7/30/2019 Aung Kyaw Moe-Task (9)-Module (1)

Aung Kyaw Moe / Task 9 - Humanitarian Aid and Supply Chain

Memo
To: Francois Damba
From:  Aung Kyaw Moe
Date: 28 May 2013

RE: TASK 9 – HUMANITARIAN AID SUPPLY CHAIN

Dear Francois,

I have learnt that Bruno Bodanza is due to attend a meeting later today to discuss
the potential hurricane situation and to contribute to the plans from a supply
chain point of view. In this regard, I want to contribute my initial views on the
likely effect the hurricane will have on the supply chain and what can be done to
mitigate this so that SCILaid can continue to provide aid after the hurricane
strikes.

I want to manage my presentation for him in two parts: the first part concerned
with the potential effects of hurricane situation on supply chain whereas the
second part is dealing with how to mitigate this situation in order to continue our
aids programs after the damages of the hurricane strikes.

Potential effects of hurricane situation on supply chain

A supply chain is a process that integrates, coordinates and controls the

movement of materials, goods and related information; from suppliers and donors
to meet beneficiary requirements in a timely manner. Generally speaking, it is
rarely understood that
that the logistics and supply chain element is one of the most complex and
largest parts of humanitarian aid operations, especially in an emergency situation.

Basically a supply chain is composed of two main components: the flow and goods
and the flow of information and these two essential elements of a supply chain
will be directly affected when a disaster like hurricane happens. Usually when a
disaster breaks out the necessary supplies and goods may be pushed down the
supply chain but, as the needs become clearer, the chain is responding to the
demand placed on it by people in the field operation. This means that the good
flows come first and then feedback flow of information follows.

Impact on the flow of goods in SCILaid Betaland

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1. The flow of goods starts with the acquiring and stocking of raw materials,
most of which are to be imported rather than locally found.
2. The next step is that the manufacturers actually manufacture the finished
goods in their factory and stored in their warehouses.
3. Then these goods moved into the markets managed by suppliers, both
wholesalers and retailers to whom SCILaid put the purchase orders.
4. After that, the ordered goods are to be transported via sea freight or air
freight to the ports of entry into Betaland and there are some procedures
of customs clearance to be followed.
5. Then these officially cleared goods are carried toward the main
warehouses of SCILaid HQ in Dhetra and then to the warehouses of sub-
office in Chagong. Program staff manage to move these goods stored in
the regional warehouses to the beneficiaries living in the refugee camps at
border area.

 This is the general picture of the flow of goods in SCILaid Betaland supply chain.

When a hurricane disaster happen in the country, the following negative impacts
will crop up:

•  The foremost area to get impact is that of transportation. Because of the

extremely bad weather, there can be flights cancels and delays
•  The in-country transportation and distribution will also be affected because
of road blockage by land sliding and bridges damaged by wind and
torrential water. The waterways are very dangerous to use at that time
• Production lines are to be stopped and delayed and the important goods
are not available at that time
• Backward flow of goods is almost impossible to send back up the supply
chain because of receiving faulty goods, too many goods being supplied,
or the wrong type of goods being supplied. And transport resources are
used to move and store goods, which are either not needed by
beneficiaries or are not suitable to be given to them.
Impact on the Information Flow

Another aspect of supply chain to be affected by the hurricane disaster is that of 
information flow. The important piece of information that is required is, what are
the goods needed by the beneficiaries, what quantities are required, when are
they required and where are they required. It is this information that will initiate
the entire supply chain process. All the activities involved in the supply chain
process are there to respond to this information. This information will tell us about
where goods are in the chain, what is held in warehouses, and what is in transit,
when goods will arrive at different points in the chain, e.g. goods arriving at ports
that will need unloading and goods arriving that will need storing in a warehouse
and what type of goods will be arriving at different points in the chain and do they
need any special handling or storage requirements.

