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‫اﺣﺴﺎن اردﺳﺘﺎﻧﯽ رﺳﺘﻤﯽ‬

‫‪Logistics management and SCM in Disaster‬‬


Keywords

• Disaster Management
• Humanitarian Logistics
• Relief Logistics
• Emergency Logistics
• Humanitarian Relief Chain
• Humanitarian supply Chain

Logistics management and SCM in Disaster


Outline

• Concept of disaster
• Concept of relief logistics
• Relief chain
• Humanitarian logistics subsystem
• A paper review

Logistics management and SCM in Disaster


What is disaster?
• Situation or event, which overwhelms local capacity, necessitating a request to
national or international level for external assistance.

• An unforeseen and often sudden event that causes great damage, destruction and
human suffering.

• The event becomes a disaster when the community’s capacity to cope is


overwhelmed and the status quo becomes untenable. [Akkihal,2006]

• The term “natural disaster” is commonly used when describing the impact of a natural
hazard on a community.[Russell,2005]

• A disaster is defined as a serious disruption of the functioning of society, causing


widespread human, material, or environmental losses that exceed the ability of
affected society to cope using only its own resources.[(UNDHA, 1992) cited at at
Russell,2005)]

• They are the outcomes of human settlement patterns, land use decisions, and the
use of risky technologies. [Russell,2005]

Logistics management and SCM in Disaster


What is natural disaster? [Akkihal,2006]

• The earth system is comprised of a host of subsystems


which dynamically impact one another, and humankind
can be considered one of these subsystems.

• Similarly, some phenomena – earthquakes, floods,


hurricanes, slides, volcanoes, waves and wildfires – can
be grouped together as flows of the geological and
climate subsystems.

• Natural disasters occur only when civilization is unable to


absorb ashock stemming from natural fluctuations in the
geological and climate subsystems.

Logistics management and SCM in Disaster


What is disaster? [Akkihal,2006]

Natural Disasters at the Intersection of Nature’s Subsystems

Logistics management and SCM in Disaster


What is natural disaster?
n
a [Akkihal,2006]

t
u
natural disasters can be thought of as dependent
r upon the local
relationship between two aggregated variables:
a
l
A. The magnitude and frequency of fluctuations in the geological and
d
climate systems at a specific time and place
i
s
a
B. Vulnerability, or the capacity of civilization at a locality to absorb
s
geological and climate shocks
t
e
r
s
when A > B at the same location and time, a hazard is born.
c
a
n
Logistics management and SCM in Disaster
b
What is natural disaster? [Akkihal,2006]

Natural Fluctuations and Civilization’s Threshold

Logistics management and SCM in Disaster


Type of disaster (from www.ifrc.org/what/disaster/types/)

1. Hurricanes, cyclones and typhoons


2. Floods
3. Drought
4. Earthquakes
5. Volcanic eruption
6. Epidemics
7. Famine and Food insecurity
8. Man-made disaster
9. Population movement
10. Technological Disaster
Logistics management and SCM in Disaster
Type of disaster [Whybark,2007]

• The event that triggers the need for disaster relief can
be natural or political/economic.

• Natural disaster includes volcanic eruption, wildfires,


floods, earthquake, epidemics and other disturbances
to the natural environment.

• political/economic disasters arise when people


displaced by war, genocide, political insurrection or
other failures of government.

Logistics management and SCM in Disaster


Importance

• Disaster have risen about 50 percent on average each decade between


1900 and 1990, accelerating significantly since 1950 [(Kreimer &
Munasinghe, 1991) cited at Russell,2005)].

• Data show a steady rise in the number of disasters from an average of 150
a year in 1980 to over 450 a year today.

• Disaster related costs rose from an average of $4 billion per year in the
1980s to $40 billion annually in the 1990s [(Vellinga & Mills, 2001) cited at
Russell,2005)].

• While the annual deaths from disaster fell by 30% in the previous two
decades, the number of people affected by disaster has risen by 59%
[(Walker, 2005) cited at Russell,2005)].

