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International Journal of Physical Distribution & Logistics Management

(Le)agility in humanitarian aid (NGO) supply chains


Kirstin Scholten Pamela Sharkey Scott Brian Fynes
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To cite this document:
Kirstin Scholten Pamela Sharkey Scott Brian Fynes, (2010),"(Le)agility in humanitarian aid (NGO) supply
chains", International Journal of Physical Distribution & Logistics Management, Vol. 40 Iss 8/9 pp. 623 - 635
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Gyöngyi Kovács, Karen M. Spens, (2007),"Humanitarian logistics in disaster relief operations",
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dx.doi.org/10.1108/09600030710734820
Stephen Pettit, Anthony Beresford, (2009),"Critical success factors in the context of humanitarian aid
supply chains", International Journal of Physical Distribution & Logistics Management, Vol. 39 Iss 6 pp.
450-468 http://dx.doi.org/10.1108/09600030910985811
Richard Oloruntoba, Richard Gray, (2006),"Humanitarian aid: an agile supply chain?",
Supply Chain Management: An International Journal, Vol. 11 Iss 2 pp. 115-120 http://
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(Le)agility in
(Le)agility in humanitarian aid NGO supply
(NGO) supply chains chains
Kirstin Scholten and Pamela Sharkey Scott
Faculty of Business, Dublin Institute of Technology, Dublin, Ireland, and 623
Brian Fynes
Smurfit School of Business, University College Dublin, Dublin, Ireland

Abstract
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Purpose – The purpose of this paper is to explore the concept of agility in the context of supply
chains of humanitarian aid (HA) organizations, particularly non-government organizations (NGOs).
This responds to the increasing pressure on NGOs to use their resources more strategically if they are
to gain donor trust and long-term commitment.
Design/methodology/approach – A literature-based approach that extends the commercial
supply chain concept of agility to NGOs is combined with the first exploratory semi-structured
interviews of these concepts with five NGO supply chain directors.
Findings – The commercial concept of agility when responding to disaster relief holds strong
potential for increasing efficiency and effectiveness, but this application is restrained by the absence of
supporting information technology (IT) and the relegation of supply chain management (SCM) to the
“back office” by NGOs. This has potential implications for NGOs and other HA agencies.
Research limitations/implications – This paper represents an exploratory study, and an
extended pool of interviewees would reinforce the qualitative findings. Planned future research will
address this issue.
Practical implications – Practical guidance on how NGOs can proactively manage their
organization’s ability to respond with agility in a highly pressured environment is provided.
Originality/value – This paper is the first to offer practical guidance to managers of NGOs on
strategies available to improve their organization’s flexibility and agility, based on theoretical concepts
and initial exploratory data. In addition, evidence of how commercial tools apply in a different arena
may prompt commercial managers to be more innovative in utilizing and customizing supply chain
principles to their particular context of operation.
Keywords Supply chain management, Non-governmental organizations, Flexible organizations,
Aid agencies
Paper type Research paper

Introduction
Donors increasingly demand accountability, transparency and value for money in
return for their sponsorship of humanitarian aid (HA) agencies. Meeting these more
challenging performance and accountability standards requires HA agencies to be more
professional in their approach to managing their operations (Thomas and Kopczak,
2005). As 80 per cent of HA operations comprise supply chain management (SCM)
activities (Van Wassenhove, 2006), the application of commercial SCM techniques may
at least partially address this problem. However, to date HA agencies continue to rely on International Journal of Physical
standards used in the for-profit sector in the 1970s and 1980s (Fenton, 2003; Rickard, Distribution & Logistics Management
Vol. 40 No. 8/9, 2010
2003) and largely ignore emerging techniques developed to help businesses respond to pp. 623-635
an increasingly challenging environment. From a theoretical perspective the application q Emerald Group Publishing Limited
0960-0035
of SCM principles to HA has been largely overlooked, despite the stakes and size DOI 10.1108/09600031011079292
IJPDLM of the aid industry and the increasing flow of HA funding to the developing world
40,8/9 (Beamon and Balcik, 2008; see Figure 1). This is particularly problematic given the
nature of managing HA supply chains. For example, supply chains to provide
emergency humanitarian assistance (water, sanitation, shelter, food aid,
re-establishment of physical and social infrastructure) all had to be assembled and
working within a couple of days following the Haiti earthquake in 2010 that effected
624 30 per cent of the Haitian population (OCHA, 2010).
In contrast, commercial organisations actively adopt emerging SCM techniques and
have responded to volatile and dynamic markets by developing agile supply chains. These
agile supply chains build flexible and responsive capabilities in terms of their processes,
networks and how they are integrated across other organisations (Hoek et al., 2001).
We investigate the applicability of the agility concept to the HA supply chain, specifically
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non-government organizations (NGOs), and present the results of our exploratory