At the time of emergency like hurricane disaster, the whole information flow can
be interrupted and blocked because

• Electricity in the area will be cut off 

•  Telecommunication and radio transmission facilities can be destroyed
• Movement of staff and messages can be blocked and trapped

In this case, at the start of the relief operation in an emergency relief phase of a
disaster situation, it is usual that goods may initially be ‘pushed’ down the supply
chain, before
this case the actual
information on needs ofbeing
what is beneficiaries is fullythe
pushed down understood andis
supply chain finalised.
vital so In
that the movement of these goods can be planned, monitored and controlled.

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Impact on the Response Time and Delivery Time

In the emergency relief phase of disasters, speed of response is one of the most
important factors to take care of for humanitarian aid operations. What is the
most crucial thing at that time is to send the goods and aids to the beneficiaries
as soon as possible. An emergency like hurricane strikes can delay Response Time
(the overall time taken for goods to flow along the supply chain) and Beneficiary
Delivery Time (the time from when it is identified that beneficiaries need goods,
until they receive them) due to several factors as follows:

• Destruction of the manufacturing mechanism of supplies

• Scarcity of raw materials and human resources at the critical time
• Delay of transportation due to bad weather and road damages
• Destruction of Warehouses and storage facilities

Impact on Cost and Price

Besides speed of the flow of goods and information in a supply chain, the other
things to take care of are “Right price” and “Minimum cost” in the humanitarian
aid operation. The operation of the supply chain necessitates the purchasing of 
goods and services. I that case, it is important to check “How well these goods
and services are purchased and the price that is paid for them” that will impact on
the cost of the aid operation.
All cost of operating the supply chain including transporting and storing products
is also a decisive factor and needs to measure “How efficiently these activities are
set up and managed will have an impact on the cost of the total supply chain
process and on the cost of the aid operation”. These two factors of Cost and Price
of supply chain can be affected by the impending hurricane disaster in Betaland.

•
Disruption of the major flow of goods and supply from overseas and local
markets
• Scarcity of raw material and finished products
• Extra cost for wrong goods to send back and unexpected need of supplies
• Competition among humanitarian aids organisations to acquire the same
goods
• Shortage of human resources and professional staff 

How to Mitigate Difficulties

Immediate actions at the onset of an emergency

When an emergency like hurricane happen, Supply and logistics personnel on the
ground (or if there are none present, the emergency officer) should do the
following things immediately:

(1) Check import facilities and arrangements. There are seaports like Mugla Port
and Jumna Port and Airports like that of Dhetra and Chagong, and Which seaports
and airports are functioning? Which direct road and rail links are open from
neighbouring countries? Which government departments will be responsible for
receipt and clearance of emergency supplies? If the government is unable to
function and paralysed, what other arrangements can be made?

(2) Check status of existing clearing, warehousing and heavy-goods transport

contracts. If none are in place, initiate action to set them up.

(3) Check the availability of warehousing in key areas of operation like Naguran,

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Chagong and Conila. What is available in the projected programme area, at the
port and near major transport routes?

It is important to be taking action early. If Betaland government is incapacitated,

and SCILAID undertakes in-country logistics, contracting quickly for warehousing
and transport is very important. If the hurricane strikes in a large scale, the more
organizations would be involved, and the higher the pressure on transport and
warehousing. Prices are likely to go up dramatically and quickly. Having too much
space and capacity early on is better and cheaper than having too little later.

(4) Check with other UN agencies and humanitarian organizations in the region to
see whether a joint approach to the market is possible. It keeps prices down. A
 joint approach should also be made as early as possible, before agencies go their
own way.

It is critical to ascertain the capacity of other UN agencies, such as the

UNFA, to support in-country logistics in situations where SCILAID capacity and
expertise are limited.

 There are two major phases in mitigating the effects of hurricane disaster. They
are (1) Preparedness phase and (2) Emergency Relief phase.