Logistics management and SCM in Disaster


The significance of natural disasters is
increasing due to variables such as
population growth, climate change, and
global connectivity.[Akkihal,2006]

Logistics management and SCM in Disaster


Main effects of disaster
• Loss of human life
• Environmental damage
• Disruption of infrastructure
• Economic Loss [Nezih,walter,Green,2005]

Indian Ocean tsunami killed in


excess of 225000 people and
dislocated millions more.
Logistics management and SCM in Disaster
Main effects of disaster [Humanitarian Supply
Management and Logistics in the Health Sector,2001]

Logistics management and SCM in Disaster


Stakeholders in the relief process
[Humanitarian Supply Management and Logistics in the Health Sector,2001]

• Donors
• Humanitarian organizations
• Military
• Governments
• Beneficiaries

Logistics management and SCM in Disaster


Disaster Management Cycle
The phases of disaster management include preparedness,
impact, response, recovery, development, and mitigation.
[(Carter, 1991) cited at (Russell,2005)]

Logistics management and SCM in Disaster


This does not mean that activities
during a disaster are divided from
each other and separated in time.

Often they overlap.


[(Carter, 1991) cited at (Russell,2005)]

Logistics management and SCM in Disaster


Life cycle of a relief mission

(Beamon ,2004)
Logistics management and SCM in Disaster
Disaster operation life cycle(2)

In the United States comprehensive emergency


management is commonly described in terms of
four programmatic phases:

• Mitigation
• Preparedness
• Response
• Recovery
[(Green,2002;Waugh,2000;Godschalk,1991) Cited at (Nezih and walter and Green,2005)]

Logistics management and SCM in Disaster


Disaster operation life cycle
• Emergency response efforts consist of two stages; pre-event and
post-event response.

• Pre-event tasks : predicting and analyzing potential dangers and


developing necessary action plans for mitigation.

• Post-event response: locating, allocating, coordinating, and


managing available resources.

• an effective emergency response plan should integrate both of these


stages within its objective.

• Separating pre- and post-loss objectives may lead to suboptimal


solutions to the overall problem.[(Tufekci and wallace,1998) Cited at (Nezih and walter and
Green,2005)]

Logistics management and SCM in Disaster


Basic task of Logistics System

To deliver the appropriate supplies,


in good condition, in the quantities
required, and at the places and time
they are needed.[UNDP,1993]

Logistics management and SCM in Disaster


Which one is correct?

Relief operation activity = logistics

Relief operation activity > logistics

Logistics management and SCM in Disaster


logistics is often
the largest and
most complex
element of relief
operations.
[UNDP,1993]

Logistics management and SCM in Disaster


Leanness or Agility

A key characteristic of military supply chains is that


they must be both agile and flexible

A military supply chain will never be able to achieve


the kind of “lean” efficiency found in commercial supply
chains because of the higher degree of flexibility a
military operation requires. [(Edmonson, 2005) cited at (Davidson,2006)]

Logistics management and SCM in Disaster


Trade-off between leanness and agility

Agility Leanness

Business
Organization

Logistics management and SCM in Disaster


Trade-off between leanness and agility

Leanness

Agility

Humanitarian
& Military
organization

It doesn’t mean that there are not trade-off between leanness and
agility in these organization, but it means that the weight of agility
is greater than leanness.

Logistics management and SCM in Disaster


Relief/Humanitarian Logistics

Humanitarian logistics involves delivering the


right supplies to the right people, at the right
place, at the right time, and in the right
quantities .[Cottam, Roe, & Challacombe, 2004]

An effectively structured and managed


relief supply chain can save lives.

Logistics management and SCM in Disaster


LOGISTICS IN DISASTER OPERATIONS [Federal
Federal
Emergency Management Agency,2001]
Agency,2001

• Meet disaster victims’ needs quickly.


• Provide assistance, services, materiel, transport and
facility support to responders.
• Integrate into the Federal logistics system where the
disaster occurs.
• Control and account for property.
• Maintain full logistics readiness during disaster and non-
disaster periods.

Logistics management and SCM in Disaster


Relief/Humanitarian Logistics
In emergency relief operations, logistics are required to
support the organization and implementation of response
operations in order to ensure their timeliness and
efficiency.

Mobilizing the staff, equipment and goods of


humanitarian assistance organizations, the evacuation
of the injured or the resettlement of those directly
affected by the disaster, requires a logistics system to
maximize effectiveness.

