FACTORS AFFECTING SUPPLY CHAIN PERFORMANCE IN HUMANITARIAN...
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SUPPLY CHAIN PERFORMANCE IN HUMANITARIAN ORGANISATIONS IN KENYA BY JANE KIENDE KINYUA A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION, UNIVERSITY OF NAIROBI 2013
Transcript of FACTORS AFFECTING SUPPLY CHAIN PERFORMANCE IN HUMANITARIAN...
SUPPLY CHAIN PERFORMANCE IN HUMANITARIAN
ORGANISATIONS IN KENYA
BY
JANE KIENDE KINYUA
A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTER IN BUSINESS
ADMINISTRATION, UNIVERSITY OF NAIROBI
2013
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DECLARATION
I hereby declare that this research project is my original work and has not been presented for
examination to any other university
Signed: ______________________ Date: ___________________
Jane Kiende Kinyua
REG. D61/70680/2008
This Research project has been submitted for presentation with my approval as University
Supervisor.
Signed: _____________________ Date: __________________
Supervisor: Mr. Akelo Ernest O
Lecturer Department of Management Sciences
School of Business, University of Nairobi
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DEDICATION
To the Humanitarian workers who give their all, in advancing service to humanity.
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ACKNOWLEDGEMENT
My greatest gratitude and appreciation goes to my Research Project supervisor Mr. Akelo Ernest
for his tireless commitment and insightful guidance, I will forever be indebted to him. I would
like to thank most sincerely my husband, son and my parents for their support and
encouragement. To my course colleagues, your encouragement and support brought me this far.
My appreciation to all the respondents who provided information that formed an integral part of
this study. God bless you all.
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ABSTRACT
Supply chain performance is critical during emergencies, in an effort to prevent loss of lives and
property. Despite this, many studies have focused on supply chain performance in manufacturing
and commercial organizations whose focus is to deliver value to customers in order to make
profit. The main objective of the study was to address this gap by establishing factors affect
supply chain performance in humanitarian organizations in Kenya. The researcher adopted a
descriptive research design and selected 40 respondents out of total population 70 humanitarian
organizations through systematic sampling. Data was collected through structured questionnaire
and key informant interviews. Data was analyzed using SPSS version 17 through application of
descriptive statistics, cross –tabulations and binary logistic regression. Half of humanitarian
organizations have non performing supply chains. Only one third of supply chains met deadlines,
while half were flexible to changes in project demands. The skewed supply chain performance
was largely attributed to financial limitations, government bureaucracy, infrastructure challenges
and environmental limitations. Further analysis using cross tabulation and chi-square revealed
that financial limitations, government bureaucracy, infrastructure challenges, environmental
challenges, procurement delays showed statistically significant association with supply chain
performance. The study found no significant association between cultural and other contextual
restrictions with supply chain performance, except in circumstances where staff deployment was
concerned. On the effect on various factors on procurement performance, the study found that
organizations that experienced government bureaucracy and infrastructure challenges were
several times more likely to have non –performing supply chains. Other factors with significant
effects included, resistance to staff deployment, financial limitations and diversion of supplies.
The study recommended custom made all inclusive supply chain packages for humanitarian
organizations and policy level attention to government restrictions and infrastructure
improvement. Suggestions for further research include; comparative study targeting corporate
sectors, development projects and specific emergencies in other geographical areas. A wider
study encompassing all stakeholders’ views and operations research are also recommended.
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TABLE OF CONTENTS
DECLARATION........................................................................................................................... ii
DEDICATION.............................................................................................................................. iii
ABSTRACT ................................................................................................................................... v
TABLE OF CONTENTS ............................................................................................................ vi
LIST OF TABLES AND FIGURES ......................................................................................... viii
ABBREVIATIONS AND SYNONYMS .................................................................................... ix
CHAPTER ONE: INTRODUCTION ......................................................................................... 1
1.1 Background of the Study .......................................................................................................... 1
1.1.1Supply Chain Performance ..................................................................................................... 1
1.1.2Humanitarian Organisations in Kenya .................................................................................... 2
1.2 Problem Statement .................................................................................................................... 3
1.3Research Objectives ................................................................................................................... 5
1.4 Value of the Study .................................................................................................................... 5
CHAPTER 2: LITERATURE REVIEW ................................................................................... 6
2.1 Introduction ............................................................................................................................... 6
2.2 Supply Chain Performance ....................................................................................................... 6
2.3 Governmental Situational Factors............................................................................................. 7
2.3.1 Collaboration by all Stakeholders .......................................................................................... 7
2.3.2 Political / Government Related Factors ................................................................................. 8
2.4 Socio-Economic Situational Factors ......................................................................................... 8
2.4.1 Uncertainty in Demand and Supply ....................................................................................... 9
2.5 Infrastructure Situational Factors ............................................................................................ 10
2.5.1 Technological Factors .......................................................................................................... 10
2.5.2 Communication and Information ......................................................................................... 10
2.5.3 Transport .............................................................................................................................. 11
2.6 Organizational Internal Factors............................................................................................... 11
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2.6.1 Resource Mobilization (Financial Mobilization and Human Resource) ............................. 12
2.6.2 Procurement ......................................................................................................................... 12
2.6.3 Emergency Planning/ Preparedness ..................................................................................... 12
2.7 Conceptual Framework ......................................................................................................... 13
CHAPTER THREE: RESEARCH METHODOLOGY ......................................................... 15
3.1 Introduction ............................................................................................................................. 15
3.2 Research Design...................................................................................................................... 15
3.3 Target Population of the Study ............................................................................................... 16
3.4 Sampling ................................................................................................................................. 16
3.5 Data Collection ....................................................................................................................... 17
3.6 Data Analysis .......................................................................................................................... 17
CHAPTER FOUR: DATA ANALYSIS, RESULTS AND DISCUSSION ............................ 19
4.1Descriptive Analysis of the Background Factors ..................................................................... 19
4.2. Status of the Supply Chain Performance in Humanitarian Organizations ............................. 21
4.3. Factors Associated With Supply Chain Performance ............................................................ 22
4.4 The Effect of Various Factors on Humanitarian Supply Chain Performance ........................ 25
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS ...................... 29
5.1 Introduction ............................................................................................................................. 29
5.2 Summary ................................................................................................................................. 29
5.3 Conclusion .............................................................................................................................. 31
5.4 Recommendations ................................................................................................................... 31
5.5 Suggestions for Further Research ........................................................................................... 33
REFERENCES ............................................................................................................................ 34
APPENDICES ............................................................................................................................. 36
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LIST OF TABLES AND FIGURES
Table 4.1: Organizational Internal Factors……………………………………………….. 19
Table 4.2: Government Situational Factors……………………………………………….. 20
Table 4.3: Infrastructure Situational Factors………………………………………………. 20
Table 4.4: Mode of Transport……………………………………………………………… 20
Table 4.5: Range of Transport costs……………………………………………………...... 21
Table 4.6: Socio-Economic Situational Factors………………………………………….... 21
Table 4.7: Summary of Supply chain performance ……………………………………….. 22
Table 4.8: Reported reasons for Poor Supply chain Performance ………………………… 22
Table 4.9: Association Between Financial Resources and Supply chain Performance...… 23
Table 4.10: Association between Infrastructure and Supply chain performance…………… 23
Table 4.11: Association between Environmental situation and Supply chain Performance... 23
Table 4.12: Association between Procurement Delays and Supply chain Performance……. 23
Table 4.13: Association between socio-economic factors and supply chain performance ... 24
Table 4.14: Association between Cultural restrictions and supply chain performance……. 24
Table 4.15: Association between government Bureaucracy and Supply Chain Performance 25
Table 4.16: Effect of Financial sufficiency on Supply Chain Performance ………………. 26
Table 4.17: Effect of government Bureaucracy on Supply Chain Performance …………... 26
Table 4.18: Effect of Infrastructure on Supply Chain Performance ………………………. 26
Table 4.19: The Effects of Socio- Economic factors on Supply Chain Performance............. 27
Table 4.20: Local Restrictions to Staff Deployment on Supply Chain Performance……… 28
Table 4.21: The Effect of Environmental Factors on Supply Chain Performance………... 28
LIST OF FIGURES
Figure 4.1: Conceptual framework………………………………...………………….............. 14
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ABBREVIATIONS AND SYNONYMS
IMF International Monetary Fund
PEV Post Elections Violence
NGOS Non-Governmental Organisation
SPSS Statistical Package for Social Sciences
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
The number of people affected by disasters, that is, events with negative consequences for
humans, has risen at an alarming pace (Walter, 2003). Over the past two years, 700 natural
disasters were registered worldwide affecting more than 450 million people, according to a new
IMF study. During the 1990s, the number of people affected was nearly three times higher than
during the 1970s (Fisher, 1997). This is due to both population growth and the rise in the number
of disasters. The World Bank reports that the risk of death, destruction, and suffering has
increased due to accelerated changes in demographic and economic trends (Kreimer &
Munasinghe, 1991). More people are threatened by natural disasters than ever before, either by
choice or through increased weather related incidents. The vast majority of those affected by
emergencies and natural disasters live in developing countries. The poverty, crowded conditions,
and environmental degradation experienced by these people make them the most vulnerable and
least able to help themselves.
