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Can the SCOR Model be applied to Humanitarian Aid?

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<strong>Can</strong> <strong>the</strong> <strong>SCOR</strong> <strong>Model</strong> <strong>be</strong> <strong>applied</strong> <strong>to</strong><br />

<strong>Humanitarian</strong> <strong>Aid</strong>?<br />

How <strong>Aid</strong>matrix applies supply chain principles in <strong>the</strong> <strong>Humanitarian</strong> Sec<strong>to</strong>r<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 1 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


Agenda<br />

• <strong>Aid</strong>matrix Overview<br />

• Case Studies<br />

› Haiti Earthquake<br />

› United Kingdom Hunger Relief<br />

• <strong>SCOR</strong> <strong>Model</strong> for <strong>Humanitarian</strong> <strong>Aid</strong><br />

• CSR and Supply Chains<br />

• Conclusion<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 2 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


About The <strong>Aid</strong>matrix Foundation<br />

Offices: USA, Germany, India<br />

<strong>Aid</strong>matrix is an international nonprofit sponsored<br />

by some of <strong>the</strong> world’s leading corporations<br />

We leverage innovative solutions from industry<br />

and <strong>to</strong> serve our partners in Nonprofit world<br />

We promote: <strong>the</strong> Right <strong>Aid</strong> <strong>to</strong> <strong>the</strong> Right People at<br />

<strong>the</strong> Right Time<br />

<strong>Aid</strong>matrix affects more than 65 million people<br />

and 35,000 nonprofits<br />

We orchestrate more than $1.5 Billion in <strong>Aid</strong> each<br />

year<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 3 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


The Challenges:<br />

Traditional <strong>Humanitarian</strong> <strong>Aid</strong> Processing<br />

Donors/ Suppliers Lead Relief Agencies/HQ’s Field Relief Agencies Field Agents<br />

Inefficiencies:<br />

Multiple phone<br />

calls and faxing<br />

Manual Reporting<br />

Data re-entry<br />

Duplication of effort<br />

Data errors<br />

Downtime<br />

& Wait-time<br />

No Visibility<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 4 | 19 Oc<strong>to</strong><strong>be</strong>r 2010<br />

X


<strong>Humanitarian</strong> <strong>Aid</strong>: The Next Generation<br />

Donors/Suppliers<br />

NGOs<br />

Field Relief<br />

Agencies/Locations<br />

Donations Management<br />

<strong>Aid</strong> Allocation<br />

Field Agent<br />

Technology Enablement<br />

A<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 5 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


The <strong>Aid</strong>matrix Network<br />

Enabling over 35,000 Relief Agencies/Partners<br />

• International NGO’s<br />

• Local NGO’s<br />

• Governments<br />

› National, Local, NATO, etc.<br />

• Corporations/Associations<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 6 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


Our Impact<br />

Enabling Leaders in <strong>Humanitarian</strong> <strong>Aid</strong><br />

• Hunger Relief<br />

• Medical Relief<br />

• Disaster Relief<br />

• General <strong>Humanitarian</strong> <strong>Aid</strong><br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 7 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


Nodes Connected on The <strong>Aid</strong>matrix<br />

Network<br />

• Sharing Needs and Donation Offers<br />

› WithinaNetwork<br />

› With o<strong>the</strong>r<br />

organizations,<br />

governments,<br />

Associations<br />

(optional)<br />

= <strong>Aid</strong>matrix<br />

Network (example)<br />

= O<strong>the</strong>r <strong>Aid</strong>matrix<br />

Network Nodes<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 8 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


Case Studies – Haiti Earthquake<br />

• Supply Chain issues following a disaster<br />

• Difficult <strong>to</strong> plan natural disasters and impact<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 9 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


Haiti – What was Needed - Examples<br />

• Each disaster has unique requirements<br />

• First Responder<br />

› Search dogs<br />

› Medical supplies<br />

› Water and Food<br />

› Shelter<br />

• Rebuilding/Development<br />

› Construction<br />

› Communication<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 10 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


Haiti – How <strong>to</strong> Transport<br />

• Airport in Port au Prince destroyed<br />

• Port destroyed<br />

d<br />

• Roads destroyed<br />

• Trucks destroyed<br />

• Government shutdown<br />

• Cus<strong>to</strong>ms shutdown<br />

• Impact of transportation problems<br />

› Food rotted while waiting <strong>to</strong> <strong>be</strong> distributed<br />