Logistics management and SCM in Disaster


• Logistics is central to humanitarian relief.

• The speed and efficacy of relief programs


depends on the ability of logisticians to procure,
transport, receive, and distribute supplies to the
site of relief efforts.

• logistics serves as a bridge between disaster


preparedness and response, between
procurement and distribution, and between
headquarters and the field. [Humanitarian Supply Management and
Logistics in the Health Sector,2001]

Logistics management and SCM in Disaster


Humanitarian Logistics subsystems

• Planning subsystem
• Procurement subsystem
• Inventory subsystem
• Distribution subsystem
• Transportation subsystem
• Maintenance subsystem
• Control subsystem
• Human resource subsystem
• Information &Communication subsystem
• Management subsystem

Logistics management and SCM in Disaster


Relief Chain

Anisya Thomas, Managing Director of the Fritz Institute, subdivided the humanitarian
supply chain into the following process. It was further modified by Mitsuko Mizushima,
Chief Logistics Officer of the Fritz Institute.

[(Thomas, 2004) modified by Mizushima cited at (Russell,2005)]


Logistics management and SCM in Disaster
Comparison and Contrast:
Humanitarian Relief Chains versus Commercial Supply Chains
[Beamon,2004]

Commercial Supply Chain Humanitarian Relief Chain


Demand is generated from random
events that are unpredictable in
Relatively stable, predictable
terms of timing, location, type,
demand patterns. Demands
Demand Pattern and size. Demand requirements
occur from fixed locations in set
are estimated after they are
quantities.
needed, based on an assessment
of disaster characteristics
Approximately zero lead times
requirements (zero time between
Lead time determined by the
the occurrence of the demand and
Lead Time supplier-manufacturer-DC-
the need for the demand), but the
retailer chain.
actual lead time is still determined
by the chain of material flow.
Challenging due to the nature of the
Distribution Well-defined methods for
unknowns (locations, type and size
Network determining the number and
of events, politics, and culture), and
Configuration locations of distribution centers.
“last mile” considerations.

Logistics management and SCM in Disaster


Comparison and Contrast (continued)
[Beamon,2004]

Commercial Supply Chain Humanitarian Relief Chain

Utilizes well-defined methods for


Inventory control is challenging due to
determining inventory levels based
Inventory Control the high variations in lead times,
on lead time, demand and target
demands, and demand locations.
customer service levels.

Generally well-defined, using Information is often unreliable,


Information System
advanced technology. incomplete or non-existent.
Typically: to produce high quality
products at low cost to maximize Minimize loss of life and alleviate
Strategic Goals
profitability and achieve high suffering. [Thomas (2003)]
customer satisfaction.

Primary focus on output performance


Traditionally: focused on resource
Performance measures, such as the time required to
performance measures, such as
Measurement respond to a disaster [Thomas (2002)] or
maximizing profit or minimizing
System ability to meet the needs of the disaster
costs.
(customer satisfaction).

What is “Demand”? Products. Supplies and People.

Logistics management and SCM in Disaster


Supply chain flow [Russell,2006]

Logistics management and SCM in Disaster


Physical flows [Russell,2006]

Physical flows occur between the


following relief chain processes:
resource mobilization, procurement,
transportation, stock asset
management, and extended point of
delivery.

Logistics management and SCM in Disaster


Information flows [Russell,2006]

Information flows connect the


following relief chain
processes: preparedness;
assessment & appeal; track
and trace; monitoring,
evaluation, & reporting; and
communications.

Logistics management and SCM in Disaster


Financial flows [Russell,2006]

Financial flows take place


during the subsequent
processes: preparedness;
assessment & appeal;
procurement; and monitoring,
evaluation, & reporting.

Logistics management and SCM in Disaster


Planning subsystem

Logistics management and SCM in Disaster


Planning and preparedness
• Before a disaster, logistical procedures and activities must
be planned.

• Improvised procurement and transportation activities are


less effective.

• A plan includes what tasks are to be done, what part of the


organization will be responsible, and how to procure needed
resources.

It is not possible to anticipate how crises evolve, but


it is advantageous to have a plan.

