Cash-based response in relief: the impact for humanitarian logistics

Abstract

Purpose The purpose of this paper is to evaluate the financial and material flows in cash-based responses (CBRs) and their implications for humanitarian operations. This research proposes to view cash as a commodity used by humanitarian actors in emergency operations and therefore aims to explore how CBRs impact on humanitarian logistics and ultimately, affect beneficiaries. Design/methodology/approach The methodological approach of grounded theory was chosen for this inquiry because it allowed the researchers to generate a general explanation for the process of CBRs in emergency situations based on the views of participants interviewed. Interviews were conducted with senior managers, supply chain managements and logistics officers from international humanitarian organisations (HOs), United Nations agencies and commercial organisations involved in humanitarian operations. Examples of topics covered during the field work included, procedures and policy; knowledge and information management; systems and technology; actors and agents. Findings The impact of CBRs on humanitarian operations can though not be understated. They alter supply chain design, the very role of beneficiaries as well as HOs, and change the strategy of aid delivery from push to pull. Perhaps, the most important factor is the elimination of many logistical activities that needed to be performed by HOs. Delivering cash diminishes the needs for lengthy procurement and assessment processes, pre-positioning, transportation and distribution. This bears the potential of significant reductions in costs for delivering humanitarian aid at the same time as it is an important move from aid to trade. Practical implications The challenge for humanitarian agencies in the coming years is to overcome their fears surrounding CBRs, and to implement cash programmes where they are judged to be the most appropriate response. This will require not only a change in donor policies, but also a fundamental change in the skill set of humanitarian logisticians, who are used to identifying needs and providing commodities and thus to maintaining control over the provision of assistance. Originality/value The contribution of this research is twofold: this is the first examination of cash-based interventions in humanitarian operations through the prism of supply chain management. Second, the research is field based and grounded in empirical observations thus adding to the literature and offering insights to practice.

Supply chain and logistics competencies in humanitarian aid

“…Ideally, a larger sample of field experts and national staff would have been used, together with key informants from government departments, training institutions, donor organisations, and other UN agencies and NGOs (national and international). It is anticipated that such further research will generate a more thorough understanding of the current and future context of humanitarian logistics, and, in turn, necessitate additional work on the proposed key performance areas, as well as the core competencies and resultant skills, knowledge, and behaviours going forward— the development of cash transfer programmes is an obvious example (Heaslip, Kovács, and Haavisto, 2018).…”

Challenges and barriers of humanitarian aid management in 2017 Kermanshah earthquake: a qualitative study

“…Extreme disasters like storms, earthquakes, tsunamis, and volcanic eruptions often bring extraordinary acts of helping [5]. During the humanitarian aid, the donors want to spend their money on alleviating the immediate distress [6]. The competition of aid agencies for donor resources can be considered as a barrier for collaboration and cooperation [7].…”

Editorial for special issue on: humanitarian operations management

“…In the immediate aftermath of any disaster, these supplies include items that are vital for survival, such as food, water, temporary shelter, and medicine, among others. Due to the varied nature of their tasks, Humanitarian Aid (HA) organizations have been described as 'most agile' and 'fully flexible' (Heaslip, Kovacs, and Haavisto 2018).…”