Theses_1

BBS (Honours) in Supply Chain Management
Dissertation 2010/2011
Dissertation Title
An investigation into the procurement of emergency relief items by Irish humanitarian aid
agencies, their procurement procedures and dealings with their suppliers.
Presented by: Lorcan Hiney
Submission Date: 30th
March, 2011

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Student Name: (Printed) Lorcan Hiney
Student Number(s): c00117953
Signature(s): Lorcan Hiney
Date: 30th
March, 2011
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INSTITUTE of
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agencies, their procurement procedures and dealings with their suppliers
Acknowledgement
On completion of my dissertation, I would like to thank my family and friends for their continued
support and help over the course of the last eight months, especially my mother and father. I would like
to thank Mr. Ronan Scully of Goal International for the constant e-mails and contribution that he has
made to this dissertation. I would like to thank the Logistics Manager Mr. Martin Dalton of Concern
Worldwide and Regional Fields Logistical Manager Mr. Brian Healy of Goal International for their
time, and co-operation when contacting and visiting them as part of my primary research. It was a
pleasure to interview such friendly and professional supply chain personnel.
I would also like to thank my dissertation tutor, Mr. Micheal O’Fearghail for his guidance and expertise
over the course of carrying-out this research. Finally, I would like to acknowledge Mr. Hans Zomer -
Dóchas, Mr. Alan Kerins - the Alan Kerins charity, and Mr. Graham Heaslip – Supply Chain and
Logistics lecturer at the National University of Maynooth for their small but significant contribution.
To all those mentioned, and anyone else who has helped in any way, I greatly appreciate the help and
support you have shown towards me, in making my research an enjoyable, worthwhile experience.
With Thanks,
Lorcan.

Literature Review 2010/2011
Objectives
 To provide a background to the whole area of humanitarian aid and to examine the role the
supply chain plays in getting the aid to those who need it most.
 To distinguish the difference between the terms purchasing and procurement.
 To examine Irish aid agencies role in humanitarian aid and identify how they go about procuring
emergency relief items.
 To demonstrate the importance of effective procurement in the buying of humanitarian aid.
 To examine if there are differences/links in how the procurement function operates in
commercial organisations and humanitarian agencies.
 To get a deeper understanding of how the purchasing element of the humanitarian supply chain
operates.

Table of contents
Acknowledgement
Objectives
Introduction
1. Introducing the supply chain
1.1 Supply Chain Management
1.1.2 Supply Chain providing a competitive advantage
1.2 What is a ‘Commercial’ supply chain?
1.3 What is a ‘Humanitarian’ supply chain?
1.4 Contrasting between a ‘Commercial’ and ‘Humanitarian’ supply chain
2. Humanitarian assistance, considerable developments & Ireland’s contribution
2.1 What is a humanitarian crises’?
2.2 What is humanitarian aid/assistance?
2.3 The importance of coordination in humanitarian relief operations
2.3.1 The United Nations Logistics Cluster
2.3.2 World Food Programme Logistics Coordination Unit
2.4 Irish involvement in humanitarian aid
2.4.1 Dóchas
2.4.2 Irish government involvement in humanitarian aid
2.4.2.1 Rapid Response Initiative
2.4.2.2 Ireland’s hunger task force
2.4.3 The Irish Defence Forces
2.4.4 The United Nations
2.5 Recent developments in humanitarian circles
2.5.1 The millennium goals
2.5.2 The Paris declaration of aid efficiency
2.5.3 The United Nations Sphere project

2.6 Food aid: Its importance & growing difficulties
2.7 The purchasing and sourcing of humanitarian supplies
2.7.1 Local purchasing
2.7.2 International purchasing
2.7.3 Ex-stock
2.7.4 Donations from a government or the United Nations
2.8 Warehousing: The United Nations Humanitarian Relief Depot
3. Purchasing & Procurement
3.1 Do humanitarian aid organisations ‘purchase’ or ‘procure’ supplies?
3.2 What is purchasing?
3.3 What is procurement?
3.4 Differentiating between purchasing and procurement
3.5 The purchasing process
3.5.1 Needs identification
3.5.1.1 Purchase requisition
3.5.1.2 Reorder point system
3.5.2 Product description
3.5.3 Supplier identification & selection
3.5.4 Order cycle
4. Negotiating & Contracting
4.1 Negotiating & Contracting Vendors
4.2 Tendering
4.3 Negotiation
4.4 Contract
Summary of Literature Review
5. Research Methodology
5.1 Introduction
5.2 Objectives

5.3 Data Types
5.3.1 Primary Data
5.3.2 Secondary Data
5.4 Exploratory Research
5.5 Research Methodologies
5.5.1 Qualitative Research
5.5.2 Quantitative Research
5.5.3 Using both Qualitative & Quantitative Research
5.6 Case Study Research
5.7 Criterion
5.7.1 Validity
5.7.2 Reliability
5.7.3 Limitations
5.7.4 Feasibility
5.8 Data Collection
5.9 Data Analysis
5.10 Opportunities for further research
6. Primary Research
6.1 Organisational Profiles
6.1.1 Concern Worldwide
6.1.2 Goal International
6.2 Research Findings
7. Analysis & Discussion
8. Procurement & Supplier Relationships
9. Other relevant issues
9.1 Concern Worldwide & Goal International: Critical Success Factor’s
9.2 Commercial vs. Humanitarian supply chains: Development issues

9.3 Agility & Leanness: Hand-in-Hand
Primary Research: Summary & Conclusion
Primary Research: Recommendations
Reference list
Acronyms
Appendix

List of Figures
Figure 1.3 - A typical humanitarian supply chain
Figure 2.4.1 – Top four Dóchas members income, 2009 (€1,000’s)
Figure 2.6 – The World Food Programme top five purchases 2009
Figure 5.6 – The five-stage research process model

Abstract
A humanitarian crisis is triggered by a man-made or natural event that today is posing one of the greatest
threats to human life and development. The global figures beggar belief, as it is estimated that some
300 million people around the world are affected by a humanitarian disaster each year, with 26 million
people having been displaced, 8.6 million refugees, and a further 500 million people living in less-
developed countries. It is estimated that one in every seven of the world’s population does not have
access to a sufficient quantity of food and water on a daily basis (Irish aid, 2009).
Many Irish organisations such as Concern Worldwide and Goal International are working in-tandem to
meet the needs of this vulnerable population in times of a humanitarian crisis. This is only possible
however, through the careful implementation and management of a humanitarian supply chain that is
highly agile and responsive. The importance of an efficient humanitarian supply chain cannot be
highlighted enough, as it can affectively improve the survival rate of those suffering or injured by
getting much needed emergency relief items into the affected region in a short period of time.
The primary research focuses on two Irish organisations - Concern World and Goal International. In
particular, it examines the literature on the procurement procedures of both these Irish humanitarian
organisations, the relationships they maintain with their suppliers and the operation of their respective
supply chain operations in times of a humanitarian disaster.
The research found that humanitarian organisations are now fully embracing the supply chain
management concept, having realised its full potential. The research also suggests that humanitarian
organisations now acknowledge the importance of having procurement guidelines in-place as part of
good procurement practices. Despite such developments, the research identified that the humanitarian
supply chain continues to lag behind that of its commercial counterpart in terms of developments.

Introduction
Natural disasters such as earthquakes, hurricanes, floods, and tsunamis can occur in any part of the
world, and at any time. Due to this unpredictability, more destruction and devastation is caused as
people are unprepared. The scale and destruction caused by natural disasters leaves untold damage to
many areas around the world, often wiping out entire communities, and destroying its infrastructure.
Typically, it is the less well-off poverty stricken regions that are most affected, as they lack the resources
to cope with such widespread devastation (UN’s, 2010).
Re-acting to such natural and man-made emergencies is the responsibility of humanitarian aid agencies.
Since World War Two, an extensive humanitarian relief community has developed around the world,
consisting of multilateral agencies such as the UNHCR, and the UNWFP (Therien and Llyod, 2000).
For humanitarian aid agencies mentioned above, getting vital supplies as quickly as possible, to the
people who need it most is their main priority. This can only be achieved however, through a co-
ordinated effort by the international community, and its logistic providers.
The aim of this research is to examine the importance of the procurement function firstly within the
supply chain and secondly, to analyse the importance it plays within the procuring of emergency relief
items for humanitarian aid agencies. Additionally, this dissertation will examine the importance of
dealing closely with suppliers and how humanitarian agencies go about procuring food through the use
of AVL’s, tendering and various other methods. It will identify the difference between the terms
‘purchasing’ and ‘procurement’, and will also distinguish if there are any links between how
humanitarian agencies, and commercial organisations purchasing functions operate. The reason for
carrying-out this study is to develop a greater understanding of the humanitarian supply chain, and to
identify the main links/differences between industry and humanitarian procurement procedures.

Just like any industry, procurement is a major part of any aid agencies work, as they must provide the
food, goods and services needed to provide adequate assistance. Procurement planning provides
agencies with great challenges as the exact needs and level of funding available in responding to specific
emergencies is often highly unpredictable (WFP, 2010).

