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CHAPTER I

INTRODUCTION

1.1 Background

1.1.1 Overview

Disasters are unequivocally complex events. They constitute severe consequences,

particularly among the developing countries which normally suffer, mostly due to lack

of infrastructure, lack of capabilities to respond resulting in a high number of fatalities.

The rising occurrences of disasters in the recent years have also affected a larger portion

of the population and incur substantial losses in social and economic aspects. The

magnitude of those disasters have also increased, allegedly affected by changes in

global climate conditions, resulting in a more dire consequences for the unfortunate

victims. Aid agencies have also had its own challenge as they are required to respond

swiftly, and increasingly beyond the organizational limits as resources to support those

operations have dwindled down. Doing more with less has been the theme for many

aid organizations in the past decade as government funding dries up due to the global

financial situations among the developed countries.

Indonesia is one of the most disaster-prone countries in the world. Being located on

The Pacific Ring of Fire (an area with a lot of tectonic activities), Indonesia has to cope

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with the constant risk of earthquake, tsunami, volcanic eruption, flood, landslide, and

drought. On several occasions during the last 15 years, Indonesia has made global

headlines due to devastating natural disasters that resulted in the deaths of hundreds of

thousands of human and animal lives, plus having a destructive effect on the land area

(including infrastructure, and thus resulting in economic costs) (see Table 1.1).

Extreme wet or dry seasons can ruin food crop harvests, trigger inflation and put severe

financial pressure on the poorer segments of the Indonesian population. Lastly, man-

made natural disasters (such as forest fires brought on by slash-and-burn culture) can

have far-reaching environmental consequences.

Data from the World Bank suggests that, in overall, Indonesia ranks 12th among

countries with relatively high mortality risks from multiple hazards. It is among the top

35 countries that have high mortality risks from multiple hazards with about 40 percent

population living in hazard-prone areas. For a country that has a population of around

250 million people (World Bank, 2015), this percentage gives a very large nominal

number of around 100 million people. These figures imply that a major humanitarian

catastrophe might happen should large disasters occur, or in another situation,

repetitive cases of disaster situations may have prolonged negative impacts to the

livelihood of the population affected.

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Table 1.1

Major Natural Disasters With Widespread Loss of Life

(2,000 Casualties At Minimum)

Year Event Place Main Area Death Toll

1257 Huge eruption of Rinjani Lombok West Nusa Tenggara Huge eruption

(1)

1815 Huge eruption of Tambora Sumbawa 11,000 est (2)

1861 Sumatra earthquake North Sumatra Nias area 2,000 est (3)

1883 Eruption of Krakatoa Sunda Strait West Java and Lampung 36,417 1919 Kelud eruption Blitar East Java 5,000

1926 Papua earthquake Papua Papua and Papua New Guinea >5,000 (4)

1930 Merapi eruption Yogyakarta Yogyakarta and Central Java >1,300 1963 Agung eruption Bali Bali 2,000 est 1976 Papua earthquake Papua Papua 5,000 1992 Flores earthquake Flores East Nusa Tenggara 2,500 2004 Aceh & Nias tsunami Aceh and

Nias Aceh and North Sumatra 170,000 (5) 2006 Yogyakarta earthquake Bantul Yogyakarta 5,782 Source: own compilation from various internet sources

Note:

(1) Total death toll unknown. The eruption is believed to have had a worldwide impact.

(2) This is the estimated death toll from the direct impact of the eruption. A total of

perhaps 70,000 people are estimated to have died from starvation and disease in the

area in the months following the eruption. See 1815 eruption of Mount Tambora.

(3) "Some thousands" are reported to have died.

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(4) Source: MCEER, University of Buffalo, The State University of New York, Major

Indonesian Earthquakes of the 20th Century, accessed 29 December 2013.

(5) This is the estimated death toll in Indonesia. An estimated 60,000 more people died

in other countries surrounding the Indian Ocean, especially in Sri Lanka.

1.1.2 Classifications of Disasters

The term disaster is defined as a crisis situation causing widespread damage, which far

exceeds our ability to recover. Disasters are often classified according to their cause

(natural and man-made), or according to their speed of onset (sudden or slow).

