Improving the most important logistics- Changing the supply chain of International Federation of Red Cross Red crescent Societies (IFRC)

Résumé du document

Logistics management is "that part of the supply chain process that plans, implements and controls the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to meet customers' requirements". This definition is relevant both within a company and as part of humanitarian relief operations. Indeed, "at the heart of any international operation is the establishment and management of an emergency supply chain." First, we will discuss the similarities and differences between humanitarian and commercial logistics. Then, focusing on the proposed case, we will emphasize the key problem areas before recommending solutions and analyzing their impacts. Our comparison between commercial and humanitarian logistics is based on the figure in appendix 1a, which illustrates all the activities included within logistics management. By focusing successively on each activity, we will emphasize the similarities and the differences between both logistics.

Extraits

[...] Pettit and A. K. C Beresford. Article from International Journal of Logistics: research and Applications Vol No.4, December 2005, 313-331. Natural disaster management planning. A study of logistics managers responding to tsunami. Marcia Perry. Article from International Journal of Physical Distribution and Logistics management Vol 37, No 409-433. Humanitarian relief chains : issues and challenges, Benita M. [...]

[...] The complexity of the geopolitical situation made the implementation of logistics more difficult as relief operations had to be divided between humanitarian societies according to the zone they were entrusted with (see appendix 2). Emergency Process Operations The different operations of the emergency process of IFRC proved to have several weaknesses and flaws. First, the Need Assessment set up by the field logisticians and sent back to Geneva Headquarters did not contain sufficient detailed specifications. Indeed, this Need Assessment was made upon arrival from the first data and information that field operators managed to gather; it was only partially reliable as mostly based on assumptions and approximations. [...]

[...] Fifth, tracking could be improved efficiently by implementing an Entreprise Ressource Planning (ERP) system as the information system DMIS that IFRC uses doesn't seem to be efficient enough. The monitoring of the product would be made automatically, which would make the stock management easier. Finally, the improvement of distribution is to be linked with the Need Assessment, as mentioned earlier. Indeed, a better need assessment should result in fewer distribution rounds, providing families with more complete packages from the start; this would also help reduce transport costs. [...]

[...] Fifth, tracking and overview of goods' availability was almost impossible as the split responsibilities between Geneva Logistics and Field Logistics separated the supply chain in two with weak connections in between. This situation made it difficult for field operators to anticipate the arrival, warehousing and distribution of goods, to evaluate the new requirements and to plan actions. Sixth, warehousing was also a key issue for IFRC logistics as most of the buildings that could have been used as storage areas were destroyed or damaged by the earthquake. [...]

[...] Third, information resources are one of the major differences between both logistics: On one hand, commercial logistics can get reliable and complete information thanks to high technology (e.g: ERP); but on the other hand, humanitarian logistics only have access to unreliable and incomplete information due to the damage suffered by telecommunication systems and mostly, to a “weak use of technology and poor manual processes” (Thomas 2003). Output of logistics Both logistics have different outputs. Whereas commercial logistics aim at producing high quality products at low cost to maximise profitability and achieve high customer satisfaction, humanitarian logistics aim at “minimis[ing] loss of life and alleviat[ing] suffering” (Thomas 2003). [...]