1.1 Supply Chain Management
In today’s highly competitive marketplace, there is increasing pressure on organisations to develop new
ways to create and deliver value to the ultimate consumer. This, combined with new sources of global
competition has led to over-capacity in numerous industries, which ultimately, has led to growing price
pressures. Such issues and pressures have led to the growing recognition, that an adoption of the supply
chain philosophy, can effectively achieve two key goals in the form of a reduction in costs, and an
improved service management (Christopher, 1998). Christopher (1998) believes that the supply chain
concept has brought managers to accept that integration, both internally and externally of the business,
is of utmost importance, for both its long-term survival and continued success.
As stated by Bowersox et. al. (1996);
“A supply chain is that network of organisations that are involved, through upstream and
downstream linkages, in the different processes and activities that produce value in the form of
products and services in the hands of the ultimate consumer”
The supply chain is a key element of an organisation’s strategic focus, and as described by Bowersox
et. al., is the ‘network’ within the organisation that is responsible for ensuring the right materials,
services and technology are purchased from the right source, at the right time, at the right price, in the
right quantity, and in the right quality. Forming the upstream portion of the organisation’s value chain,
the supply chain concept continues to slowly evolve (Dobler, et. al., 1996).
Devised in the early 1990’s, supply chain management is a relatively new concept used in business for
the strategic management of materials and logistics. The supply chain concept was established, as
manufacturers and service providers collaborated with their suppliers, integrating them into their
corporate strategy (Tan, 2002).
Since the early nineteen fifties, the supply chain concept has developed slowly down through the years.
During this time, mass production was utilised by many firms in order to achieve low unit cost.
Interaction between the firm and its customers was very rare as the sharing of information and

knowledge was generally prohibited and seen to be too risky. It was not until the 1970’s that new
material management systems were introduced, as managers realised the problems associated with
holding too-much inventory. The evolution of the concept continued to develop further into the 1980’s,
where global competition forced firms to produce products at a lower cost, and of a higher quality. The
JIT stock management system was highly utilised during this decade and it was not till the late 1980’s
that management began to fully realise the importance of ‘buyer-supplier’ relationships. As the concept
slowly evolved into the early 1990’s firms began to work with their suppliers and customers in order to
achieve greater overall efficiency (Tan, 2002).
Today, the supply chain concept remains a highly debatable and interesting topic among academics and
practitioners alike. Modern-day supply chain management is primarily built upon co-operation and
trust. Lysons et. al., (2003) believes that the supply chain management activity involves the integration
of all business processes, and relies on constant financial, product and information flows, in order to
operate efficiently.
1.1.2 The supply chain providing a Competitive advantage
The sufficient running of a supply chain can provide an organisation with a major source of competitive
advantage over their nearest rivals. As a result, managers continue to seek this sustainable and
defensible advantage, as it is no longer acceptable to assume that good products will automatically sell
themselves, while neither is it acceptable to assume that success today is guaranteed success in the
future (Christopher, 2005). The success or failure of an organisation depends greatly on its competition,
and as stated by Porter (1998, p. 1) competition “effectively determines the appropriateness of a firm’s
activities that can contribute to its performance” (Porter, 1998).
Over the past number of years companies within the private sector have realised the contribution they
can make by partnering humanitarian organisations in responding to humanitarian emergencies.
According to the International Humanitarian Procurement Review (2009), numerous private sector
companies have begun playing an active role in humanitarian supply chains, with many offering their
expertise, technology, and other resources. This review outlined the importance of such partnerships,

as it provides both parties with a competitive advantage through the exchange of both knowledge, and
expertise (International Humanitarian Procurement Review, 2009).
1.2 What is a ‘commercial’ Supply Chain?
With the world’s markets becoming increasingly volatile, and highly unpredictable due to fluctuating
demands, efficiently managed ‘commercial’ supply chains are vital to the survival of businesses
worldwide (Pearson et. al., 2010). Commercial supply chains, as described by Schniederjans et. al.
(2010, p. 43) “is all the activities associated with the flow and transformation of production resources
from the state of raw materials to the final consumer”. The main objective of a commercial supply
chain is to provide an adequate level of customer service, while ensuring that goods arrive to the right
place, at the right time (Petit, 2009). Ultimately, the commercial supply chain focuses on the end
consumer as the source of profits, to keep the entire chain in motion (Oloruntoba et. al., 2006).
Consisting of a manufacturing or service facility at its core, the commercial supply chain extends from
the centre of its operations to various entities, components, or partners. From its core, the commercial
supply chain deals with both upstream (suppliers) and downstream (final customer) partners in the
everyday running of business (Oloruntoba et. al., 2006).
The supply chain strategy of many commercial businesses is primed towards value creation, and the
running of a ‘lean’ supply chain. The thinking behind these strategies is that any activity that does not
add-value is considered to be waste, and removing this waste may add significant value. It is said that
by implementing such an approach, the development of efficient, yet effective solutions to the supply
of goods and services is attainable (Petit et. al, 2009).
1.3 What is a ‘humanitarian’ Supply Chain?

In recent times there has been adoption of the commercial supply chain concept in the delivery of
humanitarian supplies by aid organisations. If a comparison is made between the two, various
similarities are identifiable, however many differences can also be established (Oloruntoba et. al.,
2006).
For humanitarian aid organisations, once a disaster has struck, getting supplies to the people on the
ground in the most efficient and effective manner possible, is one of their biggest challenges. The
response time is crucial in this instance, as it is widely believed that the first twenty four hours is the
most important time to treat those who are injured or trapped, and effectively increase the survival rate
of those people most affected by the disaster. As a result, those humanitarian organisations responding
to the crisis must have an agile and responsive supply chain in place to get the aid to those who need it
most. Putting such a flexible and effective supply chain in place in a disaster-hit region is highly
complex, as demand patterns are generally unknown, and there tends to be numerous unknown
constraints (Heaslip, as ed. Mangan et. al., 2008).
As a result of this in the last decade there has been an increasing interest amongst academics, politicians
and the wider public surrounding the area of disaster response, and the benefits it can gain from
commercial supply chain thinking (Heaslip as ed. Mangan et. al., 2008). Despite this growing interest,
there is no universally agreed definition of a ‘humanitarian’ supply chain. (Oloruntoba et. al., 2006).
Van Wassenhove (2006, p.6) believes that the ultimate effective humanitarian supply chain
management “has to be able to respond to multiple interventions, often on a global scale, as quickly as
possible, and within a short time frame”. As a result, Van Wassenhove indicates that the supply chain
must be “multiple, global, dynamic, and temporary”.
Figure 1.3 on the next page is an example of a simplified version of a typical humanitarian supply chain.
Through international agencies and NGO’s, the diagram takes a multilateral approach. However it is
important to note that aid can also be distributed bilaterally, using numerous methods on a country to
country basis. In comparison to the business supply chain, the humanitarian chain tends to be
considerably unstable. The reasons for such instability may include the following; regulated

government donations, the competitive nature of fundraising from private donors, or simply due to
logistical problems, caused as a result of the humanitarian disaster at the receiving end of the chain.
Academically, the application of CSF’s to humanitarian supply chains is not commonly seen, however
Petit et. al. (2009) included this as part of his research. Today methods of improving the efficiency and
effectiveness of the typical activities of a humanitarian supply chain are constantly being sought. The
fundamental basis of both the commercial and humanitarian supply chains are known to be quite similar,
and by applying the issues critical to both, they can be examined and a comparison drawn (Petit et al,
2009).
CSF’s for a humanitarian supply chain as outlined by Petit et. al. (2009):
 Strategic Planning
 Inventory Management
 Transport and Capacity Planning
 Information Management and technology utilisation
 Human Resource Management
 Continuous Improvement and Collaboration
 Supply chain strategy
Figure 1.3 A typical humanitarian supply chain
Source: Oloruntoba et. al., 2006

According to Petit et. al. (2005) implementing such success factors will not automatically improve
response times and efficiency, as often ‘cultural’ influences can have a significantly negative impact.
Such cultural influences can include governments, military organisations and various UN aid agencies,
all of whom must work alongside the ‘structural’ or critical success factors of the supply chain in order
for it to be a success.
1.4 Contrasting between Commercial and Humanitarian Supply Chains
Although there can be a significant contrast made between commercial and humanitarian supply chains,
both share many similarities as the basic fundamentals are the same. In the business context it is vital
that the manufacturing organisations integrate their business processes, customers, and product use and
disposal, as part of an agile supply chain (Power et. al., 2001). In doing so the organisation may establish
new productive capabilities, and benefit substantially through knowledge, skill development and
innovative thinking (Aitken, et. al., 2002). This ‘agility’ is also crucial to the success and fluidity of the
humanitarian supply chain, as the chain must be capable of adapting to the challenges posed by the
relief response in the delivering and distribution of food, shelter, and other necessary supplies (Scholten,
et. al., 2010).
Other differences that exist between the two supply chains are;
 Unlike the commercial supply chain, the humanitarian supply chain is uniquely different in that
demand fluctuates constantly due to the unpredictability of a disaster occurring.
 Commercial supply chains are driven by the survival of their business, and it ultimately relies
on the return of profits.
 Humanitarian supply chains operate entirely from voluntary contributions.
 The ‘end consumer’ in the commercial supply chain is the aid receiver in the humanitarian
supply chain and does not enter any commercial transaction.
 The final delivery of goods will be to countries without basic infrastructure, where the
environment is politically and military unstable.
Source: Oloruntoba et. al., 2002 & Long et. al. 1995