1.1.1 Supply Chain Performance
Supply chain performance is the entire chain's ability to meet end-customer needs through
product availability and responsive, on-time delivery. Supply chain performance crosses both
functional lines and company boundaries. Functional groups (engineering, manufacturing, and
sales/marketing) are all instrumental in designing, building, and selling products most efficiently
for the supply chain, and traditional company boundaries are changing as companies discover
new ways of working together to achieve the ultimate supply chain goal: the ability to fill
customer orders faster and more efficiently than the competition (Fisher, 1997).
A supply chain is essentially a network consisting of suppliers, manufacturers, distributors,
retailers and customers. The network supports three types of ‘flows’ that require careful design
and close coordination. The first is material flows, which represent physical product flows from
suppliers to customers as well as reverse flows for product returns, servicing and recycling. The
second is information flows, which represent order transmission and order tracking and which
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coordinate the physical flows. The third is financial flows, which represent credit terms, payment
schedules and consignment arrangements (Kleindorfer and Van Wassenhove, 2004).
Humanitarian supply chain performance is measured is three aspects delivery, reliability,
flexibility and responsiveness. In humanitarian actions, delays in delivery or relief can cost lives.
Therefore, efficiency and reliability in supply chain is a key success factor, because it ensures the
smooth flow of goods and services. To save lives and alleviate suffering, the response to
international emergencies must be timely, effective, appropriate, and well organized.
According to Heasip et al (2004), when applied to humanitarian action, the supply chain needs to
be flexible and able to respond quickly to unpredictable events effectively and efficiently budget
constraints. Flexibility can be rightly regarded as a critical one. Being flexible means having the
capability to provide products/services that meet the individual demands of customers. During
disasters the supply chain is not as demanding because the internal infrastructure of the affected
area is still intact. Responsiveness has many aspects requisition lead time purchase order lead
time, supplier lead time, transit time and days of inventory. According to Kunz and Reiner
(2011), the factors affecting environmental situational factors, government situational factors,
socio-economic situational factors and infrastructure situational factors.
1.1.2 Humanitarian Organisations in Kenya
The primary objective of humanitarian organizations is to save lives, alleviate suffering and
maintain human dignity during and in the aftermath of man-made crises and natural disasters, as
well as to prevent and strengthen preparedness for the occurrence of such situations (Huber,
1981). There are many humanitarian organizations operating in the Developing World, Kenya
included (Kariuki, 2010). These organizations can be broadly divided into two categories: those
that are purely originated and managed by Kenyans and those that are foreign in origin and
control (Kariuki, 2010). There are a myriad of humanitarian organizations in Kenya with the
collective obligation of striving to meet humanitarian needs (Kariuki, 2010).
According to Kariuki, (2010) these organizations provide humanitarian assistance in ways that
are supportive of recovery and long-term development, striving to ensure support, where
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appropriate, to the maintenance and return of sustainable livelihoods and transitions from
humanitarian relief to recovery and development activities. A case in point on the important role
played by humanitarian organizations was the assistance of the 2008 post-election violence
(PEV) victims.The humanitarian organizations in Kenya rely on donor funding to finance their
operations and hence the enormous accountability responsibility (Lim, 2009). Their procurement
processes are subject to periodic audits to get the internal and external assurance that the
principle of value for money and accountability is observed (Lim, 2009).
1.2 Problem Statement
There has been pressure on humanitarian organisations to respond to emergencies in organised,
timely, effective and appropriate manner. For decades supply chain performance has been a
major area of attraction for researchers. However studies have established the factors affecting
supply chain performance in manufacturing and commercial organisations whose focus is to
deliver value to customers in order to make profit Reichhart (2007). One of the differences
between supply chains for business and for humanitarian actions is the main focus. In business,
the focus is the final consumer, who is the input source of funds for the entire chain. In the
humanitarian case, the end user rarely participates in a business transaction, having little control
over supplies. The humanitarian supply chain focusses on providing humanitarian assistance in
the forms of food, water, medicine, shelter, and supplies to areas affected by large scale
emergencies.
Beamon (2004) and Van Wassenhove (2006) describe the unique characteristics of the disaster
relief environment and compare and contrast humanitarian relief chains and commercial supply
chains. The conclusion was there were fundamental differences between commercial supply
chains and humanitarian relief chains in terms of their strategic goals, customer and demand
characteristics, and environmental factors. Thomas (2002) described a method to quantify the
reliability of supply chains. Using reliability interference theory, he measured reliability in
contingency operations, such as national disasters, that require immediate responsive operations.
Swafford (2006), Brewer (2000) carried out studies on humanitarian supply chain and measuring
supply chain performance using balanced scorecard respectively, but the studies were narrow in
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scope and did not examine the factor affecting supply chains. Walton and Mays (2009) carried
out research factors affecting the experience of speed in humanitarian logistics and identified a
relationship between decision-making and perceptions of speed.
Abdifatah (2012) carried out a study on supply chain management practices and their impact on
performance among humanitarian organizations in Kenya. The study findings indicated that
maintaining good supplier relation, effective and efficient internal operations, continuous
improvement, flexible production processes, use of technology to speed up humanitarian work,
inter-organization integrations and simplicity in internal operations are among the practices
prevalent among humanitarian organizations in Kenya. Nyamu (2012) carried out a study on
impact of supply chain management challenges on humanitarian organizations in Kenya. The
effects of supply chain challenges on performance of humanitarian organizations are: delay in
the delivery of the right products, poor information integration, and uncertainty in demand
among others.
These studies have left an obvious research gap on examining the factors affecting humanitarian
supply chains, which need to be bridged to ensure that humanitarian supply chains are improved
and managed on the basis of informed evidence. This study will be an effort to examine these
factors and address this gap. Supply chain performance has been treated as a corporate and
manufacturing domain, yet in humanitarian response, it remains the most critical component of
life saving efforts. Despite this, little is known about supply chain performance and associated
factors as most studies remained focused on private sector with intentions of improving
efficiency and profit making. The findings of such studies may not necessarily apply in
humanitarian response due to varying contexts, objective and emergency instigated parameters.
This study is mooted in this understanding considering that humanitarian supply chains are
clearly unstable, unpredictable, and requiring flexibility to respond the affected people as quickly
as possible. The study will be guided by focus to answer the following research questions: What
factors affect supply chain performance in humanitarian organisations? To what extent are each
of the factors associated with supply chain performance in humanitarian organisations?
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1.3 Research Objectives
The general objective of the study is to examine the status and factors that affect humanitarian
supply chain performance.
The study sought to achieve the following specific objectives:
1. To establish the effect of socio-economic situational factors on humanitarian supply chain
performance
2. To establish the effect of organizational internal factors on humanitarian supply chain
performance.
3. To establish the effect of governmental situational factors on humanitarian supply chain
performance.
4. To establish the effect of the infrastructure situational factors on humanitarian supply chain
performance
1.4 Value of the Study
The study findings are of great significance to all stakeholders interested in the humanitarian
response. The study sought to determine factors affecting supply chain performance in
humanitarian response. The findings will also be vital as reference tools for future research on
humanitarian supply chain performance. From the study findings, conclusion and
recommendations, it will be easier to strategize on how to address the gray areas in humanitarian
supply chain performance in Kenya and by extension all other developing countries in the world.
Humanitarian supply chain is a critical element of a successful relief operation as it focuses on
the efficient management of flows of goods, information and services, to respond to the urgent
needs of the affected populations under emergency conditions, such as those encountered during
and after natural or man-made disasters. In particular, effective and efficient supply chain
management enables humanitarian organizations to make the best use of resources, by matching
the available supplies with the highest priority needs in the shortest possible time, under the
constraint of limited funding (Van Wassenhove, 2006). This study adds to the existing body of
knowledge informing supply chain management in the right context using empirical evidence
from supply chain practitioners.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
This chapter explores existing pertinent literature about factors that affect supply chain
performance in humanitarian response. Emphasis is made on various factors informed by theory
and conceptual framework developed by Kunz and Reiner (2011) which entailed a thorough
analysis of a number of related studies. A number of factors have been associated with
humanitarian supply chain performance in different contexts and situations. The nature of
association between performance and these factors is not well documented through empirical
research. The study will therefore examine the factors by collecting and analysing data to
establish the nature and extent of association with humanitarian supply chain performance.
