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Humanitarian Logistics

Disasters; Logistics; supply chain
by Alexander Goerss on 11 May 2011

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Transcript of Humanitarian Logistics

Humanitarian Logistics Objectives 1 2 3 4 1. Definition of Disasters and disaster relief management 2. Relevance of Humanitarian Logistics 3. Characteristics of Humanitarian Logistics 4. Challenges to the Humanitarian Relief Chain 5 5. Improvements 1. Definition of humanitarian logistics, disasters and Disaster Relief Management Humanitarian logistics is the process of planning, implementing and controlling
the efficient, cost-effective flow and storage of goods and materials from the point
of origin to the point of consumption for the purpose of alleviating the suffering
of vulnerable people” affected by disasters (Tomasini and Wassenhoeve, 2009) A disaster is an occurence of widespread severe damage, injury or loss of life
or property with which a community alone cannot cope and during which
the society undergoes severe disruption (Russel, 2005). Disaster Relief Management (DRM) is the foreign intervention
into a society with the intention of helping local citizens during
a disaster (Long and Wood, 1995). 3. Phases of DRM Source: Tufungki, 2006 Source: Wassenhoeve, 2009 2. Relevance of Humanitarian Logistics Natural disasters alone have risen about 60% each decade from 1960 to 2009 (Kreimer & Munasinghe, 1991). expected to increase another five fold over the next 50 years (Thomas & Kopcak, 2005). Disaster related cost rose from an average of $ 4 billion in the 1980ies to $ 40 billion in the 1990ies (MunichRe, 2010) While the annual deaths from disasters fell by 30% in the previous two decades, the number of people affected by disaster has risen by 59% (Russel, 2005).
3. Characteristics of Humanitarian Logistics Similar to the commercial supply chain the humanitarian relief chain concerns the process of managing the flow of goods, information and finances (Ernst, 2003). However ! In emergency relief operations, logistics are required to support the organization and implementation of response operations in order to ensure their timeliness and efficiency