2.1 What is a Humanitarian crisis?
A humanitarian crisis as outlined by the Irish Aid factsheet (2008) means “that lives are at risk because
communities cannot cope with the impact of hazardous events, such as floods, droughts, earthquakes
or conflicts”. Today, there are over three hundred million people suffering as a result of humanitarian
crises. Posing one of the greatest threats to human life and development, a humanitarian crisis can be
triggered by either a natural, man-made, or hybrid event (Irish aid, 2009).
Such is the crisis facing the people of the modern era countries that were once considered to be free
from such cruel humanitarian disasters have now been added to the long list of countries affected.
Countries such as Zimbabwe and Sri Lanka are two such examples of countries affected, as the native
people now suffer daily from the affects of disease, hunger, and continuing conflicts (Irish aid, 2009).
More recently, Haiti and Japan have been affected by a natural humanitarian disaster, with both
countries having been decimated by a catastrophic earthquake, and in Japan’s case, an ensuing tsunami.
Both of these disasters illustrate the unpredictability and devastation that natural disasters can cause.
As mentioned previously, a humanitarian emergency is triggered by either a man made or natural
disaster. A disaster as explained by the Asian Disaster Reduction Centre (2003, p.704) is “a serious
disruption of the functioning of society, causing widespread human, material or environmental losses
which exceed the ability of affected society to cope using only its resources”.
2.2 What is Humanitarian aid/assistance?
In the past decade interest has been growing significantly regarding humanitarian aid. Such is the
development in interest from various sources around the world, that it has led to more resources being
pledged, more organisations being established, more donations being contributed and ultimately, more
relief work being carried-out than ever before (Beristain, 1999).
According to the Irish Government’s official humanitarian agency; ‘Irish Aid’ (2008, p.7), “the need
for humanitarian assistance arises when an individual or community is temporarily or otherwise is no
longer able to ensure its own security or survival”. This ‘need’ can be categorised as being triggered

‘gradually’ (by civil conflicts or an HIV/AIDS pandemic) or ‘suddenly’ (by an earthquake or
unsuspected flooding). Simply speaking, humanitarian aid or assistance is about saving as many lives
as possible, and helping those most affected by a crisis by providing food, water, sanitation, shelter, and
healthcare. Humanitarian assistance is provided by individual entities, such as NGO’s, local
communities, the relative authorities of the affected state, and the UN’s. These humanitarian providers
assist affected regions over a varying length of time, depending on the extent of the crisis. Effectively,
the assistance can be provided over a short-term period until order is fully restored to the disaster-hit
region or alternatively, it can be provided over a protracted period, where it can last up to several years,
even decades. This form of assistance is commonly referred to as ‘development assistance’ (Irish Aid,
2008).
Another role of humanitarian aid is to protect the people situated in the disaster-hit region as these
people are highly vulnerable, with many of those affected losing their homes, personnel belongings,
and worst of all their family members and friends. People are at their most vulnerable when society has
broken-down, and the rule of law has been dismantled. In the case of civil un-rest, once the
responsibility of the state for protecting its people has been broken, it is the responsibility of the
international community to intervene, and protect those who are most vulnerable (Irish Aid, 2008).
2.3 The importance of coordination in humanitarian relief operations
Humanitarian relief operations involve international relief organisations, host governments, the defence
forces, local and regional relief organisations, and often local companies. Each of these separate entities
posses contrasting interests, capacity capabilities, mandates, and logistical expertise. It is true to say
that no single organisation or entity has the capacity or resources to respond appropriately to a
humanitarian relief operation. With many organisations failing to collaborate in the immediate
aftermath of the disaster, it is widely believed that this is due to a number of factors which include;
chaos in the disaster-hit region, the sheer number of agencies involved in the relief operations, or
possibly due to the lack of resources and capabilities available to cope with the scale of the disaster
(Balcik et. al., 2010).

As a result, coordination is an area demanding increasing attention in humanitarian circles due to the
scarcity of resources and the potential that recent developments in information technology, has to offer
the relief community (Lindenberg et. al., 2001). Within humanitarian relief operations, the term
‘coordination’ best describes “the relationships and interaction among different actors operating within
the relief environment” (Balcik et. al., 2010, p.32).
There are effectively two contrary forms of coordination consistently used by humanitarian
organisations to collaborate and co-ordinate with one another, which include vertical and horizontal
coordination. Vertical coordination is the extent to which the humanitarian organisation interacts with
upstream and downstream activities within the supply chain, while horizontal coordination refers to the
interactions between the humanitarian organisation, and the various activities on the same level of the
chain (Balcik et. al., 2010).
According to many academics, the importance of coordination in achieving an effective disaster relief
response is not highlighted enough. Despite this, significant improvements have been made in recent
years with the establishment of numerous committees, and offices by the UN’s. The aim of this is to
consolidate the response time of humanitarian organisations in responding to disasters (Balcik et. al.,
2010).
2.4 Irish involvement in humanitarian aid

Over the years, the people of Ireland have built on a growing reputation within the international
community as being a considerably generous nation, and for being particularly helpful to those people
in less-developed countries.
2.4.1 Dóchas
Dóchas is the ‘Irish association of Non-Governmental Development Organisations’. Established in
October 2003, the organisation was formed as a result of a merger between the Irish National Assembly
and CONGOOD. As an individual entity, the Irish National Assembly essentially linked non-
governmental development organisations in Ireland into a European wide, non-governmental network.
Meanwhile CONGOOD was responsible for representing the common interests of the Irish NGO’s
(Dóchas, 2010).
Dóchas collaborates the various humanitarian organisations, and provides a platform from where the
organisations can consult with each other, and effectively speak ‘as one’ on the various issues relating
to overseas development and humanitarian assistance. In total, the association is made up of forty-five
humanitarian organisations, and is governed by nine bodies from these member organisations. It is clear,
that the main purpose of Dóchas is to enhance Ireland’s overall contribution to the developing world
(Dóchas, 2010).
Figure 2.4.1 Top 4 Dóchas members income, 2009: (€1,000)
Rank Organisation Total Income (€) Voluntary Income Financial Year
1 Concern 132,298 53,610 2008
2 Trócaire 54,820 28,965 2008/2009
3 Oxfam Ireland 16,751 11,873 2008/2009
4 Bóthar 10,083 9,579 2007/2008
Source: Annual report of Dóchas members, 2009

Figure 2.4 above displays the top four members of Dóchas to receive the largest donations for the
financial years 2007-2009. It is important to note however, that not all Irish aid organisations are
registered members of Dóchas. One example of an organisation not currently involved in Dóchas is
‘Goal International’.
2.4.2 Irish Government involvement in Humanitarian Aid
‘Irish Aid’ is the Irish Government’s official programme of assistance to developing countries. In
existence since 1974, the programme was established and continues to be overseen by the department
of foreign affairs. Over the years, the programme has grown substantially, and at the present moment
‘Irish Aid’s’ contribution in 2010 stands at an astounding €671.4 million. This fund is distributed evenly
to Ireland’s UN’s partners (International Red Cross) and to numerous NGO’s to contribute to their
operations in developing countries.
“We are bound together by more than globalisation. We are bound together by a shared humanity. The
fate of others is a matter of concern to us. From this shared humanity comes a responsibility to those
in great need beyond the borders of our own state”
─ White paper on Irish Aid
As part of the Irish government’s development cooperation policy and programme, the government has
a continued commitment in ensuring human rights and fairness internationally. The main objectives of
the ‘Irish Aid’ programme are to reduce poverty and vulnerability, and to increase opportunity for those
developing countries. The programme promotes human development, security, and justice, while
additionally it supports the building, and strengthening of democracy (Irish Aid, 2010).
2.5 International involvement in humanitarian aid

2.5.1 The United Nations
Established in 1945, the UN’s is an international organisation that was established post World War
Two. Fifty one countries signed a declaration committing to maintain international peace and security,
developing close relations among countries, and ensuring better living standards, and human rights for
its people (UN’s, 2010).
Now comprising of over one hundred and ninety-two member states, the organisation’s power is unique,
and operates in every part of the world carrying-out various duties. The organisation is commonly
known for its participation in peace-keeping, and humanitarian assistance, however, its duties extend
much further than this to a significantly broader range of activities, from sustainable development to
counter terrorism. The organisation can take action on a range of fundamental issues due to the power
vested in its founding charter, while additionally it provides its members with a forum to express their
views through a number of bodies and committees. Over the years, the organisation has established
many different agencies, funds and programmes, to make the world a better place for both present and
future generations (UN’s, 2010).
2.5.2 The United Nations Logistics Cluster
Having analysed the responses to humanitarian disasters in recent years, the ISAC established that some
sectors benefited from being guided by clearly mandated lead agencies, whilst others have not. This has
led to a trend of un-predictable and un-coordinated humanitarian responses in the past (Logistics
Cluster, 2011).
In September 2005, the Logistics Cluster approach was endorsed by the IASC. The IASC is the main
mechanism for inter agency coordination of humanitarian assistance, involving the key UN’s and non
UN’s humanitarian partners. The aim of the Logistics cluster, at both a global and country level, is to
strengthen preparedness and technical capacity in responding to humanitarian emergencies, through
ensuring predictable leadership and accountability in all of the key areas of humanitarian response (Inter
Agency Standing Committee, 2006).

