Influence of Supply Risk Assessment of Third Party Logistics Providers on Performance of Humanitarian Supply Chains: A Case of International Red Cross, Somalia

Abstract

The logistics service industry has evolved quickly to deliver a variety of services including frequently outsourced warehousing, logistics, and freight forwarding, as well as value-added services which include; order management and fulfillment as well as consultancy in the supply chain. The current study sought to establish the influence of supply risk assessment on the performance of humanitarian supply chains in Somalia with a keen focus on the International Red Cross. The study used a descriptive research design. 102 ICR employees operating in Somalia were the target population. The research adopted a technique of census while using a questionnaire to gather primary data. To guarantee validity and reliability, the questionnaire was pre-tested. Using descriptive and inferential statistics data was analyzed and displayed in tables. Key findings of the study included IRC had developed better dispute resolution mechanisms arising from their strategic partnership with their 3PL providers, the organization had enhanced its procurement processes due to its effective assessment of 3PL providers' capacities resulting in minimal supply risk exposure. From correlation analysis, it was established that there existed a strong and positive correlation between supply risk assessment of 3PL Providers and the performance of the ICR supply chain (r = 0.708**, p=.000). The study concluded that for enhanced performance of the supply chain 3PL providers should deliver requisitions on time and at desired locations as per orders. It is expected the study findings will find use among logistic practitioners and researchers.