Logistics management and SCM in Disaster


Planning and preparedness activity

• Zoning and land use controls to prevent occupation of high hazard areas
• Maintenance and Preparing Transportation system
• logistical support in the area
• having a national or regional plan based on the vulnerabilities of the infrastructure
• Risk analysis to measure the potential for extreme hazards
• Insurance to reduce the financial impact of disasters
• Recruiting personnel for the emergency services and for community volunteer
groups
• Development of mutual aid agreements and memorandums of understanding
• Training for both response personnel and concerned citizens
• Budgeting for and acquiring vehicles and equipment and other goods
• Development of communications systems
• Threat based public education
(Nezih and walter and Green,2005)

Logistics management and SCM in Disaster


Paying attention to Social, Environmental and
Cultural Features of the Affected Population and
Region [Humanitarian Supply Management and Logistics in the Health Sector,2001]

• Identifying the population’s dietary habits, including the types of food


they will not consume for religious, cultural, or traditional reason

• Identifying local and regional producers before asking for food


assistance or negotiating the acquisition of food in other regions;

• Finding out what type of clothes are used, and which ones are not
worn due to cultural or environmental reasons

• Identifying the most common types of housing and construction


materials, including the cultural or environmental reasons,

Logistics management and SCM in Disaster


Uncertainty in disaster
• Degree of uncertainty in disasters are
higher than business condition.

• In business condition uncertainty arises in


timing and quantity.

• Disaster uncertainties arise in timing and


quantity plus location and size.

Logistics management and SCM in Disaster


Assessment
[Humanitarian Supply Management and Logistics in the Health Sector,2001]

Assessment fulfills the roles of


demand planning in the relief chain.

Without performing a basic assessment, it


is difficult to know what is needed, how
much is needed, when it is needed, and
where it is needed.

Logistics management and SCM in Disaster


Assessment activity [Russell,2006]

• Survey and data collection


• Interpretation
• Forecasting
• Reporting
• Monitoring

Logistics management and SCM in Disaster


Assessment [Humanitarian Supply Management and Logistics in the Health Sector,2001]

Assessment establishes

• The needs of the population


• The local infrastructure capacity
• The level of damage to the infrastructure
• The local resources available

Logistics management and SCM in Disaster


What Are Emergency Supplies?
[Humanitarian Supply Management and Logistics in the Health Sector,2001]

The World Health Organization (WHO), in


consultation with
other international organizations, has
adopted a standard classification
that places humanitarian supplies in 10
different categories.

Logistics management and SCM in Disaster


What Are Emergency Supplies?
[Humanitarian Supply Management and Logistics in the Health Sector,2001]

• 1. Medicines;
• 2. Water and environmental health;
• 3. Health supplies/Kits;
• 4. Food;
• 5. Shelter/Electrical/Construction;
• 6. Logistics/Administration;
• 7. Personal needs/Education;
• 8. Human resources;
• 9. Agriculture/Livestock;
• 10. Unclassified.

Logistics management and SCM in Disaster


Sample form for estimating required food quantities

Logistics management and SCM in Disaster


shift in technique from push to
pull [ whybark,2007]

Managing disaster relief inventories requires that they be


first ‘‘pushed’’ out to their storage locations as part of the
disaster planning activities.

As the actual conditions at the disaster area are determined


and much better estimates of the needs can be made,
managers at the site ‘‘pull’’ the needed items to the area.

This shift in technique from push to pull is virtually unknown


in enterprises.

Logistics management and SCM in Disaster


Assessment of Local Capacity
[Humanitarian Supply Management and Logistics in the Health Sector,2001]

It involves not only the physical resources available


at the site of an emergency, but any factors that
may help emergency supply management, such as
local knowledge of the terrain or weather patterns
,or social capital in the form of community
organizations, formal and informal communications
channels, and the like.

Logistics management and SCM in Disaster


Local Infrastructure Capacity
[Humanitarian Supply Management and Logistics in the Health Sector,2001]

• The state of roads, waterways, and other transport


infrastructure needed to guarantee the arrival of
emergency supplies in the region or country that has
been affected.
• The existence and availability of supply storage facilities
• The existence and availability of means of transport
• The state and capacity of points of arrival (airports, ports,
borders,and so on)

Logistics management and SCM in Disaster


Procurement subsystem

Logistics management and SCM in Disaster


Resource Mobilization [Russell,2006]

Financial resources must be mobilized to begin


procurement, to send personnel across
the globe, and to acquire vehicles, warehouses, and
other tangible parts of the relief supply chain.