Central to this reform process is the need to strengthen the strategic partnerships between NGO’s,
International Organisations and the UN’s agencies. It is hoped that the introduction of the Logistics
Cluster initiative will have a positive impact on humanitarian disaster response however its success will
greatly depend on how well the humanitarian actors collaborate and work as equal partners in all parts
of humanitarian response, from the initial assessment phase, to the final evaluation (Inter Agency
Standing Committee, 2006).
2.5.3 United Nations World Food Programme Logistics Coordination Unit
Under the Logistics Cluster a new Coordination unit has been established as of 2005. The unit was
created as a result of a merger between the Logistics Cluster and the UN’s Joint Logistics Centre. The
aim of this operation is to improve quality, predictability, and accountability of humanitarian response
(Logistics Cluster, 2011).
The core functions of the operations include:
 The leadership & coordination of the non food items & emergency shelter sector
 The efficient management of the non food items pipeline & warehouses
 Facilitation & management of common services & logistics information

2.5.4 Warehousing: The UN’s Humanitarian Relief Depot
Part of the UNWFP, the UNHRD is a logistics network capable of supplying any location in the world
within 24 to 48 hours of an emergency occurring. The network is designed to provide support and
assistance through storage, logistical support, and services to humanitarian actors including UN
agencies, governments and NGO’s (UNHRD, 2011).
As is evident from the figure below, the network has established five humanitarian response depots in
key strategic locations around the globe. The aim of these depots is to maximise cost efficiencies
through the use of single premises hosting multiple suppliers, in terms of storage costs and cargo
consolidation (UNHRD, 2011).
Within each of these depots, there is a large holding of emergency relief goods such as medical kits,
shelter items, IT equipment, and prefabricated office and storage units to enable humanitarian actors
react quickly and effectively to humanitarian disasters. All five of the depots outlined above are
designed to world-class standards, offering humanitarian actors free storage, real-time stock tracking
systems, procurement arrangements, training facilities and staging areas (UNHRD, 2011).
Figure 7.4.1 – Location of the United Nations Humanitarian Response Depot’s
Source: UNHRD, 2011

2.6 Recent developments in humanitarian circles
Over the course of the last decade, both governments and organisations such as the UN’s, have
strived to develop and improve the lives of those people most affected by natural or man-made
disasters. Two of the main declarations established by these organisations include; ‘The
millennium goals declaration’ in 2000 and ‘The Paris declaration of aid efficiency’ in 2005.
2.6.1 The millennium goals
In September 2000, world leaders gathered at a summit of the UN’s located at its headquarters in New
York. From this summit, the various world leaders signed what is today known as the ‘Millennium
Goals Declaration’ and in doing so, they committed their nations to a new global partnership. This
declaration represents the greatest promise ever made to the world’s most vulnerable people. The aim
of this declaration is to reduce extreme poverty by the year 2015, under a total of eight specific goals.
The eight goals of the declaration are; to eradicate extreme poverty and hunger, to achieve universal
primary education, to promote gender equality and the empowerment of women, to reduce infant
mortality rates, to improve material health, to combat the spread of HIV/Aids, malaria and other
diseases, to ensure environmental sustainability, and finally, to establish a global partnership for
development. These eight goals represent the basic rights and needs that every living person is entitled
to (UN’s Millennium Goals, 2010).
2.6.2 Paris declaration for aid efficiency
In 2005, the DAC of the OECD, organised a forum to improve ways in which countries manage and
deliver aid, as the countries of the world strive to meet the goals set out as part of the Millennium Goals
declaration. In 2005, results clearly showed that at the current rate, these goals are not going to be met
by 2015. As a result, the OECD believed that something had to be done to increase aid efficiency, to
strengthen governance, and to improve overall development performance. This declaration committed
over ninety partner countries, thirty donor countries, and thirty development agencies, such as the UN’s
and the World Bank to achieving five distinct principles. These principles include the following; the
advancement of country ownership, the harmonisation of donors and creditors, the alignment with

country-led strategies, the efficient management of development results, and finally, mutual
accountability for the use of aid (UN’s, Non-Governmental Liaison Service, 2008).
The declaration includes specific aims, and one of these aims is to strengthen national procurement
systems. Those countries and donors who signed-up to the declaration have committed to using agreed
standards and processes to develop sustainable reforms and monitor implementation, using sufficient
resources to support and sustain medium and long-term procurement reforms, and finally, to share
feedback and recommend the most appropriate approaches on a country level (Paris Declaration of aid
Effectiveness, 2005).
2.6.3 The United Nations Sphere project
Sphere was established by a group of humanitarian NGO’s and the Red Cross and Red Crescent
movement in 1997. Ultimately, it is an initiative to define and uphold the standards by which the global
humanitarian community utilises, in alleviating the suffering of those most in need. The set of
standards/guidelines are set out in the Humanitarian Charter and Minimum Standards in Disaster
response. The Sphere project is based on two core beliefs. The first is that those people affected by a
crisis or disaster are entitled to protection and assistance, while secondly, all steps possible should be
taken to alleviate the human suffering of those people affected. Since its inception, the Sphere project
has established a unique standards handbook, a broad process of collaboration and most importantly,
an expression of commitment to quality and accountability. The guidelines established by Sphere in
their handbook outline standards for all of the following humanitarian areas; process and people
standards for program implementation, water, sanitation, and hygiene promotion, food security,
nutrition and food aid, health services and shelter, settlement and non food items (Sphere Project, 2011).
Since its inception, the Sphere standards have been embraced with great effectiveness and success in
many cases and by many organisations. Despite this success, the Sphere project does acknowledge that
to some agencies these standards mean little or nothing to them. This problem has grown consistently
over the past decade, with an increasing number of new actors entering the humanitarian environment.
Many of these organisations do not come from the same background as many of the Sphere proponents.
Although they may share the same intentions and values on many levels, they lack considerable

operational experience and capacity to adhere to the Sphere standards set-out. This despite the attempt
to eradicate such lawless actions taken by particular humanitarian organisations continues to cause
considerable problems on the ground of humanitarian relief operations (Sphere Project, 2011).
2.7 The purchasing and sourcing of humanitarian supplies
Humanitarian relief organisations can source and purchase materials either locally or internationally.
Both possess varying advantages and disadvantages in terms of logistical costs, lead times, and supply
availability. For example, procuring supplies internationally is time-consuming due to the competitive
bidding process, and customs clearance procedures. Likewise however, purchasing locally possesses
similar disadvantages, as once a disaster has occurred in a region there is often a significant inflation of
prices. This is due to the sudden increase in demand, and competition among local suppliers in the
marketplace (Balcik et. al, 2008).
2.7.1 Local Purchasing
For the majority of NGO’s and aid agencies, the sourcing and procuring of supplies locally is often their
preferred purchasing method, as it not only supports the local economy, however it also reduces
transport costs and lead-time. A good example of this type of procurement in action was in Indonesia
after the tsunami decimated the region where the Irish aid agency Concern purchased the bulk of
supplies, including trucks, food and other non-food items locally. Despite there being many advantages
to purchasing supplies locally, there are also various challenges associated with it. Such problems can
include product quality, and the reliability of local suppliers, while the overall availability of supplies
also comes into question, once a disaster has occurred (Devas, 2005).
2.7.2 International Purchasing

For many aid organisations, the purchasing of goods internationally is carried-out by the procurement
team located mainly in head quarters or a regional office. Typically, the procurement team over many
years establish close supplier relationships with their more important suppliers, and build a close
communication network with them to enable the quick purchasing of supplies. One of the main
challenges facing aid organisations when purchasing internationally, is in securing permission from the
local government to import the supplies. Bureaucratic legal systems and changing regulations, often
acts as a barrier to entry for aid organisations, and can be a costly and time-consuming job, if mistakes
are made regarding paperwork (Devas, 2005).
2.7.3 Ex-stock
Many of the larger NGO’s have an emergency bonded store in which non-perishable relief goods are
stored, and are shipped to the disaster-hit region as soon as permission has been gained from that
country. The benefit of this is that the supplies are not required to go through export procedures. In the
case of perishable goods, such as medicine and food supplies, various aid organisations negotiate a
supply agreement with a supplier, that guarantees a certain quantity of supplies, shipped at anytime that
they are required (Devas, 2005).
2.7.4 Donations from a government or the UN’s
This method is commonly used for sourcing supplies on a longer-term basis. Typically, NGO’s supply
an initial batch of supplies once the disaster has struck to fasten the response times. However, in the
long run organisations such as the WFP and UNICEF provide the aid agencies with much needed
supplies, to distribute them to those most affected. The sharing of supplies among the organisations
enables faster response times as more capabilities are being utilised.
Government’s that donate money to humanitarian organisations allocate the money to the larger
organisations such as UNICEF, who then channel the aid into the affected countries, and sign an
agreement with the NGO’s regarding its distribution. By doing this, it reduces the number of agencies
purchasing supplies considerably, while also reducing competition, and lowering the price paid for

supplies. Additionally, this enables the NGO’s to concentrate on what they see as being their core
competencies (Devas, 2005).

Literature Review
Chapter 3
3.1 Do humanitarian aid organisations ‘purchase’ or ‘procure’ supplies?

