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Vysoká škola ekonomická v Praze

Dissertation Thesis

2020 Jana Abíková

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University of Economics, Prague Faculty of Business Administration

Field of Study: Business Administration and Management Department of Logistics

Dissertation Thesis

Balkan corridor: transit migration in the light of management and logistics during the humanitarian response to the refugee

crisis in 2015/2016

Author: Ing. Jana Abíková

Supervisor: doc. Ing. Lubomír Zelený, CSc.

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Declaration of Authenticity

I hereby declare that the dissertation thesis presented herein is my own work, or thoroughly and explicitly acknowledged wherever adapted from other sources. This work has not been published or submitted elsewhere for the requirement of a degree programme.

In Prague, on __________ _____________________

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Acknowledgement

The research that culminates in this thesis has been an incredible journey. Now, it is time to say thank you to everyone who was with me during this journey.

Firstly, I would like to express my gratitude to Ing. Petr Kolář, PhD, for his guidance. Thank you for your advice and support, which appeared every time I truly needed it. And to Dr Wojciech Piotrowicz. Without you, this research would never exist. Thank you for all your comments, the time you spend with me and all the questions I had no right answer to.

I would like to thank Ing. Michal Mervart, PhD, my colleague and more importantly, my really good friend. Without you, there would be no academic me, and there would be worse personal me.

It is impossible not to mention my dear friend Reena. Without you, my very first paper could not exist and either this thesis. You are the reason why I cherish the time I spent with Doctors Without Borders. I hope one day, I will become the same humanitarian as you are now.

I also want to thank my friend Adriana. You kept an eye on my deadlines sometimes better than me, and you were coming with extraordinary ways how to solve my problems. If my PhD studies would give me only our friendship, I could not ask for more.

And many thanks my colleagues from the University of Economics, Prague, namely Ing. Marek Prokůpek, PhD, Ing. Petr Jirsák, PhD and doc. Ing. Lubomír Zelený, CSc., my colleagues from Hanken School of Economics and to all reviewers and editors I had the opportunity to work with. You have taught me many things about research.

I also would like to thank all my respondents not only for participating in my research but for the amazing job you have been doing out there in the field. While talking to you, I have realised I have not found only perfect respondents, but most importantly, I have found amazing people.

You deserve to know this.

I would like to thank my family and friends. You were here to support me when I was losing my faith in finishing this research, and I know it was not easy for you. Thank you for believing in me while I was not able to do so. Namely, I want to mention my mom Renata, my sister Kamila, my grandmom Marta and my friends Kateřina, Tia, Ahmed, Felipe and all the others who were here.

I also would like to thank all people of Cafedu. It became my home while writing this thesis.

Also, I thank all my students attending Logistics course during year 2019/2020 who were patient with me.

In the end, I would like to thank the most important people – refugees and migrants, people who are in the heart of this research. I know these pages will not change your situation today, tomorrow and probably not even the next month. But I hope it will change your future or the future of people who will have to start this journey after you.

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“be human first”

R8

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Balkan corridor: transit migration in the light of management and logistics during the humanitarian response to the refugee crisis in 2015/2016

Abstract

In 2015/2016, Europe witnessed the biggest refugee crisis since World War II. Over a million people moved via different migrations routes. The critical route was the Balkan corridor running from Turkey, via Greece, to Central, Western and Northern Europe.

This thesis aims to propose a new model for the analysis of transit migration in the context of humanitarian operations. This model is built on tools from management and disaster management, and its application is demonstrated in the case of Balkan corridor during the so- called refugee crisis in 2015/2016. To demonstrate this application, the development and changes of the corridor were examined looking at factors that influenced the shape of the corridor, stakeholders participating in this humanitarian response and its success using primary and secondary data. Aside from the model development, the thesis brings the first delineation of the entire Balkan corridor identifying the causes and reasons why a humanitarian response to this crisis was not successful. Also, a comparison between logistics processes held during the response to the Balkan crisis and responses to different refugee crises is included. This reflects the lack of knowledge related to transit migration and the diverse character of this type of crises. In the end, the thesis offers a set of recommendations for future operations taking place in the context of transit migration.

Conclusions arising from the research are essential, as it is likely that the world will face a similar crisis in the near future. Therefore, there is a need to prepare and develop a plan in the case of such a situation to prevent failures observed on Balkan.

Key words: Balkan corridor, humanitarian logistics, management, refugees, stakeholder theory, supply chain management, transit migration.

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Balkánský koridor: tranzitní migrace v kontextu managementu a logistiky během humanitární reakce na uprchlickou krizi v roce 2015/2016

Abstrakt

V roce 2015/2016 byla Evropa svědkem největší uprchlické krize od Druhé světové války. Více než milion lidí putoval různými migračními trasami. Klíčovou trasou byl tzv. Balkánský koridor vedoucí z Turecka, přes Řecko až do střední a severní Evropy.

Cílem této práce je navržení nového modelu, pomocí kterého lze analyzovat humanitární projekty související s otázkou transitní migrace. Tento model vychází z nástrojů managementu, disaster managementu a je aplikován na příkladu tzv. Balkánského koridoru během tzv. uprchlické krize v letech 2015/2016. Aby bylo možné tento model aplikovat, autorka detailně zkoumá faktory, které ovlivnily tvar koridoru, aktéry, kteří byli do operací zapojeni a úspěch této humanitární reakce. Pro tuto analýzu využívá primární i sekundární data. Spolu s návrhem nového modelu poskytuje disertační práce první analýzu celého Balkánského koridoru spolu s definováním příčin, proč nebyla humanitární operace úspěšná. Jelikož tato reakce je výjimečná především díky kontextu transitní migrace, autorka přináší srovnání logistických procesů v operacích soustředěných na uprchlické krize a této transitní. V závěru přináší obecná doporučení pro budoucí humanitární projekty.

Závěry plynoucí z tohoto výzkumu jsou stěžejní, jelikož společnost a svět budou podobným krizím čelit i v budoucnu. Z tohoto důvodu je nezbytné zlepšit reakce na nastalé situace s cílem předejít selháním, které bylo možné pozorovat na Balkánu.

Klíčová slova: Balkánský koridor, humanitární logistika, management, supply chain management, teorie stakeholderů, tranzitní migrace, uprchlíci.

