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Publication

Supply Chain Expenditure & Preparedness Investment Opportunities in the Humanitarian Context

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Recognized as a leader in the fight against malnutrition, ACF is committed to save lives of malnourished children while providing communities with access to safe water and sustainable solutions to hunger.

The research consisted of analyzing ACF’s supply chain costs in six major relief operations of all types (natural disaster, complex emergency and epidemic) in the past 15 years, and built a Return on Investment (RoI) model for supply chain preparedness.

To independently assess data and to avoid bias, ACF entered into a partnership with the Kuehne Logistics University and HELP Logistics.

ACF decided to extend its collaboration with KLU and HELP Logistics to conduct a Return on Investment (RoI) study on the delivery of Non-Food-Items (NFI) kits in context of the relief responses to the earthquakes in Haiti and Nepal.

The Supply Chain Cost Analysis and the Return on Investment Study have demonstrated the accuracy of the two of World Humanitarian Summit assumptions:

  • 60 to 80% of the humanitarian budget is passing by supply chain and,
  • 1 Euro invested in preparedness can save 7 Euros in response.

The humanitarian community should take into consideration that chasing for more money is not the only way to close the funding gap. In fact, investing earlier and smarter could ultimately reduce the requirements and help the whole community of humanitarian actors to do more with less.

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