investigation. This provides an exciting opportunity to develop and extend the potential
originally suggested by Oloruntoba and Grey (2006) and contribute to the theoretical
underpinning of this under-researched area (Pettit and Beresford, 2009). By demonstrating
how agility practices are translated from commercial to HA organisations, we gain
insights into how NGOs specifically, and HA agencies in general, may be encouraged to
adopt these techniques. This research suggests that adoption of commercial agility
practices provides a means of increasing NGO supply chain efficiency while enabling
continued effective use of resources. From a practitioner perspective, our study provides
initial indications into how emerging SCM techniques can be utilised by NGOs to enhance
their reputation among both aid donors and recipients.
The following sections review the literature on organisational agility and apply
the commercially oriented framework to NGO supply chains, then describe our
methodology, and present our findings. The paper concludes with a discussion of the
implications of our exploratory investigation for theory and management practice.

HA and SCM
The adoption of commercial SCM practices by HA agencies is driven by donor demand
for accountability and resource pressure. There are many players in HA operations
such as the United Nations, the military, profit-seeking organizations, and NGOs

10,000

8,000

6,000

4,000

2,000
Figure 1.
HA funding to the
0
developing world from 2000 2001 2002 2003 2004 2005 2006 2007 2008
2000-2008 in million US$
Source: OECD (2010)
(including household names such as Amnesty International, the International (Le)agility in
Federation of Red Cross and Red Crescent Society, Oxfam International and Medecins NGO supply
Sans Frontieres). Donors favour funding NGOs, but this benefit comes at a price, as
increasingly money conscious donors demand to know where and how their funds are chains
utilised and to see tangible, measurable results. As advised by Oloruntoba and Grey
(2009, p. 494), failure to achieve efficiency may not only result in loss of lives, but “also in
the loss of vital donor funds for international NGOs”. Further pressure on resources and 625
performance is driven by rising levels of both natural and conflict-driven disasters
(Roh et al., 2008; Perry, 2007) which demand more simultaneous relief operations around
the world.
In response to disasters, NGOs must quickly set up quite complex supply chains to
assemble and distribute the required food, shelter and other necessities. Similarly to
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commercial SCM, NGO supply chains involve the process of planning, implementing
and controlling the efficient, cost-effective flow and storage of goods and materials as
well as related information (Thomas and Kopczak, 2005, p. 2). This includes the various
stages of achieving preparedness, planning, procurement, transport, warehousing,
tracking and tracing and customs clearance. Activities take place along the whole
supply chain from the point of origin to the point of consumption with the aim of
improving conditions for those affected by the disaster. Managing NGO supply chains
also holds unique challenges, as unlike commercial supply chains, demand cannot be
anticipated (Long and Wood, 1995). Disasters happen anywhere in the world at any time,
often in undeveloped regions with poor infrastructure or political instability, and may
necessitate a combination of military and commercial applications. As demand and
supply requirements cannot be assessed without difficulty (Van Wassenhove, 2006),
high levels of flexibility are required to set up distribution networks quickly.
Despite the theoretical fit in the translation of commercial SCM to NGO delivery,
NGOs have failed to embrace SCM concepts, which has led to call for greater academic
interest and debate (Kovács and Spens, 2007). While playing a fundamental role in
providing humanitarian relief, SCM has traditionally been perceived as a support
function and relegated to the “back office” by NGOs (Thomas, 2003). This has led to the
exclusion of supply chain managers from critical decisions and failure to recognise the
potential contribution of effective SCM and to invest in the area (Van Wassenhove, 2006).
To close this gap, there is a need to strategically align available resources within
and between the contributing organizations that make up the humanitarian network
(Winter, 2009). The unique and complex humanitarian supply chain settings require a
high degree of human intervention to produce an innovative solution in quick response
to ensure that lives are saved (Gattorna, 2006). This can according to Gattorna (2009)
only be achieved via a fully flexible supply chain that is designed to respond to
unplannable events and therefore uses whatever it takes to get a satisfactory result
without considering cost, utilization or relationships.
However, while this may be historical justifiable growing donor awareness of the
need to achieve value for money increasingly necessitates the adoption of commercial
SCM techniques striving for by NGOs. The overall aim of any international relief or
development operations should be the establishment and management of an efficient
and effective supply chain (Pettit and Beresford, 2005), which necessitates the adoption
of strategic approaches rather than an “what ever it takes” approach (Gattorna, 2009,
p. 56). However, the inherent instability and unpredictability of humanitarian needs
IJPDLM demand does require flexibility, which prompted Oloruntoba and Grey (2006) to initially
40,8/9 suggest that the concept of agility may apply to humanitarian supply chains.