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Contents

List of Figures ... 11

List of Tables ... 13

1. Introduction and objectives ... 14

1.1 Aims of the thesis, research scope and methodology ... 15

2. Literature Review ... 17

2.1 Management and disaster management ... 17

2.1.1 Management and disaster management ... 17

2.1.2 Disaster management ... 19

2.2 Supply chain management and humanitarian logistics ... 23

2.2.1 Supply chain management ... 24

2.2.2 Sustainable supply chain management ... 24

2.2.3 Humanitarian logistics ... 26

2.2.4 Business approach and humanitarian logistics ... 30

2.3 Stakeholder theories and stakeholders in the humanitarian sector ... 31

2.3.1 Stakeholder theories ... 32

2.3.2 Stakeholders in the humanitarian sector ... 33

2.4 Question of transit migration ... 36

3. Methodology ... 40

3.1 Research design ... 40

3.2 Qualitative research ... 43

3.3 Research questions ... 44

3.4 Data collection and analysis ... 45

3.4.1 Field research ... 45

3.4.2 Primary data ... 47

3.4.3 Secondary data ... 49

3.5 Frameworks integrated into the research ... 52

3.5.1 Cluster approach ... 52

3.5.2 PESTLE analysis ... 53

3.5.3 Perfect delivery ... 54

3.5.4 Maslow’s hierarchy of needs ... 54

3.5.5 Research framework ... 55

4. Context ... 57

4.1 Greece ... 62

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4.2 Macedonia ... 64

4.3 Serbia ... 66

4.4 Hungary ... 68

4.5 Croatia ... 69

4.6 Slovenia ... 71

5. Findings and results ... 73

5.1 Shaping the Balkan corridor ... 73

5.1.1 Political ... 75

5.1.2 Economic ... 76

5.1.3 Social ... 76

5.1.4 Technological ... 77

5.1.5 Legal ... 78

5.1.6 Environmental ... 79

5.1.7 Media ... 80

5.2 The success of the humanitarian response ... 82

5.2.1 Insights from interviews ... 82

5.2.2 Putting insides in the context ... 83

5.3 Logistics particularities ... 84

5.3.1 Insights from interviews ... 84

5.3.2 Putting insides in the context ... 86

5.4 Changes of Balkan corridor ... 88

5.4.1 Insights from interviews ... 88

5.4.2 Putting insides in the context ... 89

5.5 Stakeholders participating in the humanitarian response ... 91

5.6 The reaction of different stakeholders ... 93

5.6.1 Insights from interviews ... 93

5.6.2 Putting insides in the context ... 97

5.7 Provided services ... 102

5.7.1 Insights from interviews ... 102

5.7.2 Putting insides in the context ... 103

5.8 Failings during the response to Balkan crisis ... 108

5.8.1 Insights from interviews ... 108

5.8.2 Putting insides in the context ... 114

5.9 Proposed model ... 116

5.9.1 Proposed model ... 116

5.9.2 Verification of the model ... 121

5.10 Potential improvements in humanitarian response ... 124

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6. Situation after the closure of the corridor ... 126

7. Discussion ... 131

8. Conclusion ... 135

References ... 136

Appendix ... 159

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List of Figures

Figure 1 ICS organisational chart (source: FEMA, n.d.) ... 18

Figure 2 Disaster Management (source: Samii et al., 2002) ... 20

Figure 3 Phases of humanitarian operations (source: Warfield, 2008) ... 21

Figure 4 Comparison of Response and Recovery-Based Management with Prevention and Risk Reduction-Based Management (source: Coppola, 2015) ... 22

Figure 5 Framework for disaster relief logistics (source: Kovács and Spens, 2007) ... 23

Figure 6 Levels of sustainability (Piotrowicz, 2010) ... 25

Figure 7 Disaster management lifecycle (source: Tomasini and Van Wassenhove, 2009) ... 28

Figure 8 Supply chain for humanitarian organisations (source: Thomas, 2003) ... 29

Figure 9 Supply chain management and context of humanitarian operations (source: courtesy of Professor Hau Lee in Van Wassenhove and Pedraza Martinez, 2012) ... 30

Figure 10 Strategy to win (source: van Wassenhove, 2006 based on Lee, 2004) ... 31

Figure 11 Comparison Input-Output model and the Stakeholder model (Donald and Preston, 1995) ... 32

Figure 12 Groups of stakeholders in humanitarian operations (source: Fontainha et al., 2005) ... 33

Figure 13 Stakeholders related to humanitarian logistics (source: Thomas, 2003) ... 34

Figure 14 Relationship between disaster management and stakeholder management (source: Mojtahedi and Oo, 2017) ... 35

Figure 15 Areas of research interest related to transit migration (ProQuest Central) ... 36

Figure 16 Areas of research interest related to transit migration (Scopus) ... 37

Figure 17 Research design (source: author) ... 40

Figure 18 Approach to humanitarian operations research (source: Kovács and Moshtari, 2019) ... 41

Figure 19 Framework of presented research (source: author) ... 42

Figure 20 Results of content analysis (source: author) ... 52

Figure 21 Cluster Approach in the humanitarian sector (source: Humanitarian Response, n.d.) ... 52

Figure 22 Maslow's pyramid of needs (source: McLeod, 2013) ... 54

Figure 23 Research framework (source: author) ... 56

Figure 24 Important events on Balkan (source: Kasparek, 2016; Šabić and Borić, 2016; Šalamon, 2016a, 2016b; Arsenijević et al., 2017; Sardelić, 2017; Weber, 2017) ... 61

Figure 25 Balkan corridor and changes of the flow (source: Kasparek, 2016; Šabić and Borić, 2016; Šalamon, 2016a, 2016b; Arsenijević et al., 2017; Sardelić, 2017; Weber, 2017) ... 62

Figure 26 Greek part of the corridor (source: ACAPS, 2016) ... 62

Figure 27 Macedonian part of the corridor (source: ACAPS, 2016) ... 64

Figure 28 Serbian part of the corridor (source: ACAPS, 2016) ... 66

Figure 29 Croatian part of the corridor (source: ACAPS, 2016) ... 70

Figure 30 Slovenian part of the corridor (source: ACAPS, 2016) ... 71

Figure 31 PESTLE analysis (source: author) ... 74

Figure 32 Application of lifecycle disaster management (source: author based on Tomasini and Van Wassenhove, 2009) ... 84

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Figure 33 Stakeholders involved during the refugee crisis 2015/2016 on Balkan (source: author)

... 92

Figure 34 Connection between PESTLE analysis, levels of migration, different operations and participation of stakeholders (source: author) ... 92

Figure 35 Different levels of migration (source: author) ... 116

Figure 36 Operations at different levels of migration (source: author) ... 117

Figure 37 Connection of PESTLE analysis and levels of migration (source: author) ... 118

Figure 38 Connection between PESTLE analysis, levels of migration, different operations, the participation of stakeholders and cluster approach (source: author) ... 120

Figure 39 The Balkan migratory routes in 2017 (source: Weber, 2017) ... 129

Figure 40 Centre in Adaševci (source: author) ... 159

Figure 41 Centre in Adaševci (source: author) ... 159

Figure 42 Centre in Adaševci (source: author) ... 160

Figure 43 Centre in Adaševci, right next to highway (source: author) ... 160

Figure 44 Centre in Adaševci (source: author) ... 161

Figure 45 Centre in Adaševci - rub hall where distribution took place and single men were staying (source: author) ... 161

