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Report: Unbranded stock and loan-borrowing policies for time and cost efficiency in humanitarian crises

As humanitarian organizations continue to face ever-increasing needs but limited funding, humanitarian logistics must trust in new ways to collaborate and become more efficient.

Credits: Stefanie Glinski / Welthungerhilfe

BONN, 08/11/2023 – Today, the Emergency Supply Pre-positioning Strategy (ESUPS) project released the first research of its kind, which aims to change the mindset of humanitarian organizations towards greater collaboration and trust-building. The study introduced a model that can simulate and demonstrate the efficiency and effectiveness of keeping pre-positioned stock unbranded.

The findings show that keeping a certain percentage of pre-positioned stock unbranded allows organizations to loan and borrow items. This improves the response rate, fill rate and inventory leftover ratio. Thus, the level of needs met after a disaster is increased without impacting the response time. Plus this results in lower holding costs for humanitarian organizations.

In 2023, more than 362 million people required humanitarian aid, the highest number ever recorded. Yet only 247 million people have received aid, and funding needs have so far only covered just over 20% huma­nitarian needs worldwide. Against this backdrop, new ways of working are needed to increase efficiency and end siloed approaches. This means that humanitarian organizations need to collaborate and pool resources wherever possible, especially in lo­gistics. Loan-Borrowing and as a precondition postponement of branding relief items has been a recurring issue in humanitarian logistics. For this reason, ESUPS collaborated with Özyeğin University (Türkiye) to conduct research to scientifically support the benefits of postponement and loan-borrowing. The intention is to foster greater trust, and encourage a mindset of efficiency and collaboration, between humanitarian organizations.

With this research, ESUPS and Özyeğin University (Türkiye) provide a valuable tool to explore the benefits – and avoid the pitfalls – that sharing strategies can bring to humanitarian organizations. Keeping a certain percentage of their stocks unbranded and establishing loan-borrowing policies are an important first step towards maximizing the time and cost efficiency of dispatch. Therefore, humanitarian organizations should take advantage of and replicate this model to confirm or adjust their strategy. This is to the benefit of the humanitarian community as a whole and, more importantly, to the benefit of people affected by hazards and humanitarian crises.

The report, presenting a summary of the research and a series of recommendations deriving from it, is available here: Report: Branding Postponement & Loan-Borrowing

About ESUPS: 

ESUPS (Emergency Supply Pre-positioning Strategy) is a humanitarian logistics and preparedness project funded by BHA and hosted by Welthungerhilfe/WHH. ESUPS advocates for increased collaboration in humanitarian logistics, with a focus on promoting a new approach to pre-positioning, prioritizing national and collective strategies. 

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