Fundamental differences: 1. The actor network 2. HRC estimate supply
requests to donors
purchasing of goods
transportation to a central warehouse
distribution to a larger secondary hub warehouse
after preparing an inventory list the products are moved to a final distribution center
Finally, transport to the beneficiaries 4. Challenges Demand Uncertainty Supply Uncertainty Route Uncertainty Technology Demand pattern is unknown as it is generated by the specific characteristic of the disaster
No knowledge about time, location and size of demand
zero lead time in a sudden-onset
demand requirements often must be estimated unsolicited and sometimes unwanted items which clog up the supply routes
items often pose a logistical disaster on its own as they arrive in unmanageble form
different labling and language standards;therefore a lot of time is spent on internal warehousing processes often no use of adequate logistic technology
survey by Fritz Institute: only 26% of respondents used tracking and tracing software (Thomas, 2008) no reliance of standardized transportation routes
due to impact of disaster often destabilized infrastructure (Cassidy, 2003: Murray, 2005)
and lack of transport connectivity for the last mile delivery (Long and Wood, 1995) 5. Improvements Pre-Disaster phase Response phase standardization of most needed items
prepositioning of inventory for commodity items
in order to deal with zero lead time challenge
Demand management:
Demand is unpredictable regarding timing, location, and scale (Beamon et al., 2004; Murray, 2005; Long, 1997; Long and Wood, 1995). The demand should focus as follows:
•Push and pull operation (le-agility), implementation into the supply chain.
•Should have the basic framework the demand according to the historical data, past experiences and most likely scenarios.
•Implement demand information management and should have the information sharing in various levels if supply chain.
•Increase the level of inventory even though it is costly, NGO’s and government should think about people lives rather than cost effectiveness.
•Inventory pre-positioning is the best solution for uncertainty. For instance, FEMA, USA.
•Web based inventory system (SUMA, UNJLC and various Aid matrix platforms) for easy access and low personnel need and it should help us to find the capacity of the inventory and the inventory problems may be solved in the way of military inventory handling.
• Economies of scopes can develop and helping the neighbouring countries. Partnership with Multi-location and international corporation brings flexibility, robustness and agility to supply chain.
•Standardised disaster planning to improve disaster relief operation. It is difficult but the efforts should make slowly everyone will started to follow.
•Getting support from the big business firms FEDEX, WALL MART, DHL and etc, because they have experience in logistics and supply chain operations.
•Utilize all the historical knowledge to balance location security and accessibility.
Technology
use of tracking and tracing software
as this will enhance the effectivity of the relief chain
at the moment a lot of time is wasted on internal warehouse processes RFID
Use of RFID can speed up the warehousing process
wireless technology for signal identification in an electromagnetic field
Advantages: 1.) useable in unpleasant environments; 2.) Elimination of line of sight requirement; 3.) more data than spreadsheets or barcodes; 4.) Elimination of human errors; 5.) Identification of item location; 6.) Introduction of smart cards possible
-> speeding up the processes from warehousing untill final distribution to beneficiares Usage of geographical information system (GIS)
Since relief operations have to deal with transportation uncertainty it has to be sure that roads are passable and the infrastructure permits the usage of certain vehicles
Supply Management:
In terms of supply, aid agencies and organisation receives unsolicited even sometimes unwanted donations (Chomolier et al., 2005). So
•The consolidate donations can be classified and then redistributed, or re assign them into local organizations (e.g. Churches, Salvation Army, etc.) who are well experienced in these kind of donations. They can identify either used or sell some items to fund rising for relief efforts.
• Always planning, communication and Collaboration for in kind donations.
•Use colour code system to reduce the labelling error and language problem. E.g. red for food stuffs, blue for clothing (Murray, 2005).
•Encourage “donation in contracts” practice which helps us to get more robust supply chain processes.
•Collaboration with the local retailers who are often has been first aid workers reaching disaster struck location (Garry, 2005a, b; Leonard, 2005; Rowell, 2005). They have the advantage of reduced transportation need and are very likely to full fill the dietary requirements of the local population.
Demand management:
Demand is unpredictable regarding timing, location, and scale (Beamon et al., 2004; Murray, 2005; Long, 1997; Long and Wood, 1995). The demand should focus as follows:
• Push and pull operation (le-agility), implementation into the supply chain.
• Should have the basic framework the demand according to the historical data, past experiences and most likely scenarios.
• Implement demand information management and should have the information sharing in various levels if supply chain.
• Increase the level of inventory even though it is costly, NGO’s and government should think about people lives rather than cost effectiveness.
Inventory pre-positioning is the best solution for uncertainty. For instance, FEMA, USA.
• Web based inventory system (SUMA, UNJLC and various Aid matrix platforms) for easy access and low personnel need and it should help us to find the capacity of the inventory and the inventory problems may be solved in the way of military inventory handling.
• Economies of scopes can develop and helping the neighbouring countries. Partnership with Multi-location and international corporation brings flexibility, robustness and agility to supply chain.
• Standardised disaster planning to improve disaster relief operation. It is difficult but the efforts should make slowly everyone will started to follow.
• Getting support from the big business firms FEDEX, WALL MART, DHL and etc, because they have experience in logistics and supply chain operations.
• Utilize all the historical knowledge to balance location security and accessibility. References:

Ernst,H. R. (2003) 'Issues and Challenges of Humanitarian Logistics in China'.

Munich Re Group (2007) T'opics Geo Natural catastrophes 2006: Analyses, assessments,
positions.' Munich Re Group, Retrieved 21.04.201 from
http://www.munichre.com/en/publications/default.aspx?publicationLanguage=2&c
ategory=17.


Kreimer, G. and Mungasinge, K. M. (1991) 'Humanitarian logistics in disaster relief operations', International Journal of Physical Distribution & Logistics Management, 37(2), 99-114.


Long, D. C. and Wood, D. F. (1995) 'The logistics of famine relief', Journal of Business Logistics, 16, 213-213.

Russel, B. (2005) 'Reconsidering the phases of disaster', International Journal of Mass Emergencies and Disasters, 15(2), 239-264.

Thomas, A. and Kopczak, L. R. (2007) 'Life-saving supply chains', Building Supply Chain Excellence in Emerging Economies, 93-111.

Tufinkgi, P. (2006) Logistik im Kontext internationaler Katastrophenhilfe: Entwicklung eines logistischen Referenzmodells für Katastrophenfälle, Haupt Verlag.

Van Wassenhove, L. N. (2005) 'Humanitarian aid logistics: supply chain management in high gear', Journal of the Operational Research Society, 57(5), 475-489.
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