Memo

To: Olga Kosyak

From: Francois Damba
Date: 12 November 2009
RE: TASK 9 – HUMANITARIAN AID SUPPLY CHAINS

Dear Francoise,
Pls see below my view on the potential effect the hurricane will have on the supply chain and
what can be done to mitigate this so that SCILaid can continue to provide aid after the hurricane
strikes.

Three major components of a supply chain are

- Procurement and Order Management
- Transport.
- Warehousing and Inventory.

In order to estimate possible implications of hurricane we need to assess these three major
components of SCILaid supply chain and to analyze the risks, vulnerability and infrastructure:
And then it would be possible to find ways to diminish these possible implications.

First of all we will need to look at availability of supplies and suppliers.

We have some stock of emergency supplies in Mugla warehouse that can be distributed when
needed. We also have a contract with the Ralem Company, a local supplier, based in Mugla for
procurement of salt and sugar. However, we are nearing the end of the contract with them and
are in the process of re-tendering. The stock is running out. Nobody in SCILaid finds this
contract a good one and our relations with the supplier are not good. I was also informed that this
is the only vendor that we can use. This situation is rather difficult as we can face the lack of
necessary food supplies after the hurricane due to all the above. Another issue is that the supplier
is located in Mugla and the city is on hurricane route. Supplier’s location can also mitigate our
supply chain even if we will manage to solve all issues with the supplier.

We have Frame Agreements for blankets, plastic sheeting, kitchen sets, and new emergency
health kits and the suppliers keep dedicated stocks in their warehouses for us. This will allow us
to have access to these particular items at an already fixed price.

I would suggest to do tendering in order to increase quantity of Frame Agreements with selected
suppliers for basic relief and medical items used in emergencies, including salt and sugar. I
would suggest to have at least two suppliers for the most important items. In this case we will not
need to spend time for procurement procedures during emergency in case if one of the suppliers
would not be able to deliver ordered supplies or more items are needed.
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 Port and airport location, access and capacities. SCILaid is building supply chain mostly
using Mugla port as a delivery point to Betaland. Jumna Port was not used for this purpose
earlier. As I understood the deliveries to the only international Betaland airport were also rare.
Mugla port is quite comfortable and accessable, however, it is on the western coast of Betaland
and this coat will be affected by the hurricane. There is possibility that the delivery of supplies to
the port would become impossible.

Transport. We are using a mix between our own fleet (4 heavy duty trucks) and other
commercially leased vehicles from another company. The quantity of vehicles has been recently
reduced. There is also problem with qualified drivers in the country

Sites that could be used for Warehouses.

.
Communication infrastructure.

Goods flow
Information flow

Procurement and Order Management.

We add salt and sugar. We have a contract with the Ralem Company, a local supplier, based in Mugla. We are nearing the
end of the contract with them and are in the process of re-tendering, since I am not sure we have the best deal possible,

Both the sugar and salt have to be of the right quality. We also need a new contract now, as the stock is running out.
According to Logistics, there are no more vendors that we can use.
Transport.

For collections from Mugla warehouse and for onward delivery from Chagong to the camps. You will find the details in the
handover report from your predecessor. I am not sure it is worthwhile continuing to use the donated trucks, as they have a
very high consumption rate, although Xrayland Government is paying fuel and maintenance.

We have 14 light vehicles, mainly 4X4's. 10 of them are in Chagong - they are claiming that they need them. To be
honest, I haven't seen any reports, so I don't know if this is justified or not. We have only 4 here and we are
sometimes obliged to rent some. Again, I have not received regular information on mileage and maintenance costs.
You will find the vehicles list in our 'Management Information Centre'.

Warehousing and Inventory.

We have currently 2 warehouses, holding food and some relief items. The first one is at Mugla Port, where UNFA is
delivering the food. So far, we have had no major problems with that warehouse. Accurate stock data is available in
the 'Management Information Centre'. The second warehouse is in Chagong; it is small, but OK for our immediate
needs. I don't receive regular stock data, but according to Marcel, the management of this warehouse does not seem
up to SCILaid's standards.

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We have contact with a commercial company and have chosen a rental contract with driver/s. The contract is based on
a monthly basis, so can be reviewed anytime. Trucks are in good condition, although we have had problems with some
drivers, these have been quickly solved with the company. Getting drivers is a big problem, there are not enough
qualified drivers in the country and there is competition between the different humanitarian organisations for drivers.

The fleet was larger at the beginning of the operation as we had to distribute shelter and housing equipment, but we
have already reduced this significantly now. Maintenance is done regularly and I can have a truck on a daily basis from
the commercial company when needed.

Mugla-Chagong: Round trip including loading/off loading: 2 days

Chagong-camps: Round trip including loading/offloading: 1 day.

Roads conditions are satisfactory, but we cannot drive normal speed. There is a lot of traffic, and a lot of roads repairs
everywhere from Mugla to Chagong.

Port and airport location, access and capacities.

Transport options.
Sites that could be used for Warehouses.
Availability of supplies and suppliers.
Communication infrastructure.

Both high frequency (HF) and very high frequency (VHF) networks are working well. This is important for security even
if, at the moment, security is not a big issue. We have had some problems in the past, and it could happen again,
mainly around the camps and close to Alphaland border.

Internet connections are not 100%. It works, but not always.

Availability of means of transport.

In particular, this will involve assessing the current state of the infrastructure, facilities and resources
in the country.
This will include :
Condition and capacity of facilities, e.g. airports and ports.
Conditions of potential warehouse facilities.
Condition of road, rail, and river networks.
Availability of usable vehicles.
Condition of power supplies.
Security situation.
If a supply chain plan had not already been developed, as part of supply chain preparedness, then a
full logistics assessment would need to be made as quickly as possible. This will be covered in more
detail in a later unit.

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 It doesn't look at though the refugee camps will be affected, but certainly the North West of Betaland will be touched,
and that could affect our Refugee operation, and may be start additional programmes, which may include Alphaland if
there are serious problems over there. But, that is another story.

Lastly, but very importantly: I take the initiative in disaster assessments as required by circumstances. As you may be
aware, we are now working on contingency planning for the coming Hurricane, and I am working actively with The
National Disaster Coordination body and other agencies to elaborate a plan for it, at both levels of preparedness and
response.

By the way, I don’t know why the Government has decided to put the refugees where they are. We told them, and the
UNIRP quite strongly, that the camps locations in the west part of Betaland are in possible hurricane routes. They
either did not listen, did not want to put them too far from the border, or did not want to separate different tribes,
which in a way I understand, as there has been fighting on the other side of the border. Also the eastern part of
Betaland is quite sparsely populated and has fairly difficult terrain. This will cause a huge problem if the hurricane
decides to change its course and moves further east.

I hope that this hurricane is not going to hit too strongly, but we are preparing for the possibility of having to
get more shelters quickly. UNIRP is building some stocks in the country. We have increased our stocks in
Epsilonland and are also in discussions with our suppliers.

Hurricane Bharat’s approach is likely to bring with it wind speeds of anywhere from 145 - 195 kilometres per hour, as
well as torrential rain, and those in his path need to take action now to prepare,” said Gerard Leboeuf, disaster
preparedness expert for SCILaid.

The areas most likely to be worst affected is the North-west coastal region. With this in mind, COASTAL RESIDENTS
SHOULD TAKE THESE ACTIONS NOW:

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