Agile commercial SCM


Evolving from flexible manufacturing systems, the concept of supply chain agility
captures the integration of the organisation’s suppliers, business processes, customers
626 and product use and disposal (Power et al., 2001). Originally focused on achieving
reduced setup times and greater responsiveness to changes in produce mix and volume,
agility then extended into the wider business context (Nagel and Dove, 1991). Despite
considerable confusion as to the content and temporal dependencies that there may be in
its implementation (Narasimhan et al., 2006), the concept of agility captures how
an organisation can synthesise new productive capabilities from the expertise of its
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members, through knowledge and skill development, promoting innovative thinking,


emphasising management and providing appropriate physical facilities (Aitken et al.,
2002).
Change and unpredictable business environments require agile supply chains
(Lin et al., 2006) which attempt to reliably meet market demands while minimising costs
and reducing security risks. This incorporates flexibility (Agarwal et al., 2006), in terms
of both resources and coordination of activities (Sanchez, 1995). Achieving resource and
co-ordination flexibility allows organisations to cope with high levels of environmental
and operating uncertainty (Manuj and Mentzer, 2008). However, according to
Christopher and Towill (2000) agility transcends flexibility, as it is a business-wide
capability that embraces organisational structures, information systems, logistics
processes and overall mindsets. All organisations within a supply chain network need to
be integrated to achieve an impact beyond the individual unit (Hoek et al., 2001) as the
effectiveness of an organisation’s response is largely determined by the capabilities of
its trading partners (Power et al., 2001).
The critical elements of agility as identified by Hoek et al. (2001) are shown in
Figure 2. Hoek et al. (2001) propose that achieving market sensitivity requires that the
focal organisation, its suppliers and its customers share information and knowledge

Network
integration

Market Apply supply Process


sensitivity chain integration

Virtual
Figure 2. integration
Elements of an
agile supply chain
Source: Hoek et al. (2001)
across common systems. Ongoing network integration, both upstream and (Le)agility in
downstream, is achieved through building appropriate information technology (IT) NGO supply
systems, leading to virtual integration of the members’ supply chains. But achieving
market sensitivity in volatile and uncertain supply chains (such as those experienced chains
by NGOs) requires incorporation of the principle of postponement (Christopher and
Towill, 2000).
627
Postponement
One of the SCM techniques which is consistently combined with agility under conditions
of uncertainty is the concept of postponement, as it contributes an important building
block in the construction of an agile supply chain (Aitken et al., 2002; Christopher and
Towill, 2000; Hoek, 2000). Hoek (2000) identifies postponement as an initiative that
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supports the realization of the agility vision in practice through the use of common
platforms, components or modules so that final assembly or customization of the
product can take place when the final customer is identified (Christopher and Towill,
2000). This reduces uncertainty and enhances efficiency (Hoek, 2001). From a
commercial perspective, postponement allows for more sensitive responses to market
demand by facilitating customized and localized assembly, virtual integration by supply
chain operations that are linked to customer orders and process integration through
cross functional links (Hoek, 2000).
Supply chains are often forecast driven due to their limited ability to anticipate real
demand (Christopher and Towill, 2000). Ideally the material decoupling point (the point
before which inventory should be kept in a generic form awaiting final assembly) should
lie as far downstream in the supply chain as possible. This increases the proportion of
the supply chain that is based on real demand and therefore reduces uncertainty
(Stevenson and Spring, 2007). Christopher and Towill (2000) observe that managing the
material decoupling point and the information decoupling point (the point where real
demand is fed upstream into a supply chain and can be used to amend forecasts) presents
a powerful opportunity for developing agility. In such cases, inventory is ideally kept in
a generic form awaiting final assembly (the material decoupling point) as far down the
supply chain as possible.

