A presentation on "Bridging the Gap in Humanitarian Operations Through Effective Partnerships" by Dr. Paulo Gonçalves at the Humanitarian Partnership Conference 2014
Bridging the Gap in Humanitarian Operations Through Effective Partnerships
1. Bridging the Gap in Humanitarian
Operations Through Effective Partnerships
Dr. Paulo Gonçalves
Associate Professor – Università della Svizzera italiana (USI), Lugano
Founder & Director – Master Humanitarian Logistics & Management
– Master Humanitarian Operations & SC Management
– Humanitarian Operations Research Center
Research Affiliate – MIT Sloan School of Management
Nairobi, September 17, 2014
2. 1
Three Partnership Stories & Lessons Learned
MASHLM & World Food Program (WFP) 2010
Optimizing Distribution of WfP’s Food Aid in Ethiopia
MASHLM & United Children’s Fund (UNICEF) 2013/2014
Supply Chain Optimization of the distribution of mosquito
nets in Ivory Coast in 2014
MASHOM & International Organization for Migration (IOM) 2013
MASHOM-IOM educational & capacity building partnership
Different engagement & partnership models with different outcomes !
3. 2
Optimizing Distribution of World Food
Program’s Food Aid in Ethiopia
Bervery Chawaguta
Logistics Officer
WFP Ethiopia
bervery.chawaguta@wfp.org
Paulo Gonçalves
Associate Professor
University of Lugano, Switzerland
paulo.goncalves@usi.ch
WFP Ethiopia
Addis Ababa
November 3, 2010
4. 3
Introduction
Transportation:
• Major cost component of humanitarian operations
• Opportunity to increase cost-effectiveness
• Opportunity to improve HO’s effectiveness
Challenge:
• Lack of systematic and reliable field data prevent
organizations from optimizing distribution
• Most existing optimization models applied to synthetic
data
5. 4
WFP Distribution on Somali Region
WFP Ethiopia distributed 970,000 metric tones of
food aid in 2009
• Transportation cost: US $65 million
Primary transportation (from ports to hubs):
• Cost: US$ 48 million
Secondary transportation (from hubs to final
destinations)
• Cost : US$ 17 million
Distribution context:
• 3 Ports , 20 Hubs, 80 FDPs
6. 15,000 45,000 130,000
5
Simplified WFP Distribution Example
Ports:
• Djibouti (78%)
• Berbera (13%)
Hubs:
• Dire Dawa (29%)
• Jijiga (18%)
• Nazareth (15%)
FDPs:
• Nazareth (19%)
• Kombolcha (16%)
• Jijiga (9%)
• Dire Dawa (9%)
• Mekele (7%)
• Woreta (7%)
370,000 90,000
P1 P2
H3 H4 H5
F6 F7 F8
140,000 60,000 70,000
16. 15
Conclusions
Transshipment optimization model can lead to significant
cost savings:
• Potential savings :
– Existing routes: US $10.3 Mi 85,000 Mt
– New routes: US $14.4 Mi 100,000 Mt
• Clearly identified areas for improvement
Significant commitment:
• Shift from short- to long-term operations
• Planning critical for success
• Investment in new tools required
• Systematic collection and analysis of data required
17. 16
MASHLM-WFP Partnership – Failure Factors
Lack of Senior Manager Support
Senior managers interested in optimization tool and savings,
but marginally involved in the process.
Short-term Perspective
Focus remained on short-term operations. No shift in focus or
allocation of resources.
Real, But Not Practical Application
Focus on one year planning tool inadequate! WE tried to
move into a shorter time horizon to influence current
decisions, but no human resources were available.
18. 17
SUPPLY CHAIN OPTIMIZATION OF THE
DISTRIBUTION OF MOSQUITO NETS IN IVORY COAST
Irineu de Brito Junior
USP
(ibritojr@yahoo.com.br)
Silvia Uneddu
UNICEF
(suneddu@unicef.org)
Paulo Gonçalves
USI
(paulo.goncalves@usi.ch)
19. 18
Malaria in Ivory Coast
• Malaria is still endemic in CIV and is a priority of the National
Health Development Plan 2012-2015
• Malaria is the leading cause of morbidity and mortality
43% of cases seen in health facilities
24% of hospital cases
26% of hospital deaths
• From 2006 to 2008, utilization of LLINs has increased going
from 3% to 14,8%, but only 26% of children under 5 received
an appropriate malaria treatment.
