An article by Pierre Brunet
In a previous edition of Humanitarian Challenges, we mentioned the birth of hulo (HUmanitarian LOgistics), this humanitarian cooperative created in June 2021 in the wake of the RLH (Humanitarian Logistics Network), which today brings together 13 humanitarian organizations and is established in 6 countries in 2023. Born out of awareness of “urgent need to do more with less”[1] » as expressed by hulo, it remained to measure the performance of this initiative, based on the hulo impact report dated January 2024, and based mainly on 2023 data. This is what we want to do now, especially through an exchange with Jean Baptiste Lamarche, CEO of hulo, who played a major role, from the origin of the RLH to this cooperative.
Before starting this conversation, it is useful to clarify that the “flagship” of hulo’s activities and engagement, although we will cover the others, is the “Joint Procurement Initiative” (JPI), which bring together through hulo the needs of aid organizations in the purchase of food and products, in order to achieve economies of scale (15.03% in 2023 according to the impact report), product quality improvements benefiting all, and greater administrative fluidity in purchasing procedures. Within hulo, there are currently 7 JPI operational, and soon 8 more to come.
Discussion with Jean-Baptiste Lamarche, CEO of HULO:
– PB: hulo participated in the European Humanitarian Forum (EHF) on 18 and 19 March, where you took part in the session “Improving the efficiency of humanitarian aid delivery”[2] ». On this occasion, hulo received the InnovAid Innovation Award. Is it for you a form of recognition, an encouragement?
– JBL: For us, this 2023 Humanitarian Innovation Award is indeed a sign of strong recognition, because of the quality of the selection (among 58 candidates), but also of confidence and encouragement, because now that the pilot phases are validated, we are entering the expansion phase of our solution, which still represents many new challenges.
– PB: It seems to me that the essential information of the 2024 impact report of hulo is that this cooperative has allowed its members to realize savings in terms of purchase of 15.03% on average, with an improvement, often, in the quality of the products, streamlining and simplifying purchasing procedures and reducing fraud. Do you think there is still room for improvement in this already remarkable result?
– JBL: Yes, we now need to institutionalize these new ways of working in the internal workings of organizations. This represents a major challenge in driving change in highly structured practices (notably through donor rules), and for which considerable efforts remain to be made by all stakeholders (participating NGOs, donors, hulo, etc.).
– PB: In the impact report, we read that you analysed 208,000 purchasing lines for a value of about 300 million euros, which seems like a huge task. What role do you see in streamlining these analyses for the LINK software, which we discussed in our first article on hulo, and for artificial intelligence (AI)?
– JBL: The use of the LINK software allows, thanks to its catalogue of more than 4,000 articles, to structure the data from the start of a command line. The LINK software therefore provides quality data, which makes it possible to speed up and streamline data analyses to identify possible efficiency gains, and to define operational priorities. With a growing number of participating organizations, the volume of data is also growing and so we are building Machin Learning tools[3] and Artificial Intelligence, to automate data processing tasks.
– PB: Beyond that, you say in the impact report that hulo wants to be “data driven”, that is, driven by data analysis, within the framework of the operational choices of its members. Can you tell us more about this, and in particular about the role of the BAR (Business Analytics & Research) department within hulo?
– JBL: BAR’s role is to collect, structure, harmonise and analyse logistics data from member organisations. It provides methodological support and decision support for the pooling of resources between organizations.
– PB: In the impact report, you address the notion of «New way of working» for member or partner humanitarian organizations, and also sometimes a form of misunderstanding of the principle of mutualization, as well as forms of «passive resistance» and “self-training” internally in some humanitarian organizations. Can you elaborate on this and explain how the “JPI Toolkit” (Joint Procurement Initiative toolkit) you are implementing can address these challenges?
– JBL: Working across organizations can add a layer of complexity to processes and often overwhelmed teams. It is therefore not surprising that some actors are not the most proactive on collaboration. The gains being nevertheless significant, the NGOs decided to overcome this barrier by creating hulo, to have a dedicated team that structures, equips and professionalizes these modes of collaboration. The JPI toolkit contains the tools for making shared purchases that must be used by all participating organizations. Once this toolkit is integrated into the internal toolbox of each organization, teams will be trained and will only have to apply this new standard. This action will be fundamental to trigger the transition on a large scale.