Figure 46 Centre in Principovac with tents at the back (source: author) ... 162

Figure 47 MSF’s mobile showers in Belgrade (source: author) ... 162

Figure 48 Picture of The vulture and little girl, Kevin Carter, 1993 (source: Time, n.d.) ... 163

Figure 49 Relations between research questions (source: author) ... 165

Figure 50 Budapest Keleti train station (source: Lima, The New York Times, 2015a) ... 166

Figure 51 'March of hope' from Budapest to Austria (source: Lima, The New York Times, 2015b) ... 166

Figure 52 Picture of body of Aylan Kurdi (source: CBC News, 2015) ... 167

Figure 53 Refugees and migrants waiting for train in Gevgelija (source: Moldovan, Al Jazeera, 2015) ... 167

Figure 54 Overcrowded trains near Tovarnik, September 2015 (source: Fischer, The Irish Times, 2015) ... 168

Figure 55 Refugees and migrants waiting in front of the fence on the Hungarian border (source: Nimani, Getty, The Telegraph, 2015) ... 168

Figure 56 After the closure of the Balkan corridor, unaccompanied minors sleeping in a warehouse in Belgrade (source: Penso, Time, 2017) ... 169

Figure 57 Living conditions in the Moria camp (source: Zavallis, UNHCR, 2020) ... 169

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List of Tables

Table 1 List of respondents with their details (source: author) ... 47

Table 2 Codes and its relation to research questions (source: author) ... 48

Table 3 Coding schedule (source: author) ... 50

Table 4 Coding manual (source: author) ... 50

Table 6 Stakeholders provided humanitarian support on Greek islands (source: UNHCR, 2016) ... 164

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1. Introduction and objectives

The 2015/2016 refugee crisis is labelled as the biggest refugee crisis in Europe since the Second World War (IOM, 2016). The Balkan corridor has been only one migratory path to Europe starting at Turkey - an entry point to Europe, extended through Greece, Macedonia, Serbia, Hungary, Croatia, Slovenia, Austria, with different configurations over time (Arsenijević et al., 2017). Most of the countries on the corridor were transit countries, as refugees and migrants aimed at Germany or Scandinavia, their target destination (Šabić and Borić, 2016; Šalamon, 2016a, 2016b; Shelter Projects, 2017; Weber, 2017). Countries along the corridor were involved in the transit, and also transport, of people across their territories (Kasparek, 2016;

Sardelić, 2017). Transit countries chose two different policies to manage flow: the first policy was “turning a blind eye” allowing travel through their territory (Macedonia and Serbia) the following policy was active, providing transport for the people between national borders (Croatia and Slovenia) (Šalamon, 2016b).

The author examines factors that influenced the movement of refugees and migrants through the Balkans in 2015 and 2016, looking at factors that shaped the corridor, how the route changed over time and why and which participants took their role in this humanitarian operation. All this information provided leads to designing a new model related to transit migration. To accomplish this goal, the author defined two main and six supporting research questions. For answering these research questions, mainly secondary data are used. In the following sub- sections, the author discusses the advantage of this approach. Primary data, obtained through interviews, were collected to bring testimony and, as the case may be, authenticate findings resulting from secondary sources. All these findings are designated for all stakeholders operating in humanitarian projects related to transit migration.

This thesis builds on the framework which interlinks disaster management, humanitarian logistics operations, cluster approach, the context of transit migration with management tools like stakeholder analysis or Political, Economic, Sociological, Technological, Legal and Environmental (PESTLE) analysis. This combination enables investigation of the response to Balkan crisis in 2015/2016, identify gaps and propose a scenario for improving future responses to new refugee waves.

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1.1 Aims of the thesis, research scope and methodology

This thesis aims to provide a new model for the analysis of transit migration in the context of humanitarian operations. This model follows on tools from management and disaster management using PESTLE analysis, stakeholder theory and cluster approach as aspects of this new framework. Application of this model is demonstrated in the case of the Balkan corridor during the so-called refugee crisis in 2015/2016.

The relationship between a new model and response to this crisis is twofold. Analysis with both policies and the way of how practical application of each policy shaped movement of refugees and migrants in 2015 and 2016, when there was the peak in the number of crossings, resulted in the list of affecting factors organised through PESTLE analysis. Taking into consideration this course, events from transit countries in 2015/2016 helped to create a new model. The second direction goes from the model to the humanitarian response to this refugee crisis providing the tool for analysis of this response. Advantage of this model resides in the fact that the model is applicable up to date, providing the possibility to analyse humanitarian response when making decisions in the field or at headquarter level.

The thesis also reflects the level of satisfaction of needs of incoming people while analysing the success of the humanitarian response. There is no previous study on this topic, even though the importance of such study should be stressed, as the corridor is still active (as in 2020) and migration through it might increase at any given moment. Thus, learnings from years 2015- 2016 should be captured, analysed and presented. Absence of comprehensive knowledge related to Balkan crisis, and to transit migration itself, is the reason why the topic of this dissertation is considerably broad. However, to propose a new model for response operating in the context of transit migration, the whole reality needs to be examined.

The objectives of this thesis are:

§ Examine and describe context related to transit migration, disaster management and humanitarian logistics as essential aspects of the crisis in 2015/2016.

§ Introduce the tools from management and humanitarian sector used for the analysis of the situation on the Balkan corridor.

§ Analyse and describe the Balkan corridor itself since there is no comprehensive study describing the corridor and all transit countries (therefore, there is limited academic knowledge or clue for practitioners for the future transit refugee crisis).

§ Examine the humanitarian operation held on Balkan corridor and detect shortages at all levels of the operations.

§ Design a new model for the analysis of transit migration and examine its application on the case of a humanitarian response to the so-called refugee crisis on Balkan in 2015/2016.

§ Propose potential improvements for the future transit refugee crisis with the accent on logistics tasks.

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As mentioned by Kovács (2018), humanitarian logistics is a maturing discipline – in research, practice and professionalisation as well. This discipline builds on the ideology of humanitarianism, the practice of disaster relief and emergency response, and the logistics operations which are necessary for this practice. Therefore, all these aspects are included in this research. Logistics has been recognised as a scientific discipline in the late 1960s. Therefore, research has been significantly influenced by business disciplines like management, marketing or engineering (Stock, 1997). This thesis is in agreement with this approach using mostly tools from management.

Taking a look at the research in humanitarian logistics, it gets increased attention (Overstreet et al., 2011). According to Kovács and Spens (2007), most research papers related to humanitarian logistics are focused on the planning and preparation phase. Nevertheless, the procedures, planning and policies were among categories recommended for future research (Overstreet et al., 2011). Also, according to Beamon and Kotleba (2006), qualitative factors influencing humanitarian logistics should be analysed. The author applies the recommendation.