[1] Preparedness Phase

Supply Planning

According to our local context in Betaland , the government itself has not much
capacities to prepare and setting up and maintaining such national ‘disaster
mitigation and response programmes’ effectively. In this regard, SCILaid along
with other similar humanitarian organisations should develop procedures and
working practices that they can then use when this hurricane disaster occurs. In
this planning for preparedness, such agenda as assessment procedures,
procurement procedures and procedures for setting up temporary warehouses
must be included.

In terms of human resources, these organizations should be ready to recruit and

train emergency staff in the organisations procedures so that they are ready to
start working effectively and efficiently as soon as the organisation responds to a
disaster.

SCILaid and other organisations must also put in practice the Areas mapping for
Betaland that are likely to require aid, these maps will provide details on
infrastructure, i.e. roads, ports, communication.

As part of goods
of certain preparedness, our humanitarian
such as tent and tarpaulin aids organizations
sheets, shoulddrug
ropes, essential holdkits,
stocks
family kits and child protection kits, water containers and jerry cans that they
know will be needed in a situation of first few days/weeks of a disaster.

In terms of Stock Piling for preparedness phase, it is highly discouraged in-country

stockpiling of perishable items. If no emergency occurs, unused items may
become unusable. To avoid wastage, buffer stocks must form part of regular
programme demand.

Another option is that we should establish standby agreements with local

suppliers for emergency items such as jerry cans, blankets, plastic buckets,
cooking utensils and plastic mats – items that are relatively common and bulky.

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Being well-prepared, the organizations can respond quickly the disaster situation
and then concentrate their efforts on identifying and procuring goods that will be
needed after the first few days/weeks of the disaster.

[2] Emergency Phase

Procurement of Goods
In emergencies, SCILAID uses three approaches simultaneously:

1. Supply hubs,
2. a global procurement network and
3. long-term agreements.

Supply hubs are strategic stocks and delivery points in the Global market like
Bobany in Homeland, telukarta in Foxland, and Kirikara in Epsilonland. Each
supply
hub should hold emergency stocks for 100,000 people at least. Items held at the
hubs include bulky and emergency items, such as blankets, cooking sets,
tarpaulins, jerry cans and insecticide-treated mosquito nets.

The global procurement network is a group of SCILaid country offices that can
assist
SCILaid Betaland in procuring and dispatching items at short notice.

Long-term agreements allow standard items to be ordered directly through

certain suppliers and stipulate a minimum level of stock availability in case
of emergency requirement in Betaland .

Preparedness and contingency stocks

SCILAID country office should have a contingency plan set up for

emergencies.

To be prepared 

• Assess potential needs.

• Identify best sources and methods of procurement.
• List shipping and distribution options.
• List reputable local and regional suppliers and service providers, items
required and stock capacity.
• Update information on reputable transport and distribution services,
routes and capacities.
Create an emergency task force and back-up team led by the head
of office to be on standby at all times to assess the stock situation

Identifying sources of supplies

After identifying priority needs through the rough initial assessment and
subsequent rapid assessment, it is necessary to identify sources of supplies
as soon as possible.

Important things to do
• Look at existing stocks from the regular country programme that could
be diverted to respond to the emergency. The representative or senior
programme officer must approve any diversion of the stock in consultation

•
with the Programme
Contact Funding
partner agencies, Office.
non-governmental organizations (NGOs) and
government counterparts to identify existing stock and determine whether

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it is possible to borrow from it. This avoids unnecessary duplication of 

effort and prevents depletion of supplies from local sources.
• Call neighbouring SCILAID offices to find out if stocks there can be used.
• Look at locally available supplies and begin local procurement if necessary.

Some Tips to consider

An emergency logistics plan should be set up in coordination with other

UN agencies and NGOs outlining the role of each participant. It should
address all aspects of supply management, from procurement to
distribution.