• To achieve and maintain universal coverage UNICEF planned
a mass LLIN distribution campaign so that at least 80% of the
population sleeps under the LLINs by 2015.
20. 19
Modeling Tasks
• Planning for the distribution of 12 million LLINs scheduled to
take place in CIV in 2014.
• Adopt quantitative project management tools to identify
critical tasks and risk exposure (CPM, risk management).
• Develop a linear programming model (transhipment) to
identify constrains and possible bottlenecks
• Review concept of operations to propose the most cost
effective and efficient solution.
24. 23
Supplier
(i)
Supplier I
Origin Port
(j)
CIV Port (k)
Supplier II
Supplier III
Supplier V
Haiphong
Ho Chi Minh
Tianjin
Chennai
Districts
(d)
District 1
District 2
District 3
District 4
. . . . . .
District d
Containers (c)
Products
(p)
p1
p2
p3
p5
Incoterm:
CIP
Abidjan
Status Quo 1 - July 2013
p4 Supplier IV
Unstuffing
25. 24
Supplier
(i)
Supplier I
Origin Port
(j)
CIV Port / Hub
(k)
Supplier II
Supplier III
Supplier IV
Haiphong
Ho Chi Minh
Shanghai
Qingdao
Chennai
Abidjan
Ferkessedougo
u
Districts
(d)
District 1
District 2
District 3
District 4
District d
Tianjin
. . . . . .
Containers (c)
Products
(p)
p1
p2
p3
p4
Bangkok
Yamoussoukro
Bouake
San Pedro
Incoterm:
CIP
Abidjan
San Pedro
Status Quo 3 – October -2013 - Optimization model
26. minTC cs TS co TO cp TP
25
The Model
Objective Function:
nq pr TS
p c j k
cj pcjk
p c i j
pc p pcij
p c k d
pckd pckd
p c j k
pcjk pcjk
p c i j
pcij pcij
cc TO
1. Transportation costs from suppliers to ports of origin
2. Transportation costs from ports of origin to CIV ports/hubs
3. Transportation costs from CIV ports/hubs to the 71 Health
Districts.
4. Purchasing costs of the LLINs
5. Purchasing costs of the containers
27. 26
The Model
Constraints:
flow conservation
TS TO
pcij k
pcjk
i
d
pckd
j
pcjk TO TP
pckd (TP nq ) dm demand is satisfied
pcij pc (TS nq ) sc supplier production capacity
integer and binary variables
pi
c j
d
p c
pc
k
pcij pij pcij TS as TS
pcjk pjk pcjk TO ao TO
pckd pkd pckd TP ap TP
use only available routes
pckd
TP Z bigM pd
c k
pd
pckd TP Z
c k
Z
1 pd p
assures that a district is supplied
exclusively by one product
28. 27
Results:
Transport from suppliers to ports at destination
Supplier Supplier I Supplier III Supplier IV
Total
Origin Port Haiphong Chennai Qingdao
CIV Port / Hub 40ft
40ft
HC
20ft 40ft
40ft
HC
20ft 40ft
40ft
HC
20ft
Abidjan
Phase 1 1 23 2 2 8 2 38
Phase 2 4 1 24 0 1 30
Phase 3 3 121 7 2 35 1 169
San Pedro
Phase 1 2 1 5 1 9 18
Phase 2 1 68 5 5 30 1 4 41 1 156
Phase 3 0
Yamoussoukr
o
Phase 1 14 3 12 2 9 40
Phase 2 1 1
Phase 3 0
Bouake
Phase 1 16 2 1 4 0 1 5 1 30
Phase 2 0
Phase 3 0
Total 5 248 14 11 77 2 12 107 6 484
29. 28
Results: Number of districts supplied/served by CIV
ports and/or hubs
Port / Hub Abidjan San Pedro Yamoussoukro Bouake
Total Health
Districts
Phase 1
9 4 9 6 28
Phase 2
4 20 1 25
Phase 3
21 21
Total Health
Districts
34 24 10 6 74*
*A district could be supplied by more than 1 hub/port
30. 29
Conclusions
Initial Situation: After Optimization
5 suppliers based in Asia 3 suppliers based in Asia
Shipments from 4 ports of
origin (depending on the
location of the suppliers)
Shipments from 3 ports of
origin (depending on the
location of the suppliers)
Use over 500 40-feet
containers,
Use 482 (40ft, 40ftHC, 20ft)
containers,
Abidjan as the only port of
arrival in CIV.
Abidjan and San Pedro as port
of arrival and 2 inland cities as
transshipment point.