Findings and conclusion resulting from this research are designed for all stakeholders participating in humanitarian operations related to transit migration. It should be mentioned that the proposed model is applicable outside Europe or the EU as well. The whole model is beneficial for governments of countries dealing with transit migration, fellowships like EU or United Nations (UN). However, implication coming from this research are convenient for each stakeholder when considering the humanitarian response as one complex. Identifying which operations are held helps to decide which organisations should be deployed and where. These organisations know which type of humanitarian assistance they should provide to the affected population. They also know who else participates in the humanitarian operation, and they can discuss which organisation will focus on particular needs if their activities overlap. The Coordination of Humanitarian Affairs (OCHA) is another critical recipient of these research findings. This UN agency is mandated to organise cooperation between different humanitarian members. Therefore, application of the model proposed within this research may improve, support and facilitate OCHA’s activities.

In the beginning, the author has studies relevant literature. Firstly, the author used academic papers. Reports published by different actors who have been working on Balkan are also part of the literature review. The reports provide detailed insight to humanitarian response to this crisis. For describing the route people moved through, the author uses the term ‘corridor’ in this thesis. Europe faces so-called ‘mixed migration flows’. This term covers the movement of different groups of people like ‘refugees, asylum seekers, economic migrants, smuggling and human trafficking victims, women, minors and other vulnerable groups and undocumented persons’ (IOM, 2016). Therefore, there is still a debate at the European non-governmental, governmental, institutional and academic levels regarding the correct terminology. If the term

‘refugee crisis’ or ‘migrant crisis’ should be used (Bobić and Šantić, 2019). In this thesis, the terms ‘refugees and migrants’ are used to covering all these groups. The Republic of North Macedonia, the short term ‘Macedonia’ is used.

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2. Literature Review

Existing research related to humanitarian logistics offers social, managerial and technological perspectives (Collins and Kapucu, 2008). The author assumes the same attitude to the domain of transit migration.

In this section, the context of disaster management, humanitarian logistics, transit migration and its connection will be described. The author also presents the interlinks between these disciplines and management or supply chain management.

2.1 Management and disaster management

In this sub-section, management and disaster management are introduced together with some examples when these three disciplines interlink.

2.1.1 Management and disaster management

There are three objectives of management. The first one is ensuring that the goals and targets of the organisation are met with minimum waste and costs. The second one is looking after staff, their welfare, health and safety. And the last one is the protection of resources of the organisation (Olum, 2004).

In total, there are five functions of management – planning, organising, staffing, leading and controlling (Olum, 2004). Part of the planning is defining objectives, and the actions of the organisation and planning also require decision-making. To achieve these objectives, organising is necessary since this function covers establishing a structure of roles for people, and this structure helps to build an environment for human performance. To ensure that there are people within the organisation for the roles in the structure, staffing is essential. This function involves identifying Human Resources requirements, recruiting, selecting, placing, training or planning the careers of the employees etc. It is also necessary to lead these people, and it is a target for the principal function of the management. Controlling compares the real performance with goals and plans defined by the organisation showing where negative progress exists, helping to correct it.

Establishing control, command and coordination mechanisms supports disaster management in terms of better ability to maintain a consistent and effective response despite the chaotic situation. Coppola (2015, p. 369) refers command to ‘an authority to make someone or something do something’ and control ‘refers to the power to direct or determine, or to manipulate’. Command and control are set up through authorities, usually in the form of a disaster management law or some act aimed at civil protection.

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The most commonly encountered is the Incident Command System (ICS). ICS was developed in California to address challenges during the response to major wildfires in the 1970s. Due to the hierarchical structures of a high number of responding agencies and different authorities, the confusion about the decision-making power appeared together with unclarities about how to deal with the resources or how to plan the operations. Therefore, ICS was built as a model tool to enable ‘the clarification and streamlining of all stakeholder agency and organisation efforts conducted in pursuit of the common goals of stabilising the incident and protecting life, property, and the environment’ (Coppola, 2015, p, 374). Taking this aim into consideration, ICS is filling the aim of controlling as one of the functions of management. Figure 1 illustrates the ICS organisational chart.

The incident commander is responsible for directing the activities during the response that takes place during the whole emergency incident. The function command provides the framework within a single leader that can manage the central response efforts. Within ICS, planning, another management function, support the efforts of the disaster management by collecting, evaluating, using and disseminating information about the changes of the emergency or availability of resources and agencies. Incident action plan (IAP) is often the output of this section of ICS. Planning section includes primarily six activities including ‘collecting, evaluating, and displaying incident intelligence and information; preparing and documenting IAPs; conducting long-range and/or contingency planning; developing plans for demobilisation; maintaining incident documentation; tracking resources assigned to the incident’ (Coppola, 2015, p. 375). The operation section is accountable for the response activities which are covered by IAP. The logistics section focuses on providing facilities, services and materials, including personnel, and perform all logistics tasks which are required during the disaster response. The finance and administration section is responsible for tracking all actual costs connected with the disaster response. However, this section is not part of all ICSs (Coppola, 2015).

Incident Command

Planning Section Operations Section Logistics Section Finance/

Administration Section Figure 1 ICS organisational chart (source: FEMA, n.d.)

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2.1.2 Disaster management

Word ‘disaster’ originates from two French words, namely ‘Dis’ which means bad, and ‘aster’

referring to star. Therefore, disaster denotes bad star (Khan et al., 2008). The frequency to occur and intensity of disasters has been increased during the last decades. In 1970, about 69 disasters appeared per year around the globe. In 2017, this number grew to almost 350 per year (Mustafa, 2019), causing an economic loss of approximately 334.99 billion US dollars (EMDAT, 2018).

Disasters can be natural or human-made, sudden-onset or slow-onset. Natural sudden-onset disasters include earthquake, hurricane, tornadoes; and slow-onset famine, drought or poverty.

Human-made sudden-onset disasters are terrorist attack, coup d’etat, chemical leak; and slow- onset political crisis or refugee crisis (Van Wassenhove, 2006).

Recent trends indicate that ‘the number of people affected by disaster is rising, disasters are becoming less deadly (overall), disasters are becoming more costly (overall), poor countries are disproportionately affected by disaster consequences, and the number of disasters is increasing each year’ (Coppola, 2015, p. 20). While watching the impact of disasters increasing, the funding allocated for disaster response does not increase at the same rate (Van Wassenhove and Pedraza Martinez, 2012). This exerts pressure on the efficiency of humanitarian operations.

Going a bit to the historical context, disasters affected humans since the beginning of the existence. When the Vesuvius volcano erupted in 79, the majority of Pompeii’s inhabitants survived due to a mass evacuation organised by the leaders of the city. In 1201, more than 1 million people was killed due to Mediterranean earthquake. More than 700 years later, in 1917, the influenza epidemic killed 20 million people around the globe. In 1931, 3 million people died after the Yangtze River flood in China, and one year later, 5 million inhabitants died during the Russian famine (Coppola, 2015). Coppola (2015) went one step further, giving a story of Noah’s ark from the Old Testament as an example of disaster management speaking about the importance of warning, preparedness and mitigation.