● “Sudden-onset disasters” — both “natural” disasters (e.g. earthquakes,

hurricanes, floods) and man-made or "complex" disasters (e.g. sudden conflict

situations arising from varied political factors), for which there is little or no

warning (World Health Organization, 2008). The number of sudden-onset

disasters has increased significantly since 1950, the severity of hurricane-

strength cyclones has grown, and the total population affected per event has

been increasing—the result of population growth, rapid urbanization and

environmental degradation.

● “Slow-onset disasters” — Disasters that take a long time to produce emergency

conditions, for instance natural disasters such as drought or socio-economic

decline, which are normally accompanied by early warning signs (World Health

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Organization, 2008). Slow-onset disasters are often aggravated by human-

caused environmental damage and industrial development. Climate change is

likely to exacerbate both sudden-onset and slow-onset disasters. This is why

Pacific Island countries are justifiably regarded as being on the “front line” of

the effects of climate change, and therefore in need of international attention

and assistance.”

● “Complex Humanitarian Emergencies” — as defined by the IASC, is “a

humanitarian crisis in a country, region or society where there is total or

considerable breakdown of authority resulting from internal or external conflict

and which requires an international response that goes beyond the mandate or

capacity of any single and/or ongoing UN country program”. (World Health

Organization, 2008)

1.1.3 Disaster Risks

UNDP defines disaster risk as the probability of harmful consequences — casualties,

damaged property, lost livelihoods, disrupted economic activity, and damage to the

environment — resulting from interactions between natural or human-induced hazards

and vulnerable conditions.

Risk assessment is a process to determine the nature and extent of such risk, by

analyzing hazards and evaluating existing conditions of vulnerability that together

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could potentially harm exposed people, property, services, livelihoods and the

environment on which they depend. A comprehensive risk assessment not only

evaluates the magnitude and likelihood of potential losses but also provides full

understanding of the causes and impact of those losses. Risk assessment, therefore, is

an integral part of decision and policy-making processes and requires close

collaboration among various parts of society. (United Nations Development

Programme, 2010)

In identifying risks, there are a number of tools available that we can use to determine

the level of disaster risk, one of the most important is the Natural Hazard Risks Map.

Natural Hazard Risks Map is a mapping and analysis tool to assist national and local

officials to understand and manage disaster related risks. Figure 1.1 is the Natural

Hazard Risks Map of Indonesia.

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Source: http://www.unocha.org/roap/maps-graphics/national-hazard-maps

Figure 1.1

Indonesia: Natural Hazard Risks

This map illustrates Indonesia's exposure to seismic, volcanic and tropical storm

hazard. The map is based on data provided by UN Cartographic Section, Global

Discovery, FAO, Smithsonian Institute, Pacific Disaster Centre, UNISYS, Munich

Reinsurance Group.

1.1.4 Bases of Protection

In the efforts to mitigate the risks and to respond effectively to disaster events, a number

of approaches were developed in an attempt to minimize the impacts of disasters on

the populations, a situation even more critical on developing countries.

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The Concept of Human Security

Dr. Mahbubul Haq first drew global attention to the concept of human security in the

United Nations Development Program’s 1994 Human Development Report (HDR) and

sought to influence the United Nation World Summit in 1995 on Social Development

in Copenhagen. UNDP defined the term Human Security as a condition of safety from

seven categories of threats, as shown in Table 1.2 below (United Nations Development

Programme, 1994):

Table 1.2

Categories of Human Security

Categories Descriptions of Category

Economic security

Economic security requires an assured basic income-usually from productive and remunerative work, or in the last resort from some publicly financed safety net. But only about a quarter of the world's people may at present be economically secure in this sense.

Food security

Food security means that all people at all times have both physical and economic access to basic food. This requires not just enough food to go round. It requires that people have ready access to food-that they have an "entitlement" to food, by growing it for themselves, by buying it or by taking advantage of a public food distribution system. The availability of food is thus a necessary condition of security but not a sufficient one. People can still starve even when enough food is available as has happened during many famines.

Health security

In developing countries, the major causes of death are infectious and parasitic diseases. In industrial countries, the major killers are diseases of the circulatory system (5.5 million deaths a year), often linked with diet and lifestyle. Next comes cancer, which in many cases has environmental causes. In both developing and industrial countries, the threats to health security are usually greater for the poorest, people in the rural areas and particularly children. The widest gap between the North and the South in any human indicator is in maternal mortality. Another increasing source of health in- security for both sexes is the spread of HIV and AIDS.