Having researched many humanitarian aid organisations, the majority of organisations tend to employ
the term ‘procurement’ rather than the term ‘purchasing’, when referring to the buying of supplies. The
question remains however what exactly do both terms actually mean, and how do they differentiate
from one another. It is hoped that a clear contrast can be drawn between the two while additionally the
purchasing process will be investigated in detail in order to identify a typical purchasing process.
3.2 What is purchasing?
The purchasing function is considered to be an activity of critical strategic importance for the majority
of successful firms in today’s marketplace. In more recent times, the role and contribution that the
purchasing function has to offer has been recognised, and is now an area of considerable interest for
many of the larger firms (Bailey et. al., 1998). Effectively contributing to profitability and
competitiveness, the role of the purchasing activity has changed significantly, moving from a reactive
approach, to a more strategically planned approach, with the purchasing function now responsible for
the continuity of supply, managing the flow of materials, and developing and maintaining business
relationships (O’Fearghail 2007, in Sweeney ed., 2007).
As outlined by Lysons and Gillingham (2003, p. 5), the objective of purchasing is “to obtain materials
of the right quality in the right quantity from the right source, delivered to the right place at the right
price”. Traditionally, the purchasing activity was seen largely as a supportive role with its main aim to
purchase goods as cheaply as possible, ensuring the uninterrupted production of products. This has
changed considerably however, as the majority of firms are now unable to compete without the
cooperation and collaboration of other firms or suppliers (O’Fearghail 2007, in Sweeney ed., 2007).
Ultimately, this change has led to the purchasing function being accepted as an integral part of the
overall running of an effective business today. Ideally, the function should be a centralised unit,
consisting of numerous buying specialists. At different times, these specialists may work as part of a
comprehensive cross-functional team, consisting of experienced specialists from other departments
within the organisation, while working on various activities such as product design and development.
As the purchasing function operates across all departments, it is crucial that the department builds a

progressive and dynamic relationship with the other departments within the organisation. This is to
ensure efficient supply operations (Dobler et. al., 1996).
3.3 What is procurement?
The term ‘procurement’ is said by many to be one of the main supply chain management processes.
The meaning of the word ‘procurement’ is consistently used along the same lines as ‘purchasing’ and
‘sourcing’, however distinct differences can be established between the two. Despite this, the concept
is relatively new to the business world, and encompasses a much wider range of supply chain activities
than the mere sourcing and buying of goods and services (Blanchard, 2010).
The procurement concept involves a more extensive broadened view than that of the typical purchasing
function. The concept includes various additional activities, from the management of materials and
value analysis activities, to the management of supplier quality, and the purchasing of inbound
transportation. Overall, the entire procurement process tends to be more strategically focused and highly
proactive (Dobler et. al., 1996).
According to many researchers, the importance of the procurement concept is not fully appreciated, as
many firms continue to under estimate its potential. All too often, firms view the process to be somewhat
less important than various other activities within the firm, such as marketing, sales, and finance
(Blanchard, 2010). The importance of this concept and the possible gains from implementing such an
efficient procurement process into an organisation is constantly being outlined as failure to do so, makes
it much more difficult for organisations to attain significant supply chain improvements (Nelson et. al.,
2005).
In recent years, the Centre for Advanced Purchasing Studies carried out a detailed study in which they
found that the majority of the procurement process actually takes place outside of the purchasing
department. Other changes that the procurement activity has brought about, is that those firms who
intend to be successful must collaborate with their suppliers in the sharing of trans-actual information.
This enables suppliers to access accurate real-time inventory and shipping data. Additionally, the
procurement concept has inspired firms to reduce the number of suppliers with whom they do business.

In doing so, it enables closer buyer-supplier relationships, while also ensuring reductions in cost, and
valuable time spent negotiating (Blanchard, 2010).
Lysons and Farraington (2003, p. 5) have a very interesting understanding of the procurement process,
as they describe it as, “the process of obtaining goods or services in any way, including borrowing,
leasing and even force or pillage”. Such a definition is highly debatable and must be carefully
examined. Effectively, the two academics understand the process as a means of sourcing goods or
services at any cost, using any method required. This belief, in comparison to numerous other academics
is substantially different, making this understanding somewhat unique. As a result, one must question
what this belief is based upon, and what factors have influenced the academics in order to obtain such
a controversial understanding of the term ‘procurement’ (Lysons et. al, 2003).
It has been outlined that coordinating the parties involved in the procurement process can increase the
efficiency of the entire running of the supply chain. This can be achieved using various mechanisms
such as strategic alliances, and collaborative procurement arrangements, to merge both buyers and
suppliers. The implementation of both these mechanisms requires that both parties work together to
create a synergy in the purchasing of goods, and services, through the sharing of information, resources
and technologies (Balcik, 2010).
3.4 Differentiating between the terms ‘Purchasing’ and ‘Procurement’
Although often used interchangeably, a distinction can be made between the terms ‘purchasing’ and
‘procurement’. Simply explained, the purchasing function involves the primary activities associated
with the buying of materials, services and equipment, whereas the procurement process, as explained
by Dobler et al. (1996, p. 35) “encompasses a wider range of supply activities than those included in
the purchasing function”.
The term ‘Procurement’ is a more accurate term that best describes the radical change in activities in
the purchasing area, and is constantly being referred to more widely in business than the term
purchasing. Effectively, the procurement activity is a more proactive approach than that of purchasing,
as not only does it involve inter-organisational relationships, however it also involves; the utilisation

of supplier resources, the development of supplier relationships, cost management and finally the
careful management of logistics to ensure the smooth running of production (Skjott-Larsen et. al.,
2007).

Literature Review
Chapter 4
4.1 Negotiating & Contracting Vendors

Having carried-out extensive research for this dissertation, there appears to be little material available
on the method in which Irish humanitarian organisations go about the procurement of supplies. Despite
this, there is some evidence to suggest that humanitarian organisations procure supplies in a similar
method to that of current business organisations.
4.2 Tendering
Tendering, or competitive bidding as it is also known, is the most common method of obtaining a price
or quotation for a material or service. This approach can be used for the purchasing of both standard
and non-standard items, while it also introduces the element of competition directly into the buying
process (Fearon et. al., 1993). Lysons and Farraington (2006, p. 576) define tendering as “a purchase
procedure whereby potential suppliers are invited to make a firm an unequivocal offer of the price and
terms on which they will supply specified goods or services, which, on acceptance, shall be the basis of
a subsequent contract.” Simply speaking, the bidding process seeks suppliers to quote a price at which
they will provide the product or service in accordance with the terms and conditions of the contract
(Dobler et. al., 1996). This process of seeking a quotation is typically referred to as RFQ (Bozarth,
2006).
Commonly used in the private sector, the tendering process is utilised more often by the public sector,
as conformity to public accountability is particularly important. Tenders are typically based on the
specific requirements of the buyer with the entire process centred on the key principles of competition,
fairness, accessibility, transparency, and openness. The entire tendering process should aim to obtain
the best value, and not always the best price (Lysons et. al., 2006).
Those organisations who utilise the competitive bidding process must handle it with care, as a poorly
handled process can pose potential danger to the organisations reputation. As a result, the majority of
firms establish specific procedures to guide the buying personnel through the bidding process. The
tendering process implies that the lowest bidder will get the contract, however in the private-sector there
are no legal stipulations implying this theory. Despite this, the process encourages suppliers to assess

its position, before completing a bid and effectively encouraging them to compete in terms of cost
(Dobler et. al., 1996).
Once the tendering process has begun, all potential suppliers should be treated fairly and equally with
all information classed as being highly confidential and kept in secrecy between the firm and the
individual supplier. All potential suppliers should be given the same information regarding the
requirements, the closing date, and any potential extensions regarding the closing date that may arise.
Such common courtesy rules also advise the purchaser to inform those firms who were unsuccessful,
and an explanation as to why their bid failed in its attempt, is necessary. (Dobler et. al., 1996) This
process is known as debriefing, and is considered to be highly beneficial, as it builds the buying
organisations reputation as being a fair, honest, and open company. The debriefing process is highly
beneficial to those suppliers who were unsuccessful in their bid, as it enables them to become more
competitive in future bidding processes (Lysons et. al., 2006).
4.3 Negotiation
‘Negotiation’ is an alternative to the competitive bidding process, and is the preferred method used for
the sourcing of suppliers, once the bidding process is classed as being inappropriate or impractical.
Often said to be the most sophisticated and costly approach to determining price, this approach is used
more often for the buying of non-standard items, whilst providing the purchasing department with a
distinct opportunity to obtain the best deal possible for their respective organisation (Fearon et. al.,
1993).
Negotiation is a skill which can be developed and improved on through constant practice, and can be
continually strengthened through an in-depth knowledge of cost analysis and other similar techniques.
Negotiation, at the very least, should be a ‘give and take’ process, which provides the buyer and supplier
with an opportunity to eliminate unnecessary costs and create value. Those firms who adapt this
approach tend to be the most successful, as both sides are satisfied with the agreement, hence a win/win
situation. Additionally, adapting this fair and ethical approach can enhance the organisations overall
reputation, whilst also developing long-term relationships with key suppliers (Fearon et. al.,1993).

4.4 Contract
Having established the most appropriate supplier that will supply a product or service at the best price
and of the highest quality, the buying organisation will typically enter into a contract with the supplier.
A contract can simply be described as a legally binding agreement between two or more parties. This
agreement between the supplier and the buyer can be either written or oral however those contracts that
are of a higher-value tend to be in the written form. Once a contract has been made, both parties are
legally bound to fulfil their obligations, as set out in the contract. This is not always the case however,
as often the agreement is breached and even terminated (Leenders et. al., 2002).

