Table of content

1. introduction 2
2. Finding 3
3. Discussion 3 3.1 Location decision in humanitarian supply chain 3 3.1.3 numerical analysis 6 3.2 Sustainable humanitarian supply chain 6 3.2.1 Social aspect 6 3.2.2 Economical aspect 7 3.2.3 environmental aspect 8
4. Conclusion 9

Executive summary

This report, at first draws a map to show the Food and Agriculture Organization’s(FAO) supply chain. Then, through utilizing the evidences generated by scientific research, the report analysis that how the Food and Agriculture Organization apply the humanitarian supply chain management and sustainable supply chain management principles.

1. introduction

This report create a map of the Food and Agriculture Organization’s(FAO) supply chain. The FAO is an intergovernmental organization, it has 194 member states, 2 associate member and one member organization-the European Union. Its staff’s capacity allows it to support improved governance, generate, develop and adapt existing tools and guidelines and provide targeted governance support to poor countries and regional FAO offices. As a non-profitable organization, the major goals of the FAO is to eliminate hunger, food insecurity, poverty; driving economy and society forward and to ensure sustainability of management and utilization of natural resources. In literature review. Based on the specificities of humanitarian relief activities, the humanitarian supply chain is usually characterized by the following 4 themes:

In terms of timing, type, location and size, the demand of humanitarian aid activities are highly unpredictable.
The demand occurs suddenly in large amount and very short or even no lead times for widely diversified supplies.
High stake demand and adequate and timely transportation and distribution.
Lack of resources such as labors, transportation capacities, equipments and money(Beamon& Balcik 2008).

2. Finding

[pic](Appendix 3)

This map shows a part of supply chain of the Food and Agriculture Organization.

3. Discussion

3.1 Location decision in humanitarian supply chain

3.1.1 geographic position

In order to eliminate the impact of these factors by reasonable location decision making, FAO located its Headquarter, Subregional Office, Subregional Office, Country Office and Liaison Office at very reasonable positions worldwide(Appendix 1). This location principles are in some ways conform to the model raised by Beamon and Balcik. Firstly, it can be seen in Appendix 1, the Headquarter of FAO is located at Italy, based on Beamon and Kotleba’s research, the World Vision International(WVI) operated a system in which pre-positioned the relief supplies in four countries(Italy, USA, Germany and Dubai) in order to pre-package and transport the items to anywhere in the world immediately. For example, the United Nations Humanitarian Response Depot (UNHRD) managed by World Food Programme in Italy as well is able to insure that sending relief items to anywhere in the world within 24~48 hours(UNHRD 2007). In addition to the FAO located its headquarter in Italy, it can be seen in Appendix 1(Appendix 1), the FAO’s Subregional Offices are located in significant geographic positions in the world. In the scattergram, there are 9 Subregional Offices located in positions of the relative average distance and and 4 of them can be seen located in Africa. One of the offices is located in Ethiopia on which is border Somalia. The agriculture of Somalia is close to breaking point and due to the long-term civil war, Somalia has a extremely high possibility to suffer disasters. Once the disaster occurs, it will probably impact surrounding areas. So, it is necessary to set up an office in the region. Thus, not only for long-term research, monitory or agricultural aid but also for emergency response activities, the Subregional Offices locations of FAO are reasonable on geographic aspect.
3.1.2 logistic
It can be seen in the Appendix 1, there are 2 FAO’s Regional Offices located in Turkey and Panama perspectively. Turkey is located at the junction of Asia and European, meanwhile Panama is the most convenient path of waterway connects North America and South America. These selections conform to Beamon and Balcik’s model. Firstly, Turkey and Panama both are significant galleries of land and water transportations. Facilities and offices located at these area can effectively reduce logistic cost and improve efficiency. Secondly, apart from uncertainties of disasters, as a Non Government Organization(NGO), FAO is not able to undertake such a high expenditure for large scale inventory. As a result, local purchase and global purchase play significant role in relief activities. With procurement, the efficiency and effectiveness of logistic are more important. Thus, the FAO set Subregional Office in the traffic arteries is a reasonable arrangement. In addition, most of the FAO’s Subregional Offices are located at coastal cities, based on McCoy and Branduea’s research, areas which need humanitarian aid are often disadvantaged in infrastructure development, the lack of airports and railway network lead to that distribution often rely on road transportation. In comparison with this, when the situation needs mass transportation, shipping has its cost advantage and it has less limitations of requirements on infrastructures(McCoy& Branduea 2011). Therefore, the arrangement of the FAO’s Subregional Offices are located at reasonable positions.

3.1.3 numerical analysis

By analyzing the data from the National Geophysical Data Center(NGDC 2007), the FAO accesses the number of people died in historical natural disasters. Through analysis the geographic coordinates come from the NGDC, the FAO draw a scattergram of the events. Then, they analysis the disaster frequency and the range of affected people in specific area based on the historical data. After that, they access the likelihood of disasters in each area and the extent of the potential disasters. Finally, the FAO selected a range of positions for establishing offices and facilities, by calculating then comparing the transportation and distribution cost among the positions, the FAO finally confirm the locations in line with the lowest logistic cost and the shortest distance to the heartland of the potential disaster area. It is obvious in Appendix 2, the FAO Country Offices mostly located at the undeveloped areas worldwide.

