The Impact of Currency Fluctuation on Supply Chain Operations of Chef International

Abstract

Supply chain effectiveness is crucial for an NGO as it ensures timely delivery of aid and resources, directly impacting its ability to serve communities in need. Understanding currency fluctuations is integral to supply chain management, as it influences procurement costs, budgeting, and financial planning, ultimately affecting the NGO's operational efficiency and capacity to fulfill its humanitarian mission in a cost-effective and sustainable manner. This study investigates the impact of currency fluctuations on the supply chain operations of CHEF International, emphasizing the significance of effective supply chain management for NGOs in ensuring timely aid delivery, cost effective procurement and efficient use of resources. Utilizing a quantitative approach, it analyzes secondary data from 2019 to 2023, focusing on various expenditure categories and the exchange rate of the Pakistani currency against the US dollar. The findings reveal a variable sensitivity to currency fluctuations, with Medicines and Petrol showing high susceptibility, indicating the complex challenges in managing NGO supply chains amidst economic volatility. The study underscores the need for strategic financial planning and robust risk management to mitigate these effects, contributing to a deeper understanding of the intricacies faced by NGOs like CHEF International in maintaining operational efficiency and fulfilling their humanitarian mission in a cost-effective and sustainable manner.