CHSCM 3.0 - Unit 1 - SCM in the Humanitarian World

Assessment provides base data in the form of the planning scenario for the design phase of the
supply chain planning process. Before we begin the design activity, we need to examine the things
that place constraints on the planning and conducting of supply chain operations. In the
assessment module, we examined the operational constraints that could affect the supply chain.
These were the external factors existing in the operating environment, over which the organization
has no control.
In this section, we focus on the internal factors that are under the organization’s control and provide
guidelines for how activities can be performed. We list them under three headings:
• Policies • Standards • Strategy
Each of these place different constraints on our operations and consequently it is important to
interpret them accurately. We will consider each in turn.
A policy is a statement of commitment by an organization to a course of action, based on universal
criteria determined in response to alternatives.
Typically, policy decisions are needed at the macro-level, in terms of the fundamental issues and
questions that must be resolved in order to move forward in a given situation to more micro-level
issues, which arise as a result of unanticipated developments as implementation takes place.
An early step in any effective planning process is the definition and/or clarification of an
organization’s mandate and policy in a given situation. At the highest level, policy is the
organization’s mandate, as applied in a given situation. It provides the basis for involvement in a
situation by defining the overall role and approach to be used in working toward solutions. For
policy to be effective, it must integrate assessment “on the ground” with the overall perspective that
Head Office provides.
When managed well, effective policy making provides the basis for an operation’s mission and
strategic intent. Moreover, it focuses the operation’s assessment and design process. Without clear
policy, assessment and design processes lack direction and specificity, leading to plans which are
unfocused and very often lacking in a solutions orientation.
By definition, even the most effective policy will not provide all the answers to managers in the field.
Situations constantly evolve. Effective operations and project planning support the policy making
process by identifying issues and problems that require a policy decision.
In summary, policy definition at the beginning of the operation provides the basis for effective
situation assessment and operations design. Effective planning processes identify gaps that may
exist in current policy and strategy so that these can be addressed by policy makers.
The following list attempts to capture characteristics of effective policy at the operational level.