Leagility
While agility and postponement are implemented to achieve effectiveness within the
supply chain (Hoek et al., 2001), lean production within commercial SCM is aimed at
achieving efficiency. More developed than the concept of agility (Narasimhan et al.,
2006), leanness achieves “more with less” and eliminates waste along the supply chain.
While in terms of practice leanness does not imply agility, an agile supply chain implies
that many of the principles of leanness have been adopted (Narasimhan et al., 2006).
However, what constitutes “waste” in lean production maybe considered essential in
agile production (Mason-Jones et al., 2000), as cutting out too much slack can lead to
rigidity in operations. Childerhouse and Towill (2000) propose that leanness is
particularly relevant when consumer demand is relatively stable and predictable.
In contrast, when the market is volatile or uncertain (as for NGOs), leanness needs to be
decoupled from part of the supply chain process and combined with agility into a hybrid
“leagile” strategy where lean principles are applied downstream in the chain and the
concept of agility upstream (Childerhouse and Towill, 2000).
IJPDLM HA and agile SCM
40,8/9 The concept of agility is increasingly accepted as essential for the growth and survival of
commercial organisations in most business contexts (Ismail and Sharifi, 2006).
Achieving agility is more relevant to those organisations which need “physically
effective and efficient” supply chain operating structures (Fisher, 1997), suggesting its
applicability to NGO supply chains. While achievement of an integrated agile supply
628 chain may be currently overly ambitious for many NGOs (due to their size and limited
funding), several of the concepts which have been adopted so successfully by
commercial organisations are particularly relevant in their operating context. The
strong evidence in the commercial world indicates that placing an emphasis on SCM can
achieve major cost savings (Christopher and Towill, 2000) and improved efficiency will
increasingly direct NGOs to adopt these techniques, despite the short duration of
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emergency relief supply chains (Pettit and Beresford, 2005).


The need for flexibility in terms of both resources and co-ordination of operations
is particularly applicable to those NGOs which operate in a constantly changing
unpredictable environment. Co-ordination flexibility in this context applies to
reconfiguring the chains to deploy the required goods to the identified recipient as
speedily as possible. Similarly to commercial agility, NGO supply chain agility is expected
to transcend the individual organisation’s flexibility, as it captures the responsiveness of
the whole virtual supply chain. This, however, is where the additional complexities of
NGO supply chains emerge. Unlike the commercial supply chain where the survival/profit
motive is paramount, players in the humanitarian relief arena have complex motivations
and differ dramatically in terms of their delivery priorities (Petit and Beresford, 2009).
Oloruntoba and Grey (2006) in their initial conceptual paper suggest holding inventory
in a generic form instead of using pre-positioned stock, allowing aid goods to be
distributed according to the evolving needs of the end-user. We suggest that this practice
evidences postponement, and the adoption of postponement practices would allow NGOs
to achieve market sensitivity, one of the elements of an agile supply chain (Figure 2).
Improved information on real demand would also facilitate market sensitivity. Quick
estimates of needs calculated when a disaster strikes often-incorporate errors. There are
wastage rates of up to 30 per cent in aid delivery in some post-crisis situations (Pettit and
Beresford, 2009). However, if real demand was known (or at least reliably estimated) and
measured, these errors could be reduced or eliminated, leading to more efficient operations
and potentially decreasing suffering. In addition, for NGOs to achieve agile supply chains
adoption of leagility principles may be limited to decoupling part of the supply chain
process with the aim of operating a lean supply chain downstream of the decoupling point
and an agile supply chain upstream of this point. Another possibility for NGOs in
combining lean and agile supply chains is operate different supply chains simultaneously
but in different space depending on how goods are classified, e.g. classification by volume.
Applying the theoretical concepts of agility to NGOs suggests a need to integrate
processes along the supply chain and achieve virtual integration from suppliers to their
end consumers, the aid recipients. This would require a transparent supply chain,
enabling timely and accurate exchange of information. This increased effectiveness and
efficiency should lead to reduced costs, reduction in bottlenecks and more timely
recipient aid, which has prompted the following exploratory investigation into the
concept of (le)agility within NGO supply chains.
Methodology (Le)agility in
A range of techniques were used to collect data, including study of secondary sources NGO supply
and semi-structured interviews with logisticians in HA NGOs. Our initial analysis
of secondary data comprised reviewing sectoral reports, press releases, web sites and a chains
detailed sectoral survey by Thomas and Kopczak (2005), which helped us to understand
the complex operating context of NGOs. As described in Table I, a series of interviews
with NGO logisticians was the main source of our data. While we approached 15 agencies 629
working in the NGO sector, unfortunately, we were only able to get access in five
instances (pressure of time was cited as the main reason for unavailability).
All of the interviews were recorded and transcribed verbatim, and themes were then
extracted (Miles and Huberman, 1994). The interviews covered a range of general issues
relating to the organisation, including history, size and a description of the specific role
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of the manager. The interviews were followed up with informal discussions which
provided additional context for our analysis. The interview questions focused on current
practices of SCM in NGOs to attempt to build a picture of humanitarian supply chains
and enabled us to analyse the data in the context of the framework shown in Figure 2.
The key segment of the interview incorporated a standard schedule of open-ended
questions to encourage detailed responses of how the organization’s supply chain was
configured.
The interviews were generally of 1-h duration (two face-to-face and three telephone)
with logisticians in HA organizations in Ireland, the UK and the USA. These represented
a broad range of HA agencies in terms of the type of relief involvement, which included
multi-country, food, water, shelter, education, health and peace-keeping missions.
Further background information concerning the interviewees has not been included in
this paper as anonymity was a condition of involvement.