Logistics management and SCM in Disaster


Procurement [Russell,2006]

Emergency supplies enter the relief chain through different sources,


forms, and locations.

They can be storage,purchasing,donations and loans.

Donations can be solicited or unsolicited

A large relief organization such as the International Federation of the Red


Cross (IFRC) tries to source supplies locally at the disaster site as much
as possible.

The IFRC also pre-sources by region through the following regional


supply headquarters: Africa (Johannesburg); Europe (Turkey); Asia
(Kuala Lumpur); Middle East (Geneva)[?]; and the Americas (Panama).

Logistics management and SCM in Disaster


Procurement [Russell,2006]

This regional procurement is done to obtain the low


prices and high value
while minimizing shipping costs.

The IFRC also maintains strategic agreements with


international suppliers for items used consistently in
disasters, such as blankets, tents, tarps,
certain emergency rations, and WHO medical kits

Logistics management and SCM in Disaster


Donations [Humanitarian Supply Management and Logistics in the
Health Sector,2001]

When they comprise items that have not been


requested, are not a priority, or do not meet the needs
generated by the emergency, they often complicate
unnecessarily the logistics of relief operations.

they can not only be of value to the affected


population, but also provide budgetary relief for the
often cash-strapped disaster relief organizations.

Logistics management and SCM in Disaster


Loans [Humanitarian Supply Management and Logistics in the Health
Sector,2001]

Some people, organizations, and private firms lend


equipment or their services and expertise during a
particular phase of the emergency.

it is important to identify potential lenders before


disaster strikes and, if possible,establish agreements
for these services during the planning stage.

Logistics management and SCM in Disaster


Pros and cons of different kinds of
acquisition [Humanitarian Supply Management and Logistics in the Health Sector,2001]

Logistics management and SCM in Disaster


Pros and cons of different kinds of
acquisition [Humanitarian Supply Management and Logistics in the Health Sector,2001]

Logistics management and SCM in Disaster


Sending Supplies [Humanitarian Supply Management and
Logistics in the Health Sector,2001]

• One way of easing the task of those who


take delivery of emergency supplies, is to
pack the supplies correctly following
standardized procedures.

• Another key principle of effective


assistance is to send only those supplies
that have been actually requested.
Logistics management and SCM in Disaster
Volume, Weight, and Size of the
Packages [Humanitarian Supply Management and Logistics in the Health Sector,2001]

• In principle, the size, weight, and shape of the packages


should be such that each one can be handled by one
individual without mechanical aid.

• Weight: The packages should weigh between 25 kg and


50 kg;

• Volume: The volume should be such that it can be


handled manually. Sometimes the weight may be all
right but the size of the package makes it hard to handle;

• Shape: Packages should have the most symmetrical


shape possible,

Logistics management and SCM in Disaster


Transportation subsystem

Logistics management and SCM in Disaster


Transport [Russell,2006]

• During the disaster, lack and fail of transportation infrastructure


exists and causes problem.

• Transportation makes it possible for assistance to reach those in


need.

• Getting emergency supplies from their point of origin to their final


destination involves the combined use of different means of
transport over air, land, or water.

• It can involve global sourcing, drop shipment, military transport,


commercial transport, non-commercial transport, third-party
logistics firms, freight forwarders, charter aircraft, or even local
transportation such as mules and donkeys.

Logistics management and SCM in Disaster


Transport [Russell,2006]

For example, during the Tsunami international an


illustrative relief shipment could have arrived in Indonesia
in Jakarta through commercial transport by sea from
Singapore. From Jakarta, it was flown by charter aircraft to
Medan in Sumatra and stored in an organizations regional
warehouse. When it was needed, the shipment was
loaded on an International Organization for Migration
(IOM) caravan headed to Banda Aceh. In Banda Aceh, it
was unloaded from the large IOM trucks and delivered by
smaller vehicles to the beneficiaries.