Summary
In summary, having carried out extensive research into the areas of supply chain management,
procurement, and finally humanitarian relief assistance, using various pieces of literature that were
written by numerous academics, it has allowed for a greater understanding of these three key areas.
From the literature review, it is clearly evident that the adoption of the supply chain concept is of vital
importance for both the commercial and humanitarian supply chains. In the business environment,
implementing an efficient supply chain effectively forms a fluent network that merges the upstream and
downstream parts of the business, as one. If managed appropriately, the commercial supply chain can
achieve its primary objective of attaining considerable profits, while also reducing costs through the
elimination of waste. In order to achieve such objectives, the organisation’s entire supply chain must
be driven by a ‘lean’ and ‘value creation’ perspective. Such afore mentioned ideas, are crucial to the
survival of businesses today, especially in the current economic climate.
Having completed the literature review, it is clear that the humanitarian supply chain concept is
becoming an increasingly important area for many academics. Although it is a relatively under-
researched area, it is evident that there has been an adoption of the supply chain concept into the delivery
of humanitarian supplies. As outlined by many academics in this area, agility seems to be vitally
important for the running of a successful humanitarian supply chain. The reason behind this is because
when responding to an emergency crisis, humanitarian organisations are required to set-up complex
supply chains to get vital supplies to the people most in need. Often, when entering such devastated
regions, unknown demand quantities and infrastructural damage causes huge uncertainties and
problems for the aid organisations. This literature review shows that the current supply chains used by
various aid organisations are not adequate, as they tend not to be strategically planned and often lack
integration. As a result of this, organisations such as the UN’s are pushing for aid organisations to

integrate when responding to disasters, and to have strategic plan in place, so that they can act with
greater efficiency, when the need arises.
The literature review has shown that collectively through the government, the people, the Defence
Forces and the various NGO’s, the island of Ireland consistently punches about above its weight in
providing humanitarian assistance to suffering people, in their hour of need. This assistance is highly
recognised, and goes towards the buying of food, shelter and other necessary items.
With more and more people suffering on a global basis as a result of natural, man-made, and hybrid
disasters, there are growing pressures on the international community to meet the needs of those
suffering most. As a result, the UN’s has acted by introducing the Millennium Development Goals,
which primarily aim to eradicate world hunger. At present, the international community is somewhere
off achieving these ambitious targets, however these actions have stimulated the overall international
effort.
As mentioned above, the procurement of emergency relief items is highly complex at the present time
due to volatility in the marketplace. Having investigated a typical procurement procedure implemented
in a typical business today, it will be interesting to compare procedures to that of an Irish humanitarian
aid organisations procurement process. This will be carried out as part of the primary research for this
dissertation.

Research Methodology
Chapter 5

Research Methodology
5.1 Introduction
In seeking relevant information for this dissertation, an extensive research of secondary information
was carried-out on published materials including books, industry journals, trade magazines and industry
publications. The purpose of this was to develop an in-depth knowledge of various Irish humanitarian
aid organisations, and their procurement procedures for the purchasing of emergency relief items. In
order to gain a better understanding into this research area before carrying-out the primary research, the
opinions and views of participants within the humanitarian sector were sought and assessed. This
provided a solid base of knowledge to carry out an analysis on this research area.
5.2 Objectives:
1. To investigate Irish humanitarian aid agencies procurement procedures in the buying of
2. To gain an insight into how the humanitarian supply chain operates once a disaster strikes.
5.3 Exploratory Research
Exploratory research employs both qualitative and quantitative techniques to help to define issues, and
generate ideas for further investigation. Providing a sufficient insight into perceptions and attitudes,
exploratory research is a useful tool for the collection of data where relevant information does not exist,
or is difficult to source. It is a technique that is both cost effective and easy to implement, which can be
used to formulate a problem, develop a hypothesis, gain an insight for further research, and for the
answering of key research questions (Neelankavil, 2007).
As part of the exploratory research for this study, an informal interview was carried-out with Mr. Ronan
Scully of Goal International. Mr. Scully is a Goal representative for the West of Ireland and Midlands,

and speaking with him provided detailed information on Goal and the operations of humanitarian
organisations in general. Contact was also made with Mr. Hans Zomer – Director of Dochas, Mr Alan
Kerins – Director of the Galway based Alan Kerins Charity, and Mr. Graham Heaslip – Operations and
Supply Chain Management lecturer at the National University of Ireland, Maynooth. A visit to the ‘Irish
Aid’ centre on O’Connell Street, Dublin provided detailed literature surrounding Irish aid organisations
and their contribution globally.
5.4 Data Collection
Through the contacts made from the exploratory research, two structured interviews were organised.
The first interview took place on the 9th
of February 2011, with Mr. Martin Dalton - Supplies and
Logistics Manager of Concern Worldwide, while the second interview took place on the 16th
of
February 2011, with Mr. Brian Healy – Regional Logistics Manager of Goal International. Both
interviews lasted a little over an hour and a voice recorder was used for the recording of both interviews.
Both of these organisations supply chain and procurement operations were analysed and assessed in
quite some detail. The data collection tool that was applied for both organisations was structured
interviews. It was a pleasure to work with such experienced and travelled supply chain personnel.
5.4 Research Methodologies
Corbin and Strauss (2008, p. 1) define methodology as “a way of thinking about and studying social
phenomena”. In other words, the research methodology should outline the techniques, and procedures
researchers intend to use when gathering, and analysing data for academic studies or research. As part
of this dissertation, both qualitative and quantitative research methodologies were used in order to gain
an in-depth insight into this topic area.
5.4.1 Quantitative Research
Singh (2007, p. 123) explains that quantitative data “is a numerical record that results from a process
of measurement and on which basic mathematical operations can be done”. Primarily, the quantitative
technique is based on the explanation of phenomena which is carefully analysed using mathematical

methods. This technique enables researchers to turn qualitative data into quantitative data through
various measurement instruments (Muijs, 2004). Such measurement instruments used include
telephone, internet and mail surveys, where all respondents are asked consistent information. A clear
advantage of using quantitative techniques is that it provides the researcher with reliable, precise
information (Wimmer et. al., 2006).
5.4.2 Qualitative Research
Hogan et. al. (2009, p. 3) states that qualitative research “is a multifaceted approach that investigates
culture, society, and behaviour through an analysis and synthesis of people’s words and actions”. A
primary and direct form of observation, this type of research is typically carried-out through the use of
case studies, samples, personal experiences, an analysis of texts, interviews, focus groups, and
numerous other methods. Simply explained, qualitative research involves the collection, analysing, and
interpretation of data, where the purpose for carrying-out the study can be ‘disguised’ or ‘non-
disguised’. In a disguised approach, the purpose for carrying-out the research is not declared
(Neelankavil, 2007).
Over the past decade, the range of methods to be observed directly has grown significantly in qualitative
research as text messages, e-mails, online chat, online forums and blogs can all now be examined. This
is as a result of the significant advancements in technology (Hogan et al, 2009).
To carry-out the primary research for this dissertation, two structured interviews were carried-out.
Logisticians from Goal International and Concern Worldwide were interviewed using the same set of
questions, which enabled a comparison to be drawn (See appendix 1).
5.5 Case Study Research

Yin (2003, p. 13), states “a case study is an empirical enquiry that investigates a contemporary
phenomenon within its real life context, especially when the boundaries between phenomenon and
context are not clearly evident”. Yin believes that by using the case study approach in researching a
specific area, it can be highly beneficial, as it has the ability to address the ‘how’ and ‘why’ questions
in the research process. Yin often refers to the case study research method as an opportunistic strategy
that is highly flexible (Yin, 2003).
A case study approach was applied for analysing the data that was established over the two interviews
that took place with the humanitarian organisations for this dissertation. Adapting the case studies
approach enabled a distinct contrast to be identified between the two organisations and their
procurement procedures, while it also allowed for an in-depth discussion of the findings. It is important
to note that the case study approach was adapted by combining the two interview findings in one piece
of literature.
Figure 5.6 below illustrates a typical research process that should be carried-out when conducting a case
study research. Stuart et. al. (2002) believes the importance of the research process cannot be
overlooked, as it greatly enhances the overall quality of the research undertaken.
This five stage process was closely followed while undertaking the research for this dissertation.
5.6 Criterion
Figure 5.5: The five-stage research process model
Source: Stuart et. al, 2002
Stage 1
Research
Question
Stage 2
Instrument
Development
Stage 3
Data Gathering
Stage 4
Data Analysis
Stage 5
Dissemination

5.6.1 Validity
A lot of time and effort was spent assessing whether carrying-out extensive research on this area was
indeed relevant or valid. Research suggests that this area is becoming increasingly important with more
and more academics and practitioners investigating the humanitarian supply chain. This is due to the
recent development of the humanitarian supply chain over the course of the last two decades, and also
because of the increasing number of unpredictable humanitarian disasters occurring around the world.
5.6.2 Reliability
Both interviewees were asked the same, consistent questions over the course of the respective
interviews. In order to ensure reliability when recording the interview, two voice recorders were used
and two separate transcripts of each interview were drawn-up. This ensured that the information
recorded would not be misunderstood.
5.6.3 Limitations
In carrying-out this dissertation there was a number of limitations, which had an impact on the depth
and scale of the final script. The main limitation of this dissertation was the time-frame in which it had
to be completed. To a lesser extent, there was a limited amount of literature and data available
surrounding the humanitarian supply chain.
5.6.4 Feasibility
Before initiating the study, the feasibility of the research question, the research objectives, and the data
collection techniques to be used were closely analysed. This was extremely important because if the
data was not attainable, the entire research would not have been carried-out to the same extent or
alternatively, may have been a failure.
5.6.5 Ethical issues

Ethical issues were taken into careful consideration in the writing of this literature, with all of the
information written having being honestly reported. Carefulness was also taken in critically examining
all of the work, with all information obtained being carefully recorded.
5.7 Data Analysis
Having gained a considerable amount of data from the two interviews conducted, an interview summary
document and a transcript for both interviews were drawn-up. The summary document contained
particular details such as; where the interview was held, the time, a brief account of the content and the
emerging themes from the interview. Both of these analysing techniques were particularly helpful in
sifting-out the most relevant findings, which made the process of interpreting the findings more
manageable.