Size/estimated global
Organization Type of relief humanitarian contribution
type Position held involvement in 2010

International Supply chain manager Over 50 countries 3,200 employees


NGO A Emergencies, health, 0.1 per cent of grand total
livelihoods, education
International Logistics manager 11 countries 2,500 employees
NGO B Emergencies, health, 0.01 per cent of grand total
livelihoods, education
International Emergency contracts and Over 50 countries 5,430 employees
NGO C product development manager Emergencies, health, 0.25 per cent of grand total
livelihoods, child
protection
International Procurement and logistics 35 countries 2,400 employees
NGO D coordinator Livelihoods, Education, No data on per cent of grand
Peace building, total available
Mine removal
International International logistics officer Over 50 countries 2,000 employees
NGO E Emergencies, Health, 0.7 per cent of grand total
Livelihoods, Education
Table I.
Source: Adapted from Perry (2007) Interviewee group
IJPDLM Results and analysis
40,8/9 Agility and market sensitivity
The interview data initially indicate that the 5 NGO supply chains meet Ismail and
Sharifi’s (2006, p. 431) definition of agility as:
[. . .] the ability of a supply chain as a whole and its members to rapidly align the network and
its operations to the dynamic and turbulent requirements for the demand network.
630
In that they are able to quickly assemble their supply chains in response to disasters.
However, while the NGOs interviewed showed some sensitivity to the particular
cultural, religious and climate-driven needs of aid recipients in different disaster areas,
this falls short of the market sensitivity, required by agile supply chain (Hoek et al.,
2001). Agility implies that the supply chain is demand driven, reading and responding to
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real demand. While the supply chains of the NGOs examined evidenced agility for
development aid as goods are ordered when a need occurs and not stored according to
forecasted needs, their emergency aid relief chains differ; goods are pre-positioned in
warehouses around the world to be able to react quickly when disaster strikes:
Manager A: We have a logistics roster for quick deployment in emergencies and stocks,
we keep are aimed at despatch within 24/48 hours of the onset of an emergency.

Agility and virtual integration


Virtually integrated IT is a necessity for agility as it enables data sharing between
buyers and sellers. The interviews indicate that those NGOs interviewed are only
starting to deploy the required technology and are some distance from data sharing with
suppliers. This provides tentative support for Thomas and Kopczak’s (2005) finding that
only 26 per cent of agencies have access to track and trace softwares that anticipate the
receipt of procured goods in the field. The NGOs interviewed continue to rely on manual
process or Excel spreadsheets. The emergency aid supply chain is excluded from
achieving virtuality, given that it must be based on inventory due to its nature. However,
the supply chain for development aid is information driven and therefore has the
potential to achieve virtuality.