Logistics management and SCM in Disaster


Characteristics of different means of transport
[Humanitarian Supply Management and Logistics in the Health Sector,2001]

Logistics management and SCM in Disaster


Characteristics of different means of transport
[Humanitarian Supply Management and Logistics in the Health Sector,2001]

Logistics management and SCM in Disaster


Commercial vs. Non-commercial
Transport [Humanitarian Supply Management and Logistics in the Health Sector,2001]

• Non-commercial or free transport, sometimes offered by other


organizations or volunteer groups, reduces the cost of the
operation.

• The owners of the transport do not assume responsibility for the


safety of the goods.

• commercial transport is a for-profit business like any other. When


hiring such transport, it is important to consider not only the price
but also the reliability, safety, speed and quality of the firm.

Logistics management and SCM in Disaster


Inventory subsystem

Logistics management and SCM in Disaster


Given the importance of disaster relief,
it is surprising that very little research is
available on the role inventories play in
responding to a disaster.

Despite decades of enterprise inventory


research, little literature is available on
disaster relief inventories. [Whybark , InPress]

Logistics management and SCM in Disaster


Types of Warehouse

• Central warehouse
• Regional warehouse
• Entry point
• Collection site

Logistics management and SCM in Disaster


Entry Points [Russell,2006]

• These are transit points for the supplies before they arrive at
their ultimate destination.

• Since final recipients are often not identified as such by the


senders, it is often the local or national government that
takes over the handling of the emergency consignment from
the entry point.

• supplies should be registered as soon as possible at the


entry points and reception sites using a standardized system
that includes tools for control and follow-up.

Logistics management and SCM in Disaster


Reception(collection) Sites
[Russell,2006]

• These are the sites installed by disaster


relief agencies, private firms, or civil society
groups to receive donations.

• They can also function as transshipment


points, places for preparing and packing
consignments, and central warehouses.

Logistics management and SCM in Disaster


Using Standards for Estimating
Storage Needs and Capacity [Humanitarian
Supply Management and Logistics in the Health Sector,2001]

Logistics management and SCM in Disaster


One example
of Estimating
storage
capacity
needed
[Humanitarian Supply
Management and
Logistics in the Health
Sector,2001]

Logistics management and SCM in Disaster


Warehouse
sectors and
movement
zones [Humanitarian Supply
Management and Logistics in the Health
Sector,2001]

Logistics management and SCM in Disaster


[Humanitarian Supply Management and Logistics in the Health Sector,2001]

Logistics management and SCM in Disaster


Sorting and labeling by priority
[Humanitarian Supply Management and Logistics in the Health Sector,2001]

• The organization in charge of handling the supplies should establish


priorities for the different kinds of items based on the most urgent needs.

• For instance, in the event of an arthquake, medical supplies and


equipment for treating injuries and fractures may be a priority.

• Sorting by priority makes it possible to expedite the processing of the


most urgently needed supplies.

• All boxes and packages should be labeled clearly, indicating their priority.

Logistics management and SCM in Disaster


Sorting and labeling by priority
[Humanitarian Supply Management and Logistics in the Health Sector,2001]

• For instance, the SUMA system uses the following levels

• Priority 1: Urgent—for immediate distribution. Identified by a


red label.

• Priority 2: Non-urgent distribution. goods that are not


immediately required but will be useful at a later
stage.Identified by a blue label.

• Priority 3: Non-priority goods—non-urgent distribution.


Items that have been damaged, have expired, are
unknown, useless, or of doubtful value. Identified by a black
label.

Logistics management and SCM in Disaster


Sample
Beneficiaries
Record

Logistics management and SCM in Disaster


Control subsystem

Logistics management and SCM in Disaster


Monitoring and Evaluation [Russell,2006]

• Monitoring is the regular collection, analysis, and utilization of


information about the supply chain performance.

• Evaluation is the periodic assessment of the relevance, efficiency,


effectiveness, impact, and sustainability of the supply chain.

• The establishment of key performance measures enables the


alignment of an organization’s strategic objectives to its logistics
strategy.

• To ensure this, humanitarian organizations could measure their relief


chain’s budget performance, velocity performance, efficiency, and
quality.

Logistics management and SCM in Disaster


Measuring relief chain performance [Davidson
,2006]

• A disaster response operation involves trade-offs of speed, cost,


and accuracy with regard to the type of goods that are delivered and
their quantities.