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Categories Descriptions of Category

Environmental security

In developing countries, one of the greatest environmental threats is that to water. But people in developing countries have also been putting pressure on the land. Even irrigated land is under threat- from salt residues. In industrial countries, one of the major environmental threats is air pollution. Many environmental threats are chronic and long lasting. Others take on a more sudden and violent character.

Personal security

In poor nations and rich, human life is increasingly threatened by sudden, unpredictable violence. The threats take several forms:

● Threats from the state (physical torture), ● Threats from other states (war), ● Threats from other groups of people (ethnic tension), ● Threats from individuals or gangs against other individuals or

gangs (crime, street violence), ● Threats directed against women (rape, domestic violence), ● Threats directed at children based on their vulnerability and

dependence (child abuse), and ● Threats to self (suicide, drug use).

Community security

Most people derive security from their membership in a group-a family, a community, an Organization, a racial or ethnic group that can provide a cultural identity and a reassuring set of values.

Political security

People should be able to live in a society that honors their basic human rights. In this respect, at least, there has been considerable progress. Yet there still is a long way to go in protecting people against state repression.

The introduction of Human Security was viewed as a challenging notion to the

traditional paradigm of security where the referent for security has been the state as the

main security actor mandated to deal with sovereignty threat and act of war. As security

threats evolved as the cold-war era ended, the concept of security was deemed to be

less relevant to deal with the cross-cutting threats commonly faced by the various

governments and the people they serve. The term security has become broader beyond

military power as policymakers and decision makers realize that they cannot build

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peace without eradicating poverty nor they cannot guarantee freedom without the

absence of injustice. All these issues centered on the people instead of the state. Hence,

the concept of Human Security was introduced.

Law 24 /2007 on Disaster Management

The “Law of the Republic of Indonesia, Number 24 of 2007 Concerning Disaster

Management” (Law 24/2007) forms the foundation of the legal framework for disaster

management in Indonesia. It contains a comprehensive set of provisions delegating

national and regional government responsibilities, outlining community rights and

obligations, the roles of businesses and international institutions, the different disaster

management stages and their requirements, as well as disaster aid finance and

management (Badan Nasional Penanggulangan Bencana, 2007).

According to Law 24/2007, a disaster is defined quite widely to incorporate natural,

‘non-natural’ and ‘social’ disasters. This reflects Indonesia’s propensity to be subject

to many types of natural disasters, as well as the potential for non-natural disasters and

the possibility of social tensions. Furthermore, it defines ‘disaster management’

broadly as “a series of efforts encompassing policies on development with disaster risk,

disaster prevention, emergency response, and rehabilitation”.

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When it comes to roles and responsibilities, Law 24/2007 clearly stipulates that the

national government and regional governments are responsible for disaster

management. It requires the government to establish a National Disaster Management

Agency, which it did through Presidential Regulation Number 8 of 2008 on National

Disaster Management Agency (Regulation 8/2008), which established the BNPB, a

non-departmental government institution on a level equal to that of national ministries.

BNPB’s key tasks include the provision of guidelines and directions on disaster

management and emergency response, to report to the president once a month in non-

disaster situations and “at any time” during an emergency, and to provide accounts for

international and national financial contributions.

In a disaster situation, the government has the authority, amongst other things, to decide

on the status and level of national and regional disasters, and its decision must contain

indicators based on the number of victims, loss of material possessions, damage to

facilities and infrastructure, coverage of disaster-affected area, and socio-economic

impacts. The president will make a decision on the “disaster emergency status” on a

national scale, a governor for a provincial scale emergency, and a mayor for a

district/city scale emergency.

Law 24/2007 provides for certain privileges to be accorded to the BNPB to facilitate

its operations. According to the law, once the relevant level of government has decided

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the disaster emergency status for its jurisdiction based on the scale of the disaster.

BNPB has “easy access” to:

- Mobilization of human resources, equipment and logistics

- Immigration, excise and quarantine

- Licensing

- Procurement of goods/services

- Management of and accountability for money and/or goods

- Rescue

- Command of sectors/institutions.

By having this “easy access”, BNPB will be in a better position to rescue and evacuate,

fulfill basic necessities, and recover functions of essential facilities and infrastructure.

Regulation 21 / 2008 on disaster management

Regulation Number 21 (2008) Concerning Disaster Management is a presidential

regulation, which refers to disaster management and the associated activities in a broad

sense, but also refers to international assistance provided by states, international

institutions and foreign non-governmental organizations.

