Common Humanitarian Strategy and Humanitarian Financing: Tools and Trends
HUMANITARIAN SUPPLY CHAIN CHALLENGES: FROM … · humanitarian supply chain (hsc) ciio conference...
Transcript of HUMANITARIAN SUPPLY CHAIN CHALLENGES: FROM … · humanitarian supply chain (hsc) ciio conference...
HUMANITARIAN SUPPLY CHAIN CHALLENGES: FROM EFFECTIVE TO SUSTAINABLE OPERATIONS
Bogotà, 3rd of August 2018Prof. Matthieu Lauras
1. HUMANITARIAN SUPPLYCHAIN RESEARCHFEATURES
2. IMPROVING HSC EFFECTIVENESS
3. ENHANCING HSC EFFICIENCY
4. MOVING TO HSC SUSTAINABILITY
5. CONCLUDINGREMARKS
AGENDA
HUMANITARIAN SUPPLY CHAINRESEARCH FEATURES
HUMANITARIAN SUPPLY CHAIN (HSC)
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DISASTERS’ CARTOGRAPHY
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CONTEXT OF RESEARCH ON HSC
Humanitarian Supply Chains is still a recent research area
Humanitarians could benefit a lot from the use of decision-support systems to design and control a highly capable Supply Chain
But a gap exists between the research work proposals and theirapplications on the field.
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RESEARCH CONTEXT EVOLUTION
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7The HSC objectives are changing
“Alleviating human suffering”[Beamon and Balcik, 2008]
The HSC has an intangible objective…
Effectiveness as main driver
Effective + Efficient
Sustainable
End of XXth cent.
Since 2000’
Near future
Social pressure
Global trends
Accountability
[Haavisto and Kóvacs, 2014]
[Kunz and Gold, 2017]
[Wassenhove, 2006]
[Charles et al., 2010]
[Global Humanitarian Assistance report, 2016]
Requirements, funding and unmet requirements
RESEARCH APPROACH: CROSS-LEARNING AND INDUCTIVE METHODOLOGY
21/08/2018
Commercial SCCommercial SC Humanitarian SCHumanitarian SC
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EFFECTIVENESS CHALLENGES
EFFETIVENESS… WHAT DOES IT MEAN FOR HSC?
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Doing the right things… … quickly!
But in a disrupted world!
HOW TO GET THE EFFECTIVENESS CHALLENGES?
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11By enhancing…
RESILIENT = Robustness + Recovery capabilitiesRobustness: Able to avoid strong impacts on the system in case of disruptionRecovery: Able to allow getting back to an acceptable situation after a disruption
AGILE = Detection + Adaptation capabilitiesDetection: Able to notice something wrong in the system comparing to expected situationAdaptation: Able to modify the ongoing processes to solve the unexpected situation
FLEXIBILITY as pre-requisite!
[Baharmand et al., 2017]
AGILITY AND FLEXIBILITY ASSESSMENT MODELS
[Charles et al., 2010]
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Optimize location on a local level
Environmental parameterssecurity
accessibilitytelecommunication,
corruption
Location of warehouses (local level)
Choice of the weights of each environmental parameter
Environment uncertainty
TOWARD EFFECTIVE NETWORKS
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[Vargas et al., 2015]
HSC design is done by studying: The potential disasters, Their consequences,The existing infrastructures and availableresources.
But when the disaster occurs, somehazards can impact strongly the network by destroying some resourcesor collapsing infrastructures. The performance of the relief network could be strongly decreased.
TOWARD A ROBUST HSC
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[Vargas et al., 2015]
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15APPLICATION TO PERUVIANRECURENT DISASTERS
[Vargas et al., 2015]
PERUVIAN CASE: NUMBER OF UNMET DEMAND VS NUMBER OF WAREHOUSES / INVENTORIES
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EFFICIENCY CHALLENGES
EFFICIENCY… WHAT DOES IT MEAN FOR HSC?
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Doing the things right… … cost-effectively!
But again in a disrupted world!
Minimize costs on a
regional level
Choice of the « cost » of stockout
- Costspurchase costs, fixe and variable costs (warehouse)
delivery costs upstream/downstreal by plane and boat- Delays
delivery time upstream/downstreal by plane and boat
Choice of the size of the warehouse
and its contingency stock
Actual and potential location of suppliers (per product and region)
Supply uncertainty
Scenarios of demand
Location, number and size of
warehouses (regional level)
EFFECTIVE AND EFFICIENT NETWORK DESIGN:THE UPSTREAM PART
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[Charles et al., 2016]
EXPLANATION OF THE OBJECTIVE FUNCTION
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[Charles et al., 2016]
ICRCInternational committee of the Red CrossIFRCInternational Federation of the RedCross and Red Crescent SocietiesNSRed Cross and Red Crescent National Societies(186 countries)
INTERNATIONAL FEDERATION OF RED CROSS
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[Charles et al., 2016]
OPTIMIZING IFRC HSC NETWORK
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[Charles et al., 2016]
SUMMARY OF RESULTS FOR IFRC NETWORK
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EFFECTIVE AND EFFICIENT NETWORK DESIGN:THE DOWNSTREAM PART
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EFFECTIVE NETWORK DESIGN:LOCATING TEMPORARY STAGING AREAS (SAS)
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8%
UNWFP NEPAL CASE (2015): IMMEDIATE RESPONSE 26
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4%
UNWFP NEPAL CASE (2015): RELIEF PHASE
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SUSTAINABILITY CHALLENGES
SUSTAINBILITY… WHAT DOES IT MEAN FOR HSC?