– PB: You also mention in the impact report the «risk of sharing washing»; can you explain this notion?
– JBL: This risk illustrates the potential abuse of language that some can do using buzzwords such as pooling, joint initiatives, sharing resources, etc. We observed that some companies used these terms to sell their services. At hulo, we specialize in facilitating collaborative activities between organizations. We consider that this is a real know-how, which cannot be improvised, and we therefore alert on this risk of misuse of the very definition of mutualization in our humanitarian ecosystem.
| Burkina Faso: a win-win mutual purchase, thanks to hulo.
In Burkina Faso, a shared purchase of RRM (Rapid Response Mechanism) emergency kits was facilitated by hulo for 9 organizations with a total estimated market of €2,200,000. At the end of 2023, 33 orders were placed, for a total amount of € 452,611 generating € 93,200 in savings, or 17.09% of the initial amount. As a rapid humanitarian response mechanism to cover urgent needs as quickly, efficiently and appropriately, in a country affected by violence, mass displacement and food insecurity, we see here how mutualization makes it possible to do quickly, better, cheaper, for a maximum of beneficiaries, when the situation so requires. |
– PB: Can you explain the role played by the Hulo Country Coordinators?
– JBL: The role of the Hulo Country Coordinators present in each country of intervention is to structure and facilitate pooling activities. Through regular exchanges with each participating organization and with the support of the BAR hulo team, they collectively identify opportunities for pooling (purchasing, transport, human resources, environment, etc.). The final selection of opportunities is made during meetings organized with the Country Management of the participating organizations, to ensure a good mobilization of the necessary resources. Then, they support the operational implementation of the pooling projects selected with the participating logistics teams.
– PB: Can you tell us about the initiatives on reducing the environmental impact of humanitarian organisations and promoting localisation, in which hulo is involved?
– JBL: At this stage, hulo is still in a pilot phase, with a view to defining its environmental strategy. We provide expertise on shared purchases, to ensure that environmental criteria are taken into account in the selection of suppliers. We also carry out actions on the identification of recycling and waste recovery sectors, then we test shared waste collection methods. We also participate in many working groups between actors to allow us to identify the topics on which we will be able to create value, which also includes localization issues. Our goal is to have an environmental strategy to present at the next general meeting scheduled for the end of May.
– PB: Finally, what message do you want to convey to humanitarian organisations?
– JBL: The creation of value from pooling is now demonstrated, with up to 15% savings and an increase in the quality of the humanitarian response, the implementation of new ways of working between organizations is becoming essential. The challenge now is to integrate and institutionalize these practices so that the benefits can really increase the impact of aid and cushion the lack of funding.
– PB: Thank you very much, Jean-Baptiste, and we wish hulo the greatest possible success for your development and the accomplishment of your projects. And beyond that, let’s hope for an increasingly mutualized and efficient “humanitarian world”…*
[1] “Urgent need to do more with less.”
[2] “Improving the efficiency of delivering humanitarian assistance”.
[3] Machine Learning is an artificial intelligence technology that allows machines to learn without first being specifically programmed for this purpose.
Pierre Brunet
Writer and Humanitarian
Pierre Brunet is a novelist and member of the Board of Directors of the NGO SOLIDARITES INTERNATIONAL. He became involved in humanitarian work in Rwanda in 1994, then in 1995 in Bosnia, and has since returned to the field (Afghanistan in 2003, Calais jungle in 2016, migrant camps in Greece and Macedonia in 2016, Iraq and North-East Syria in 2019, Ukraine in 2023). Pierre Brunet’s novels are published by Calmann-Lévy: «Barnum» in 2006, «JAB» in 2008, «Fenicia» in 2014 and «The triangle of uncertainty» in 2017. Former journalist, Pierre Brunet regularly publishes articles of analysis, opinion, or chronicles.
Jean-Baptiste Lamarche
Jean-Baptiste Lamarche is Managing Director and Co-founder of Hulo, the first humanitarian cooperative that connects actors and innovates in the pooling and optimization of resources in supply chains. He holds an Executive MBA International from HEC Paris and has devoted most of his career to humanitarian logistics. Before founding hulo, Jean-Baptiste held management positions in several international NGOs, including as Director of Logistics and Information Systems for Action Against Hunger. Leader and committed collaborator, Jean-Baptiste is passionate about innovation as a lever to increase the impact of humanitarian aid.