› Medical supplies could not get through cus<strong>to</strong>ms<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 11 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


Haiti – Where <strong>to</strong> Warehouse<br />

• Warehouses and buildings destroyed<br />

• New NGOs setting up<br />

• In-kind donations arrived<br />

• Temporary areas set up<br />

• Problems with <strong>the</strong>ft<br />

• Lack of electricity<br />

• Lack of internet connections<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 12 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


Haiti – How <strong>to</strong> Support Relief Workers<br />

• Need people – employees and volunteers<br />

• Need <strong>to</strong> provide shelter, food and water<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 13 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


Haiti – Lessons Learned from<br />

<strong>Humanitarian</strong> Logistics Association (HLA)<br />

• Good logistician can still have difficulties in<br />

emergency settings<br />

• Need rest <strong>to</strong> help reduce stress and burnout<br />

• Security and safety! Do not ignore!<br />

• Do not take fuel availability for granted<br />

• Take communication challenges in<strong>to</strong> account<br />

• We were all reminded on how violent food<br />

distributions can turn<br />

• VIP Visits – good for moral but do not come and<br />

shut aid influx by closing airspace – doesn’t help<br />

saving lives<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 14 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


Haiti – Lessons Learned from<br />

<strong>Humanitarian</strong> Logistics Association (HLA)<br />

We sometimes make it hard<br />

• Did we give correct info <strong>to</strong> shippers on <strong>the</strong> most<br />

optimal way <strong>to</strong> receive cargo?<br />

• Did we minimize handling, optimize deliveries?<br />

• Did we share pipelines with cluster <strong>to</strong> make sure<br />

<strong>the</strong>y are aware of incoming cargo and did we<br />

give <strong>the</strong>m <strong>the</strong> justification for funding that <strong>the</strong>y<br />

are seeking from donors?<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 15 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


<strong>Aid</strong>matrix Making a Difference in Haiti<br />

January 12, 2010 Earthquake<br />

• U.S. Donations Management Portal<br />

for Relief Efforts<br />

› Over $300 Million in product offered<br />

› 120+ Recipient NGOs<br />

› Over 200 offers matched<br />

› Nearly 300 needs entered by NGOs<br />

• Over $100,000 raised in week following<br />

disaster, estimated $3 Million referred <strong>to</strong><br />

Clin<strong>to</strong>n-Bush Haiti Fund<br />

• <strong>Aid</strong>matrix Staff<br />

emergency deployed <strong>to</strong><br />

Port Au Prince <strong>to</strong><br />

set up online<br />

relief warehouses<br />

for NGO partners<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 16 | 19 Oc<strong>to</strong><strong>be</strong>r 2010<br />

16<br />

X


Case Studies – FareShare<br />

UK Food Bank Network<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 17 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


FareShare – Supply Chain<br />

They source food...<br />

...in<strong>to</strong> <strong>the</strong>ir network...<br />

...distribute it <strong>to</strong><br />

charities and<br />

community<br />

organisations...<br />

...and get food <strong>to</strong><br />

people that need it.<br />

2,800 <strong>to</strong>nnes of food<br />

from <strong>the</strong> industry<br />

11 FareShare<br />

Depots<br />

600 organisations 6.7m meals<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 18 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


FareShare – The Scale of <strong>the</strong> Challenge<br />

WRAP data (1) has confirmed:<br />

• 362,000 <strong>to</strong>nnes of food waste in retail<br />

• 4,000 <strong>to</strong>nnes in distribution<br />

• 2,591,000 <strong>to</strong>nnes in manufacturing<br />

Whilst at <strong>the</strong> same time:<br />

• 13.2 million people live in relative poverty (2)<br />

• 7 million are effected by low income (3)<br />

• 4 million are classed as living in food poverty (4)<br />

Food Surplus<br />

Food Poverty<br />

(1)<br />

“Waste arisings in <strong>the</strong> supply of food and drink <strong>to</strong> households in <strong>the</strong> UK”, WRAP, 2010<br />

(2)<br />

“A minimum income for healthy living”, Journal of epidemiology and Community Health, 2007<br />

(3) Moni<strong>to</strong>ring i Poverty and dSocial Exclusion, Joseph Rowntree Foundation, 2007<br />

(4)<br />

Poverty and Social Exclusion in Britain, Joseph Rowntree Foundation, 2000<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 19 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