2.2 Supply Chain Performance
Srinivasan (2011) defined supply chain performance for a firm as the performance of the various
processes included within the firm’s supply chain function. Examples of measures specifically
used to assess supply chain performance of a firm include supplier performance (Davis, 1993),
customer satisfaction (Christopher, 1994), inventory costs, number of on-time deliveries, product
availability performance and customer response time (Beamon, 1999). There exists several other
performance measures that have been widely used in supply chain performance evaluation
models for cost minimization (Cohen & Moon,1990; Lee & Feitzinger,1995),sales maximization
(Hammel & Laura,1993),profit maximization(Cohen & Lee,1989), inventory investment
minimization(Lee&Billington,1993), return on investment maximization(Christopher,1994),
stock-out probability minimization(Ishii, 1988), buyer-supplier benefit maximization(Christy &
Grout, 1994).
The several metrics of supply chain performance enable firms to have a benchmark to assess
their supply chain performance including internal and external firm. The application of internal
linkage performance metrics results in elimination of non-value added activities, reduction in
order variation, faster product flows, more efficient use of time, material and human resources,
and reduction of the bullwhip effect (Frohlich & Westbrook, 2001). Benefits of usage of external
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linkage performance metrics include the creation of end-customer value through closer
integration
2.3 Governmental Situational Factors
Government situational factors, such as the type of regime, the national regulations toward relief
organizations, the efficiency of the state, the level of corruption, are factors which influence
organizations’ operational decisions and their ability to conduct humanitarian logistics
operations. A government which is suspicious of relief organizations’ activities will, for
example, tend to restrict the entry of staff and goods in the country in the aftermath of a disaster
(Seekins,2009), while a cooperative government will welcome relief organizations on its
territory (McLachlin and Larson, 2011; Van Wassenhove, 2006). The security context in a
country is also dependent from the government (or its absence), and strongly impacts the
performance of the logistics response (Long and Wood, 1995).
2.3.1 Collaboration by all Stakeholders
The supply network is huge and complicated with numerous players (donors, NGOs,
government, military, and suppliers), and it is hard to coordinate all of them along with all the
items that need to be delivered.Disasters place extraordinary stress on the logistics of responding
organizations. Coordination can reduce and manage the stress. The systematic use of policy
instruments to deliver humanitarian assistance in a cohesive and effective manner. Such
instruments include: strategic planning, gathering data and managing information, mobilizing
resources and assuring accountability, orchestrating a functional division of labour in the field;
negotiating and maintaining a serviceable framework with host political authorities; and
providing leadership (Minear, 2002).
Coordination must fight against humanitarian organizations' strategies for survival. These
organizations operate in a market. They must all generate and sustain resources in order to
survive. Fund raising strategies depend on skills such as the marketing of suffering, enhancing
image, buying donor fashions, competing for credit and visibility, and selectively avoiding
coordination mechanisms (Walkup, 2001). These activities guarantee survival. Coordination is
usually seen in a positive light. Each situation faced by organizations working in relief options is
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unique. The ever-changing shape of natural disasters and man-made conflicts continuously
presents new challenges. Coordination issues often arise. Many authors argue that coordination is
important due to possible gains in program effectiveness, although there is no consensus on what
is meant by effectiveness (Minear, 2002; McEntire, 1997). Responses must be coordinated, both
among NGOs and in regard to the broader emergency (Okasaki, 2003). Advantages can be found
in pooling information and resources and in forming alliances that allow each organization to
contribute its core competence.
2.3.2 Political / Government Related Factors
Governments hold the main power with the control they have over political and economic
conditions and directly affect to supply chain processes with their decisions. Donors, public and
private organisations are the other significant players in the humanitarian supply chains. Donors
have become particularly influential in prompting humanitarian organisation to think in terms of
greater donor accountability and transparency of the whole supply chain (Wassenhove, 2006).
According to Oloruntoba and (Gray 2007), a major difficulty in coordinating the humanitarian
supply chain has strong ties to the political interests and military forces of donors and recipient
countries, the requirements of the industry of donors, and the lack of coordinated plans.
Others factors include; the type of regime, the national regulations toward relief organizations,
the efficiency of the state, the level of corruption, and their which influence organizations’
operational decisions and their ability to conduct humanitarian logistics operations. Restrictions
of entry of staff and goods in the country in the aftermath of a disaster (Seekins, 2009), are
common in oppressive governments while a cooperative government will welcome relief
organizations on its territory (McLachlin and Larson, 2011; Van Wassenhove, 2006). The
security context in a country is also dependent from the government (or its absence), and
strongly impacts the performance of the logistics response (Long and Wood, 1995).
2.4 Socio-Economic Situational Factors
Socio-economic situational factors, such as the type of market economy, the presence of local
suppliers, the level of education of the population, the local culture and religion will oblige relief
organizations to adapt their operation to the context, and can affect the performance of
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humanitarian logistics (Altay et al., 2009; Dowty and Wallace, 2010; Kandiyoti, 2007; Leon et
al., 2009; Maon et al., 2009). In a well-developed economy, some basic supplies can be
purchased from local suppliers, and staff can be hired locally for logistical activities. In a less
developed context, all supplies have to be imported and most tasks must be managed by
expatriate staff.
2.4.1 Uncertainty in Demand and Supply
Another important capability is the ability to cope with uncertainty. Demand uncertainty is
relatively quickly resolved as the humanitarian supply chain is activated. The first assessment
provides a baseline of needs that evolves as the relief operation unfold. The customers in a
disaster supply chain include the population at the affected area, as well as intermediate
customers at local or global storage facilities. Their needs change significantly according to
disaster types and the phases in the disaster timeline. Dependency of demand in disasters on
these hard to measure factors and its high uncertainty are the main differences from the demand
in regular supply chains. Unlike logisticians in the private sector, humanitarian workers are
always faced with the unknown: when, where, what, how much, where from and how many
times; in short, the basic parameters needed for an efficient supply chain setup are highly
uncertain (Van Wassenhove, 2006).
Disaster demand forecasting is also difficult due to the lack of historical data. Even though there
do exist some databases from the past experiences prepared by both NGOs and governments,
they are occasionally inadequate because of inconsistent and/or insufficient data collection and
reporting problems. Additionally, disasters are unique even if they occur in the exact same
location, since other factors such as population structure or economic conditions could have
changed since the previous occurrence. Hence, historical data is not always very useful for
predicting future demand. Improved information on real demand would also facilitate market
sensitivity. Quick estimates of needs calculated when a disaster strikes often incorporate errors.
There are wastage rates of up to 30% in aid delivery in some post-crisis situations (Pettit and
Beresford, 2009). However, if real demand was known (or at least reliably estimated) and
measured, these errors could be reduced or eliminated, leading to more efficient operations and
potentially decreasing suffering
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2.5 Infrastructure Situational Factors
Infrastructure situational factors, such as the availability of a road network, railway, airports,
power supply, play an important role in the performance of humanitarian logistics (Chakravarty,
2011). Indeed, the existence of a well-developed road infrastructure will, for example, facilitate
the logistical operations, while a poor road network tends to disrupt and slow down the
distribution of relief items, for example. The presence of an airport close to the disaster location
will facilitate, for example, the delivery of relief aid.
2.5.1 Technological Factors
During a disaster, communication is as important as food and water. A disaster can damage
telecommunication infrastructure. If an event happens in a densely populated area, thousands of
people can try to make calls at the same time overloading the system. Humanitarian supplies
need robust equipment that can be set up and dismantled quickly enabling them to be extremely
adaptable and prepared for the unexpected as circumstance scan change very quickly from one
moment to the next. Unfortunately, logisticians in this sector often have to work with fragmented
technology and poorly defined manual processes. There are greater issues of safety as they may
be operating in a politically volatile climate. They often work under high levels of uncertainty in
terms of demand, supplies and assessment. Then there is the added pressure of time which, in
this context, is not just a question of money but a difference between life and death.
