between locals and aid workers but also between humanitarian aid organisations (Long & Wood, 1995), hamper the distribution of appropriate supplies (Kovacs & Spens, 2007) due to the occurrence of misunderstandings. Long and Wood (1995) state that collaborating aid organisations may use differing statistical measurements during their assessment processes, and thus could make translation errors resulting in major misunderstandings.

The urgency of response after a catastrophe is a further characteristic of humanitarian interventions. It can be argued that humanitarians are exposed to highly complex and intense processes with regard to the amount of activities to be planned, coordinated and accomplished in a very limited timeframe.

Further, transportation assets are often limited, which exacerbates problems with pre-planning the distribution of goods. This is unlike the commercial supply chain which is usually pre-established, reliable and unchanged, so that with the aid of a known number of transport assets the distribution of goods and services can be accomplished. In addition, commercial distribution networks are designed for repetitious utilisation.

An emergency environment also means that the relief chain is often controlled by political actors or military forces rather than by transportation and inventory cost deliberations (Long & Wood, 1995). Hence, food or other resources might be stolen by armed forces or used as bribes in order to maintain the supply of relief goods. Moreover, the availability and distribution of relief supplies is of higher importance than minimal stock levels. Security issues with regard to the storage and transport of goods need to be taken into consideration as well. According to Long and Wood (1995), warehouses need to be protected against theft: especially food depots as these “can become armed fortresses” (p. 222). Truck shipments of relief supplies might be endangered due to the fact that trucks are frequently robbed, shot at, or bogged down.

Beamon and Balcik (2008) state that once a disaster has occurred, suppliers often increase their prices for high demand products, a practice which is further exacerbated by the necessity to procure goods from different suppliers each time a disaster occurs. For-profit organisations that are not dealing with commodities often benefit from relatively consistent prices over a longer time period.

Another factor complicating disaster relief operations is their customer structure: with regard to humanitarian aid organisations this is represented in the aid recipients (Beamon & Balcik, 2008). In contrast to the customers of commercial organisations, the beneficiaries of aid are not in a position to choose between different products available on the market and to choose the one that best meets their criteria, for example in terms of quality and price. Therefore, Beamon and Balcik (2008) argue that “the aid recipient operates in an unregulated monopoly, where the stakes associated with supplies are often life or death” (p. 6). Kovacs and Spens (2007) further support this argument by stating that a true demand is not generated by the “customers”: rather it is assessed by aid workers. As a consequence, customers as defined in the “corporate world” do not exist in humanitarian relief chains. Furthermore, a contract between humanitarian aid organisations and beneficiaries determining rules and regulations for the provision of the service or goods also does not exist.

The data suggests that the main factors that differentiate commercial supply chains from relief chains are the operating environment, the humanitarian aid organisation‟s focus on transportation resources, and real-time communication. By contrast, strategies, processes, and capital investments are

prioritised in commercial activities (Long & Wood, 1995), as well as challenges with regard to the order fulfilment procedures.

In other words: “imagine the logistics involved in planning an event like the Olympics. Now imagine planning the same event but not knowing when or where it will take place, how many spectators will attend, or how many athletes will compete. The near impossibility of this task gives some insight into what humanitarian logisticians are up against. [...] logistical shortcomings and oversights in the humanitarian context may result in serious consequences for the victims of disasters and could literally mean the difference between life and death.” (Tomasini & Van Wassenhove, 2009, p. “inside cover”).

In order to contribute to the improvement in reactivity of humanitarian aid organisations, the next paragraph seeks to outline how commercial logistics providers can assist relief work through engaging in cross-sector collaborations to accommodate demand in the field.

2.4 Cross-sector collaborations

“

“IInnccrreeaassiinnggllyytthheeffooccuussooffNNGGOO’’sseeyyeessoonnccoommppaanniieessiissttuurrnniinnggaawwaayy

f

frroommffuunnddiinnggiinniissoollaattiioonnttoowwaarrddsstthheeiissssuueeooff““hhuummaanniizziinngg

c

caappiittaalliissmm””––ppeerrhhaappsstthheekkeeyyttaasskkoofftthhee2211

cceennttuurryy””

This section provides insights into cross-learning opportunities for both businesses and humanitarian aid agencies, and points out the possible benefits and disadvantages when establishing partnerships between the two. Furthermore, challenges and risks involved when setting up a corporate- humanitarian collaboration are highlighted and critical success factors revealed.

2.4.1 Introduction

For many years, businesses have played an important role in humanitarian aid operations: donating relief supplies, such as cash or in-kind donations and services, to various leading humanitarian aid agencies through philanthropic