CHSCM 3.0 - Unit 1 - SCM in the Humanitarian World

In the first module of the course, we introduced the basic concepts of the supply chain.
The operation of a supply chain is fundamentally simple. Needs flow up the supply chain, triggering
processing activity to enable goods to flow down the chain. When the goods reach the next
participant, cash flows up the chain to reward the supplier for their goods. The relationship
between the three flows is depicted in the diagram below.
The key to managing the flow of goods relies on the recognition that all three of the flows must be
synchronized.
While the supply chain might not be directly involved with financial management, it is important that
they recognize the need to synchronize the three flows. With greater involvement of donors in
humanitarian operations, there is an increasing need to create accountability, auditability, and
transparency in operations. Fundamentally, this requires that operations are conducted using
standard operating procedures. Consequently, these need to be designed and then operated. Each
supply chain type will pose specific challenges in using such procedures, but the task can be made
easier by ensuring the procedures are robust and operationally sensible.
In the above sections, we have introduced the complexity that surrounds the provision of
information in the supply chain. The sequence of events must be followed is often slow, laborintensive,
and prone to errors.
Although the specific manner in which these activities will be performed will be unique to each
organization, there has been work in recent years that indicates at a higher level that the activities
follow a common process. Earlier in the course we introduced the SCOR®-model, which is the
leading model of supply chain processes. Many of the operational processes contained in SCOR®
could be directly applied in humanitarian operations without significant alteration. Others will need
adaptation to make them relevant. Since few humanitarian organizations will be directly involved in
manufacturing, only some of the processes will be appropriate.
The design of such standard processes has attracted the attention of software companies. These
companies can see the benefit of standard processes, since it enables them to design systems that