2.5.2 Communication and Information
Regardless of the type of uncertainty affecting the humanitarian supply chain, information
management can help to reduce the complexity brought about by uncertainty. That is what
several initiatives driven by the humanitarian agencies attempt to do through designing a
common language, increasing visibility, and promoting collaboration. Disaster relief operations
are carried out by humanitarian agencies who, unlike private companies, do not share the same
explicit profit incentives to collaborate and exchange information. Information management can
help increase visibility and foster transparency in the humanitarian supply chain. Overall,
agencies investing in information management can help facilitate the response by creating
greater visibility of the needs and more accountability among the different actors involved.
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2.5.3 Transport
Transportation makes it possible for assistance to reach those in need. Transportation in a
disaster or humanitarian emergency can run the gamut. It can involve global sourcing, drop
shipment, military transport, commercial transport, non-commercial transport, third-party
logistics firms, freight forwarders, charter aircraft, or even local transportation such as mules and
donkeys. Goods are often brought into a country at an entry point and then moved to collection
sites run by relief organizations. In relief work, both in disasters and complex humanitarian
emergencies, damaged infrastructure, inaccessible infrastructure, and the lack of infrastructure
needed for large-scale assistance lead to bottlenecks, delays, and congestion at entry points to the
disaster area.
As goods flood into a region, they can be held up at the ports, border crossings, and airports due
to lack of transportation, permission to enter certain areas, or even. Emergency humanitarian
logistics operations frequently require the involvement of several governments and independent
NGOs, as well as the use of a number of transport modes (Beresford and Rugamba,
1996).International humanitarian operations may be hindered by administrative and logistical
bottlenecks because of poor infrastructure in the aid-receiving region and the multiplicity of
agencies and governments (Van Wassenhove and Samii,2003), and are often in conflict zones,
thus hindering efficient delivery and distribution of relief cargoes to the needy (Van Wassenhove
and Samii, 2003). Coordination may be inadequate (Auf der Heide, 1989) because of
geographical dispersion, insufficient or inaccurate communication between the field and the head
offices of humanitarian organisations, and between different organisations.
2.6 Organizational Internal Factors
According to Slack and Lewis, (2002) organisations enablers resources, processes and
capabilities. If there is a gap (unsatisfactory performance), it is assumed that relief organizations
will adapt their strategies, thus dealing with the operational decision areas (allocation of
resources, level of cooperation, outsourcing, etc.), in order to reach a strategic fit between the
enablers and the requirements of the beneficiaries. As presented in Figure 1, relief organizations’
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enablers (resources, processes and capabilities) are influenced by the availability of donations,
which in turn is influenced by the requirements of the beneficiaries and by performance as well.
2.6.1 Resource Mobilization (Financial Mobilization and Human Resource)
Before the response to a disaster begins, an organization obtains and sets into motion resources.
Financial resources must be mobilized to begin procurement, to send personnel across the globe,
and to acquire vehicles, warehouses, and other tangible parts of the relief supply chain. Human
resources must be mobilized. The scarcity of trained and experience logistics personnel lead to
significant organizational reassignments. With no local capacity or staff, organizations pulls
logistics people from other programs and disasters. This possibly reduces the effectiveness of
relief efforts. Further, organizations may have ineffective processes to develop logistics skills in
local staff. Limited human resources are the result of high staff turnover and a scarce pool of
qualified and readily deployable personnel, whereas capital resources are subject to
unpredictable donations that limit the liquidity of managers in the field.
2.6.2 Procurement
Emergency supplies enter the relief chain through different sources, forms, and locations. They
can be given as donations, grants, or gifts-in-kind (non-monetary goods and/or services). These
donations can be solicited or unsolicited. Often unsolicited donations are goods that are not a
priority and have not been requested. Aid can be multilateral, administered by international
institutions which collect resources from countries and redistribute them, or bilateral, given
directly from a donor government to a recipient country. Procurement can be done at the local
level or sourced globally. Goods can be acquired in many different ways such as in bulk or
stored at the vendor until needed.
2.6.3 Emergency Planning/ Preparedness
Before a disaster, logistical procedures and activities must be planned. Improvised procurement
and transportation activities are less effective. A plan includes what tasks are to be done, what
part of the organization will be responsible, and how to procure needed resources. They must
also have a national or regional plan based on the vulnerabilities of the infrastructure, the
logistical support in the area, and governmental emergency response abilities. It is not possible to
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anticipate how crises evolve, but it is advantageous to have a plan. If proper planning is in place
with realistic if-then-else cases, implementation can be less challenging (Koech, 2005).
When disaster strikes and the needs peak, it is already too late to develop solutions that were not
in place before. Even though every disaster may be different, the process of responding to them
remains relatively similar in all cases. A needs assessment must be carried out to determine what
goods and services are required. Donations and procurement processes are mobilized to meet
those needs. Trained staff is assigned to receive and distribute the goods, while specialized teams
carry out the services (e.g., medical, telecommunications, water and sanitation). Embracing
supply chain management as a central function to respond to disasters is a process humanitarian
agencies only formally started in the last decade. Focusing on supply chain structures and
processes to respond to disasters is important to improve preparedness.
2.7 Conceptual Framework
The focus of this study is to examine the factors that affect supply chain performance in
humanitarian response. This study had nine independent variables that were investigated in
relation to the dependent variable. The independent variables comprised of factors such as;
Collaboration, between stakeholders, Political pressure, Uncertainty in demand and supply,
Planning, Technology, Communication and information, Resource mobilization, Procurement
and Transport/Logistics
The independent variables were investigated with a view to finding their effect on supply chain
performance in humanitarian response. This is represented in figure 1. The model demonstrates
that a number of factors are associated with the supply chain performance. These include; socio-
economic situational factors, environmental situational factors, government/political situational
factors, infrastructure, organizational internal factors and demand /supply factors. The variables
of each are outline in the framework as follows.
14
Fig 2.1: Conceptual Framework; Humanitarian Supply Chain Management
Background Variables Proximate variables Dependent Variable
Direction of relationship
Modified from Kunz and Reiner (2011).
Socio-Economic
situational factors
Environmental
situational factors
Government
Situational factors
Funding Status
Organizational
factors
Supply chain
Decisions
Supply Chain
Performance
15
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
This chapter provides a discussion of the research methodology that was used in this study. It
discusses effective approaches employed in sampling, data collection as well as data analysis.
This was important in ensuring that the study addresses the set objectives and in turn answered
the research questions on which it is founded.
3.2 Research Design
The study was descriptive in an effort to generate pertinent information and supplement what is
known about factors affecting supply humanitarian supply chain performance. The study was
guided by the conceptual framework adapted, which views humanitarian supply chain
performance as an outcome of interaction between a number of underlying operating
environmental situational factors and proximate organizational factors.
Generating information needed in this study was made possible by interviewing key supply
chain respondents in appropriate organizations engaged in humanitarian operations. This was to
ensure that valid and reliable data is collected respondents who are conversant with supply chain
in organizations that implement humanitarian projects targeting various emergencies. The study
took particular attention to diversity in organizations and focus projects to ensure that their
varied and diverse responses were captured in various aspects of the study to ensure that all
potential sources of information related to the study are relatively exhausted.
Due to the nature of information that the study seeks, qualitative and quantitative methods were
employed in the study. Quantitative method was used to collect data on numerical variables of
the study. This was made possible by a structured questionnaire including all variables of interest
in the study. For in-depth data on various areas of investigation, key informant interviews were
undertaken with supply chain staff with expert knowledge about supply chain experiences in
humanitarian operations in the sampled organizations. In addition further interviews were
conducted with other stakeholders with oversight roles on project management so as to elucidate
management level perspective on supply chain performance operations and performance.
Wherever possible, the study targeted funding, coordination and consortium spearheading
16
humanitarian operations to generate collective views and experiences of various descents into
factors that impinge on humanitarian supply chain performance. Further review of existing
operations research studies conducted by agencies was used to supplement information generated
from the primary sources with appropriate citations.
3.3 Target Population of the Study
The study targeted both local and international humanitarian organizations which are engaged in
humanitarian operations in Kenya. From the organizations a respondent from each, engaged or
fully informed in supply chain was targeted for interview. The number of organizations engaged
in humanitarian operations was estimated at 70. Majority of the organizations are engaged in
conflict driven humanitarian operations in Northern Kenya in refugee camps of Dadaab and
Kakuma. Apart from this, a number of organizations are driven in climate disaster related
operations which include drought, famine flooding and landslide relief operations. A number of
other organizations are engaged in man-made disasters as a specialty or as a supplement to other
operations. The study was thus targeting these organizations particularly those that are engaged
in operations that included a supply chain component.