According to regulation 21/2008, Disaster management during the emergency response

shall include:

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1) Quick and appropriate study on location, damage, losses, and resources;

2) Decision on disaster emergency status;

3) Rescue and evacuation of disaster-affected community;

4) Fulfillment of basic necessities;

5) Protection for vulnerable group; and

6) Immediate recovery of essential facilities and infrastructure. (Article 21)

During emergency response phase, authorized BNPB Head and BPBD Head shall

mobilize human resources, equipment, and logistics from agency/institution and the

community to initiate actions of emergency response (Article 25).

Participation of social institutions and organizations, business world and communities

shall aim at encouraging greater participation to help reorganizing disaster-prone areas

in a better direction and raise concern in disaster-prone areas (Article 87).

1.2 Theoretical Framework

We intend to conduct this study by applying two stages of analysis:

1) Market and Industry Analysis, and

2) Development of the Business Model Canvas for Retailers for Disaster

Recovery Program.

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The main objective of Industry analysis is to understand the retail industry in Indonesia.

The tools that we use to analyze the industry situation are PESTEL, Porter’s Five

Forces Model, and SWOT Matrix.

In the second stage, we develop a Value Proposition and Business Model using the

Business Model Canvas methodology (Osterwalder & Pigneur, 2010), to guide us

design a more detailed business model. We then augment the business model with a

balanced scorecard strategy map to identify the measurement strategy of the

implementation of the program.

1.2.1 The Balanced Scorecard

The Balanced Scorecard was developed by Robert Kaplan, an accounting professor at

Harvard University, and David Norton, a consultant from the Boston area. Balanced

Scorecard is a carefully selected set of quantifiable measures derived from an

organization’s strategy.

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Source: Paul R. Niven (2003): “Balanced Scorecard Step-by-Step for government and Nonprofit Agencies” 32

Figure 1.2

The Balanced Scorecard

As shown in Figure 1.2, the Balanced Scorecard allows an organization to translate its

vision and strategies by providing a new framework, one that tells the story of the

organization’s strategy through the objectives and measures chosen. It contains four

perspectives: financial, customer, internal business processes, and learning and growth

perspectives.

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In this research, we apply the Balanced Scorecard approach to identify ways to measure

the performance and jot down the key initiatives of Retailers for Disaster

Response/Recovery Program, to assess and evaluate the performance against an

expected target and to identify areas of improvement within the program.

1.2.2 Business Model Canvas (BMC)

The Business Model Canvas was initially proposed by Alexander Osterwalder based

on his earlier work on Business Model Ontology. The Business Model Canvas is a

strategic management and lean startup template for developing new or documenting

existing business models. It is a visual chart with elements describing a firm or

product's value proposition, infrastructure, customers, and finances. It assists firms in

aligning their activities by illustrating potential trade-offs (Osterwalder & Pigneur,

2010).

Business Model Canvas, as shown in Figure 1.3, contains nine blocks: Customer

Segments (CS), Value Propositions (VP), Channels (CH), Customer Relationships

(CR), Revenue Streams (RS), Key Resources (KR), Key Activities (KA), Key

Partnerships (KP), and Cost Structure (CS).

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Source: http://www.businessmodelgeneration.com/canvas/bmc

Figure 1.3

Business Model Canvas (BMC)

In this thesis, we will create a business model for Retailers to conduct operations for

Disaster Response. We will use business model canvas as a tool to elaborate on the

business idea for the retail companies to serve for the community as leverage for the

government in responding to emergency situations.

1.2.3 Value Proposition Canvas (VPC)

A value proposition is a promise of value to be delivered and acknowledged and a

belief from the customer that value will be delivered and experienced. The Value

Proposition Canvas (VPC) is the tool that makes value proposition visible and tangible

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and thus easier to discuss and manage (Osterwalder, 2014). The VPC is given in Figure

1.4.

Source: http://www.businessmodelgeneration.com/canvas/vpc

Figure 1.4 Value Proposition Canvas (VPC)

As shown in Figure 1.4, there are two sides of the VPC:

● A Customer Profile side where you clarify your customer understanding, and

● A Value Map side where you map out how you intend to create value for that

customer.

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In Chapter II, we will design the VPC for the Retailers for Disaster Recovery project.