Agility and process integration


Process integration requires co-operation and elimination of barriers all along the supply
chain. Both our exploratory study and the secondary data indicate that NGOs are now in
the early stages of testing and installing IT, but current systems for emergency aid are
not yet capable of achieving the integration processes with suppliers such as
vendor-managed inventory. As a result, process integration is unlikely to take place in
either the development or the emergency aid supply chain, although there is potential at
least in the development aid for its application:
Manager E: We can set up a distribution network within 24-48 hours of an emergency. But we
can’t monitor it effectively as we don’t have electronic management systems over there, there
just isn’t the technology.

Agility and network integration


Network integration which aligns the supply chains of different partners into one supply
chain is based on process integration. It requires all participants in the supply chain to be
included to achieve information sharing and transparency throughout. As there appears
to be limited evidence of process integration in the interviewed NGOs, the foundation for (Le)agility in
network integration within their supply chains is absent. NGO supply
Agility and postponement chains
Postponement contributes an important building block and additional pillar of strength
to the construction of an agile supply chain. Based on the principle of designing products
in a way that common modules can be used enabling customization to take place after 631
the final market or customer is known, postponement leads to an information-based and
demand-driven supply chain which is one of the characteristics for achieving agility.
Decoupling points that decide on where in the supply chain real demand meets
forecast-driven demand need to be set depending on the kind of postponement needed.
In emergency situations, the interview data provide initial evidence that NGOs use
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standardised kits that cover the basic needs of the suffering population, which are often
not 100 per cent adequate. However, this approach enables the postponement of
inventory allocation to specific countries and reduces the amount of goods that need to
be stored in general. Both interview and secondary data suggest that many NGOs have
several warehouses in key areas to keep pre-positioned stock that is only used for
emergency situations:
Manager A: We do keep stocks in various key hubs around the world - Nairobi, Islamabad,
Delhi, Dubai, Beijing, in order to give us flexibility to respond to any emergency, anywhere in
the world.
Manager C: When a disaster strikes, a national incident, we as a subunit request stock from
the main distribution centre or use the emergency channel via the state warehouses.
Stock is allocated when disasters occur, rendering the supply chain as demand driven
from the regional warehouse, the decoupling point. While the limited number of NGOs
involved in this research kept some inventory for development aid, they ordered or
acquired these goods when the need was recognised. If their approach is indicative of
industry practices, this will lead to a demand-driven supply chain with accompanying
longer lead times.
This preliminary exploration of le-agility within NGO supply chains suggests that
disaster aid stock needs to be pre-positioned. If stock is stored in a generic form, then
when an emergency arises, greater distances must be covered adding significant costs to
all operations as well as reducing responsiveness and flexibility. The interviews
tentatively indicate that goods are already pre-positioned in warehouses according to
their suitability for different regions given different cultures, religions and climates of
potential recipients.

NGO supply chains and leagility


Both the interview and secondary data suggest that NGO supply chains being lean for
development aid as goods are only ordered when needed and to some degree in
emergency relief supply chains as the level of stock pre-positioned appears to be kept to a
minimum. This is particularly interesting as the emergency relief supply chain can then
be cautiously described as leagile as it is decoupled in the warehouses and operates in a
responsive and agile way when leaving there. IT is needed to combine both supply
chains into one; enable postponement for development aid supply chains and with it
leagility. This concept is likely to become increasingly relevant as pressure on funding
IJPDLM increases and elimination of waste, even when providing emergency aid, receives
40,8/9 greater scrutiny:
Manager C: We do have to some extent a lean supply chain. We keep pre-positioned stock, kept
to minimum only for emergencies level, no buffer stock/no stock for developing countries.

