Francois Damba: Unit 1 - Task 9 - Risk and Preparedness For A Supply Chain

MEMO SCILaid
From: Francois Damba

Date: 05 July 2021
RE: UNIT 1 - TASK 9 – RISK AND PREPAREDNESS FOR A SUPPLY CHAIN
Bruno Bodanza is due to attend a meeting later today to discuss the potential hurricane situation and to
contribute to the plans from a supply chain point of view. Write a brief for Bruno giving the following:
1. Your initial views on the likely effect the hurricane will have on the SCILaid supply chain.
A supply chain is composed of two main components: the flow, goods, and the flow of information and these
two essential elements of a supply chain will be directly affected when a disaster like hurricane happens,
 Impact on the flow of goods in SCILaid Betaland
1. The flow of goods starts with the acquiring and stocking of raw materials, most of which are to be
imported rather than locally found.
2. The next step is that the manufacturers actually manufacture the finished goods in their factory and
stored in their warehouses.
3. Then these goods moved into the markets managed by suppliers, both wholesalers and retailers to
whom SCILaid put the purchase orders.
4. After that, the ordered goods are to be transported via sea freight or air freight to the ports of entry
into Betaland and there are some procedures of customs clearance to be followed – Mugla / Jumna
Ports
5. Then these officially cleared goods are carried toward the main warehouses of SCILaid HQ in Dhetra
and then to the warehouses of sub office in Chagong. Program staff manage to move these goods
stored in the regional warehouses to the beneficiaries living in the refugee camps at border area.
When a hurricane disaster happen in the country, the following negative impacts will happen:
• The foremost area to get impact is that of transportation. Because of the extremely bad weather,
there can be flights cancels and delays
• The in-country transportation and distribution will also be affected because of road blockage by land
sliding and bridges damaged by wind and torrential water. The waterways are very dangerous to use
at that time
• Production lines are to be stopped and delayed and the important goods are not available at that
time
• Backward flow of goods is almost impossible to send back up the supply chain because of receiving
faulty goods, too many goods being supplied, or the wrong type of goods being supplied. And
transport resources are used to move and store goods, which are either not needed by beneficiaries
or are not suitable to be given to them.
 Impact on the Information Flow
MEMO SCILaid
Another aspect of supply chain to be affected by the hurricane disaster is that of information flow. The
important piece of information that is required is, what are the goods needed by the beneficiaries, what
quantities are required, when are they required and where are they required. It is this information that will
initiate the entire supply chain process. All the activities involved in the supply chain process are there to
respond to this information. This information will tell us about where goods are in the chain, what is held
in warehouses, and what is in transit, when goods will arrive at different points in the chain, e.g. goods
arriving at ports that will need unloading and goods arriving that will need storing in a warehouse and
what type of goods will be arriving at different points in the chain and do they need any special handling or
storage requirements.
At the time of emergency like hurricane disaster, the whole information flow can be interrupted and blocked
because
 Electricity in the area will be cut off
 Telecommunication and radio transmission facilities can be destroyed
 Movement of staff and messages can be blocked and trapped
2. Your ideas for mitigating these effects, so that SCILaid can continue to provide aid with minimal impact
on the supply chain, after the hurricane strikes.
When an emergency like hurricane happen, Supply and logistics personnel on the ground should do
the following things immediately.
(1) Checking import facilities and arrangements. There are seaports like Mugla Port and Jumna Port
and Airports like that of Dhetra and Chagong, and Which seaports and airports are functioning? Which
direct road and rail links are open from neighbouring countries? Which government departments will
be responsible for receipt and clearance of emergency supplies? If the government is unable to
function and paralysed, what other arrangements can be made?
(2) Check status of existing clearing, warehousing and heavy-goods transport contracts. If none are in
place, initiate action to set them up.
(3) Checking the availability of warehousing in key areas of operation like Naguran, Chagong and
Conila. What is available in the projected programme area, at the port and near major transport
routes? It is important to be taking action early. If Betaland government is incapacitated, and SCILAID
undertakes in-country logistics, contracting quickly for warehousing and transport is very important. If
the hurricane strikes in a large scale, the more organizations would be involved, and the higher the
pressure on transport and warehousing. Prices are likely to go up dramatically and quickly. Having too
much space and capacity early on is better and cheaper than having too little later.
(4) Checking with other UN agencies and humanitarian organizations in the region to see whether a
joint approach to the market is possible. It keeps prices down. A joint approach should also be made
as early as possible, before agencies go their own way.
(5) Checking the Capacity of current contractors – ex RALEM – We can have further negotiation about
the delivery location and can modify the contract on mutual agreement, or can add a clause for a new
delivery location in the Chagogn warehouse.
MEMO SCILaid
Regards
Francois
To answer this task, you will find the following learning material section helpful:
1.4. The Role of Logistics & Supply Chain in Humanitarian Aid

1.3. Supporting Beneficiary Service Programmes
1.7. Risk & Preparedness

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MEMO SCILaid

From: Francois Damba

RE: UNIT 1 - TASK 9 – RISK AND PREPAREDNESS FOR A SUPPLY CHAIN

1.4. The Role of Logistics & Supply Chain in Humanitarian Aid

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