Many concepts that guide practice today have come to existence by achievements of the civilisations in the past. Societies and individuals tried to decrease their exposure to the consequences of disaster they had to face (Copolla, 2015). Therefore, disaster management aims to avoid or reduce potential losses from hazards, ensure appropriate assistance to the affected population and support effective and rapid recovery (Warfield, 2008). National emergency management capacity started playing a more centralised role in the 1970s and 1980s. In that time, countries tried to build their national-level emergency management systems. In December 1987, General Assembly of UN declared the 1990s as the International Decade for Natural Disaster Reduction. This step was about to promote internationally coordinated efforts to reduce losses and disruptions caused by natural disasters, especially those in developing countries. Goals for this Decade were set through UN Resolution 44/236 in December 1989.

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Five critical elements of effective preparedness were defined as follows (Figure 2). Logistics play an important role in process management when it is an opportunity to play a central role in readiness. However, it is not the only area to consider.

In every year, requirements for the response to some disasters exceed the capacities and abilities of disaster management by a single nation or even several nations. In these cases, the governments of the affected countries call the international response community to assist them in the aftermath of the disaster. This appeal of the affected countries has to be accepted.

However, not all disasters result in the same level of international interest or assistance (Coppola, 2015). One example was Mozambique floods in 2000. While responding to this disaster, international disaster management agencies started sending responders and aid after more than three weeks (BBC, 2000). Coppola (2015, p. 14) defines international disaster management respondents as ‘victims, local first responders, governments of the affected countries, international organisations, international financial institutions, regional organisations and associations, non-profit organisations, private organisations – business and industry, local and regional donors’. With this list, Coppola defined the list of stakeholders in international disaster management. More details about stakeholders in humanitarian context are obtained in the following sub-section.

Different humanitarian aid is provided during a different phase of humanitarian operations.

These phases together create a so-called disaster management cycle, shown in Figure 3.

Human

Resources Knowledge

Management Process

Management Resources Community

Disaster Preparedness

Disaster Response

Disaster Management

Figure 2 Disaster Management (source: Samii et al., 2002)

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The response, rehabilitation and reconstruction phases occur in the aftermath of a disaster. The target of the response phase is to assist the affected population. This may include the provision of transport, shelter or food to refugees (Warfield, 2008). Part of this phase is also search and rescue operations or distribution of non-food items like clothes or provision of medical assistance (Khan et al., 2008). Recovery phase arrives when the emergency is under control, and it aims to restore affected area (Warfield, 2008), and it follows rehabilitation phase which is focused on the restoration of essential functions or services (Khan et al., 2008).

Mitigation aims to minimise the effects of disaster (Khan et al., 2008). In the end, activities related to mitigation eliminate the probability of disaster occurrence or reduce the effects of disasters which is not possible to avoid (Warfield, 2008). This phase covers, for example, hazard mapping, vulnerability assessment or public education. Preparedness is about to plan how to respond to disaster occurrence.

It has to be mentioned that response and recovery alone do not represent a practical way how to manage disasters in case that preparedness and mitigation activities are missing. Coppola (2015) adapted the results of Jeggle (2001) bringing a comparison of Response and

Disaster occurs

Response

Rehabilitation

Reconstruction Development

Prevention Mitigation Preparedness

Risk Management Crisis Management

Figure 3 Phases of humanitarian operations (source: Warfield, 2008)

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Recovery-Based Management with Prevention and Risk Reduction-Based Management. Figure 4 illustrates the comparison.

Coppola (2015) wrote about the shift among the from disaster response to disaster prevention among international disaster management organisations, interest groups and agencies as about evidence of recognition and acceptance of this. However, de Vet et al. (2019) pointed out that most governments prioritise response and recovery over risk reduction and mitigation. This affects the amount of money invested in one or another. For instance, in Australia, only 3% of disaster spending goes to mitigation. In the United States, it is 4% (Coppel and Chester, 2014;

Cigler, 2017). Kellett and Caravani (2013) stated that less than 40 cents of every 100 US dollars of international aid went to mitigation or disaster risk reduction. Cigler (2017) appositely stated that the best reason for promoting mitigation might lie in the fact that mitigation works.

Emergency programmes aims to achieve a satisfactory level of preparation to respond to any hazards (Warfield, 2008). Preparedness includes operations like evacuation preparations, early warning or contingency planning (Khan et al., 2008). The logistics support all these phases differently and the framework for disaster relief logistics (Figure 5).

Response and Recovery-Based Efforts

§Primary focus on disaster events

§Single, event-based scenarios

§Basic responsibility to respond to an event

§Often fixed, location-specific conditions

§Responsibility in single authority or agency

§Command and control, directed operations

§Established hierarchical relationships

§Often focused on hardware and equipment

§Dependent on specialised expertise

§Urgent, immediate, and short timeframes in outlook, planning, attention, and returns

§Rapidly changing, dynamic information usage, which is often conflicting or sensitive in nature

§Primary, authorised, or singular information sources; need for definitive facts

§In-out or vertical flows information

§Relates to matters of public security, safety

Prevention and Risk Reduction-Based Efforts

§Focus on vulnerability and risk issues

§Dynamic, multiple-risk issues and development scenarios

§The fundamental need to assess, monitor, and update exposure to changing conditions

§Extended, changing, shared or regional, local variations

§Involves multiple authorities, interests, actors

§Situation-specific functions, free and open association and participation

§Shifting, fluid, and tangential relationships

§Dependents on related practices, abilities, and knowledge base

§Focused on aligning specialized expertise with public views and priorities

§Moderate and long timeframes in outlook, planning, values, and returns

§Accumulated, historical, layered, updated, or comparative use of information

§Open or public information; multiple, diverse, or changing sources; differing perspectives and points of view

§Dispersed, lateral flows of information

§Matters of public interest, investment, and safety

Figure 4 Comparison of Response and Recovery-Based Management with Prevention and Risk Reduction- Based Management (source: Coppola, 2015)

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Response to disasters and humanitarian crises can be local, national or international. Most often, local systems are the first responders to these crises. Local NGOs, governmental agencies, army, police and fire departments, other civil agencies, National Societies of Red Cross and Red Crescent represent these systems (Pedraza Martinez et al., 2009). National system participates in the response when the local system is overwhelmed. In case the national system does not have the capacity either, the international system takes its role in case national system approves it. This international system is organised in clusters being coordinated by OCHA (Van Wassenhove and Pedraza Martinez, 2012).

