CHAPTER ONE

HUMANITARIAN logistics : An Introduction

 WHAT IS Humanitarian logistics?
 "Logistics is the process of planning, implementing and controlling the efficient, effective flow and storage of
goods and services and related information from point of origin to the point of consumption for the purpose of
conforming to customer requirements.“
 Logistics is the management of all activities which facilitate movement and the co-ordination of supply
and demand in the creation of time and place utility
 It is also the positioning of resource at the right time, in the right place, at the right cost, at the right quality.
 Humanitarian logistics is a branch of logistics which specializes in organizing the delivery and
warehousing of supplies during natural disasters or complex emergencies to the affected area and people.
 Type and quantity of the resources, way of procurement and storage of the supplies, tools of tracking
and means transportation to the stricken area, specialization of teams participating in the operation
and plan of cooperation between these teams, are some important issues that are connected directly
to humanitarian logistics.
 “Humanitarian logistics refers to the processes and systems involved in mobilising people, resources,
skills and knowledge to help vulnerable people affected by natural disasters and complex emergencies”.
 WHAT IS Humanitarian logistics?
 Although they have been mostly utilized in commercial supply chain, logistics is one of
the most important tools now in disaster relief operations.
 Type and quantity of the resources, way of procurement and storage of the
supplies, tools of tracking and means transportation to the stricken area,
specialization of teams participating in the operation and plan of cooperation
between these teams, are some important issues that are connected directly
to humanitarian logistics.
 Assistance and action designed
 To save lives
 Alleviate suffering and
 Maintain and Protect human dignity during and in the
aftermath of emergencies.
 Humanitarian Logistics
Governed by the principles of
Humanity, Neutrality, and Impartiality /independence.

The principles are Developed by Henry Dunant after the battle of Solferino (1859),
initially to protect the rights of soldiers.
 In 1864 they became part of the Geneva Convention, and in 1875 were the seeds/beginnings/sources
for the Red Cross Movement.

Humanity
 This implies that human suffering should be relieved wherever found.
 It is the very reason why HO are deployed.
 Keeping in mind that in order to relieve suffering, HA brings scarce
resources into societies affected by disaster and often experiencing social
change, where the process of change itself often involves conflict.
 Neutrality

 Relief should be provided without bias or affiliation to a party in the

conflict.
 On the basis of neutrality, agencies may choose not to participate in local
issues if there is an eminent risk of getting trapped by political agendas.
 Maintaining a neutral stance is perhaps the most challenging and costly
condition for agencies.
Impartiality
 Assistance should be provided without discrimination and with
priority given to the most urgent needs.
 Impartiality in operations can be evaluated more precisely in terms of non-
discrimination between groups:
 Proportionality in relation to need, and
 Non-subjective recognition of needs as identified by the community.
 LOGISTICS & SUPPLY CHAIN MANAGEMENT
FROM HUMANITARIAN ASPECT

What is the role of humanitarian supply chain management?

 The humanitarian supply chain bases its focus on providing relief aid in the forms of

food, water, medicine, shelter, and supplies to areas affected. A number of studies have
been conducted on humanitarian Supply Chain management.
 Humanitarian logistics is a branch of logistics which specializes in organizing the delivery

and warehousing of supplies during natural disasters or complex emergencies to the

affected area and people. However, this definition focuses only on the physical flow of
goods to final destinations, and in reality, humanitarian logistics is far more complicated
and includes forecasting and optimizing resources, managing inventory, and
exchanging information. Thus, a good broader definition of humanitarian logistics is the
process of planning, implementing and controlling the efficient, cost-effective flow and
storage of goods and materials, as well as related information, from the point of origin to
the point of consumption for the purpose of alleviating the suffering of vulnerable people.
LOGISTICS & SUPPLY CHAIN MANAGEMENT FROM HUMANITARIAN ASPECT
 THE ROLE OF HUMANITARIAN LOGISTICS IN DISASTER RELIEF
EFFORTS
 Humanitarian logistics plays an integral role in disaster relief for several reasons. First,
humanitarian logistics contributes immensely to mitigating the negative impact of natural
disasters in terms of loss of life and economic costs. These losses occur in four different
ways:
 Losses of buildings, highways and other infrastructure;
 Losses in output and reductions in employment and tax receipts;
 Losses due to the increase in the price of consumable and construction materials; and
 Losses of millions of lives because of the scarcity of food and accidents.
 Second, humanitarian logistics is considered the repository of data that can be analyzed to
provide post-event learning. Logistics data reflects all aspects, from the effectiveness of
suppliers and transportation providers, to the cost and timeliness of response, to the
appropriateness of donated goods and the management of information. Thus, it is critical to
the performance of both current and future operations and programs. Organizing emergency
response plans will help preparation and consequently mobilization in times of disasters.
…
 As can be seen in the above Figure, the process is complicated with the involvement
of various actors in different locations. To be more specific, the process connects
various actors, including, donors, local/international aid organizations, local
governments, and beneficiaries. There are three fundamental flows in this process: the
flow of material, the flow of money, and the flow of information.
 The flow of material: the flow of products from donors to beneficiaries, including
food, blankets, medicines, and water, and the reverse flow of returned products after
disasters.
 The flow of information: includes demand forecasts, order transmissions, and order
status reports, to ensure preparedness and communications.
 The flow of money: includes checks, cash, and payment documents such as
Letters of credit, invoice, and commercial contracts.
 1.3 Challenges, gaps, and trends in humanitarian Logistics