3.4 Sampling
The targeted subjects of the study were organizations engaged in humanitarian operations in
whose respondents were interviewed. Considering that these organizations were estimated to be
70, the study targeted 40 which were be sampled systematically. Due to the limited population
size, the study did not undertake rigorous statistical sample size calculation. The allocation of the
sample was done through stratified sampling, whereby national and international organizations
were allocated proportionally in respect to their number of the entire sampling frame. The study
only included organizations whose project focus and delivery includes supply chain in their
humanitarian operations. The sample size was flexible enough to allow statistical analysis of data
in line with objectives and research questions for the study. Stratified sampling allowed the
researcher to generate information from the full scope of the humanitarian organizations in
respect to their proportional engagement in various operations. Further considerations were made
to vary humanitarian operations by geographical scope to minimize homogeneity of responses.
17
3.5 Data Collection
In respect to the information needed, both qualitative and quantitative data collection methods
were embraced in the study. For quantitative data collection a questionnaire was developed
reflecting the independent variables (factors) the dependent variable reflecting various aspects of
supply chain performance and background information vital for data aggregation and analysis.
The questionnaire was administered to supply chain staff in each of the sampled organizations in
a face to face manner. At the organizational level, sampling was done to identify the best
respondent preferably supply chain leads who have been in the organization at least one year
preceding the study and who have consistently provided oversight to supply chain in
humanitarian operations.
Some of the key insights of the study were not arrived at through numerical means. The
information in its depth was crucial in elucidating pertinent information for the study which
value lies not in numerical analysis but contextual, situational and other community level factors
that may not captured through questionnaires. This information required flexibility of key
informant interviews for exploration of various aspects of the study. Since it was not possible to
conduct Focus group discussions, 10 key informant interviews were conducted with various
stakeholders selected from key organizations especially expert stakeholders who have oversight
roles of humanitarian operations at both office and field level .The key informants were selected
purposively on the basis of their expertise and hands on experience on humanitarian supply
chain. An interview guide was developed and used in line with the objectives of the study. Key
informant interviews were also conducted with the main suppliers to generate study perspectives
from the supply side. Further information was generated from operational research studies
conducted by agencies for validation and supplementation with key informant interviews.
3.6 Data Analysis
Before embarking on analysis, the data collected was cleaned for completeness and consistency.
After this a variable definition file, template for data entry was developed in Statistical Package
for Social Sciences (SPSS) in which data was entered.
18
After data entry and cleaning, univariate analysis was undertaken to generate summaries of
various variables in terms of descriptive statistics, tables and measures of central tendency. After
this, cross tabulations was generated to establish associations between various factors as
independent variables and supply chain performance as dependent variable. The dependent
variable which constitutes supply chain performance was measured in terms of reliability,
responsiveness and flexibility. Various independent variables were cross-tabulated against each
of measures and chi-square tests with accompanying p values were interpreted to establish
associations.
Binary Logistic Regression model was used to establish the effect of various factors on
humanitarian supply chain performance. The various factors detailed in the conceptual
framework were analyzed in- line with supply chain performance. Considering that the outcome
variables was dichotomous in nature, logistics regression was used to in which co-efficient (b) of
various independent variables and odd ratios (exp b) was interpreted to determine the effect of
various factors on humanitarian supply chain performance. Due to limitations of sample size
bivariate logistic regression was considered.
Where: logit Y = βo+ β1x1+β2x2 +β3x3……….. +ϵ
Where Y = Humanitarian Supply chain performance
x1 ,x2 ,x3 … = Independent variables (funding status, organisational internal factors,
environmental situational factors, political/governmental related factors, infrastructure……)
β0 = Intercept
β1, β 2 β3 = Co-efficient of independent variables
Qualitative data was indexed, summarized and interpreted into various themes and patterns. The
findings were integrated into the study to answer various pertinent questions with more in-depth
explanations and experiences. The data further validated the findings of quantitative analysis and
was important in bringing to light various aspects of the study which may not have been captured
in quantitative data collection and analysis.
19
CHAPTER FOUR: DATA ANALYSIS, RESULTS AND DISCUSSION
This chapter presents the analysis of data collected from data collected from various
organizations included in the study sample. The findings were analyzed and presented in the
form of frequency tables, cross tabulations and regression analysis. The analysis and
interpretation of data was guided by the research objectives from which a discussion of findings
has been made.
4.1 Descriptive Analysis of the Background Factors
The Tables 4.1 present descriptive analysis which include; organizational factors, socio-
economic situational factors, government situational factors and infrastructural situational factor.
Table 4.1: Organisational Internal Factors
Variable Frequency Percentage
Organizational with sufficient funding 12 30
Organizations forced to scale down budget 30 75
Organizations with mechanisms in place to access
trained manpower 32 80
Existence of a plan of action 32 80
Executed Plan of Action for Emergency 18 45
Action plan distributed to other agencies 18 45
Presence of established procurement procedures 40 100
Use of established procurement procedures in the
operation 34 85
Delays experienced in procurement process 34 85
According to the summary on Table 4.2 only 14 organisations (30%) of the interviewed
indicated they had financial capability and a majority 30 organisations (75%) were forced to
scale down their budget during emergencies. The funding port-folio of the targeted organizations
ranged from USD 100,000-80,000,000 with a mean of USD 12,560,000. Eighty percent of the
organisation interviews had access to trained manpower during emergency operations.
Meanwhile 32 organisations (80%) had an emergency plan of action but only 18 (45%) executed
the plan of action during emergencies. All organisations interviewed had established
20
procurement procedures however, only 85% used the procedures during emergency. 85% of the
organisations interviewed experienced delays in procurement process.
Table 4.2: Governmental Situational Factors
Variable Frequency Percentage
Presence of Interagency coordination 28 70
Presence of Coordination in the supply chain 12 30
Consulted with other agencies in setting up supply chain 8 25
Assistance received from the government 16 40
Challenges from government bureaucracy 24 60
The results revealed that interagency coordination is a common feature of supply chain in
humanitarian operations. Seventy per cent of organizations indicated that there was interagency
coordination. However, interagency coordination does not always include close consultations in
setting up of supply chains. Only 25% worked with other agencies to set up the supply chain
during emergencies. Only 16 (40%) of the organisations interviewed indicated they received
support from the government during emergencies and 60% of the organisation experienced
challenges from government bureaucracy.
Table 4.3: Infrastructure Situational Factors
Variable Frequency Percentage
Whether high transport prices affected supply chain
performance
34 85
Delays in movement of goods and manpower 34 85
Table 4.4: Mode of Transport
Mode Frequency Percentage
Air 4 10
Road 26 65
Road and Air 10 25
Table 4.5: Range of Cost of Transport
Mode Frequency Percentage
Very high than range 10 25
Slightly high 26 65
Within range 4 10
21
Results revealed 85% of the experienced delay in goods and manpower. 85% of the
organizations interviewed indicated high transport prices affect supply chain performance
According to the summary on Table 4.4 a majority of the organisations 26 (65%) use road
transport only 10% use air transport. According to Table 4.5 below 25% of the firm indicated the
cost of transport is very high, 65% slightly high and 10% within range.
Table 4.6: Socio-economic Situational Factors
Variable Frequency Percentage
Supplemental support received from the host communities 16 40
Challenges restricted to cultural restrictions experienced 26 65
Staff deployment problems due to community resistance 20 50
Diversion of supplies experienced 22 55
40% of the organisation received support from the host communities, 65% experienced cultural
restrictions. Only 40% experienced staff deployment due to cultural resistance.55% of the
organisations interviewed experienced diversion of supplies.
4.2. Status of the Supply Chain Performance in Humanitarian Organizations
Supply chain performance has been measured in terms of reliability, responsiveness and flexibility. To
meet the objectives of the study, the questionnaires were organized so as to collect data for each of the
performance variables. The Table below shows the status of supply chapping performance of the targeted
humanitarian organizations in terms of the summarized measures.
Table 4.7: Summary of Supply chain performance
From the analysis , it is clear that slightly over half humanitarian organizations supply chains are
reliable, with 50% flexible while slightly below half (47.4%) are to deliver supplies in right
Variable Frequency Percentage
Supply chain responsive 20 52.6
Supply chain meets deadlines 12 30
Supply chain flexible 20 50
Supply chain reliable 18 47.4
22
quantities. Of concern is that only 30% of supply chains are able to meet deadlines in
humanitarian operations. A number of factors have been attributed to non -reliability,
inflexibility and poor timelines of supply chains. The most reported cause of poor performance is
delay in procurement process, while delay and limitations of funding process and finances,
infrastructure and seasonality factors were found to have slowed down logistics, while
government bureaucracy particularly in clearance of goods at customs and tax exemption
processes all had an effect on supply chain performance.
