Private Sector Supply Chains and Emergency Management

Private Sector Supply Chains and Emergency Management

PrepTalks. Logos for the Federal Emergency Management Agency, International Association of Emergency Managers, National Emergency Management Association, National Homeland Security Consortium, and Center for Homeland Defense and Security Naval Postgraduate School. DISCUSSION Dr. Yossi Sheffi and Dr. Jarrod Goentzel Private Sector Supply Chains and

Emergency Management Private Sector Supply Chains and Emergency Management Dr. Yossi Sheffi and Dr. Jarrod Goentzel Agenda Agenda Introductions (5 minutes) Watch the PrepTalks (50 minutes) Discussion (30 minutes) Wrap-up (5 minutes) 2 Private Sector Supply Chains and Emergency Management

Dr. Yossi Sheffi and Dr. Jarrod Goentzel Introductions Dr. Jarrod Goentzel is founder and director of the Humanitarian Supply Chain Lab in the Massachusetts Institute of Technology Center for Transportation and Logistics. His research focuses on meeting human needs in resource-constrained settings through better supply chain management, information systems, and decision support technology. Dr. Goentzel leads fieldwork with the public, private, and nonprofit sectors to improve response efforts during emergencies and to strengthen supply chains in vulnerable communities. 3 Private Sector Supply Chains and Emergency Management

Dr. Yossi Sheffi and Dr. Jarrod Goentzel Introductions Dr. Yossi Sheffi is the Elisha Gray II Professor of Engineering Systems and Director of the Massachusetts Institute of Technology Center for Transportation and Logistics (CTL). He is an expert in supply chain management and has written five books on supply chain resilience. Under his leadership, the CTL has launched many educational, research and industry/government outreach programs, including the MIT Global SCALE (Supply Chain and Logistics Excellence) network involving six academic centers around the world. 4 Private Sector Supply Chains and Emergency Management

Dr. Yossi Sheffi and Dr. Jarrod Goentzel Watch the PrepTalks www.fema.gov/preptalks/goentzel www.fema.gov/preptalks/sheffi Topics for Discussion Supply Chain Connection to Emergency Management The Basics of Supply Chains Supply Chain Complexities Aligning Public Sector Assets and Authorities with Private Sector Capabilities

5 Private Sector Supply Chains and Emergency Management Dr. Yossi Sheffi and Dr. Jarrod Goentzel Topic 1: Supply Chains - Connection to Emergency Management There are significant reasons for emergency managers to prioritize understanding private sector supply chains: The capacity of pre-existing private sector networks dwarfs the potential replacement capacity of the public and nonprofit sectors. Private sector management of commodities ensures better readiness. Restoring private sector capacity stimulates recovery throughout the affected area. Prior relationships between all elements of the public sector and all elements of private sector are crucial. - Dr. Yossi Sheffi

6 Private Sector Supply Chains and Emergency Management Dr. Yossi Sheffi and Dr. Jarrod Goentzel Topic 1: Supply Chains - Connection to Emergency Management By understanding supply chains, emergency managers can: Collaborate better with private sector owners and operators of community lifelines in all phases of emergency management, Help make supply chains more resilient, and Understand how best to support the restoration of private sector supply chains during response and recovery. 7 Private Sector Supply Chains and Emergency Management

Dr. Yossi Sheffi and Dr. Jarrod Goentzel Topic 1: Supply Chains - Connection to Emergency Management Community Lifelines group the most critical public/private services and infrastructure and help prioritize, sequence, and focus response efforts. Who are the principal private sector suppliers that support community lifelines in your community? What is the location of the source of the supply (e.g. distribution centers, origin of fuel supplies)? 8 Private Sector Supply Chains and Emergency Management Dr. Yossi Sheffi and Dr. Jarrod Goentzel Topic 2: The Basics of Supply Chains

9 Private Sector Supply Chains and Emergency Management Dr. Yossi Sheffi and Dr. Jarrod Goentzel Topic 2: The Basics of Supply Chains Supply Nodes: Entities that manufacture, process, store, and/or ship goods and services. Demand Nodes: Entities that purchase and/or signal for goods and services from supply nodes. Tiers: A common way to group nodes and identify upstream and downstream relationships within the supply chain.

Who owns/operates the supply and demand nodes in your community? What are the common transportation routes used between supply and demand nodes? To what extent and how does your jurisdiction depend on supply nodes outside your region? Links: The physical and functional connections between nodes, such as communication, transport avenues or transaction connections. 10

Private Sector Supply Chains and Emergency Management Dr. Yossi Sheffi and Dr. Jarrod Goentzel Topic 3: Supply Chain Complexities Modern supply chains are so complex companies often cannot map all of the links and nodes that lead to the finished product reaching consumers. Consider the two reasons below and discuss. Size of Networks Dr. Sheffi discusses a company that has 14,000 Tier 1 suppliers, 300,000 Tier 2 suppliers (suppliers of Tier 1), and that there can be as many as 50 companies, or tiers, in the chain. Dependencies and Interdependencies Dr. Sheffis GM case study showed the number of unavailable parts due to the Fukishima disaster grew from 390 to 6,000 missing parts in less than two months.

Dr. Goentzel highlights how the performance of generators can be dependent on the availability of fuel filters. What are examples of dependencies and interdependencies to be aware of for planning purposes? 11 Private Sector Supply Chains and Emergency Management Dr. Yossi Sheffi and Dr. Jarrod Goentzel Topic 4: Aligning Public Sector Assets and Authorities with Private Sector Capabilities Government actions after a disaster can inadvertently impede the restoration of private sector supply chains. Planning together, we can align public sector assets and authorities to more quickly restore the greater capacity of the private sector. Identify the community lifeline supply and demand nodes to determine relevant private sector entities to bring to the table for planning, exercises, and postincident coordination.

Discuss the points of coordination below between the public and private sectors. Route Clearance Transportation Operators: Credentialing and contracting Security Needs: Route security and escorting Access and Re-entry Requirements Legal/Regulatory Requirements Stockpiles/Warehoused Goods 12 Private Sector Supply Chains and Emergency Management

Dr. Yossi Sheffi and Dr. Jarrod Goentzel Topic 4: Aligning Public Sector Assets and Authorities with Private Sector Capabilities Discuss ways to establish effective coordination in a disaster, to include integrating the private sector into your emergency support functions. Discuss how to align public sector memorandum of understanding and standby contracts to support rather than compete with the private sector resources. Discuss staffing needs with key private sector nodes and provide personal preparedness resources for your local hazards. FEMA [should] not overlap [private sector resources]. FEMA should provide stuff that private sector cannot supply or doesnt have the capability to supply and to work together. - Dr. Yossi Sheffi 13 Private Sector Supply Chains and

Emergency Management Dr. Yossi Sheffi and Dr. Jarrod Goentzel Wrap-up Additional Resources Resilience: Restoring Business Operations After a Hurricane National Business Emergency Operations Center Building Adaptable and Resilient Supply Chains after Hurricanes Harvey, Irma, and Maria 14 PrepTalks. New Perspectives for Emergency Managers. https://www.fema.gov/preptalks

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