The role of technology in achieving agility in NGO supply chain


632 The interviews provide initial indications that NGO logistics managers are both
cognisant of and willing to adopt IT. However, our exploratory interviews indicate that
both the pressure to utilise resources for direct aid and the political support within the
organisation are delaying the required investment in new enabling IT systems.
In addition, the current global economic crisis has put further constraints on the budgets
of NGOs. For example, in two of the interviewed organizations, the implementation of
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supply chain technology had to be put on hold, without a future date of recommencing its
introduction.
While our preliminary explorations imply that NGOs are flexible and emergency
supply chains meet the definition of an agile supply chain, critically, they fail to meet the
characteristics behind the concept of agility. This appears to be primarily due to
the constraints of their IT processes. However, this is expected to change overtime as the
development and implementation of the required technology and supporting systems
drives the creation of virtual networks across global value chains, even in NGOs. The
next step towards an agile supply chain for NGOs, process integration, is dependant on
IT support, as it involves integrating suppliers within planning procedures. The need to
bring in new systems is clearly recognised as demonstrated by the following comment:
Manager D: We need to professionalize what we are doing as much as we can, we need to
analyse what we are doing and be able to measure our performance. Going forward, this is the
only way.

Limitations and future study


Our preliminary interview data indicate that while the NGO supply chain manager is
ideally positioned from a technical perspective to inform on the SCM issues, not all of the
interviewees were able to provide a strategic perspective of their organisation and its
strategies for both supply chain and IT development. We hope that future studies
involving multiple representatives from a broader range of NGOs, including logisticians,
directors and CEOs, will develop and extend the current findings and increase their
generalisability across the sector.

Conclusion
The message emerging from our exploratory data suggests that NGO supply chains
may be showing initial indications of adopting the primary concepts of agile supply
chains, but that failure to invest in the required supporting IT is the primary obstacle.
Profit-oriented organisations can prioritise the allocation of scarce resources based on
cold financial criteria. In contrast, NGOs must divert resources from providing
immediate HA if they are to build the IT systems and virtual organisations which will
eventually lead to more efficient and effective SCM and aid distribution. For
practitioners it is difficult to reconcile the choices, but the need for greater organisational
transparency demanded by society is likely to drive them towards improved systems,
processes and even collaboration with other NGOs. Our analysis provides initial
indications that NGO supply chains are already flexible and are moving towards (Le)agility in
meeting the commercial criteria of agility. Our findings suggest that IT is an essential NGO supply
enabler of agility, and as the cost of IT declines more NGOs are likely to adopt the
sophisticated IT systems to position for agility. IT represents a critical link, not just in chains
achieving agility, but in enabling NGOs to adopt other SCM strategies including
postponement and leagility. Building the required supporting collaboration across
supply chains and between currently competing and autonomous NGOs may be more 633
difficult to achieve. Our study of secondary data and interviews provides initial signals
that those NGOs which embrace technology and achieve efficient and effective,
transparent supply chains will be better positioned in the fight to win the limited
donations of increasingly sceptical sponsors.
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About the authors


Kirstin Scholten is completing a PhD in the Dublin Institute of Technology (DIT) on an ABBEST
Scholarship. A first class honours graduate from the BSc in Transport and Logistics, Kirstin Scholten
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has also worked in the Supply Chain Department for Diageo and Unilever. In addition to her research
in HA supply chains, Kirstin Scholten lectures part-time in SCM and marketing logistics to both
undergraduate and post-graduate students. She has won the Harry Boer Highly Commended Award
at the European Operations Management Association 2009 Conference. Kirstin Scholten is the
corresponding author and can be contacted at: kirstinusa@yahoo.com
Pamela Sharkey Scott was appointed Research Fellow at the Faculty of Business in 2007,
following several other academic positions within DIT. She holds a PhD in Strategic Planning and
Entrepreneurship from University College Dublin (UCD) in 2006. Prior to entering academia,
Pamela was a Senior Corporate Banker, and has since been involved in several consulting projects.
She teaches international business and SCM at both primary and post-graduate level. She has
published in several international journals including Journal of International Management and
Strategy and Leadership.
Brian Fynes is Professor of SCM at the School of Business, University College Dublin. Prior to
that he was on the Faculty of London Business School where he was EU Marie Curie Research
Fellow at the Centre for Operations Management. His research interests focus on supply chain
practices and performance in manufacturing and service industries. Brian Fynes has published
over 30 articles in journals such as Production and Operations Management, the International
Journal of Operations & Production Management, the International Journal of Production
Economics, the Journal of Purchasing & Supply Management and the International Journal of
Physical Distribution & Materials Management.

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