FareShare – Interaction with Suppliers<br />

Delivery in high 90%s<br />

Fit for consumption<br />

surplus <strong>to</strong> FareShare<br />

High volume<br />

manufacturing –<br />

800,000,000<br />

litres/year<br />

Waste <strong>to</strong> AD<br />

(Anaerobic Digestion)<br />

Last year Ger<strong>be</strong>r had surplus of only 0.04% -<br />

but this meant 300,000 litres <strong>to</strong> FareShare – 1.2 million servings<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 20 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


FareShare – Expansion Plans and<br />

On Line Management System<br />

2009:<br />

2,800 <strong>to</strong>nnes of food 11 FareShare<br />

600 organisations 6.7m meals<br />

from <strong>the</strong> industry<br />

Depots<br />

2018:<br />

20,500 <strong>to</strong>nnes of food<br />

from <strong>the</strong> industry<br />

22 FareShare<br />

Depots<br />

2,200 organisations 49m meals<br />

“Our current collaboration with <strong>Aid</strong>matrix is at a pivotal point in our<br />

development. ”<br />

“The OMS will produce hard <strong>be</strong>nefits in<br />

terms of more efficient throughput but<br />

has also had spin off <strong>be</strong>nefits such as<br />

allowing us <strong>to</strong> revisit and refine our<br />

business processes, and improve our<br />

data integrity. ”<br />

David Meller, Operations Manager<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 21 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


What’s special<br />

A magical transformation…<br />

We win - society wins - <strong>the</strong> environment wins - our partners win<br />

... and <strong>the</strong> more we do <strong>the</strong> bigger <strong>the</strong> gains.<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 22 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


<strong>SCOR</strong> <strong>Model</strong> for <strong>Humanitarian</strong> <strong>Aid</strong><br />

• Similarities <strong>to</strong> Commercial Sec<strong>to</strong>r<br />

› Core model - Plan, Source, Make, Delivery and Return –<br />

all apply <strong>to</strong> <strong>the</strong> supply chain process<br />

› On-going aid is similar <strong>to</strong> commodity products<br />

› Disaster aid is similar il <strong>to</strong> make <strong>to</strong> order products<br />

• Differences <strong>to</strong> Commercial Sec<strong>to</strong>r<br />

› Business model – impact lives ra<strong>the</strong>r than make money<br />

› Funding comes mainly from donors – little selling<br />

› Supplies can come from donors – some unsolicited<br />

› Little manufacturing but some kitting<br />

› Delivery can go directly <strong>to</strong> person in need<br />

› Donor transparency requirements<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 23 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


CSR and Supply Chains<br />

• Many corporations embracing corporate social responsibility<br />

(CSR) as part of <strong>the</strong>ir core values<br />

• Excess usable inven<strong>to</strong>ry is an opportunity <strong>to</strong> provide<br />

humanitarian aid<br />

• However excess unusable inven<strong>to</strong>ry can cause problems<br />

for humanitarian workers<br />

• Good inven<strong>to</strong>ry donated <strong>to</strong> <strong>the</strong> right organization is a win-win<br />

› Corporation: Tax write-offs, reduced disposal fees, corporate social<br />

responsibility, positive press<br />

› NGOs: Low cost inven<strong>to</strong>ry for humanitarian aid<br />

• Need for new processes in <strong>the</strong> supply chain <strong>to</strong> identify<br />

excess donate-able inven<strong>to</strong>ry<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 24 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


Conclusion<br />

• <strong>Humanitarian</strong> aid is a complex supply chain<br />

• <strong>Aid</strong> agencies are <strong>be</strong>hind <strong>the</strong> commercial sec<strong>to</strong>r in<br />

embracing supply chain principles<br />

• Commercial sec<strong>to</strong>r can add a new dimension <strong>to</strong> <strong>the</strong>ir<br />

supply chain by incorporating opportunities for<br />

donating products - for corporate social responsibility<br />

as well as good business practice<br />

• <strong>SCOR</strong> model should incorporate humanitarian aid<br />

• Supply Chain Counsel should target NGO mem<strong>be</strong>rs<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 25 | 19 Oc<strong>to</strong><strong>be</strong>r 2010


Contact Information<br />

www.aidmatrix.org<br />

Shari Temple<br />

The <strong>Aid</strong>matrix Foundation<br />

Managing g Direc<strong>to</strong>r - EMEA<br />

+49 8161 935654<br />

Shari_Temple@aidmatrixeurope.org<br />

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 26 | 19 Oc<strong>to</strong><strong>be</strong>r 2010

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