 The ultimate objective of humanitarian logistics is to ensure distribution time minimization

along with cost minimization and response maximization.
 The role of humanitarian logistics is tough to measure since there are many limitations
related to natural issues like- geographical situations, weather conditions or other factors
like- odd working environment.
 As per Balcik and Beamon (2008), challenges to humanitarian logistics include demand
irregularity, abrupt occurrences and high stakes related to delivery time appropriateness.
 People behind humanitarian logistics have to face infrastructural challenges and seasonal
issues.
 Due to many challenges cited like- coordination of the logistical activities, demand
irregularity along with unexpected occurrences, high stakes related to delivery time
appropriateness, poor infrastructure and seasonal constraints, the task of humanitarian
logisticians have become more complex..
 The PPT model views humanitarian logistics as a comprehensive process having three
components i.e. People, Process and Technology;
A. The main humanitarian Logistics challenges are:-
Limited Infrastructure and Connectivity
Coordination and Collaboration
Resource Constraints and Cost Management
B. Strategies for Overcoming Humanitarian Logistics Challenges
 Prepositioning and Stockpiling for Humanitarian Logistics

 Collaboration with Local Partners

 Technology Integration and Data Analytics

C. The Role of Supply Chain Management in Humanitarian Logistics

 Demand Forecasting and Planning

 Flexible and Agile Supply Chains

 Risk Management and Contingency Planning

 1.4 Logistics skills and performance

 Logistics skills are the competencies business professionals use to collect data,
find areas of improvement within a supply chain and ensure that manufacturing
operations perform accurately. It's common for supply chain management
professionals, such as logistics analysts or inventory managers, to use logistics
skills to ensure that a supply chain operates effectively. While individuals may
learn these skills in school, they may gain most of their logistics skills while
working in the manufacturing field since they can identify specific traits or
techniques that benefit them while working.
The Logistics skills are includes
 Adaptability  Problem-solving  Organization
 Leadership  Decision making  Analytical skills
 How to improve logistics skills

1. Identify areas of improvement

2. Seek feedback from team members
3. Expand your logistics knowledge
Logistics skills in the workplace
 Measuring progress: They may use logistics skills to measure the progress of their
manufacturing chain and to create steps to achieve goals. They may measure the progress of their
individual manufacturing teams or the workplace altogether.
 Finding areas of improvement: Supply chain management professionals may use logistics skills
to identify areas of improvement within their workplace's manufacturing processes. These skills
can help them identify the cause of an issue, then use analytical reasoning and problem-solving to
find a solution.
 Decision-making: Professionals may use logistics skills to help them make informed decisions
about the supply chain process. They may decide to modify specific procedures or policies to help
manufacturing have higher productivity and efficiency.
 Logistics Performance

 Logistics performance is a measure of how well logistics activities are being managed in an organization. It is important
to track this performance as it has a direct impact on the profitability and efficiency of the business.
 To continue, logistics performance is usually measured by evaluating logistics cost, delivery speed, reliability,
inventory management, logistics effectiveness, and customer service.
 Tracking these metrics over time, allows businesses to identify areas for improvement and ensure they are optimizing
their logistics operations.
 Ultimately, improved logistics performance leads to higher customer satisfaction rates which will have a positive
effect on revenue. Therefore it is essential for organizations to continuously monitor their logistics performance to
maintain a competitive advantage. The logistics performance measurements described above provide a good baseline
for companies looking to improve their logistics processes.
 However, there are additional steps that should be taken for further process optimization. Automation, analytics, and
data-driven decision-making are core components of logistics performance excellence. By utilizing powerful logistics
analytics technology, companies can gain better insights into their logistics network and identify areas that require
improvements.
 Additionally, logistics automation solutions can streamline processes and reduce logistics costs, ultimately leading to
improved logistics performance.
 Lastly, companies should focus on building strong customer relationships by delivering timely and reliable services.
 Supply Chain

 Supply chain performance is an essential part of any business. It encompasses

logistics, inventory management, and customer engagement activities that can
make or break the success of companies. From logistics performance to customer
satisfaction, supply chain performance is a critical factor in the overall success of
businesses.
 Companies need to have reliable logistics partners that can help provide efficient
and cost-effective logistics services. Further, they should invest in advanced
logistics technologies such as automation and analytics to ensure that their
logistics network runs optimally. Finally, companies must focus on building strong
customer relationships by delivering timely and reliable services.
 This will result in improved supply chain performance which will ultimately lead
to increased profits for the company.
 Supply Chain Management (SCM)