• The faster that goods are delivered to beneficiaries after a disaster,


the less likely these goods are accurately meeting the needs of the
beneficiaries, and the more likely the operation will be costly.

• Balancing these trade-offs requires a means of measuring supply


chain performance.
• Today in IFRC, software that was co-developed with the Fritz
Institute makes it possible to capture the necessary data which will
inform the IFRC of their supply chain’s performance.

Logistics management and SCM in Disaster


Measuring relief chain performance [Davidson
,2006]

• Four indicators measure logistic performance in terms of the trade-


offs of speed, cost and accuracy. They include

• Appeal Coverage
• Donation-to-Delivery Time
• Financial Efficiency
• Assessment Accuracy

• Taken together, these indicators create a “scorecard” that will help


the logistics department gauge performance both during and after a
relief operation.

Logistics management and SCM in Disaster


Appeal Coverage [Davidson ,2006]

• This indicator is comprised of two specific metrics :


• percent of appeal coverage

These two metrics together


indicate how well an
organization is both finding
• percent of items delivered donors and delivering
goods to the destination
country at a specific point in
time.

Logistics management and SCM in Disaster


Donation-to-Delivery Time [Davidson ,2006]

This indicator is a measure of how long it takes for an item


to be delivered to the destination country after a donor has
pledged to donate it.

Both the mean and median number of days are reported on the
scorecard

Logistics management and SCM in Disaster


Financial Efficiency [Davidson,2006]

Three metrics comprise the indicator of financial efficiency.

Logistics management and SCM in Disaster


Assessment Accuracy [Davidson,2006]

Assessment accuracy indicates how much the


operation’s final budget changed over time from
the original budget.

Logistics management and SCM in Disaster


Data element used [Davidson ,2006]

Logistics management and SCM in Disaster


Final Scorecard [Davidson,2006]

Logistics management and SCM in Disaster


Information & Communication
subsystem

Logistics management and SCM in Disaster


Communication [Humanitarian Supply Management and Logistics
in the Health Sector,2001]

• During a disaster, communication is as important as food and


water.
• A disaster can damage telecommunication infrastructure.

• If an event happens in a densely populated area, thousands of


people can try to make calls at the same time overloading the
system.

• For example, the American Red Cross, has created mobile


communication trucks. The telecom trucks, once positioned,
provide “48 phone lines, high-speed internet access, e-mail and
satellite-enabled communication with national headquarters”

Logistics management and SCM in Disaster


The most practical communication options
[(Cutts & Dingle, 1998) cited at (russell,2005)]

Logistics management and SCM in Disaster


The most practical communication options
[(Cutts & Dingle, 1998) cited at (russell,2005)]

Logistics management and SCM in Disaster


Tracking and Tracing [Russell,2006]

• Tracking and Tracing describes the process of gathering information


about the current position or status of shipments.

• This is an area where the software can contribute.

• For example, Humanitarian Logistics Software (HLS), developed by the


Fritz Institute for use by the IFRC, is a web-based solution that provide
visibility from the shipping origin to the destination.

• The web-based nature of HLS speeds up information sharing and allows


logisticians the opportunity to plan appropriately for customs,off-loading
labor, and transportation requirements.

Logistics management and SCM in Disaster


Humanitarian Logistics Software (HLS)
[Davidson,2006] and [Russell,2005]

• Humanitarian Logistics Software (HLS) was implemented by the


IFRC in 2003, to track information procurement and distribution of
goods for all major emergency operations.

• It has been in use for all major emergency IFRC operations since
late 2003.

• IFRC, is a web-based solution that proved visibility from the shipping


origin to the destination. This allows both the donors and the
organization to have overall pipeline visibility.

Logistics management and SCM in Disaster


Humanitarian Logistics Software (HLS)
[Davidson,2006] and [Russell,2005]

• Humanitarian Logistics Software consists of four main modules:

• Mobilization
• Procurement
• Transportation and Tracking
• Reports

It connects to financial systems to Provide real-time visibility for costs,


purchases and in-kind donations in the relief pipeline.