3.2 Sustainable humanitarian supply chain

3.2.1 Social aspect

Since 1997, the FAO start up a Telefood campaign(FAO 2014). In this campaign, the FAO coordinates with Intelsat, with the help of Intelsat’s satellite capacity, through concerts and the other forms to start a fundraising in global dimension. It is noticed that the satellite capacity is donated the Intelsat. This campaign greatly arise the awareness of FAO itself and their core job which is reducing the hungry people in the world and finally eliminate hunger in the world. Simultaneously, the Telefood campaign mobilize millions of people to contribute their generosity to the people who need their help(Wireless News 2006). Since it started, the campaign has generated more US$29 million in donations, research shows that half of the donation go to the projects which are involved in women and children, and a variety of communities and individuals over the world contribute their time and voices to support Telefood(FAO 2014). This is proved that the Telefood campaign started by the FAO creates a virtuous circle of social effects, because to fight against the hunger worldwide, the capacity is too limited of only one organization; but the FAO utilize the limited expenditure to largely extend the range of supplies in agricultural assistance work and simultaneously to output the organizational culture and value to people(Cater& Rogers 2008). Finally, the FAO generate a virtuous and sustainable cycle within society.

3.2.2 Economical aspect

Since 1997, the FAO start up a Telefood campaign, it generated over US$29 million in donations. These donations are received directly, this method saved administrative cost and time cost caused by miscellaneous processes. These donations are utilized to fund in more than 1000 agricultural projects in over 100 countries. These projects are focused on offering help to small scale communities(Salvatore& Charles 2005). The limitation of cost of each project is US$10,000 including offering crop tools, raising livestock and fish, processing food sale in better price, seeds, fertilizers, irrigation pumps, shafts or fish smoking oven to poor rural residents. Although the scale and cost is small, these projects factually improved the people’s life. For example, the students of a primary school in Uganda can have lunch results in the project, the project simultaneously help them to create a vegetables and fruits garden. A group of unemployed women and disadvantaged youth who dropped out of school in Philippines have already controlled the technology of increasing crop yield and organic farming. A bee colony which costs only US$40 is able to produce 15 kilos of honey per year. A pump which spend a farmer US$125 can irrigate more than 2,500 square meters of vegetable crops. 60 farmers spend about US$300 on seeds, the seeds are enough to plant over 20 hectare field of vegetables. In addition not only to provide physical resources, these projects but also to offering technology of producing. For example, the FAO created a pig-raising project sparks youth movement in Valle del Río Portoviejo, Manabi Province, Ecuador, 57 youths aged between 16 to 20 were grouped to be trained in raising and breeding pigs. The training project processed in two months, afer that, each participant received two piglets to raise at home(FAO 2014). These projects not only provided resources and technology to poor people, but also created a environment to the youth to help each other and discuss with each other, after that they can create some income-generating activities. Overall, simply aid operations can only temporarily resist poverty, however, the Telefood campaign offers more opportunities to poor people to change their life. Tools and technology can chronically benefit their life, when their income-generating activities succeed, they can increase their own income and simultaneously create more employment opportunities to other people. In other word, the original projects generate a automatic and sustainable output in economical aspect(Morana 2013).

3.2.3 environmental aspect

The FAO is the organization provides policy to a lot of country to improve their fishery. The FAO’s fishery policy making is confirm the principle of sustainability. The world population is keep growing, based on the research of United Station, the number of world population will reach 11 billion. About 20 per cent demand of protein of 3 billion people comes from marine organism food. The world aquatic food consumption per capita has grown steadily in recent years(FAO 2012). As a result, to estimate the stock of global fish resources and the status of utilization of fish resources is the important parameter of fishery policy-making. Thus, the FAO set up a research group to in-depth study this parameter, the group utilize a range of different models and frameworks to do this study. Their research shows, in some region, due to overfishing, the stock of fish sharply decreased; however, another the stock of fish has not been fully utilized(Rosenberg et al, 2014). In addition, there are some other species has potential to be utilization. For example, although the haloplankton can not be the human consumption, the haloplankton products can used to be forage, in addition the fish oil also can be extract from the halopankton(Moiseev 1994). This study is considered to be important to make and adjust fishery policy. By providing the data or directly providing fishery policy to related departments from the countries, these countries can create more reasonable plan to catch, so as to realize the sustainability of fish resources. This can be considered as a typical example of the FAO to apply sustainable supply chain thinking in its policy-making work.

4. Conclusion

This report analysis 2 models and 6 topics of humanitarian supply chain management. In 3.1, The locations of the FAO’s headquarter and subregional offices show that the FAO’s location decision follows principles of humanitarian supply chain management. These positions are able to not only convenient humanitarian relief activities in geographic aspect, to save the logistic cost, but also close to the areas with high possibility of occurrence of disasters by analyzing historical data. In 3.2, the report analysis how do the FAO’s agricultural assistance activities apply the sustainable supply chain management and why do their policy-making principles confirm to the concept of sustainable supply chain management. These arguments are proved by the FAO’s economic performance, social performance and environmental performance. The recommendation of future research is that paying more attention to the information management, risk management, finance management, purchasing process and the metrics to measure the performance of the FAO’s activities.

Appendix 1. [pic] http://www.fao.org/about/who-we-are/worldwide-offices/en/#c207628 2.
[pic]

http://www.fao.org/about/who-we-are/worldwide-offices/en/#c207624

3.
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