Table 4.8: Reported Reasons for Poor Supply Chain Performance
Variable Frequency Percentage
Financial limitations ( Delays and shortages) 28 70
Government Bureaucracy 24 60
Infrastructure 16 40
Environmental ( seasonal factors ) 12 30
4.3. Factors Associated With Supply Chain Performance
A number of factors were reported to have contributed to skewed performance of supply chain.
To ascertain the nature of association, cross tabulation of each of the factors and performance of
the supply chain was conducted. Chi-square was used to establish the strength of association.
Table 4.9: Association Between Financial Resources and Supply chain Performance
Variable Performing supply
chain
Non –performing
supply chain
Total
Sufficient funding 10 (50%) 10 (50%) 20
Insufficient funding 2 (11%) 16 (88.9%) 18
Chi- Square = 6.63 P value= 0.01
Further analysis revealed a very strong association between financial resources and supply chain
performance. The effect was largely due to limited funds and budgets to support supply chain,
delays in release of funds from donors and at times high prices of commodities and services. The
association between supply chain performance and financial resources showed a chi square value
of 6.63 p (0.01). In support of these results, 75% of all organizations had to scale down supplies
due to financial limitations.
23
Table 4.10: Association between Infrastructure and Supply Chain Performance
Variable Performing supply
chain
Non –performing
supply chain
Total
Appropriate infrastructure 18 (90%) 2 (10%) 20
In appropriate
infrastructure
6(33.3%) 12(66.7%) 18
Chi- Square = 13.7 P value = .0001
Similar to the above, there is a strong association between infrastructure (organizational and
external) and supply chain performance. The cross tabulation between infrastructure showed a
chi–square value of 13.7, p (.0001).
Table 4.11: Association between Environmental Situation and Supply Chain Performance
Variable Performing supply
chain
Non –performing
supply chain
Total
Experienced
Environmental
constraints
2 (10%) 8 (80%) 10
Environmental
constraints not
experienced
18 (64.2%) 10(35.8%) 28
Chi- Square - 5.7 P value = .016
Results further showed that environmental constraint such as; seasonality and other adverse
climatic conditions are associated with supply chain performance. Cross tabulations revealed
similar trend with a chi-square value of 5.7, p (0.016). However, compared to the other factors
above the association was slightly weaker though statistically significant.
Table 4.12: Association between Organizational Procurement Delays and Supply Chain
Performance
Procurement process is strongly associated with supply chain performance. Cross tabulations of
supply performance and procurement process categorized as experiences of delays and no
delays showed a chi -square value of 6.4 (p 0.011). Organizations that experienced no delays in
procurement had performing supply chains.
Variable Performing supply
chain
Non –performing
supply chain
Total
Procurement Delays 14(43.7%) 18(56.3%) 32
No Procurement delays 6 (100%) 0(0%) 6
Chi- Square = 6.4 P value = .011 38
24
Table 4.13: Association between Socio-Economic Situational Factors and Supply Chain
Performance
Diversion of supplies was used as a proxy variable of community level socio-economic and
cultural factor. The analysis showed that there was no significant association between diversion
of supplies and supply chain performance. Cross tabulations generated chi –square of 2.7 p (0.1).
This implies that the scale of diversion of supplies is not sufficient to cause any meaningful
impact to supply chain performance.
Table 4.14: Association between Cultural Restrictions and Supply Chain Performance
Respondents were asked whether they had experienced cultural restrictions at any point in supply
chain. Cross tabulation of the responses with supply chain performance indicated there was no
statistically significant association between restrictions and supply chai performance. This is
ascertained by chi –square 3.1, p (0.07). This implies that cultural restrictions have limited
association with supply chain performance.
Table 4.15: Association between Government Bureaucracy and Supply Chain Performance
Variable Performing supply
chain
Non –performing
supply chain
Total
Diversion of Supplies experienced 8 (40%) 12(60%) 20
No diversion of supplies experienced 12 (66.7%) 6(33.3%) 18
Chi- Square = 2.7 P value = 0.1 38
Variable Performing supply
chain
Non –performing
supply chain
Total
Cultural restrictions experience d 10 (41.7%) 14(58.3%) 24
Cultural restrictions not experienced 10(71.4%) 4(28.6%) 14
Chi- Square = 3.1 P value = 0.07 38
Variable Performing supply
chain
Non –performing
supply chain
Total
Government Bureaucracy
experienced
6 (27.3%) 16(72.7%) 22
Government Bureaucracy not
experienced
14 (87.5%) 2 (12.5%) 16
Chi- square= 13.4 P value= 0.00
25
Various humanitarian organizations faced a number of challenges in registration processes,
customs taxes and unfavourable financial regulations. Cross tabulation revealed that the
government bureaucracy was strongly associated with supply chain performance. The analysis
generated a chi-square value of 13.4, p (0.00). This suggests that government bureaucracy is a
strong factor in humanitarian supply chains performance.
4.4 The Effect of Various Factors on Humanitarian Supply Chain Performance
A binary logistic regression was used to establish the effect of various variables on supply chain
performance. Due to limitations of sample size, bivariate models were generated to establish the
effect of the variables. The dependent variable was coded into dummies and since the
independent variables were categorical, the last category was used as a reference category while
the first was interpreted.
Table 4.16: Effect of Financial sufficiency on Supply Chain Performance
*** Reference category
Funding for humanitarian operations is a strong predictor of humanitarian supply chain
performance. Organizations that had sufficient finances for humanitarian operations were 8 times
(Exp B) more likely to have performing supply chains compared to those that did not. The
analysis further showed that an additional unit of financial stability would increase supply chain
performance up to 2.07 times (B).This finding is in agreement with other related studies that
suggested that funding is an important component of humanitarian operation. This is further
supported by findings of univariate analysis which demonstrated that most organizations
experienced unanticipated costs related to overheads, inflation and other causes. With the
consistency in findings from descriptive, bivariate and regression analysis, the association and
effect of funding on humanitarian supply chain performance is fully supported. Funding is an
important enabler of humanitarian operation with specific impact on the supply chain implying
that resource mobilization remains at the core of humanitarian supply chains.
Variable B S.E. df Sig. Exp(B)
Sufficient Funding 2.079 .873 1 .017 8.000
Insufficient Funding *** 0.00
Constant -.470 .403 1 .244 .625
26
Table 4.17: Effect of Government Bureaucracy on Supply Chain Performance
Variable B S.E. df Sig. Exp(B)
Experienced government Bureaucracy 2.927 .895 1 .001 18.67
No government bureaucracy *** 0.00
Constant 1.946 .756 1 .010 7.000
*** Reference category
The results of logistic regression show that humanitarian organizations that did not experience
government bureaucracy, were 18.6 (Exp B) times more likely to have performing supply chains
compared to those who did not. Furthermore, the results show that an additional unit of
government bureaucracy/ restrictions would reduce supply chain performance by 2.92 times (B).
This suggests that government bureaucracy affects the performance of humanitarian supply
chains negatively. These include; registration processes, customs, clearance delays tax
exemption processes among others.
The above analyses confirm that humanitarian supply chains do not operate in isolation of
government controls. The waivers that humanitarian organizations enjoy are characterized with
bureaucracy and process delays which impact on supply chain performance. The positive support
of the government in support of various aspects of humanitarian operations has been noted, but
the negative aspect of bureaucracy, process delays in customs, tax exemptions and other aspects
if supply chain has the potential to derail the positive gains extended by government support.
Table 4.18: Effect of Infrastructure on Supply Chain Performance
Variable B S.E. df Sig. Exp(B)
No infrastructural constraints 2.890 .898 1 .001 18.000
Had infrastructural constraints*** 0.00
Constant -1.792 .764 1 .019 .167
*** Reference category
The performance of supply chain was dependent on internal and external infrastructure.
Organizations that did not experience any infrastructural constraints were 18 times more likely
(Exp B) to have performing supply chains compared to those who did not. In addition,
improvement of infrastructure by one unit would increase supply chain performance by 2.89
27
times (B). The finding confirms that although internal organization factors may be functioning,
the impact of external factors to supply chain performance is apparent. It is also worth noting
that procurement delays did not have any strong effect on supply chain performance compared to
infrastructure, which further clarifies the place of logistics and their facilitation through
infrastructure to supply chain performance. The results also show that road is the most common
mode of transport, followed by a combination of road and air while air is partly 10%.
