Modeling the values of private sector agents in multi-echelon humanitarian supply chains

Abstract

Humanitarian organizations (HOs) increasingly look to engage private sector supply chains in achieving outcomes. The right engagement approach may require knowledge of agents' preferences across multi-echelon supply chains to align private sector value creation with humanitarian outcomes. We propose a multi-attribute value analysis (MAVA) framework to elucidate such preferences. We formalize this approach and apply it in collaboration with a HO pilot aiming to facilitate better private sector availability of malaria rapid diagnostic tests in Uganda. We demonstrate how HOs could use criteria weights and value functions from MAVA for project evaluation; in the process, we reveal business model insights for importers, distributors, and retailers in the pilot. We also show how MAVA facilitates the impact assessment of hypothetical options (i.e., combinations of products, services, and subsidies) to guide HO resource deployment. It is important to note that specific insights and assessments, developed to illustrate applications of the approach, are drawn from a single case study and require further validation. This paper offers the first attempt, to our knowledge, to develop quantitative measures for economic and non-economic objectives involving all agents in a multiechelon supply chain, either humanitarian or commercial. We hope that this initial step stimulates further research to validate results and develop the framework proposed.

Trends in access to anti‐malarial treatment in the formal private sector in Uganda: an assessment of availability and affordability of first‐line anti‐malarials and diagnostics between 2007 and 2018

“…There was a decline in the availability of A/L between 2010 and 2013 dipping below the 80% WHO benchmark in 2013, which may be the result of the high volatile prices of ACT medicines on the market after the introduction of AMFm [ 21 , 37 ]. After 2013, availability of A/L gradually improved to 100% which could be attributed to consistent supply together with support interventions such as behaviour change communication to improve demand and price monitoring to study changes in the private sector [ 38 ]. The changes observed could have been influenced by increased generic competition which led to a reduction in prices of the ACT medicines.…”

“…However, availability of RDTs improved slightly over the study period but remained low (below 40%) due to the fact that there were no incentives geared towards making the commodity more available and affordable. Also, contextual aspects such as RDTs being regarded in the private sector as a product sale and not a paid service may have played a role [ 38 ]. The high RDT prices push the overall price of malaria diagnosis and treatment to nearly one day’s wages for LPGW.…”

Lessons learned from humanitarian logistics to manage supply chain disruptions

“…In others, companies saw new business opportunities and took the initiative to produce items such as hand sanitizers and personal protective equipment. Generally, cross‐sector collaboration and public–private sector partnerships play an important role in building supply chain resilience in disaster‐affected areas (Balcik et al, 2010; Carland et al, 2018; Tomasini & Van Wassenhove, 2009; Van Wassenhove, 2006). Public–private partnerships are expected to result in improved service provision, to help disaster agencies learn about business supply chains (Falagara Sigala & Wakolbinger, 2019; Van Wassenhove, 2006), but also, to legitimate the role of industry in society (Rueede & Kreutzer, 2014).…”

Long-Term Economic Sustainability of Humanitarian Logistics—A Multi-Level and Time-Series Data Envelopment Analysis

“…In the field of humanitarian operations, in many cases, operations research concepts and techniques are applied: For example, Acimovic and Goentzel use models to assess the humanitarian response capacity [ 33 ]. Roh, Shin, and Seo (2018) discuss warehouse location topics for humanitarian operations [ 34 ], and Carlanda, Goentzel, and Montibeller (2018) present agent models for multi-echelon humanitarian operations [ 41 ]. Regarding specifically efficiency analysis with the DEA technique for health care and civil security are applied by e.g., Ustün (2016) evaluation the disaster resilience capacity in Turkey with the DEA technique [ 42 ].…”