2.2 Supply chain management and humanitarian logistics

Following chapter is divided into three parts. In the first section, the author focuses on supply chain management, in the following one on sustainability in the supply chain management and the last one on humanitarian logistics.

Preparation Immediate

response Reconstruction

Coordination Collaboration Disaster prevention

Risk management Crisis management Continuity planning

Coordination

Strategic planning Short-term

project management

Long-term

project management Fulfilment

Demand management Supply management

Collaboration

Figure 5 Framework for disaster relief logistics (source: Kovács and Spens, 2007)

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2.2.1 Supply chain management

Harland (1996) defined supply chain management (SCM) as a management of a network of interlinked businesses in the ultimate provision of product and service packages required by the customers. Based on this definition, (SCM) is focused on the movement and storage of materials, unfinished production and finished goods from the point of origin to the point of consumption. Merely saying, SCM address the business problem of supplying product to meet the demand in a complex world (Kopczak and Johnson, 2003). However, SCM is nothing entirely new. As mentioned by Hugos (2018), The practice of SCM is based on fundamental concepts that have not changed in a significant manner over the centuries. The term appeared in the late 1980s with widely use since the 1990s. Until then, terms such as operations management or logistics were used instead. Hugos (2018, p. 4) also offers another definition of SCM stating, ‘supply chain management is the coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served’.

Supply chains are still extending thanks to the broader geographical sourcing of supplies and the broader distribution of finished goods. The more extensive geographical sourcing is caused by the global sourcing strategies built on the potential saving in purchasing, manufacturing and labour costs (Cuthbertson, 2010). Currently, supply chain managers face new challenges. The new trends cover environmental protection, resource scarcity, ongoing globalisation, increasing competition or growing demand for security. There is a strong need for strategic management in supply chains (Cetinkaya, 2010).

Based on the relationships between different actors in supply chains, the SCM is perceived as the critical tool to help companies improve their performance with the usage of better supply chain practices (Squire et al., 2006). To ensure the effectiveness of SCM, the improvement in both internal operating efficiencies of companies and at the customer services levels is necessary (Hugos, 2018).

Heizer and Render (2014) stated that competition is not between companies anymore, but it is between supply chains. SCM also faces various innovations and changes like the whole global world. Manners-Bell and Lyon (2019) brought the overview of the significant new business models and technologies naming blockchain technologies, autonomous vehicles, automation in the warehouses, sharing economy, on-demand delivery, crowd-shipping and crowd-sourcing, alternative fuels together with electric vehicles, the Internet of Things, artificial intelligence and control towers and the process of disruption adding the reasons why is the logistics industry and the SCM so vulnerable.

2.2.2 Sustainable supply chain management

Sustainability is not a new concept (Klumpp et al., 2014). However, it has become increasingly important due to the changes the world has to face. Aim of sustainability is to safe conditions

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which enable to continue the existence of the modern economic system where negative impacts within these systems are compensated or removed (Elling, 2010). Supply chains should be sustainable at three levels – economic, social and environmental and all these levels have to be included while, for example, monitoring the supply chains. Especially from the perspective of sustainability, it is vital to monitor the whole supply chains, not only partial impact of single or only a few companies (Piotrowicz, 2010). Therefore, Gupta and Palsule-Desai (2011, p. 235) define sustainable SCM as a set of managerial practices that include ‘environmental impact as an imperative; consideration of all stages across the entire value chain for each product; and a multi-disciplinary perspective, encompassing the entire product life-cycle’.

Transport within the supply chains can lead to various potentially negative social, economic and environmental impacts. In 1993, Kageson calculated the external costs like pollution, accidents and noise of transport between 3 and 5 % of GDP. Taking into consideration the social perspective, accidents have the most negative impact. From an economic perspective, congestions may affect the speed of delivery and reliability as well. The environmental aspect is well known, engine exhaust and CO2 emissions as examples (Cuthbertson, 2010). Figure 6 includes more details.

The aspect of sustainability was discussed concerning humanitarian logistics as well. However, Oloruntoba (2014) mentions that terms ‘humanitarian logistics operations’ and ‘sustainability’

seem incompatible being at the opposite ends of the logistics (Halldorsson and Kovács, 2010).

These days, the trend in humanitarian sector can be observed as ‘a shift from developing isolated technical solutions to engaging in much wider system strategies that consider and address the full socio-technical context of humanitarian problems’ (Klumpp et al., 2014, p. 7).

This change of direction has to be accompanied by the shift to capacity building and the broader context in which organisations are not focused on the things which people need but on the fact

Sustainability

Social Economic Environmental

Health and safety

Noise

Employees

Quality

Efficiency

Responsiveness

Emissions

Natural resources utilisation

Waste and recycling

Figure 6 Levels of sustainability (Piotrowicz, 2010)

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that those things must effectively work. This shift is needed since the reality where technical solutions are not sustainable in the long term. To ensure sustainable solution, technical perspective in humanitarian logistics has to be integrated with other aspects of humanitarian response (Klumpp et al., 2014).

It also has to be reflected that ‘humanitarian crisis can generate large quantities of waste that threaten public health, hinder reconstruction and have an impact on the environment’ (Klumpp et al., 2014, p. 7). Also, disaster waste is generated, often during the response and recovery phases of humanitarian operations.

2.2.3 Humanitarian logistics

Humanitarian logistics is defined as ‘the process of planning, implementing and controlling the efficient, cost-effective flow of and storage of goods and materials as well as related information, from the point of origin to the point of consumption for the purpose of meeting the end requirements’ of the affected population (Thomas and Mizushima, 2005). As complemented by Van Wassenhove (2006, p. 476), ‘logistics is the processes and systems involved in mobilising people, resources, skills and knowledge to help vulnerable people affected by disaster’. Coppola (2015, p. 375) stated that ‘to be effective, all response agencies depend on a wide range of support and logistical factors that must be initiated as soon as they deploy’. Coppola (2015, p. 376) also stressed the fact that logistics tasks ‘tasks on increasing significance as the disaster response continues’.

South-East Asian tsunami in 2004 represents a turning point when it comes to humanitarian logistics. Attention was focused on the difficulties of reacting quickly and efficiently to a rapid- onset disaster. This attention was a result of various factors like the scale and scope of the disaster, the time of the year, massive media attention and the demographics and origin of the people affected by this disaster. The necessity to understand how best to respond in the aftermath of large-scale emergencies was stressed after disasters like Pakistan earthquake (2005), the flooding of New Orleans (2005), the Sichuan earthquake (2008) or Cyclone Nargis in Burma (2008) (Tatham and Kovács, 2010).

Logistics is the most expensive part of relief operations. Transportation, procurement, distribution of materials and warehousing account for approximately 80% of the total cost of humanitarian aid (Van Wassenhove, 2006; Tatham and Pettit, 2010). According to Global Humanitarian Overview for 2020 published by OCHA, 28.8 billion American dollars is needed for targeting 108.8 million people in need around the globe. Therefore, approximately 23 billion American dollars come under supply chain activities.

