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The Yogyakarta earthquake: Humanitarian relief through IFRC's decentralized supply chain

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  • Gatignon, Aline
  • Van Wassenhove, Luk N.
  • Charles, Aurélie

Abstract

Humanitarian operations rely heavily on logistics in uncertain, risky, and urgent contexts, making them a very different field of application for supply chain management principles than that of traditional businesses. We illustrate how optimal supply chains can be designed and implemented within this sector via a study of the process through which the International Federation of the Red Cross (IFRC) decentralized its supply chain. We examine how the process was implemented through a 10-year retrospective of the organization's evolution. We then evaluate the decentralized supply chain's performance in responding to humanitarian crises through an analysis of the IFRC's operations during the Yogyakarta earthquake in 2006. This was the first operation to benefit from the support of Regional Logistics Units (RLUs), the core element of the IFRC's new decentralized supply chain for disaster relief. Our analysis demonstrates the benefits of the decentralized model in humanitarian operations. We find that its implementation requires an alignment between organizational readiness and the adoption of fundamental logistics components, namely standardized tools and processes, traceability through adapted information systems, and appropriate competencies within the organization.

Suggested Citation

  • Gatignon, Aline & Van Wassenhove, Luk N. & Charles, Aurélie, 2010. "The Yogyakarta earthquake: Humanitarian relief through IFRC's decentralized supply chain," International Journal of Production Economics, Elsevier, vol. 126(1), pages 102-110, July.
    • Handle: RePEc:eee:proeco:v:126:y:2010:i:1:p:102-110
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    Citations

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    Cited by:

    1. Permani, Risti & Xu, Xing, 2020. "The Nexus between Natural disasters, Supply Chains and Trade – Revisiting the Role of FTAs in Disaster Risk Reduction," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304269, Agricultural and Applied Economics Association.
    2. Prima Denny Sentia & Syaimak Abdul Shukor & Amelia Natasya Abdul Wahab & Muriati Mukhtar, 2023. "Logistic distribution in humanitarian supply chain management: a thematic literature review and future research," Annals of Operations Research, Springer, vol. 323(1), pages 175-201, April.
    3. Luis Ballesteros & Aline Gatignon, 2019. "The relative value of firm and nonprofit experience: Tackling large‐scale social issues across institutional contexts," Strategic Management Journal, Wiley Blackwell, vol. 40(4), pages 631-657, April.
    4. Diaz, Rafael & Behr, Joshua G. & Acero, Beatriz, 2022. "Coastal housing recovery in a postdisaster environment: A supply chain perspective," International Journal of Production Economics, Elsevier, vol. 247(C).
    5. Michael Yao-Ping Peng & Yong-Sheng Chang, 2023. "Do Social Network Relationships and Overseas Market Orientation Affect SMEs’ International Performance? A Dynamic Internationalization Capability Perspective," SAGE Open, , vol. 13(1), pages 21582440231, March.
    6. Roh, Saeyeon & Pettit, Stephen & Harris, Irina & Beresford, Anthony, 2015. "The pre-positioning of warehouses at regional and local levels for a humanitarian relief organisation," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 616-628.
    7. M. Ali Ülkü & James H. Bookbinder & Nam Yi Yun, 2024. "Leveraging Industry 4.0 Technologies for Sustainable Humanitarian Supply Chains: Evidence from the Extant Literature," Sustainability, MDPI, vol. 16(3), pages 1-26, February.
    8. Firas Rifai, 2018. "Transfer of Knowhow and Experiences from Commercial Logistics into Humanitarian Logistics to Improve Rescue Missions in Disaster Areas," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 8(3), pages 1-63, August.
    9. Nagurney, Anna & Flores, Emilio Alvarez & Soylu, Ceren, 2016. "A Generalized Nash Equilibrium network model for post-disaster humanitarian relief," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 1-18.
    10. Risti Permani & Xing Xu, 2022. "The nexus between natural disasters, supply chains and trade—Revisiting the role of preferential trade agreements in disaster risk reduction," The World Economy, Wiley Blackwell, vol. 45(10), pages 3002-3030, October.
    11. İbrahim Miraç Eligüzel & Eren Özceylan & Gerhard-Wilhelm Weber, 2023. "Location-allocation analysis of humanitarian distribution plans: a case of United Nations Humanitarian Response Depots," Annals of Operations Research, Springer, vol. 324(1), pages 825-854, May.
    12. Feyza G. Sahinyazan & Marie‐Ève Rancourt & Vedat Verter, 2021. "Improving Transportation Procurement in the Humanitarian Sector: A Data‐driven Approach for Abnormally Low Bid Detection," Production and Operations Management, Production and Operations Management Society, vol. 30(4), pages 1082-1109, April.
    13. Das, Rubel & Hanaoka, Shinya, 2014. "Relief inventory modelling with stochastic lead-time and demand," European Journal of Operational Research, Elsevier, vol. 235(3), pages 616-623.
    14. Abhishek Behl & Pankaj Dutta, 2019. "Humanitarian supply chain management: a thematic literature review and future directions of research," Annals of Operations Research, Springer, vol. 283(1), pages 1001-1044, December.
    15. Aurelie Charles & Matthieu Lauras & Luk N. van Wassenhove & Lionel Dupont, 2016. "Designing an efficient humanitarian supply network," Post-Print hal-01532132, HAL.
    16. Kunz, Nathan & Reiner, Gerald & Gold, Stefan, 2014. "Investing in disaster management capabilities versus pre-positioning inventory: A new approach to disaster preparedness," International Journal of Production Economics, Elsevier, vol. 157(C), pages 261-272.
    17. Abidi, Hella & Klumpp, Matthias, 2012. "Konzepte der Beschaffungslogistik in Katastrophenhilfe und humanitärer Logistik," ild Schriftenreihe 26, FOM Hochschule für Oekonomie & Management, Institut für Logistik- & Dienstleistungsmanagement (ild).
    18. Balster, Andreas & Friedrich, Hanno, 2019. "Dynamic freight flow modelling for risk evaluation in food supply," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 121(C), pages 4-22.
    19. Mohan, S. & Gopalakrishnan, M. & Mizzi, P.J., 2013. "Improving the efficiency of a non-profit supply chain for the food insecure," International Journal of Production Economics, Elsevier, vol. 143(2), pages 248-255.
    20. V. G. Venkatesh & Abraham Zhang & Eric Deakins & Sunil Luthra & S. Mangla, 2019. "A fuzzy AHP-TOPSIS approach to supply partner selection in continuous aid humanitarian supply chains," Annals of Operations Research, Springer, vol. 283(1), pages 1517-1550, December.
    21. Gyöngyi Kovács & Ioanna Falagara Sigala, 2021. "Lessons learned from humanitarian logistics to manage supply chain disruptions," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(1), pages 41-49, January.
    22. Bagchi, Aniruddha & Aliyas Paul, Jomon & Maloni, Michael, 2011. "Improving bid efficiency for humanitarian food aid procurement," International Journal of Production Economics, Elsevier, vol. 134(1), pages 238-245, November.

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