Reinforcing the Human Elements in Downstream Supply Chain in TOC Way

Abstract

Among various reasons of failures of supply chain efforts, human element is vital. Its ignorance brings failures of a partnership program. The human element of supply chain involves frontline operations staff and sales force. Recently, firms are paying attention to the soft side of supply chain strategy (i.e., dealing with the human elements). Surprisingly, various studies have shown that sales force of a distribution firm is often dissatisfied with the poor performance of its downstream supply chain. Quite often, sales force complain that supply chains do not perform well to fulfill their needs, which hampers sales force target achievement, resulting in sales force labeling its supply chain staff as “sales disablers.” Similar to commercial supply chains, humanitarian supply chain’s key stakeholders – namely, the donors of humanitarian aids and the frontline staff involved in delivering humanitarian aids – also complain of the poor performance of their supply chain (due to stockouts of the relief items on time in full quantity). Consequently, the donors or the stakeholders feel that they do not get the desired return on investment (ROI) of efforts put in relief operations. This study describes how the theory of constraints, a supply chain improvement methodology applied in commercial supply chain, can be successfully applied in humanitarian supply management.