• Shipment and distribution of 12 million LLINs requires a strong
coordination requirement among the stakeholders and a meticulous
supply chain plan.
31. 30
MASHOM- UNICEF Partnership – Success Factors
Senior Manager Support
Emergency & Logistics Coordinators worked diligently to
explain the project management methods and opportunities.
Captured the interest of senior managers.
Long-term Perspective
Senior managers requested project become the foundation for
a standard bednets campaign to be used in all other
campaigns.
Practical & Real Projects
Focus on practical implications and improvement of real
challenges.
32. 31
MASHOM – IOM Partnership for
Capacity Building
Mike Pillinger
Chief of Mission
IOM Iraq
mpillinger@iom.int
Lado Gvilava
Global Logistics Coordinator
IOM
lgvilava@iom.int
Paulo Gonçalves
Associate Professor
University of Lugano
paulo.goncalves@usi.ch
33. MAS in Humanitarian Operations & Supply Chain Mgt
Vision Mission
To become the premier global
educational program to:
• Support humanitarian organizations
improve their performance through
project implementation and staff
development
To achieve its vision the MASHLM
program actively:
• Offers a tailor-made program
focused on operations and supply
chain management (Integrated
Management Approach)
• Has created a flying master
program to meet the field needs of
humanitarian organizations
MASHOM Humanitarian Operations & Supply Chain Management
34. Approach: Combines projects with institutional partnerships
Program at a Glance Project-based approach with impact
33
Executive master Part-time
Audience: Full-time humanitarians
Duration of master 15 months
Blocks 6 blocks (field)
Graduation Theses defenses in Lugano
Duration of each block 1 week
Courses per block 2 courses/block
+ project discussions
Number of courses 12 tailor-made courses
Group of 4 students work on
real problems faced by their
organizations
Applied
Projects
Institutional
Partnership
Group of up to 4 students realize a
field project with a problem of their
organization
Tailor-made courses designed to
develop capacity of HOs’ field
staff
Strategic &
Tactical
Strategic & Tactical Decision
making courses cutting across
organizational boundaries
35. 34
Courses: Focuses on Strategy, Tactics & Operations
Course Faculty Institution
Process
Management
Uday Apte Naval Postgraduate School (NPS)
Lean Six Sigma Uday Apte Naval Postgraduate School (NPS)
Project
Management
Principles
Afreen Siddiqi Massachusetts Institute of Technology
(MIT)/Harvard Kennedy School of
Government (Harvard KSG)
Supply Chain
Principles
Olaf Janssen Kuehne Foundation
Strategic Planning Laura Black Montana State University
Project Strategy &
Don Greer Greer Black Company
Scenario Planning
Research I:
Analytical Thinking
Nikolaus Beck Università della Svizzera italiana (USI)
Research II:
Statistics
Nicolas Stier-
Moses
University of Chile/Columbia Business
School
Supply Chain
Design
Paulo
Gonçalves
Università della Svizzera italiana (USI)/
Massachusetts Institute of Technology
(MIT Sloan)
Decision Making
Models
Fernando
Ordoñez
University of Chile/ University of
Southern California (USC)
Supply Chain
Management
Paulo
Gonçalves
Università della Svizzera italiana (USI)/
Massachusetts Institute of Technology
(MIT Sloan)
Supply Chain
Modeling
Brad Morrison Massachusetts Institute of Technology
(MIT Sloan)/Brandeis University
Green Belt
Lean Six Sigma
Certification
Master Advanced Studies
(MAS)
Humanitarian Operations &
Supply Chain Management
(HOM)
36. “There is no single module from which I
have not been using one or more methods,
techniques, ideas in my daily work. These
are very applicable tools and make a big
difference in the way I operate,
make decisions, plan, implement, etc.”
“I enjoyed learning every course, and I feel that I have
gained an excellent tool set, skill set and
mind set support me with any role in the future.” “I am a better person today in the
35
Student’s Feedback: High Praise for MASHOM
“Overall on this MASHOM, the
subjects, methods and
tools are very useful for our
daily work.”
“The most important benefits of MASHOM
courses is that teaching modules are
tailor-made and adjusted to IOM
operational modalities. It is a great
opportunity to be able to utilize the
advanced tools and methodologies learned
in the classroom in IOM projects
implemented in various field missions.”
“The program is very interesting, the
courses are very well adapted to
the humanitarian context, and
are nicely complementing each
other.”
