Posted by Skeptics may argue that traditional corporate social responsibility (CSR) initiatives were merely a way of throwing money at a problem and receiving superficial recognition through glossy brochures and photo opportunities for the annual report. Whether this viewpoint holds true or not, today’s public-private partnerships (PPPs) have evolved to become much more engaging, with companies actively participating in projects and leveraging their technical expertise in their respective fields.
Starting a successful partnership doesn’t necessarily require a large organisation or a famous figure. There are excellent opportunities to form partnerships at the local level, which tend to be more sustainable and less vulnerable to political or cultural shifts.
What can multinational companies bring to the table?
Connectors: Besides providing financial support, multinationals can act as connectors between other companies, NGOs, bilateral donors, foundations, and universities. For instance, The Coca-Cola Company actively engages in PPPs with organisations like Yale University and the Gates Foundation through their Project Last Mile initiative.
The right fit: Not every company will be suitable for every work stream, but when companies focus on their core skills, value can be created. Examples of successful projects include Coca-Cola in distribution, DHL in supply management and cold chain, and IBM in technology.
Local networks: One of the significant advantages of multinationals is their ability to tap into local networks and connect project teams with local operations and expertise on the ground. Local operations understand the trading conditions and have access to local cost structures. International project teams can learn how these companies operate in challenging environments and solve problems at the local level, often with limited resources. For instance, A.B. InBev provided valuable insights on our project for transportation management in South Sudan, shedding light on technical difficulties in vehicle imports and challenges in recruiting qualified technicians in the country.
Points of engagement: Multinationals can choose various points of engagement, such as advisory boards, technical advisers, embedded project teams, and shared resources. In some cases, companies may appoint a resource to liaise between the project team and the local operation.
Are multinational companies the superheroes?
It is crucial to note that multinationals cannot solve all challenges and may encounter similar issues as humanitarian logistics organisations. For example, multinational companies have yet to develop a definitive guide on last-mile logistics in Africa. While some have succeeded in certain areas, such as Coca-Cola’s micro distribution on the continent, companies often do not operate in rural areas where NGOs are active. They mostly work with intermediary distributors and often lack supply chain insights. Additionally, they may not have sufficient on-the-ground presence, as they operate out of regional commercial centres.
However, there are several areas where companies can add value and provide insights:
Demand planning and procurement: As humanitarian organisations transition from emergency response to long-term development, there is a growing need to understand demand planning and procurement. Multinational companies with extensive experience in operating in challenging and unpredictable environments can offer valuable insights.
Routing and scheduling: In emerging markets, structured information such as routing to health centres is not always readily available, and effective network design can add significant value in the long run. Companies can also contribute unique insights into last-mile logistics and working with distribution partners.
Transportation management: Scheduling and vehicle maintenance remain areas of opportunity for many organisations. Non-profit organisations like Riders for Health have made this their core focus, but there are still significant opportunities for improvement. Moreover, multinationals can provide valuable insights into third-party logistics and negotiating local transport rates.
Insights on incentives: There is growing interest in how multinational companies employ incentives to motivate employees and increase productivity. In many cases, the public health sector lacks a robust incentive scheme to boost productivity and efficiency.
Benefits to multinational companies?
Employees and community: The majority of employees are enthusiastic about giving back to their communities. Local employees have a personal stake in the well-being of their community and take great pride in their ability to solve problems. Companies also become more attractive as employers when employees actively participate in addressing humanitarian logistics challenges.
Learnings: There is a great deal to be learned from humanitarian organizations and other NGOs. For example, in the field of mobile technology, the nonprofit sector has been at the forefront of adopting and piloting various projects that may be of interest in the business world. Only a few multinational companies possess a clear understanding of rural distribution, and their employees can acquire valuable insights by solving complex problems in challenging environments.
Shared infrastructure: There is a genuine opportunity to share infrastructure, especially in rural areas where financial feasibility is often a hurdle. Through the right partnerships, NGOs and companies can derive mutual benefits from shared resources, overcoming the financial constraints that impede progress in these regions.
In conclusion, multinational companies have a significant role to play in partnering with organisations and addressing humanitarian logistics challenges. By leveraging their resources, expertise, and connections, these companies can make a positive impact on local communities and contribute to the greater good. Through active engagement, continuous learning, and collaboration, multinational companies can not only benefit their employees and communities but also foster sustainable development and create lasting change. By embracing the opportunities presented by public-private partnerships, multinational companies can demonstrate their commitment to corporate social responsibility and become catalysts for positive social impact in the world.
The Supply Chain Lab 