We will point out “the pains” the users struggle with, and “the gains” which they strive

for, held against the “pain relievers” and “gain creators” the project can offer.

1.3 Problem Definition

The implementation of disaster response in Indonesia still has opportunities for

improvement. Poor disaster response management often times was caused by lack of

coordination and response capacity among central and regional government agencies

and the affected populations. Problems often lie at beneficiary targeting and data

gathering, and during the preparation and delivery of aid supplies. The problem got

worse when the disaster zone spreads across several provinces or regencies causing

more coordination issues as different command structures tend to operate

independently and less coordinated with poor leadership (Koran Jakarta, 2014).

In a recent dialogue on Mitigation and Adaptation of Catastrophe in Indonesia hosted

by The association of Indonesian Postgraduate Students and Scholars in Australia

(AIPSSA) that took place in Perth on March 1st, 2014, the panel recognized the need

for the private sector’s role based on their respective competencies as one of the key

prerequisites for effective disaster management based on Australia’s experience, along

with the development of technological, financing and communication systems

(Consulate General of the Republic of Indonesia in Perth, 2014). Many Indonesians

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would expect that such a problem would be expected to happen in remote islands of

Indonesia. Unfortunately, coordination issues remain existent at Jakarta level, as

observed by Dr. Sutopo Purwo Nugroho, the Head of Data, Information and Public

Relation of BNPB on the operational challenges related to logistics, lack of response

assets and inadequate response skills from the local authorities during the January 2013

flood in Jakarta (Detikcom, 2013). Similar complaint was also reported during

Sinabung eruption where local Karo district government was criticized for failing to

respond effectively to the situation (East Asia Forum, 2014).

The occurrences of such recent deficiencies in terms of operational implementation

offers opportunity for private sector, particularly the retail company, to play a role in

providing logistical support to the government in disaster response operations. Such an

opportunity will be potentially alleviate the burden of hardship among the population

that are directly affected by the disaster.

1.4 Business Idea

Source: “HUMANITARIAN LOGISTICS: Enabling Disaster Response”

Figure 1.5

The Supply Chain for Humanitarian Relief

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The typical humanitarian process flow is as shown in Figure 1.5. The process consists

nine parts, which are Preparedness, Assessment/Appeals, Resource Mobilization,

Procurement, Transportation Execution, Tracking & Tracing, Stock/Asset

Management, Extended Point of Delivery, and Performance Evaluation.

We realize that currently the lack of awareness among business establishments in terms

of disaster preparedness in Indonesia is reflected by the annual economic damage

US$761,344,000 (1980-2010) (Prevention Web), demonstrating the level of

commitment that those establishments have in reducing the impact of disaster risks on

their businesses. The purpose of our business idea is firstly, to set up a platform that

serves as a bridge between disaster preparedness and response, across the supply chain

processes, and within the coverage of Indonesia’s national boundaries. Secondly, the

program will enhance the effectiveness and speed of response for the government

agencies, non-retail companies and other companies that have expressed interest that

would like to channel their contributions through the program.

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Figure 1.6 Process of the Business Idea Generation

Briefly, we named our program “READY”, which stands for Retailers for Disaster

Recovery detailed in Figure 1.6 above. The business plan is for retail companies that

will utilize their supply chain networks to offer quick disaster response support to the

government agencies, non-retail companies and other institutions and to the public

when disaster strikes. Distribution Centers strive to remain open and deliver the

emergency aid packages and basic services to disaster shelters, by ensuring that

business continuity planning and management is in place when disaster strikes.

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Our aim is to link the retail company to work together with local government to raise

awareness of their operation in risk management, to reduce overlaps, redundancy and

ensure effective use of public funds. With many retailers stores spread throughout

Indonesia and is also located close to possible disasters such as illustrated in Figure

1.1. It will be very helpful if in the area of disaster every store as part of the retail

distribution network to stay open and ready to serve when disaster strikes. Cluster of

stores within the same vicinity will offer emergency aid packages and serve the affected

populations. In such a situation, standardization of aid packages categorized by

beneficiary types will help sustain the supply chain required across the retail

companies. In realizing this objective, supply and needs planning, introduction of

product/packaging design and nutritious contents that meet the minimum nutritional

values defined internationally.