“The teaching methods are
interactive and very dynamic.
The course material as well the content
and references to literature are
extremely interesting and useful.”
“In general MASHOM was able
to change my way of
thinking , now for me
Humanitarian assistance
projects management differs
from before.”
“This program should be a
mandatory course for any
program manager, developer,
implementer that work in the
international humanitarian
community.”
“All courses have been very effective and I
have applied the principles and
techniques in a large scale emergency
that emerged while I am in the course.”
workplace and in life than I was
before the MASHOM, and thanks to
the MASHOM I am able to do
my work exponentially
better.”
37. 36
MASHOM Project Has Lead to Higher Fundraising
MASHOM Skills Applied to
Reduce Logistic Complexity
Successful Project Led to Additional
Funding
Additional USD 1.8 million received from
Japanese government for next project phase
Emergency Assistance to Syrian Refugees in
Northern Iraq allows to provide for the next 9
months:
• Transportation assistance
• Provision of food and medical
• Provision of non-food items (NFI)
Additional USD 800’000 has been provided in
form of material, tents etc.
Japanese’s funding for Syrian refugees
The Government of Japan funded IOM with USD
300’000 to provide aid to populations (urban
refugees) affected by the Syrian crisis in Iraq.
Complex logistics
This logistically very complex project was
accomplished in record speed largely utilizing
skills acquired at MASHOM courses and
addressing the immediate needs of 590 vulnerable
refugee and returnee families, reaching more than
3’500 people in 10 cities all over Iraq.
38. 37
MASHOM Led to Immediate & Measurable Savings
MASHOM Impact on Iraq Mission US$ 800,000+ in Savings
MASHOM Transport Optimization MASHOM Lean Six Sigma
• Problem:
Provide transport to Syrian refugees
crossing from Syria to KRG Iraq?
• Results:
Savings US$150,000 (single operation,
for project last three months).
• Methods:
Diversified procurement optimizing costs
to specific destinations.
• Opportunity:
Diversification to other transport efforts
and other missions.
• Problem:
How to Eliminate redundant processes?
• Results:
Savings US$67,000 per month (since
February)
Removed non-valued added components,
reduced lead time and increase speed of
NFI delivery
• Methods:
Process management and lean six sigma
• Opportunity:
Diversification to similar organizational
processes
39. MASHOM Impact on IOM Iraq Emergency Response Anbar IDP Crisis
38
Increased Responsiveness: - IOM first International Organization to respond
Mainstreamed SCM: - Rapid adjustment of services to increased and
diverse needs of most vulnerable population
Optimized Processes: - Highest number of services delivered among UN
agencies
NFIs 8,255 kits in 5 months to 49,530 benefic.
Increased Capacity: - Distributing aid on behalf of other UN agencies
WFP 15,122 food parcels to 90,732 benefic.
WHO 5 emergency medical kits for public
hospitals
IOM today has highest funding among all Anbar crisis responders
40. IOM Benefitted from Improved Relations w/Stakeholders
Enhanced Flexibility & Adaptability of Operational Approaches
39
Diversification of services and increased numbers of
beneficiaries reached
Increased Response Capacity
Recognition & strengthened operational and strategic
partnerships
Overall Impact of Mainstreamed Supply Chain Management
Diversified funding streams & increased number of donors
41. 40
MASHOM- IOM Partnership – Success Factors
Senior Manager Support
Senior managers participated in the program and
encouraged others to implement changes.
Long-term Perspective
Focus on a long-term perspective removed people from only
day-to-day concerns, allowing them to seize project
implementation opportunities.
Practical & Real Projects
Focus on practical implications and real challenges provided a
great opportunity to implement frameworks and concepts from
MASHOM courses.
42. 41
Academia- HOs Partnership Success Factors
Senior Manager Support
Senior managers engaged and supportive
Support for disseminating impact and engaging others
Focus on implementing changes through senior influence
Long-term Perspective
Focus on long-term improvement goals
Shield personnel from short-term pressures
Aim for setting standards and generalizable applications
Practical & Real Projects
Focus on clear objectives and specific projects
Focus on important and pressing problems
Focus on possible practical implications and improvements
43. Thank you !
Paulo Gonçalves
Associate Professor – Università della Svizzera italiana (USI), Lugano
Founder & Director – Master Humanitarian Logistics & Management
– Master Humanitarian Operations & SC Management
– Humanitarian Operations Research Center
Research Affiliate – MIT Sloan School of Management
paulo.goncalves@usi.ch