Week 12: Leading the supply chain: constrained contexts…

1Supply chains in conflict and sanctions contexts

In armed conflicts, the supply chain must respect humanitarian principles and the law:

Neutrality and independence: suppliers and transporters vetted to ensure they are not linked to the parties to the conflict; no payments to armed groups.
Sanctions: systematic screening of suppliers, transporters and partners against sanctions lists (United Nations Security Council, European Union, United States and others depending on the funding). Humanitarian exemptions exist (for example Security Council resolution 2664, adopted in 2022), but they have limits and do not remove the need for due diligence.
Dual-use goods: fertilisers, chemicals, communications equipment: licences and end-use monitoring.
Risk of diversion: control of distributions, reconciliations, post-distribution monitoring, complaints mechanisms.

A diversion of aid to the benefit of a party to the conflict can lead to the suspension of funding for the whole organisation: logistics is on the front line in preventing and detecting it.

2Remote management

When international or even national staff cannot access an area, the supply chain is managed remotely, often with local partners or service providers. Adapted controls:

Third-party monitoring: independent companies or organisations that visit warehouses and distributions.
Digital evidence: time-stamped and geolocated photos, electronic signature records, GPS tracking of trucks.
Calls to beneficiaries on a sample, by an independent call centre.
Reinforced reconciliations and lower tolerance thresholds.
Measured risk transfer: do not transfer to partners security risks they cannot manage, and fund their security costs.

Call verification example. 3,000 households served; a sample of 300 called; 255 reached, of whom 240 confirm full receipt, 9 partial receipt and 6 non-receipt. Confirmation rate = 240 / 255 ≈ 94%. The 15 problem cases (5.9%) are passed on to the complaints mechanism and verified; extrapolated to 3,000 households, this represents about 176 households potentially poorly served.

3Digital tools

Digital tools improve reliability and speed if they are suited to the context (connectivity, skills, cost):

Stock and warehouse management: from a structured spreadsheet to specialised software; several tools have been developed for the humanitarian sector, some open-source and free.
Procurement tracking: dashboard of requests, lead times and statuses, linked to finance.
ERP integrating procurement, stocks, fleet and finance, for organisations of a certain size.
Distribution data: beneficiary registration, distribution by card, QR code or biometrics, automatic reconciliation.
Vehicle and shipment tracking.

Data protection. Beneficiary data (identity, location, biometrics) are sensitive: in a conflict, a beneficiary list can put people in danger. Principles: data minimisation (collect only what is necessary), informed consent, security (encryption, access rights), limited retention period, extreme caution with biometrics, and an impact assessment before any new system.

4Organising the supply chain function

An effective supply chain function rests on:

A clear structure: a country supply chain manager, with procurement, warehouse, fleet and transport managers; base logisticians in the field; a functional link with headquarters for standards and international procurement.
Written procedures and an up-to-date manual, adapted to the context, with templates (purchase request, purchase order, stock cards, logbooks).
Appropriate delegations of authority: too centralised, they slow everything down; too broad, they weaken control.
Skills: continuous training, professional certifications for the sector, career paths for national staff.
A partnership with programmes and finance: planning meetings, shared indicators, logistics present from the design of projects and budgets.

Logistics that is consulted only after a project has been signed inherits unrealistic budgets and impossible lead times. Its place is at the table from the concept note onwards.

5Coordination and common services

No organisation can do everything alone in a major crisis. Logistics coordination provides:

Shared information: status of roads, ports and airports, capacities, customs procedures, transport prices.
Common services when the market fails: road, air (UNHAS) and river transport, shared storage, fuel, emergency telecommunications (Emergency Telecommunications Cluster).
Collective advocacy for access, exemptions and customs facilitation.
Joint procurement and sharing of framework agreements between organisations.

Using a common service does not relieve an organisation of its obligations: it remains responsible for its goods, its documents and its accountability to beneficiaries and donors.

6Final project: supply plan for a response

The final project of the Mini MBA Logistics and Supply Chain consists of writing, for a real crisis (using public data) or a fictional but realistic one, a complete supply plan of 6 to 10 pages:

1. Context and scenario: target population, needs, phase, access and security constraints.
2. Supply chain mapping: entry points, warehouses, corridors, lead times, capacities, bottlenecks.
3. Quantified needs: items, specifications, quantities, schedule, safety stock and reorder point.
4. Procurement strategy: local, regional or international, procedures, framework agreements, compared landed cost.
5. Transport, customs and storage: modes, rotations, documents, exemptions, warehouse sizing.
6. Distribution and accountability: sites, throughput, reconciliation, post-distribution monitoring, data protection.
7. Logistics budget and indicators: cost per tonne or per household, dashboard, environmental footprint.
8. Risks and controls: fraud, diversion, sanctions, road safety, contingency plan.

Evaluation criteria: accuracy of calculations, consistency between the parts, realism of lead times and costs, compliance with the rules (procurement, customs, sanctions), quality of accountability and clarity. The project is part of the third month's exam.

Situation. You take over as head of supply chain for an operation in a conflict zone. Findings: median procurement lead time 52 days; supplier OTIF 64%; 2 of 5 warehouses without an inventory for 9 months; a local transporter belongs to the brother of a commander of an armed group; beneficiary lists are shared via unencrypted messaging; call verification: 88% confirmation on a sample of 250 households reached; logistics is not invited to project design meetings.

Task. Rank the problems by severity and propose a 30-, 60- and 90-day plan.

Answer. Severity: 1) the transporter linked to an armed group (risk of financing a party to the conflict, possible breach of sanctions and donor rules); 2) unprotected beneficiary lists (risk to people's safety); 3) the 88% confirmation rate (12% problems, i.e. about 30 households out of 250: risk of diversion); 4) the warehouses without an inventory; 5) lead times and OTIF; 6) the absence of logistics from project design. Plan. 30 days: suspend the transporter and screen the other service providers against sanctions lists, inform management and, depending on the contracts, donors; stop the unencrypted sharing, secure the lists, inform the teams; full inventories in the 2 warehouses with an outside team; investigation of the unconfirmed cases. 60 days: new transport tender with enhanced due diligence; breakdown of procurement lead time and revised delegations; supplier performance review. 90 days: monthly dashboard; logistics involvement in all concept notes; data protection procedures and training.

Leading the supply chain: constrained contexts, digital tools, organisation and final project

1Supply chains in conflict and sanctions contexts

2Remote management

3Digital tools

4Organising the supply chain function

5Coordination and common services

6Final project: supply plan for a response

Exercise: taking over a supply chain in difficulty

Key points

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