The new approach that retail company performs kitting and delivery the aid package to

victims will allow the government to leverage on the strength of the retail distribution

network. It is not intended to replace the traditional aid as yet since the retail

distribution network is yet at the stage of providing full geographical coverage within

Indonesia. It also requires the retail companies to share this vision, to coordinate better

and to collaborate more intensively in the long run.

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1.5 The Benefit of the Study

By developing a business model canvas we can define how the READY Program will

work, particularly on the operational side and to ensure that the program address the

immediate needs sustainably. We also believe that this study can give benefits for:

● Community

During a disaster, loss of lives are caused by late arrivals of the relief supplies. If

this program is launched, the victims will be able obtain aid package at first

opportunity, which will reduce the chance of death, save more lives, and restore

livelihoods.

● Retail Company

During the initial phase, the program will initially complement the CSR

(Corporate-Social-Responsibility) that exist at present before it is officially

integrated into it, giving way for business continuity implementation in the

organization to take place concurrently. This approach offers several benefits:

- Business continuity was recognized as a rising discipline and is a growing

concern within all participating organizations.

- Retail companies may pursue wider operational risk management programs, for

reasons of compliance.

- Risk management processes established for Corporate Governance, Food

Safety or Health and Safety purposes formed the basis of BCM.

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- Retail Company will be in a better position to establish high credibility towards

its customers.

- Easier to recruit employees, employees may stay longer, reducing the costs and

disruption of recruitment and retraining.

- Ideal opportunities to generate positive press coverage.

- Good relationships with local government and authorities make doing business

easier.

- Retail company will be more competitive and reduces the risk of sudden

damage to reputation (and sales). Investors recognize this and are more willing

to finance retail company.

● Government of Indonesia

The Government of Indonesia is intended to be the biggest beneficiary of this

program. If it successfully launched, the government will reap the following

benefits:

- Ideal opportunities to generate positive press coverage.

- A sizeable and reliable partner in the retail industry.

- The presence of a platform and network to support relief supplies on timely

basis, and leverage the capacities of retail companies during disaster situations.

- An innovative approach to disaster response involving multi stakeholders.

- Better, faster and more reliable response to disaster emergencies.

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● The Public (Individual Donors)

Through READY program, we will offer the possibility to raise funds from

individual donors. For the individual donors, the program will offer the

opportunity for them to donate either through conventional mechanism of going

to the stores or through an online web interface. Such a facility aims to establish a

platform that connects the population of Indonesia to collectively participate in

life-saving measures, and to contribute to the betterment of the society. It allows

them to fulfill their aspiration to help others in a more efficient way.

● Humanitarian organizations in Indonesia

The Humanitarian organization includes:

- United Nations bodies and agencies

- International and local Non-governmental Organizations (NGOs)

- Red Cross Societies

The program will support the work of all the above humanitarian organizations,

during disaster situations.

1.6 The Scope of the Study

The scope of the study is limited to create a business model for a retail company to

enhance the effectiveness of disaster emergency response in Indonesia. This research

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focuses on the opportunities and the preparation required by retail companies to lend

its expertise and capabilities, in support of the NDMO and the Government in the area

of disaster preparedness and response domestically in Indonesia.

We will initiate our research from the needs of the beneficiaries, identifying the roles

of program users / customers (both institutional and individual) and partners,

identifying gaps and possible ways to close them and analyzing how retail company

can play a role in relieving the burden of the affected populations.

We will collect and analyze data based on interviews with individuals that represent

the program users and conduct survey within the retail company, humanitarian

practitioners, academia and private sector employees, to assess the feasibility of

READY Program and how it is best implemented.

In terms of timeline, we will set up business plan according to three different time

period. Our business plan will be divided into short-term, middle-term and long-term

plan. In terms of geographical scope, we will conduct the interviews with

representatives of program users / customers who are located within greater Jakarta due

to research time constraints and conduct survey by reaching the respondents across

Indonesia.

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For the purpose of our study, we will base our prototype of READY Program design

within the operational context of Alfamart. We chose Alfamart as it possesses adequate

operational capability and resources to implement the READY program (widespread

distribution center, historical CSR experience), and also due to the accessibility of data

and resource persons from Alfamart.

The operational scope of READY Program involves the following:

- Setup and maintain platform for public donation;

- Define requirements and processes for government, other customers and key

partners to participate in the program;

- Design the standardized aid package according to government’s requirements;

- Kitting of aid packages in the distribution center; and

- Delivery of aid packages to the aid recipients.