Logistics is also crucial to the effectiveness and speed of humanitarian operations. It represents a bridge between preparedness and response, headquarters and the field or between procurement and distribution. Logistics is also a valuable source of data which can be used to

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analyse response effectiveness (Thomas and Mizushima, 2005). Therefore, there is a significant connection between logistics and humanitarian operations related to transit migration.

Van Wassenhove (2006, p. 477) writes about particularities in humanitarian logistics and about a complex environment where organizations work. This includes ‘operating conditions’ when organisations work in areas which are difficult to reach even under normal circumstances due to poor infrastructure. This infrastructure is often destroyed as fallout from the disaster. Another specific is ‘robust equipment’ that organisations need. This enables them to be prepared and adapt to unexpected situations. Organisations work in ‘politically volatile climate’ under

‘pressure of time’ and with a high level of ‘uncertainty’ and ‘high staff turnover’. Also, ‘many stakeholders’ participate during humanitarian operations and part of logistics is to ensure the satisfaction of the affected population. Arminas (2005, p. 14) ran into the uncertainty saying,

‘purchasing and logistics for major disaster relief is like having the client from hell – you never know beforehand what they want, where they want it, how much they want it and even where they want it sent’. Balcik and Beamin (2008) described unpredictability of demand in terms of location, timing, type and size in humanitarian logistics together with suddenly occurring demand in short lead times for a wide variety of supplies and large amounts. They also mentioned lack of resources like supply, transportation capacity, technology, people and money together with high stakes related to adequate and timely delivery.

When it comes to humanitarian logistics, both demand and supply are dynamic and unknown, and efficiency and equity have to be balanced. It is also difficult to measure impact. To demonstrate this character, Van Wassenhove and Pedraza Martinez (2012) used response to the earthquake in Haiti. During this humanitarian operation, for the first 30 days, impact assessments were updated on a daily basis. Many international humanitarian organisations did not know how much of their prepositioned inventory survived this natural disaster. These organisations had difficulties with identifying the available budget for the operation due to time delay between cash and pledges. Authors pointed out that matching demand and supply was challenging under these circumstances. This example also shows how many processes and activities have an impact when it comes to logistics in the humanitarian context. Tomasini and Van Wassenhove (2009) add that humanitarian logistics has to go in line with the three elementary humanitarian principles; neutrality, impartiality and humanity. Respecting these principles can make logistics operations even more challenging.

As mentioned above, there are different phases when it comes to disasters and disaster management. Tomasini and Van Wassenhove (2009) depicted this lifecycle as shown by Figure 7. Van Wassenhove and Pedraza Martinez (2012, p. 309) mention that different parties with unlike objectives manage different phases. Authors also speak about the fact that ‘every disaster response is a chance to train for better preparedness’. However, not enough financial resources are invested in preparedness. Therefore, relief chains focused more on the response phase.

According to Pedraza Martinez et al. (2010a), response phase includes procurement, transportation, storage, design of distribution points and ration to the affected population, and assessment of needs together with a call for appeal as well.

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Figure 7 Disaster management lifecycle (source: Tomasini and Van Wassenhove, 2009)

Logistics is essential for the complete success of humanitarian operations and programmes.

Kovács and Tatham (2010, p. 32) consider the logistics as a ‘cornerstone of the response of the humanitarian community’. Successful humanitarian operation is defined as an operation which

‘mitigates the urgent needs of a population with a sustainable reduction of their vulnerability in the shortest amount of time and with the least amount of resources’ (Tomasini and Van Wassenhove, 2004). Van Wassenhove and Pedraza Martinez (2012, p. 309) added that ‘basic blocks of successful humanitarian operations are preparedness, response, and collaboration’.

For ensuring the success of humanitarian response, quickly building a supply chain is necessary.

Van Wassenhove (2006) added that a successful response is not improvised. However, it is necessary to see logistics in a ‘bigger picture’. Despite the fact it is a crucial process, it is still support process for humanitarian organisations and other actors involved in humanitarian response. Logistics cannot be separated from other tasks, process and operations.

An increasing number of disasters, together with the continuous failure of humanitarian aid bring more attention to humanitarian logistics (Meduri, 2014). The importance and role of logistics are emphasised by the fact that some organisations send logisticians as members of a crisis team which aims to analyse the needs before opening a new humanitarian project.

Operations taken as part of emergency humanitarian logistics need the involvement of several governments, independent NGOs and usage of different transport modes (Beresford and Rugamba, 1996). However, there is existing evidence of frequent lack of planning within humanitarian supply chains. This absence leads to inefficiencies like overuse of air transport, failure of pre-plan stocks or congestions caused by unplanned deliveries (Byman et al., 2000).

Figure 8 shows the supply chain for humanitarian organisations.

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Procurement is one of the logistics areas of interest, and purchasing is essential for meeting the needs of the affected population. Tatham and Kovács (2010) demonstrated the results of unfit purchasing on examples of gender-insensitive purchasing where male logisticians misjudged the needs of the females. However, this is not the only example. After South East Asian tsunami in 2004, unsolicited donations included ski jackets, Father Christmas costumes, Viagra, expired medicines, bulky sweaters, inappropriate female underwear or tinned pork (TEC, 2006;

Tomasini and Van Wassenhove, 2009). Importance of effective procurement and distribution is also stressed due to an obstacle that people affected by a disaster may not be able to understand or articulate their requirements and needs (Tatham and Spens, 2011). Distribution is another critical logistics task. It has to be reflected that access to humanitarian aid is composed of the physical accessibility of aid, which includes the ability to afford transportation or travel distances (Dayal, 2008; de Vos et al., 2008) and the organisation of distribution.

Some of the supply chain best practices can be applied to humanitarian logistics. This shows Figure 9. A couple of these best practices were discussed by Van Wassenhove and Pedraza Martinez (2012). Demand forecasting, for example, is applicable only to some extent due to dynamic situations. Also, insufficient level of understanding of coping mechanisms and local markets can be challenging. Inventory problems are interlinked with uncertainty within the sector which requires redundancy. At the same time, due to budget constraints, prepositioning is not possible during every humanitarian operation despite the fact it is desirable. Bullwhip effects are not something exceptional. Demand forecasting problems are the leading cause, together with lack of information integration. Also, unsolicited donations have a negative effect considering little visibility and coordination within the response system. In humanitarian logistics, push-based supply chains are frequent. Donors play a crucial role in pushing their surfeit through unsolicited donations observing handling of end-of-life or perished items. Under these circumstances, when pushing items into and affected area, bottlenecks are easily formed.

Standardisation is necessary for the excellence of supply chains. To help organizations while responding to disaster, Sphere standards were created. These organisations would also use the advantage of standardised vehicle lifecycle management. According to Pedraza Martinez et al.

