The role of procurement in humanitarian supply chain management

In recent times, the increasing frequency and intensity of natural disasters have compelled global supply chains to navigate a continually shifting landscape of vulnerabilities. This has prompted both large corporations and smaller entities to adapt their business strategies to ensure they can respond effectively. 

For instance, in 2011, Japan and its neighbouring nations faced the immense challenge of the Tohoku earthquake and subsequent devastating tsunamis. Being situated in one of the world's most seismically active regions, Japan had to meticulously develop an exceptionally resilient disaster response plan that seamlessly integrated with its corporate supply chain infrastructure. 

This underscores the paramount significance of a well-coordinated supply chain in not only safeguarding lives but also facilitating recovery in times of calamity.

On 6 February, 2023, a catastrophic event unfolded in Turkey and northern Syria as a massive 7.8-magnitude earthquake struck, representing the most significant seismic event to impact Turkey in over eight decades. 

Remarkably, a mere nine hours later, a second seismic jolt measuring 7.5 magnitude struck the same beleaguered region. This dual onslaught of powerful tremors led to the devastating collapse of thousands of structures and tragically resulted in the loss of more than 50,000 lives. This calamity further exacerbated an already precarious situation, giving rise to a dire humanitarian crisis. 

In the wake of this disaster, the crucial role of the humanitarian supply chain became evident. Humanitarian supply chain professionals played a pivotal role in providing vital assistance to those affected. 

Their logistics, procurement, and distribution expertise ensured the swift and efficient delivery of essential resources such as food, medical supplies, and shelter materials to the affected areas. This not only alleviated immediate suffering but also contributed to the overall relief and recovery efforts. 

This tragic event serves as a poignant reminder of the importance of preparedness and coordination in disaster management. Learning from this experience, governments and organisations can refine their disaster response strategies, placing greater emphasis on the integration of humanitarian supply chain experts. 

The proactive approach of the Turkish government in responding to this crisis exemplifies the significance of such collaboration in mitigating the impact of future disasters and safeguarding vulnerable populations.

In the face of such a disaster, supply chain challenges become acutely evident. The importance of an efficient supply chain becomes paramount as it enables the swift and coordinated delivery of essential relief materials, including food, clean water, medical supplies, and shelter, to the affected areas. 

Rapid supply chain response can significantly impact the survival and well-being of those in distress, highlighting its crucial role in mitigating the consequences of such catastrophic events.

The role of procurement in humanitarian supply chains is pivotal and multifaceted, playing a critical role in ensuring effective disaster response and relief efforts. Here are several key points to elaborate on the importance of procurement:

Strategic planning: Procurement in humanitarian organisations (HOs) involves careful planning and forecasting to anticipate the needs of affected populations. This strategic approach helps in pre-positioning essential supplies and resources in disaster-prone areas, ensuring a rapid response when crises occur.

Resource allocation: Procurement is responsible for allocating financial resources to acquire goods and services. Efficient resource allocation ensures that HOs have the necessary funds to respond promptly and effectively to emergencies, whether it's for immediate relief or long-term recovery efforts.

Supplier engagement: Procurement teams negotiate with suppliers to secure the best deals and quality products. This includes sourcing reliable suppliers, conducting negotiations, and establishing partnerships that can provide critical resources during crises.

Cost management: Effective procurement practices help manage costs, ensuring that HOs get value for money. This is particularly important since humanitarian operations often rely on donor funding, and cost efficiency maximises the impact of these funds.

Risk mitigation: Procurement professionals assess and mitigate risks associated with the supply chain. This includes factors like supply chain disruptions, political instability, or quality control issues, which can significantly affect the delivery of aid.

Emergency response: In the aftermath of disasters, procurement teams are responsible for rapidly sourcing and acquiring essential goods and services. This includes everything from medical supplies and food to transportation and temporary shelters.

Quality assurance: Ensuring the quality and safety of procured items is paramount. Procurement teams need to verify that products meet the necessary standards and are suitable for the intended use, especially in the context of humanitarian aid, where subpar goods can harm beneficiaries.

Transparency and accountability: Effective procurement practices promote transparency and accountability within humanitarian organisations. Donors and stakeholders require assurance that their contributions are used efficiently and responsibly.

Local engagement: Engaging with local suppliers and communities is essential for effective procurement. It not only supports the local economy but also facilitates quicker response times, as local suppliers may have a better understanding of the immediate needs and challenges.

Technology and innovation: Utilising technology and innovative procurement solutions can enhance efficiency. This includes the use of digital tools for procurement processes, data analytics for demand forecasting, and supply chain transparency.

In the example of the Turkey-Syria earthquakes in 2023, procurement played a crucial role in swiftly delivering the necessary medical supplies to support the overwhelmed health system. Efficient procurement practices ensured that the right resources were procured promptly, helping to save lives and mitigate the impact of the disaster. 

Conversely, procurement failures can lead to delays, inefficiencies, and the misallocation of resources, which can have dire consequences for disaster-affected populations.

In the context of Bangladesh, maintaining transparency in procurement for essential goods such as food and medicines from aid agencies and donors during natural disasters is of paramount importance. Transparency not only ensures accountability and the responsible use of resources but also helps build trust among the affected population and the international community. 

Given Bangladesh's vulnerability to frequent natural disasters, including cyclones and floods, the need for efficient and transparent procurement processes becomes critical. It ensures that aid reaches those in need promptly, minimises the risk of corruption, and guarantees that resources are allocated equitably to maximise their impact on disaster relief efforts. Transparency in procurement is a fundamental element in effectively managing the response to disasters and safeguarding the welfare of the affected population.

In summary, procurement is a linchpin in humanitarian supply chains, with responsibilities ranging from strategic planning and supplier engagement to cost management and risk mitigation. Its effective execution is fundamental to the success of humanitarian relief efforts, especially in the face of natural disasters and emergencies.

Mohammad Ashraful Islam Khan is the President of The Supply Chain Street and previously Head of Supply Chain Advisory Services at KPMG Bangladesh.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.