Primary Research
Findings
Chapter 6
Chapter 6: Primary Research

Specific Focus: Concern Worldwide & Goal International
Findings
6.1 Introduction
This research is based around Irish humanitarian organisations, and the procurement procedures they
utilise for the procurement of emergency relief items in times of a disaster emergency response. The
interviews were carried-out with Mr. Martin Dalton, Logistics Manger of Concern Worldwide and with
Mr. Brian Healy, Regional Logistics Manager of Goal International.
The findings revealed that the operational procedures of both organisations are quite similar however
unique differences were also identified. One of the biggest differences identifiable was the size and
scale of the organisations, with Concern’s operations being much larger when compared to Goal’s.
6.1.1 Organisational Profiles
Concern Worldwide was established on the 19th
of March 1968. Concern is a non-profit organisation
that was established by a group of people determined to respond to the appeals made by Irish
missionaries working in the decimated, war-torn country of Biafra in 1968. The organisation has worked
in over fifty different countries in responding to emergencies, as well as long-term development
programmes. Today, Concern employs almost three and a half thousand people, in twenty-five of the
world’s poorest countries. Of this figure, there are five full-time members employed to head the Supply
Chain and Logistics Department in the organisation’s head office in Dublin, Ireland.
Goal is an international humanitarian agency dedicated to alleviating the suffering of the world’s
poorest people. The organisation was established in Dublin in 1977 by former sports journalist and the
current chief executive Mr. John O’ Shea. Goal is a non-denominational, non-governmental and non-
political organisation. Goal has responded to every major disaster since 1977, with over two thousand
three hundred personnel working with the organisation over this time-span, employing thousands more
local people in the process.
6.2 Role of the supply chain department in humanitarian supply chains

The research established that both organisations’ logistics/supply chain departments have similar roles
to play within each respective organisation. The interviews revealed that the supply chain department
within a humanitarian organisation is responsible for numerous activities including; advising the fields
on standardised logistics systems, the carrying-out of all supply chain management training for all fields
within the organisation, the pre-positioning of stocks for use in emergencies, and engaging in
international procurement where the organisations’ overseas fields can’t source supplies locally. Of
course, the department is also responsible for arranging the adequate transportation of the supplies
sourced.
6.3 Responding to humanitarian crisis
Once a disaster emergency arises, both Concern and Goal implement an emergency response strategy
at head office and on the ground. As both organisations are already heavily involved in development
work in many regions prone to humanitarian emergencies, it is often the case that they are already
established within the affected region. If this is not the case, a small emergency response team from the
organisations will react immediately once the disaster occurs.
6.3.1 Reacting from Head Office
The first step taken, regardless of the emergency, is that all the heads of the individual departments are
called together and informed of the particular emergency. The heads of logistics, emergencies, overseas
operations, fundraising, communications and the CEO are all present at this initial briefing.
At this meeting, the state and scale of the situation is discussed, while an anticipated needs assessment
or forecast is carried-out and the logistical aspects of the operation is planned. During this time, the
heads of department begin some proprietary work, involving an analysis of what other organisations
are doing, possible locations for the sourcing of items, freight options available, the complexity of the
logistics operation, and any potential constraints posing a threat to the established operations. During
this initial phase, both organisations collaborate and engage with the UN’s logistics cluster.
6.3.2 Reacting on the ground

When responding to a crisis, Concern’s supply chain begins with identifying needs on the ground. This
is very important, as it can lead to a reduction of waste in terms of both time and money. Once this
initial assessment is carried-out, the exact requirements are articulated to head office, using a proper
authorised process. The next stage of the process is to satisfy these needs that have been identified, and
this is achieved through the dispatching of stock available. This may involve Concern engaging with
partners such as the UN, to have them release stock belonging to their organisation, as part of the
UNHRD.
Once the requirement on the ground has been identified and all available stocks corresponding to these
needs are depleted or have reached a minimum stock level, the organisation places a purchase order for
the items required. Once the source of the supplies has been identified, the most suitable method of
transportation is carefully analysed.
In an emergency situation, Concern usually liaises with one of their preferred chartering services or
freight forwarding providers for the delivering of the supplies purchased. In availing of this service, the
goods are shipped straight from the source, to an appropriate landing spot in the emergency theatre. On
arriving in the disaster stricken region, the goods are delivered to a pre-established warehouse, or
alternatively, distributed immediately to the beneficiaries.
Goal stressed that the complexity of the humanitarian supply chain greatly depends on the actual
emergency. Operating a successful supply chain in such trying and testing environments requires a cool,
calm, professional approach, as it is easy to get caught-up in the emotions.
6.4. Improving supply chain efficiency
The representative from Goal stressed that the UN and US army, if possible, should take a more
aggressive approach with governments in responding to humanitarian disasters. Mr. Healy of Goal
believed the key to improving humanitarian supply chain efficiency is that no matter where a disaster
happens, governments should be forced to open-up their borders, with all taxes and tariffs being ceased
until order is somewhat restored. Goal have encountered many situations during their duties abroad,
where corrupt governments inexplicably exploit the destruction of their own country, by increasing

taxes and customs charges of a ludicrous amount, on those very humanitarian organisations entering
the country to help those in need. The Goal representative believed that by abolishing such restrictions
on trade going into the devastated country, it would open the flow of aid into the affected region.
Mr. Dalton of Concern revealed that one major problem in every humanitarian disaster at the moment
is the amount of unsolicited goods arriving on the ground in humanitarian emergencies. This is posing
a big problem for many aid organisations, as it is causing severe bottlenecks. Concern believes that this
problem is due to many organisations working on the ground that do not actually have a mandate to be
working there. Mr. Dalton stated that only those emergency relief items that have been identified as
being necessary, through the carrying-out of a proper needs assessment, should arrive into the
emergency theatre. Mr. Dalton also identified goods of inferior quality as being a huge problem, as they
add to the bottlenecks already caused by unsolicited goods.
Mr. Dalton also acknowledged that there are still some issues to be addressed surrounding the area of
collaboration and co-operation between humanitarian actors. Despite the new initiatives highlighted in
chapter 2 of this literature, some organisations still insist on doing their own thing in responding to
humanitarian disasters. Again, this can disrupt the effective running of the humanitarian supply chain
during a relief mission, as it can add to already growing bottlenecks.
6.5 Collaborating with other humanitarian actors
Mr. Dalton outlined that Concern continually work with humanitarian organisations and the UN in
particular, to collaborate and to identify the areas that they should be engaging in. Concern collaborates
with the UN on two fronts; (1) acting as a conjugate to distribute aid on their behalf, and (2) as they
utilise the UNHRD.
Mr. Healy of Goal revealed one of the main constraints to achieving greater collaboration between
humanitarian actors on the ground is the hindrance of so many new ‘do-gooder’ organisations. Many
of these new organisations were established post the Asian Tsunami in 2004. Although the Goal
representative acknowledged that their intentions are good, he revealed that in actual fact they have the
potential to upset the balance of a co-ordinated response, as they lack integration. Mr. Healy stressed

that this is not the case of the established NGOs, as he stated that “we are strong guards in the
advocating and sharing of knowledge, information and resources in working alongside each other”.
Both interviewees maintained that working closely with other NGOs and other authorities such as the
UN is paramount to the success of their organisations, with both acknowledging that without such
coordination and collaboration, their response strategies would be a lot harder to implement and would
not be as effective. Both Concern and Goal have introduced numerous measures to improve integration
with other humanitarian actors. Consequently, the research revealed that it is not only the humanitarian
organisations taking such action as the UN has acted also in establishing UN’s Logistics Cluster. The
research revealed that when working on the ground Concern and Goal embrace fully the Logistics
Cluster through the attending of meetings and sharing of knowledge, and resources.
6.6 Measures Taken to improve response times
6.6.1 Concern Worldwide
Concern has established an emergency response strategy and contingency arrangement over the past
number of years, which incorporates three main areas. The first area is the area of stocks, and in order
for the organisation to respond quickly, supplies must be moving in the air or on the ground as quickly
as possible. Concern utilises both suppliers and the UNHRD for the pre-positioning of stocks. As part
of this programme, the organisations’ stocks are managed and stored free of charge in all five of the
warehouses located around the world. Often, as part of this programme, Concern borrows stocks on a
replenishment basis from other aid organisations to fasten their response.
The building of supplier relationships is the second measure Concern has concentrated on in recent
times. The organisation accepts that this is crucial in order to ensure that they receive the right materials,
in the right quality and in the right quantities that are required. Further findings surrounding this area
are detailed in section 6.7.2 of this chapter.
The third and final measure that Concern has taken to fasten their response time is the area of
transportation. In an emergency, where goods can’t be sourced locally or regionally, there is a necessity

to transport the supplies by the quickest means possible, which tends to be by chartered aircraft. This is
a quite specialised support service and requires expertise to engage and interact with such companies
on the right level. As a result, the building of appropriate contacts during non-emergency times is
crucial, in order to obtain the best price and service possible.
6.6.2 Goal International
To improve their response times, Goal has established an emergency team, which comprises of six
experienced personnel. They are responsible for the setting-up of the basic structure of the
organisation’s response on the ground. Additionally, the organisation has established a standard
emergency kit, which contains those items crucial to the basic needs of a person. The other measure
that the organisation has worked towards is the establishment of contracts with suppliers, which
provides the organisation with the supplies, documented as part of the pre-negotiated contracts.
6.7 The procurement of emergency relief items
6.7.1 Procurement planning in anticipation of a crisis
The procurement planning phase is carried-out as part of Concern’s emergency response strategy and
contingency arrangement plan. This emergency strategy is based around having strong relationship with
suppliers, the pre-positioning of stocks, and the ability to engage chartered aircraft and other means of
transport for the quick mobilisation of goods and services.
Implementing this procurement plan is a team of specialists located in Concern’s head office in Ireland.
In the event of any emergency, prioritisation takes place with all non-essential work being ceased.
Concern outlines that it is essential for them to react quickly in implementing this procurement plan, as
supplies tend to be depleted very quickly in a disaster-hit region. Mr. Dalton stressed the importance of
an adequate procurement plan, as once supplies are depleted humanitarian organisations have to rely on
production orders, thus the pace of the operations slow down considerably.
Post each disaster, Goal has a ‘lessons learnt’ session, and as part of this, they analyse the effectiveness
of their procurement procedures in response to the respective disaster. Recent disasters in Pakistan and