Offshore procurement

Offshore procurement means importing supplies which are not available locally.
During emergencies, it should be considered only when non-standard
products of suitable quality and sufficient quantity are not available
on the local market. Offshore procurement of non-standard items will cause
delays. In addition, the following products need to be quality-assured and
can only be procured from the authorized dealers in the market;

►Human vaccines
►Antitoxins/globulins
►Anti-venom
► Tuberculin/sensitins
►Auto-disable syringes
►Safety boxes
►Pharmaceuticals
►Micronutrients
► Therapeutic foods with high mineral and vitamin content, e.g., F-75 and F-100
milk
►High-protein biscuits
►HIV diagnostics
►Hepatitis B diagnostics
►Hepatitis C diagnostics

Local procurement: Some Tips for Choosing a supplier

If additional suppliers are needed at the time of emergency, consider the
following benchmarking points to choose local suppliers and service providers:

How long has the supplier done business?

How much business does the supplier do?
Have other humanitarian organizations used this supplier?
Is the supplier registered with the Betaland government?
Who owns the supplier? Who are the major shareholders?
Is the supplier a trader, importer or manufacturer? SCILAID prefers dealing
with manufacturers.
Where is the supplier located? Does this location have cost implications in
terms of transport?
What items is SCILAID planning to procure? How will they be packed? Will
SCILAID need to do anything special in terms of transport arrangements?
How did SCILAID find out about the supplier, and how was the supplier
initially approached?

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Bidding in emergencies
Competitive bidding is the preferred route for all purchases. In emergencies,
however, it can be waived by the General Director in Homeland or, depending on
where
the purchase occurs, by other officials. In the case of local procurement,
competitive bidding can be waived by the Head of Country.

Some Tips to consider

Special service agreements follow a process similar to that of purchase
•

orders. However, instead of being raised by the authorized supply officer,

they are raised via the human resources or operations officer. These
agreements are subject to the same process as purchase orders in that
prospective institutions and consultants need to be found using principles
of competitiveness and transparency. Contracts are subject to review by
the Contracts Review Committee and to other financial thresholds.
Payment conditions must be clearly indicated in the contract. Conditions
•

of payment include: on delivery (usually used in procurement of goods); by

performance milestone (usually used in turnkey and lump sum contracts);
through progress payments (usually where payment is made periodically
against exact performance); and advance payment (on signature of 
contract in advance of work).
Payment in advance should be made only in exceptional circumstances
•

and requires the approval of the comptroller in New York headquarters.

Warehousing: An overview

Important things to do
 Two most important points are (1) identifying some suitable space in an
appropriate location and (2) putting in place a basic management system for the
space for disaster situation.

Some Tips to consider

Storage requirements are closely linked to transportation and these must
•

be considered together in planning.

Storage requirements will depend on the following:
•

Type of supplies and materials to be stored.

Type of storage facilities and services needed.
Average time for which supplies are to be stored.
•

Speed and pattern in which supplies will move in and out.

•

Fluctuation of supply and distribution.

•

Existing transport infrastructure.

•

 Type and foreseeable length of the emergency operation.

•

Opportunity to share premises with other UN agencies.

•

Identifying a suitable warehouse

♦Selecting a warehouse space requires an accurate estimate of the size
required and an evaluation of criteria that include:
♦Site access and security.
♦Electricity and water supply.
♦Usable storage area.
♦Maximum floor loading.

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♦Ancillary facilities (offices, cold rooms, etc.).

♦Fire protection.
♦Available handling equipment.

Some Tips to consider

~Ensure that conditions are suited to the supplies stored.
~The country office carries responsibility for losses that occur while
commodities are in SCILAID-operated warehouses.
~Incoming emergency supplies should be stored in safe and secure conditions.
~Drawing on local knowledge, warehouse managers should select warehousing
that is secure from natural disaster, animals and theft.
~Always ensure that proper storage and accounting procedures are
implemented.
~Warehouse space should be obtained free of charge whenever possible.

Managing a warehouse
Where the country office establishes its own warehouse(s), a standard
management system should be put in place to cover inventory control,
monitoring, reporting and storage facilities. A warehouse can be managed
electronically with the help of an inventory software programme or manually
with the help of stock cards. It is essential that management and handling
are properly documented.