Organizations have reported high transport costs and complained their effects in operations.
Improvement of infrastructure is a policy level issue but organizations need to factor such
challenges in resource mobilization efforts to ensure that there is flexibility of choice in sensitive
operations while lifesaving efforts may be curtailed by high costs of transport and accessibility
limitations.
Table 4.19: The Effects of Socio- Economic Situational Factors on Supply Chain Performance
Variable B S.E. df Sig. Exp(B)
No Diversion of Supplies 1.099 .677 1 .105 3.000
Diversion of supplies*** 0.00
Constant -1.504 1.041 1 .148 .222
*** Reference Category
Organizations which did not experience diversion of supplies in their target area were 3 times
(Exp B) more likely to have performing supply chains. However, diversion did seem to be a
strong determinant of supply chain performance as increasing diversion of supplies by 1 unit
would affect the performance of supply chain by 1.09 times (B). Diversion of supplies is most
times related to the low socio-economic status of communities who sell relief to make some
money or use Non- food items for non -relief purposes. The effect of socioeconomic status of the
contexts to supply chain is further attested by the lack of tangible community support to the
operations and the deployment of staff from other areas due to lack of educated staff from
disaster vicinities. Other contextual reason is lack of markets within the localities where some
commodities can be sourced. This confirms that socio-economic status of the disaster contexts
operates through other organizational and supply chain process to influence humanitarian supply
chain performance.
28
Table 4.20: The Effect of Local Restrictions to Staff Deployment on Supply Chain Performance
*** Reference category
Local level resistance to deployment of non- local staff is a common occurrence in humanitarian
operations. Organizations that did not experience resistance to staff deployment were 14 times
more likely to have performing supply chains compared to those who did not. Staff deployment
in areas affected by disasters has a contextual and organizational dimension. Organizations seek
to create a balance between skill and local level politics when deploying staff. However, some
disasters demand a level of skill in technical aspects of supply chain and programming may not
be locally available. When governments, local authorities and community level leaders resist
attempts to have professionals from other areas spearheading humanitarian operations, there is
high likelihood that the impact will be felt in supply chain and eventually in the whole operation.
The analyses further confirm that attempts to hold back staff is a critical component of the
success of the supply chain and its magnitude is quite high.
Table 4.21: The Effect of Environmental Factors on Supply Chain Performance
Organizations that did not experience environmental constraints were 7.2 times (Exp B) more
likely to have performing supply chains compared to those who did not. In addition, the analysis
showed that reduction of environmental constraint would improve supply chain performance by
up to 1.9 7 times (B). Weather conditions related to climate change and varying seasons have an
effect on supply chain performance. The effect of environmental changes is magnified by
infrastructural challenges, both of which may derail the logistical component of the supply chain.
The delivery of goods and transport is dependent on conditions of both factors.
Variable B S.E. df Sig. Exp(B)
No Local resistance to staff Deployment 2.639 .796 1 .001 14.000
Local resistance to staff deployment experienced ***
Constant -3.892 1.264 1 .002 .020
Variable B S.E. df Sig. Exp(B)
Not Experienced Environmental constraints 1.974 .883 1 .025 7.200
Experienced Environmental constraints *** 0.00
Constant -3.360 1.630 1 .039 .035
29
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
From the foregoing analysis, the study has made conclusions in line with various objectives of
the study. This chapter presents a summary of the findings, conclusions and recommendations of
the study.
5.2 Summary
The study sought to establish the status of humanitarian response and factors associated with its
performance in humanitarian organizations in Kenya. The study was guided by four objectives as
follows; to identify socio-economic situational factors and their effects on humanitarian supply
chai performance, to identify organizational internal factors and their effects on humanitarian
supply chain performance, to identify infrastructural situational factors and their effect on
humanitarian supply chain performance, to identify governmental situational factors and their
effects on humanitarian supply chain performance.
To arrive at various conclusions, a number of methods were used in data analysis. These include,
descriptive and inferential statistics detailed in the foregoing sections. The targeted humanitarian
organizations were the unit of analysis. Organizations responded to a number of questions related
to their humanitarian operations in the most recent emergency that they were engaged in. This
included their handling of the supply chain and their experiences with various factors.
Humanitarian operations are mainly handled by international organizations that were largely
included in this study. Most organizations spend up to one third of their funding to supply chain
commitments. The vast majority reported that these funds were insufficient for the operations
and in fact, three quarters had scale down their supply chain budgets in the middle of the
operations. Majority of humanitarian organizations have mechanisms of recruiting staff during
emergencies. The only issue that face them is local restrictions on deploying staff in the areas
targeted by operations.
Most humanitarian organization have plan of actions for humanitarian operations. Despite this,
action plans are rarely applied during emergencies. Only half of the organization applied the laid
30
down procedures during the most recent operation. All organizations have laid down
procurement procedures. An equally high proportion applied them in the most recent operation.
Despite this, significant proportion of organizations experienced procurement delays in the most
recent operation. This implies a disjoint between planning and implementation of procurement
activities. A significant proportion of humanitarian organizations are engaged in interagency
working group for coordination of humanitarian operations. However, only one third of
organizations included inter-agency coordination in their supply chain operations. This implies
that there is a possibility of duplication of supply chain efforts across organizations.
Road is the common mode of facilitating movement of manpower and goods in humanitarian
operations but air transport is also used on a low scale. The costs of logistics are quite high with
over two thirds, reporting higher costs above the normal range. Most organizations indicate that
the costs have an impact on supply chain performance in various ways. A similar proportion
indicated that logistical delays were common and had an impact on supply chain performance.
The contribution of target communities to supply chain was very minimal. Only few
organizations reported receiving contributions of the local communities to the operations. This
included in-kind contribution. This is related to the socio-economic status of the target
communities. Cultural restrictions of various forms were experienced in humanitarian operations
were common. Slightly over half, of the organizations experienced diversion of supplies from the
targeted beneficiaries.
Out of the total targeted organizations slightly over half reported having performing supply
chains, which delivered goods and services in the right quantities, to the targeted beneficiaries in
a timely manner. The main concern of supply chains are failure to meet deadlines, financial
limitations flexibility to meet new demands and ability to supply the needed quantities. From
qualitative perspectives, respondents indicated that the main reasons for non-performance were,
funding limitations and delays, environmental challenges especially in the rainy seasons,
procurement delays, poor infrastructure, government bureaucracy, high costs of supplies and
logistics, poor coordination and turf wars between grantees, sub-grantees and other
implementers.
31
Further analysis on the factors affecting supply chain performance confirmed that, financing /
funding, government bureaucracy, infrastructure, environmental and socio-economic situational
factors were strong associated with supply chain performance. Cross -tabulation of each of the
factors generated confirmed strong statistically significant relationship. However, cultural
restrictions and procurement delays did show any significant association with supply chain
performance. This implies supply chain performance in humanitarian operations is largely
determined by what happens after procurement and is largely inclined to logistics. On a different
note, cultural restrictions may not be happening on a big scale to warrant any significant
association with supply chain performance except in circumstances where deployment of staff is
concerned.
5.3 Conclusion
The results of binary logistic regression showed variable effects of the above factors on supply
chain performance. Government bureaucracy and infrastructure emerged as the most important
correlates of humanitarian supply chain performance. Organizations that experienced
government bureaucracy and worked in infrastructure challenged areas were many times more
likely to have non –performing supply chains. This implies that extreme cases such as customs,
clearance, confiscation of supplies and inability to reach beneficiaries due to infrastructure
limitations could be extremely difficult for the supply chain to deliver. Local restrictions to staff
deployment is also an important determinant of staff deployment with organizations that
experience no restrictions many times (odd ratio) to have performing supply chains compared to
those who have. Organizations that have sufficient funding are several times more likely to have
performing supply chains compared to those limited by funds. Organizations that did not
experience diversion of supplies were likely to have performing work plans compared to those
that experienced it. Cultural restrictions on supplies and procurement delays did not demonstrate
any effects on supply chain performance. This implies that logistical delays are more critical in
humanitarian supply chain compared to narrow procurement delays.
5.4 Recommendations
Almost half of humanitarian organizations supply chains are not performing. This needs to be
addressed through a concerted effort between various stakeholders to reduce the impact of this
32
shortfall to the beneficiaries for the live saving and relief efforts of the operations. A custom
made supply chain package for humanitarian operations needs to be developed and implemented
in consultations with all stakeholders.