Haiti thought Goal a lot about their procurement policies. One change that arose from these disasters
for Goal was that they established that the shelters they were purchasing were simply not adequate for
the warm climate. As a result of this, Goal has designed a standardised tent to suit different climatic
regions.
Additionally, Goal has established framework contracts with international suppliers, in compliance with
donor regulations. This means once a disaster occurs, Goal does not have to enter into an arduous
bidding process with potential suppliers.
6.7.2 Importance of supplier relationships
Both personnel interviewed acknowledged that the building of appropriate supplier relationships is very
important as part of their respective organisations’ procurement practices. In order to maintain good
procurement practices, the organisations’ buyers are in constant communication with their main
suppliers, to ensure product expectations in terms of price, standards and quality are met. This means
that the organisations are required to be compliant, transparent and very open in the procurement of
6.7.3 Approved Vendor Lists
Concern and Goal have recently adopted the use of AVLs within their logistical departments. Such lists
contain the names of trusted suppliers who are considered to be crucial to the organisations emergency
and on-going development programmes.
In order for suppliers to make it onto Concerns AVL, the supplier must have a proven ability of
supplying the organisation with the goods and services that they require. The supplier must produce
bank statements and other financial documents, to demonstrate the true financial standing of their
company. The supplier must also demonstrate to the organisation that they are familiar with the type of
work that Concern engages in, and that they have an established relationship with other trusted NGOs.
In more recent times, Concern has established detailed procurement policies and a code of conduct for
which its suppliers must strictly adhere to (see appendix).

Goal utilises an AVL for each country it is participating in, with each supplier that the organisation has
dealt with being added to this list. Within this vendor list, the history of every purchase is recorded, and
the supplier blacklisted if the procurement team felt that the particular supplier did not meet the
organisations required standards. This ensures that the same inefficient supplier will not be used a
second time.
Additionally, Goal incorporates what they refer to as a global AVL into their practices. This records the
transactions carried-out with their main international suppliers and is divided-up into separate categories
such as pharmaceutical, food, and machinery.
Once Goal decides on procuring supplies from a specific supplier, they require the supplier to adhere
to their vendor registration list. The vendor registration list contains the standards and ethical issues that
the supplier is required to meet. These issues are outlined by Goal International, Oxfam and the Sphere
standards (see appendix).
6.7.4 Tendering - Thresholds
Concern and Goal both use a tendering process for the procurement of supplies above a certain
threshold. In other words, both organisations tend to follow different processes for the purchasing of
emergency relief items, depending on their value.
 Thresholds - Concern Worldwide
In relation to the overseas fields, Concern has established four different thresholds for the procurement
of emergency relief items. The first is low value procurement, which necessitates things such as petty
cash purchases, and does not require authorisation or consultation. The next threshold requires three
quotations plus the use of a purchase committee. The third threshold is the local formal tender, which
is put to tender in the actual disaster-hit region for local suppliers to compete. The final category is the

international formal tendering process, where depending of the nature and goods required, Concern will
post any tender opportunities on their website and in other relevant media locations.
 Thresholds - Goal International
Goal uses a procurement chart for the purchasing of emergency relief supplies, and similar to Concern
they implement thresholds. Any items above €30,000 are published on the organisations website and
in other media locations. Supplies to the value of between €15,000 and €30,000 tend to be negotiated,
while any supplies below €15,000 are generally purchased within the disaster-hit region. Goal has rules
and regulations outlined internally for this low-value purchasing.
These guidelines are applied to all procurement procedures, unless the donor provides the funding
attached with strict regulations. The Goal representative stated that when donors provide funding, the
organisation is often obliged to follow strict procurement regulations.
The research also identified that the procurement process utilised in commercial businesses is quite
similar to that of humanitarian organisations, however Mr. Dalton of Concern did stress that there are
added complications to the humanitarian procurement process, in the form of a lack of planning. This
is mainly due to the unpredictability of a disaster arising, and the lack of information systems for guiding
and monitoring stocks.
6.8 Inventory & Warehousing
Concern and Goal have no warehouses leased at the present time, and this is due to a number of reasons.
Although both acknowledged the benefits of leasing a warehouse or hub, there are more viable options
available to humanitarian organisations today for the storage of emergency relief items. One of these
options is the UNHRD and both organisations believe that this is a much more efficient storage
mechanism, as items are stored free of charge in convenient locations.

Cost is another reason why humanitarian organisations have decided to avoid leasing warehouses, as
transportation costs from Europe over the past number of years have escalated. While also, the
availability of chartered aircraft suitable for operations out of Europe has greatly reduced. This has
added to Concern’s logistical conundrum.
6.9 Recent developments
The interviewees were questioned whether recent developments such as the Paris declaration for aid
efficiency had any impact on how their respective organisations, however both disagreed. Mr. Dalton
from Concern did reveal however, that other initiatives such as the ‘Sphere Project’ and the UN’s
Logistics Cluster, as part of the UN reform process, has had an impact on their procurement procedures,
standards and guidelines. Mr. Healy of Goal believed that such developments as the Paris declaration
for aid efficiency, may have possibly affected the donor’s terms and conditions, rather than affecting
Goal itself.
6.10 Other issues
Other issues that both representatives from Concern and Goal were questioned on included; CSFs, the
importance of adopting an agile supply chain and development issues in comparing the humanitarian
and commercial supply chains.
Both organisations acknowledged the importance CSFs have to play in humanitarian emergencies, and
recognise these factors as central to the success of their operations. Similarly, the organisations agreed
that having an agile supply chain in-place that can be re-configured at any stage of the emergency
response is crucially important. Mr. Dalton of Concern did state however that they must not only adopt
an agile supply chain, but a lean supply chain also, due to the lack of financial resources available.
When asked whether humanitarian supply chains were behind that of its commercial counterpart, both
interviewees believed that this was possibly an ‘unfair statement’. In some areas of the humanitarian
supply chain they agreed that this statement may be true, however both stressed that commercial
organisations do not face the same complicated constraints than humanitarian organisations.

The research revealed that there is no electronic system within humanitarian organisations for the
efficient tracking of emergency relief items. This is due to a lack of financial resources and the fact that
many organisations operate out of the UNHRD. Despite this, both organisations revealed that the
humanitarian circle is working towards developing a software system suitable for dealing with
humanitarian emergencies. Mr. Healy highlighted this as he explained that Goal have recently
established a purchasing system with Toyota for the purchasing of parts for their fleet of vehicles.
Primary Research

Analysis & Discussion
Chapter 7
Chapter 7: Primary Research
Analysis & Discussion
7.1 The evolving humanitarian supply chain

As was discussed in section 1.3, the humanitarian supply chain has received increasing attention from
academic writers, politicians and the wider public in recent years, as humanitarian organisations have
acknowledged its importance and have fully embraced the idea. The transformation has been
phenomenal, as almost twenty years ago humanitarian organisations had no logisticians employed, as
they simply did not accept its value.
It is true to say that absolutely everything in the humanitarian world is progressing, and this is helping
humanitarian supply chains to develop at a faster pace. This rapid development is due to; (1) the full-
time employment of qualified personnel, (2) the retention of employees - which is building a
considerable knowledge base, and (3) the increasing interest in the general area - which is raising
awareness globally.
Although humanitarian supply chains are developing rapidly, Section 1.3 of this literature illustrates
that there is an increasing number of academics carrying-out comparison studies on the humanitarian
and commercial supply chains in terms of development. Oloruntoba (2006) believes that in comparison
to the commercial supply chain, there is a lack of planning in the humanitarian supply chain resulting
in inefficiencies, and a lack of inter-organisational collaboration for the use of information systems.
This research established that humanitarian supply chains do not possess the fancy software systems
that track, monitor and control the flow of goods, which are common to the majority of commercial
businesses today. Despite this, there is some work being carried out towards addressing this issue,
however it is proving difficult. Such difficulties are as a result of financial constraints and also because
at the present moment, there are no ‘off-the-shelf’ packages available that can be appropriately applied
to the humanitarian context.
The research findings suggest that there many similarities identifiable in how the humanitarian and
commercial supply chains operate and function. In light of this however, many humanitarian
organisations believe the statement that humanitarian organisations are behind that of their commercial
counterparts as being ‘unfair’. This belief is held because humanitarian organisations maintain that they
face considerably tougher constraints than that of commercial businesses. Ultimately, each and every

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