Some Tips to consider

~Ensure that stock is stored so that it is safe and easily retrieved for distribution.
~For assistance and guidance on all storage safety and warehouse
management systems, contact the chief, Warehouse and Logistics Centre,
Supply Division
in Homeland.
~Store high-value items securely.
~Proper management and supervision of handling personnel is essential to
prevent petty theft and pilfering or unintentional loss or damage to goods.

Transport: An overview
When a hurricane strikes Betaland and generates the emergency situations, what
likely to happen is that the reliability of inland transport may be affected by poor
physical infrastructure, unstable security conditions and the lack of fuel or spare
parts. That will severely affect the major means of in-country transportation.

Important factors to think about

In this scenario, we should take into account the following important factors and
action points:

• Estimated travel times and deadlines.

•  The terrain between port of entry (or the origin of supplies) and
destination.
• Expected weather conditions during transportation.
• Weight/volume ratio of supplies: For example, are they light and bulky
or heavy and small?
• Quantity and packaging of supplies.
• Frequency of deliveries.
• Available transport options.
•  The prospect of combining transport to as many locations as possible.
•  The transport capacities of other UN agencies, NGOs and government
entities, and the prospects of using existing transport services on a
cost-sharing basis.

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• Local availability of fuel and spare parts.

Methods of transportation

When selecting transport modes, some major areas to consider are the volume of 
supplies that can be transported, the speed of transportation and the cost that
are all interrelated. Each should be considered as

Road transport
If the hurricane disaster happen in Betaland, SCILAID should frequently utilizes
road transport. In that case, our Country office should have up-to-date information
on road infrastructure, including distances and road conditions at different times
of year and under
different circumstances.

Air Transport
Air transport is faster than other means of transportation but it is costly and there
are so many restrictions and limitations for this mode of transportation. But some
fragile and expensive items if they are not very bulky should be transported by
air. It can send the supplies to the very remote areas like hilly regions.

Waterway Transport
 This mode of transport is good for heavy and sturdy items transportation, but the
problem of this mode of transport is that it take more time than other means of 
transportation despite its low cost. So we should not use this means of transport
for the emergency situation except sending some preposition materials ahead of 
the disaster happening.

Security in Transportation
Applying basic, standardized security measures can guarantee that the goods will
arrive at their destination safely.

Some Tips to consider

Vehicles should never be loaded beyond their capacity and, in difficult
•

terrain, should carry less than the maximum load.

In an open vehicle, the load must be secured under plastic or canvas.
•

When carrying items that are longer than the vehicle’s tray, the protruding
•

segment should be marked with a red handkerchief or flag that can be

seen clearly by other drivers.

Planning Ahead for transportation

Even for an emergency situation, a good planning for transportation will help us a
lot for in country distribution. In this regard, when planning transportation, be
aware of the following important points:
1. Weight restrictions on roads and bridges; routes that are
impassable at
certain times of the year; routes that may have been closed or
destroyed.
2. The capacity of available rail links and the time delays usually
involved.
3. The possibility of water transport at different times of the year,
including
depth restrictions.
4. Fuel depots, stock availability, type of fuel and fuel dispensing
equipment.
5. The possibility of using helicopters belonging to the government,
other
UN agencies and NGOs.

Maintaining Good Flow of Information

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As far as we know, the good flow of information is the very key to successful
supply chain in any situation. Even in a hurricane disaster situation, we need to
keep and maintain our information flow steady and continuous. The following
important points are to be done to maintain the good flow of information:

• Maintain the communications tools such as VHF Radio handsets and

telephone in a good and workable condition
• Maintain and follow a schedule of communication between refugee camps,
field offices and Head Office
• Establish a report-back system and check it to be followed thoroughly
• Use government channels and express mail facility if they are feasible
• Use UN agencies mail pouch services whenever available

Best Regards,

Aung Kyaw Moe

Logistics Officer
Sub-Office (SCILaid Betaland)

SUPPLY AND
LOGISTICS

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