Laid down procurement procedures are universal to all targeted organizations. Almost all
organizations applied the procedures yet procurement delays are quite common. There is need to
address the specific points of the processes where this delay emanates from. This could be
related to funding delays, turf wars and bureaucratic approvals. Supply chains action plans are
also common, but their execution is neither systematic nor universal and needs to be handled in
coordinated approach.
On the factors associated with supply chain, the study has confirmed the factors their magnitude
of effect. Some of the factors such as government restricts and infrastructure require policy level
advocacy, while others including some elements of infrastructure, environmental, diversion of
supplies and others require more investment in systems and more budgetary allocation from
donors. Even though most humanitarian organizations are not profit making entities, they
struggle with government bureaucracy to be exempted from systems, to clear the goods and even
export commodities to areas of need across the border.
Financing delays and limitations also emerged as an important factor associated with supply
chain performance. Considering that most organizations complained of inflation and exorbitant
costs as some of the draw backs to supply chain performance, this needs to be addressed. In light
of this, there is need for donors to align their funding to the realities of contextual and inflation
factors in their allocation processes. In addition, there is need for donors to streamline their
granting mechanism and approvals to avoid unnecessary delays that end up affecting supply
chain performance. Mobilizing sufficient resources is a critical factor in the success of supply
chain performance and humanitarian operation and should be an integral part.
On the internal organization factors, the study found that procurement delays did not have much
effect to supply chain compared to logistics. On the contrary, most organizations entrust more
professionals with procurement and leave logistics to low level cadre staff or project staff
33
doubling as logisticians. There is need to accord logistics an important place in humanitarian
operations if supply chains have to perform.
5.5 Suggestions for Further Research
This study targeted organizations implementing humanitarian operations. There is need to have
the perspective of beneficiaries and bilateral donors o about the performance of supply chains in
order to draw conclusions from more informed stand point. A Study targeting all is therefore
recommended.
This study was implemented in setting where most organizations are engaged in humanitarian
operations resulting from conflicts. There is need to undertake such studies in other settings
where the operations are driven by needs emanating from other calamities such as storms, earth
quakes, flooding and other large scale causes.
Custom made supply made management systems are recommended for application in
humanitarian operations because the ordinary procedures are not necessarily working fully. An
operation research study is therefore recommended to come up with appropriate system/
framework for testing and adoption by all stakeholders to improve supply chain performance.
This can also shed some light as to why procurement delays were not seen to affect supply chain
significantly compared logistical delays.
There is need to undertake a comparative study on factors affecting supply chain in both
development projects and humanitarian operations so as to draw similarities and parallels and
build synergies so as to generate evidence for planning and decision making . This is also
important to inform donors on sub-granting processes. Such a study may also extend to
corporates as organizations may learn to minimize costs and get other perspective on
effectiveness from the private sector.
34
REFERENCES
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York, NY: Oxford University Press.
Beamon, B. M. (2004). Humanitarian relief chains: Issues and challenges. The 34th
International
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Caplice, C. & Sheffi, Y. (1995). A review and evaluation of logistics performance measurement
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De Ville de Goyet, C. (1993). Post-disaster relief: The supply management challenge Disasters,
17 (2), 169-76.
Helferich, O. & Cook, R. (2002). Securing the supply chain. White Paper: Management Report.
Oakbrook, Illinois: Council of Logistics Management.
Kaatrud, D., Samii, R., & Van Wassenhove, L. (2003). UN Joint Logistics Centre: a coordinated
response to common humanitarian logistics concerns. Forced Migration Review, 18, 11-14.
Koech, A. (2005). Supply / logistics in humanitarian relief operations. March 20,2005.
Kreimer, A. & Munasinghe, M. (Eds.) (1991). Managing natural disasters and the
environment.Washington, DC: World Bank.
McEntire, D. (2002). Coordinating multi-organisational responses to disaster: lessons from the
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Logistics Management, 14 (2).
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Overstreet, R.E., Hall, D., Hanna, J.B. and Rainer, R.K. Jr (2011), “Research in humanitarian
logistics”, Journal of Humanitarian Logistics and Supply Chain Management, Vol. 1 No. 2,
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Prater, E., Biehl, M. and Smith, M.A. (2001), “International supply chain agility: tradeoffs
between flexibility and uncertainty”, International Journal of Operations& Production
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University of Washington Interdisciplinary Program in Humanitarian Relief (UW-IPRH)
(2004).Humanitarian supply-chain management.' Great Lakes and East Africa Inter-Agency
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Thomas, A. & Kopczak, L. (2005). From logistics to supply chain management: The path
forward in the humanitarian sector, white paper, Fritz Institute, San Francisco, CA.
Tomasini, R. & Van Wassenhove, L. N. (2009a). From preparedness to partnerships: Case study
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36
APPENDICES
Appendix 1: Research Questionnaire
Introduction
This research questionnaire was prepared to collect data on the supply chain performance in
humanitarian organizations in Kenya.
Questionnaire number:
Part 1 Question Responses
1. Name of Respondent
______________________________________
Organization Name :
2. Respondents title
3. What is the nature of humanitarian disaster are you
engaged in?
1. Refugee /IDP support
2. Flooding relief operations
3. Land slide relief operations
4. Others (Please specify
_____________________________
Part 2 Organisational Internal Factors
4. What is the size of funding port-folio for the relief
projects?
Amount in USD__________
KES_________
5. How much of this is committed to supply chain
operations?
6. During the most recent relief operation did you
have necessary financial resources available when
you needed them?
1. Yes
2. No
7. Did you have to scale down on supplies budget at
any point?
1. Yes
2. No
8. In your most recent humanitarian operation , did
you have mechanisms in place to access trained
human resources
1. Yes
2. No
9. Did you face limitations hiring staff from the local
community?
1. Yes
2. No
10. Please rate your human resources for this supply 1. Excellent
37
chain operation using the following scale. 2. Good
3. Average
4. Needs development
5. Poor
11. Did you have an existing plan of action? 1. Yes
2. No
12. Did you execute it for any emergency? 1. Yes
2. No
13. Was the plan of action distributed according to the
guidelines established by your organization?
1. Yes
2. No
14. Do you have established procurement procedures'?
1. Yes
2. No
15. Did you use them for most recent emergency
operation?
1. Yes
2. No
16. Did you experience any delays in the procurement
process?
1. Yes
2. No
17. Please answer the following regarding your
organization's ability to procure (purchases and
donations) adequate quantities of the following
commodities using the following scale.
1. Excellent
2. Good
3. Average
4. Needs development
5. Poor
Part 3 Governmental Situational Factors
18. In the most recent emergency was there inter-
agency coordination?
1. Yes
2. No
19. Was there coordination in supply chain? 1. Yes
2. No
20. Did you work with other agencies when setting your
supply chain
1. Yes
2. No
21. Overall how do you rate inter-agency coordination
and collaboration in humanitarian supply chain?
1. Excellent
2. Good
3. Average
4. Needs review
5. Poor
22. During the most recent emergency, did you get any
assistance from the government for humanitarian
operations?
1. Yes
2. No
23. Did you experience any challenges related to
government restrictions or bureaucracy in the supply
chain?
1. Yes
2. No
Part 4 Infrastructure Situational Factors
38
24. During the most recent emergency what mode of
transport were commonly used in movement of
goods and manpower
1. Air
2. Road
3. Rail
25. Were the costs of transport for goods and people
within the expected range?
1. Very Higher than range
2. Slightly high
3. Within range
4. Lower
26. Did this affect the performance of the supply chain? 1. Yes
2. No
27. Did you experience any delays in the movement of
goods and manpower?
1. Yes
2. No
Part 5 Socio-economic Situational Factors
28. Did you get any support from the local / beneficiary
community?
1. Yes
2. No
29. Did you experience any challenges related to
cultural restrictions or norms in the supply chain?
1. Yes
2. No
30. Did you experience staff deployment problems
related to community resistance in the emergency
sites
1. Yes
2. No
31. Did you experience diversion of supplies meant for
beneficiaries in the locality?
1. Yes
2. No
Part 6 Supply Chain Performance
32. Was the supply chain able to deliver goods and
services with in the right place that they were
needed?
1. Yes
2. No
33. Was the supply chain able to deliver goods and
services within the deadlines that they were needed?
1. Yes
2. No
34. Was the supply chain organization flexible or able
to make changes and meet new demands of the
operation whenever there was need to?
1. Yes
2. No
35. Was the supply chain able to deliver the right
quantity of goods and services for the operation?
1. Yes
2. No
Thanks for your cooperation