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Meeting current needs… … without compromising future!
But again and again, in a disrupted world!
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Environment
High level concepts vs. Plenty of indicators
Triple Bottom Line (TBL)dimensions consideration
[Bauman, 2014]
Economy
Society
[Ahi and Searcy, 2015]
Environment
Environment
Economy Society
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SUSTAINABLE HSC POSITIONING
THE HOUSE OF SUSTAINABLE HSC OPERATIONS
HSC business processes
Sustainable HSCOperations
SO
CIA
L
ECO
NO
MIC
AL
ENV
IRO
NM
ENTA
LRe
sour
ces
cons
erva
tion
Pollu
tion
red
uction
Equi
tyEf
fect
iven
ess
Effici
encyLo
cal
emp
ower
men
tLa
bour
cond
itions
[Laguna Salvadó et al., 2017]
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HSC business processes
Sustainable HSCOperat ions
Sustainable HSCOperat ions
HSC business processes
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32THE HOUSE OF SUSTAINABLE HSC OPERATIONS
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L4 – ExpertL3 – GoodL2 – MediumL1 – BeginnerL0 – Unaware
[Laguna Salvadó et al., 2018]
THE SUSTAINABLE HSC MATURITY MODEL
0
1
2
3
4 Effectiveness
Efficiency
Equity
Pollution reduction
Resources conservation
Local community development
Labor conditions
Procurement Warehousing Transport
SOCIAL ECONOMICAL ENVIRONMENTAL
L0
L1
L2
L3
L4
HSC processes
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34IFRC PANAMA USE CASE
How to support decision-makers consciously and systematically making sustainability trade-offs and exploring consequences?
HUMANITARIAN SUPPLY CHAIN
UPSTREAM DOWNSTREAM
Field ent ry pointPreposit ioned stock
Supplier
Local dist ribut ion
center
Demand points
In-kind donat ions
Centraldist ribut ion
center
Local supplier
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35TOWARD A SUSTAINABLE HSC DECISIONSUPPORT SYSTEM
TOWARD A SUSTAINABLE HSC MASTER PLANNING
MULTI CRITERIA DECISION-MAKING
Effectiveness objective
Economic objective
Social objective
Environmental objective
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The Decision-Maker provides the sustainable performance criteria priority
Effectiveness has the absolute priority
Lexicographic Ordering (LO) Interactive Decision Support System
Effectiveness
LO 1
LO 2
LO 3
[Wray et al. 2015]
Sequential Optimization + Constraint
The Decision-Maker can introduce a tolerance within each couple of criteria
Criteria Lexicographic Order
i.e.LO1: EconomicLO2: SocialLO3: Environmental
OPTIMIZATION
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37TOWARD A SUSTAINABLE HSC MASTER PLANNING
Suppliers (RLU & SRLU) Warehouses Demanding Points Potential Flows
Panamá RLU
SRLU
Supplier
Demanding Point
ASIA
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IFRC AMERICAN & CARIBBEAN ILLUSTRATION 38
8
9
10
11
0% 5% 10% 15% 20%
Eco
no
my
Op
tim
al (
CH
F M
illio
ns)
Effectiveness tolerance % variation
Effectiveness Optimal = 27.5 CHF Millions
DECISION MAKERDECISION SUPPORT
SYSTEM
2%
+ EFF Constraint: Effectiveness optimal + 2%
Criteria order:(1) Economy(2) Social(3) Environment
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2
4
6
8
0% 5% 10% 15% 20%
Soci
al O
pti
mal
(C
HF
Mill
ions
)
Economy tolerance % variation
DECISION MAKERDECISION SUPPORT
SYSTEM
+ EFF Constraint: Effectiveness optimal + 2%
1%
+ ECO Constraint: Economy optimal + 1%
Criteria order:(1) Economy(2) Social(3) Environment
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405
410
415
420
425
430
0% 5% 10% 15% 20%
Envi
ron
nem
ent
Op
tim
al(C
HF
Mill
ions
)
Social tolerance % variation
DECISION MAKERDECISION SUPPORT
SYSTEM
+ EFF Constraint: Effectiveness optimal + 2%+ ECO Constraint: Economy optimal + 1%
+ SOC Constraint: Social optimal + 1%
1% MASTER PLAN
Criteria order:(1) Economy(2) Social(3) Environment
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MASTER PLAN
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CONCLUDING REMARKS
FROM CENTRALIZED TO SUB-REGIONALIZED HSC
Up to 2004, HSC were centralizedObjectives: effectiveness and easy coordination
Since 2004, HSC are regionalizedObjectives: faster, better, cheaper (effective and efficient)
Today is the beginning of sub-regionalization ereaObjectives: sustainability
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THE FUTURE: GOING DIRECTLY TO HYPERCONNECTED HSC MATURITY LEVEL
Atomistic: fragmented network and managed through solo operations.
Long leadtime, big lots, large inventory…
Integrated: network as an end-to-end channel, in which production and distribution plants are centralized and dedicated.
High level of assets, short leadtimes, Lean Management...
Collaborative: network as a whole in which partners are able to share data and activities in peer-to-peer relationships.
Long to deal, tough to adapt and hard to scale...
Hyperconnected: network is based on open-hubs and cooperative platforms for both data and material flows.
Flexible, real time oriented, sustainable…
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THANK YOU…QUESTIONS…