Logistics management and SCM in Disaster


Strengths and
Weakness of
Commodity Tracking
Systems.[(Lee, 2004)
cited at (Russell,2005)

Logistics management and SCM in Disaster


The Application of New Technologies
[Humanitarian Supply Management and Logistics in the Health Sector,2001]

• GIS provides critical information to relief agency staff about how humanitarian
support efforts are progressing and helps ensure agencies are acting in a
coordinated and efficient manner.

• Today many options are available for the monitoring and control of
consignments.

• Bar codes, magnetic strips, and optical character recognition,to name a few,
make it easy to capture and convey relevant information with near-perfect
precision.

• While these technologies are chiefly used in the trade sectors, it is not unrealistic
to expect that humanitarian agencies will also employ them eventually to follow
up on their consignments in the field and, in general, to keep track of their
humanitarian assistance operations

Logistics management and SCM in Disaster


Bar Codes [Humanitarian Supply Management and Logistics in the Health
Sector,2001]

• Bar code labels make it possible to represent alphanumeric


characters (letters and numbers) by means of bars and
blanks of varying widths that can be "read" automatically by
optical scanners.

• The system recognizes and processes these symbols,


compares their patterns with those already stored in
computer memory, and displays the information it has
interpreted.

Logistics management and SCM in Disaster


Radio Frequency Identification(RFID)
[Humanitarian Supply Management and Logistics in the Health Sector,2001]

• RFID tags are attached to pallets, trucks, and large containers to


monitor the location of shipments en route.

• RFID Interrogators, or tag readers, are positioned along the delivery


route and can read the tags or labels as they go through each
position.

• The tags "wake up" and report their specific ID number to the
644 MHz interrogator, which reports the time, date, and label
details to a common server.

• The distribution warehouse of the Defense Logistics Agency, in


Pennsylvania (United States), was the site of the first test of RFID.

Logistics management and SCM in Disaster


Military Logistics

• The military continues to provide humanitarian


assistance along side NGOs.

• Due to its well-defined command structure and size, the


military has the ability to respond faster to large-scale
emergencies than humanitarian organizations .[(OECD, 1998)
cited at (Russell,2005)]

Logistics management and SCM in Disaster


A paper review in this area
OR/MS research in disaster operations management [Nezih and walter and Green,2005)

Their search resulted in 109 articles with 77 of them published in


OR/MS related journals, and 42 of them in main stream OR/MS outlets.

Keywords ‘‘disaster’’, ‘‘emergency’’, ‘‘catastrophe’’,‘‘extreme event’’


and their extensions such as ‘‘disastrous’’ and ‘‘catastrophic’’ were searched

Disaster research in medicine, geophysics, forensic science, oceanography,


meteorology , biology, and psychology were filtered.

Logistics management and SCM in Disaster


A paper review in this area [Nezih and walter
and Green,2005]

Logistics management and SCM in Disaster


A paper review in this area [Nezih
and walter and Green,2005]

Logistics management and SCM in Disaster


A paper review in this area
[Nezih and walter and Green,2005]

Logistics management and SCM in Disaster


Reference
• Anup Roop Akkihal (2006) Inventory Pre-positioning for Humanitarian
Operations, Edgar E. Blanco, Ph.D, Massachusetts Institute of
Technology

• Timothy Edward Russell(2005) The Humanitarian Relief Supply


Chain: Analysis of the 2004 South East Asia Earthquake and
Tsunami, Jarrod Goentzel, Massachusetts Institute of Technology

• Anne Leslie Davidson (2006), Key Performance Indicators in


Humanitarian Logistics , Edgar Blanco, Massachusetts Institute of
Technology

• Clay Whybark, D., Issues in managing disaster relief inventories. Int.


J. Production Economics (2007),doi:10.1016/j.ijpe.2006.12.012

Logistics management and SCM in Disaster


Reference
• Beamon, B.M. (2004) Humanitarian Relief Chains: Issues and
Challenges. 34th International Conference on Computers and
Industrial Engineering

• Altay, N., Green, W.G. (2005) OR/MS research in disaster operations


management.European Journal of Operational Research.

• Humanitarian supply management in logistics in the health sector


Washington, D.C. PAHO, 2001

• www.ifrc.org/what/disaster

Logistics management and SCM in Disaster

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