Preparedness Assessment/

Appeals Resource

Mobilization

Procurement Transportation

Execution Tracking &

Tracing

Stock/Asset

Management Extended Point

of Delivery Performance

Evaluation Figure 8 Supply chain for humanitarian organisations (source: Thomas, 2003)

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(2011), this standardisation could lead to decreasing operation costs and increasing speed of response. Resource sharing has potential when it comes to humanitarian operations as well.

Based on findings of Samii and Van Wassenhove (2003a, 2003b), the main bottleneck at the beginning of the Afghan crisis was truck capacity. An effective way of truck sharing improved this situation. Van Wassenhove and Pedraza Martinez (2012) speak about the possibility to share also human resources; knowledge and skills.

Figure 9 Supply chain management and context of humanitarian operations (source: courtesy of Professor Hau Lee in Van Wassenhove and Pedraza Martinez, 2012)

When looking at major disasters during the last twenty years, similar deficiencies are observed.

After the 2004 Asian tsunami, requirements and needs of the affected population were poorly meet, the incoming cargo was inadequately controlled, and it did not reflect the ongoing phase of this humanitarian operation. In the case of the 2005 Pakistan earthquake, some regions were cut off from incoming aid due to poor controlling mechanisms and cargo tracking systems (Cabicarová et al., 2015). These shortages demonstrate the importance of effective logistics support while providing humanitarian assistance.

2.2.4 Business approach and humanitarian logistics

Taking into consideration the economic aspects, from the business perspective and going back to trends described in chapter 2.1.3, the humanitarian sector is growing ‘industry’ even it should not be called industry as such (Kovács, 2014). Already in 2012, Van Wassenhove and Pedraza Martinez noted that the demand for humanitarian assistance is ‘extraordinarily large’.

And in this growing ‘industry’, logistics is the most significant cost factor. However,

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humanitarian supply chains can be very different from commercial ones well-studied by previous literature (Van Wassenhove and Pedraza Martinez, 2012).

In the business sector, logistics has become a mature discipline developing and implementing various new concepts and tools. As mentioned by van Wassenhove (2006, p. 486), ‘quite a few of these tools would also make sense in humanitarian supply chains’ speaking about its translation concerning the complexity of humanitarian logistics.

Logisticians working in the humanitarian sector have various strengths that business could use for improving their competitive advantage or performance (van Wassenhove, 2006). In the humanitarian sector, supply chains are the most agile supply chains that exist. Citing Kovács (2014), ‘show us any other supply chains that upon any disruption within 72 hours set up a field hospital in the middle of nowhere just like Finish Red Cross would do’. Other supply chains are not really good at this, and business supply chains would like to learn from humanitarian organisations this ability. Kovács (2014) also wrote about the project where companies wanted to learn ‘this kind of flexibility and agility’.

Businesses could learn more about preparation and response to disasters and vulnerability assessment since the companies operate in global supply chains (van Wassenhove, 2006). Lynn Fritz, a social entrepreneur and philanthropist, recognised the global effect of disasters. He (seeing that every year, some of his employees are affected by disasters and recognising the importance of strong back-room capabilities while responding to these events) founded Fritz Institute in 2001 (Fritz Institute, n.d.). In Figure 10, the author brings the aspects of triple supply chains related to humanitarian and business context.

2.3 Stakeholder theories and stakeholders in the humanitarian sector

In this chapter, firstly, the author elaborates on the stakeholders. After this description, stakeholder theories are presented within the thesis context.

Rapid deployment on- demand

Alliances, joint forces, on demand

Dynamic roles, risk &

resource sharing

Responsiveness, efficiency, flexibility Dynamic instead of static supply chains

Differential interests of multiple players

Humanitarian Relief Business

Agility

Adaptability

Alignment

Figure 10 Strategy to win (source: van Wassenhove, 2006 based on Lee, 2004)

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2.3.1 Stakeholder theories

Stakeholders have an interest in the processes and actions of an organisation. They can affect the achievement of the objective of the organisation, or they may be affected by it (Savage et al., 1991; Donaldson and Preston, 1995; Freeman, 2010). Therefore, a stakeholder may be an entity or a person who can give input in decision making and who benefits from the result of this decision making (Phillips et al., 2003). In 1984, Freemen clarified that everyone who is influencing or who is influenced by the organisation should be taken into consideration.

Already in 1995, Donaldson and Preston brought the comparison between the Input-Output model and the Stakeholder model to show the differences in relationships and interlinks. This comparison is illustrated in Figure 11. This simple illustration demonstrates the complexity of the stakeholder approach, showing that all persons and groups participate in case they have legitimate interests.

Figure 11 Comparison Input-Output model and the Stakeholder model (Donald and Preston, 1995)

Regarding the stakeholder theory, it is ‘an umbrella term for a genre of theories that help scholars and managers understand relationships between firms and their stakeholders, as well as some of the performance of these relationships’ (Jones et al., 2018, p. 371) In stakeholder theory, the dynamics of interaction among all stakeholders are identified by three critical attributes – power, legitimate, urgency. Power refers to the ability to produce or affect behaviour, processes, objectives or directions. If it is in line with expected structures, behaviour, values or rules, a stake is legitimate. Urgency reacts to the fact that the stake is time-sensitive (Mitchell et al., 1997; Waxenberger and Spence, 2003).

Input-Output model Stakeholder model

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2.3.2 Stakeholders in the humanitarian sector

In disaster risk management, stakeholders are ‘individuals, groups, or organisations who may affect, be affected by, or perceive themselves to be affected by the impacts of disasters’

(Mojtahedi and Oo, 2017, p. 40) and they have a direct impact on mitigation, preparedness, response and recovery phases of disaster management. Mojtahedi and Oo (2014) include local people, groups, organisations, institutions, societies and natural environment as actual or potential stakeholders. Fontainha et al. (2015) came up with three groups of stakeholders and specific examples in detail (as shown in Figure 12).

Local aid network represents local NGOs, community or local religious organisations. On the other hand, international aid network covers international NGOs, Red Cross and Red Crescent, the United Nations and other international organisations. Donors can be local or international.

They play an important role in disaster mitigation and prevention (Al-Fazari and Kasim, 2019).

Private sector engages various experts in financing, advertising, or modifying the response. For example, the media participate in distributing news, and it may lead to a growing number of donations. However, as mentioned later in the discussion, this is related to the rhetoric used by media. Thomas (2003) defined stakeholders related to humanitarian logistics, and Figure 13 shows their structure.

Public

§ military

§ government and regulatory agency

Stakeholders in humanitarian operations

Society

§ local aid network

§ donors

§ international aid network

Private

§ private sector

§ third-party logistics

§ media

Figure 12 Groups of stakeholders in humanitarian operations (source: Fontainha et al., 2005)

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