 (SCM) is the process of managing all logistics activities and resources to efficiently move
materials, parts, and goods from suppliers to customers. SCM involves planning, organizing,
controlling, and monitoring supply chain activities so that they are aligned with customer
requirements and business goals.
 It also entails understanding customer needs and improving logistics performance to reduce
costs while responding quickly to changes in market demand. Effectively managing a supply
chain requires close collaboration among internal departments as well as external partners
such as logistics providers, carriers, vendors, and distributors.
 By investing in a comprehensive approach to SCM, companies can ensure that their logistics
operations will be efficient and cost-effective.
 The bottom line is that businesses must focus on optimizing logistics management and
performance if they want to achieve lasting success. Companies should prioritize management
and logistics to reduce total costs, improve customer service, and increase their competitive
advantage in the marketplace.
 1.5 Characteristics of humanitarian supply chain

 The Humanitarian Supply Chain, as well as for business purposes, includes

the following activities: preparation, planning, procurement, transportation,
storage, tracking and customs clearance
 The characteristics of a good supply chain are visibility, optimization, having
the lowest cost possible, timeliness, and consistency.
 1.6 Benchmarking & Metrics for humanitarian logistics
Performanc Literature
Description
e indicators support
Reliability means that humanitarian relief organizations can deliver materials at the right time in the right
Reliability Lu et al. (2016)
quantity and quality.
Responsiveness is an indicator related to the rapid response time of humanitarian supply chain
management. It is based on material fulfillment time, including procurement, integration, and delivery Lu et al. (2016)
Responsivenes
s
time, and therefore shows the overall responsiveness in the humanitarian supply chain. Beamon &
In addition, the impact and percentage of external events will also be considered. Considering that Balcik (2008)
humanitarian relief organizations face various risk events, they must respond quickly to any emergencies.

This indicator is the main indicator for measuring the financial performance of humanitarian logistics. Lu et al. (2016)
Cost The cost of humane logistics comes from supply chain management, material procurement, warehouse Beamon &
management, material delivery, and risk management. Balcik (2008)

Lu et al. (2016)
Humanitarian relief organizations face various uncertainties and need to quickly adjust their actions Oloruntoba
Agility according to local needs. It includes the delivery time and flexibility of the upstream supply chain as well & Gray (2009)
as the number of warehouses in the humanitarian relief organization to cope with the sudden disaster. Beamon &
Balcik (2008)

Russbach
Dialog with Good dialog and coordination with the authorities will establish a relationship, which helps to allocate & Fink (1994)
authorities and manage supplies and protect individuals from the unstable local environment in the disaster area. Fathalikhani
et al. (2020)
 1.7 Over view of Key performance indicators in logistics
management

LOGISTICS KEY PERFORMANCE INDICATORS AND METRICS

Here is the complete list of the most important logistics KPIs and metrics, that we
will discuss in this article in every detail:
 Shipping Time.

 Order Accuracy.

 Picking Accuracy.

 Delivery Time.

 Pick & Pack Cycle Time.

 Order Cycle Time.

 Equipment Utilization Rate.

 Trailer Utilization Rate.

 A logistics KPI or metric is a performance measurement logistics managers use to track,
visualize, and efficiently optimize all relevant logistic processes. Among others, these
measurements refer to transportation, inventory, warehouse, and supply chain aspects.
 Shipping Time: Spot potential issues in your order off or pick up orders
fulfillment process  Inventory Carrying Costs: Track all related costs of
 Order Accuracy: Monitor the degree of incidents storing unsold inventory
 Picking Accuracy: How many orders are picked without  Warehousing Costs: Optimize the expenses of your
errors? warehouse
 Delivery Time: Track your average delivery time in detail  Pick & Pack Costs: Monitor all costs related to your pick
 Pick & Pack Cycle Time: Track the time it takes to pick & pack process
and pack your orders  Operating Ratio: Track the profitability of your
 Order Cycle Time: Monitor the time it takes to ship an operations
order  Use of Packing Material: Optimize your materials usage
 Equipment Utilization Rate: Is your equipment enough  Number of Shipments: Understand how many orders are
for your workforce? shipped
 Trailer Utilization Rate: Monitor the percentage of trailer  Inventory Accuracy: Avoid problems because of
space being utilized inaccurate inventory
 Transportation Costs: Analyze all costs from the order  Inventory Turnover: Track how many times your entire
placement to delivery inventory is sold
 Dwell Time: Reduce the time drivers are waiting to drop  Inventory to Sales Ratio: Identify a potential overstock
 Humanitarian Logistics Group Assignment

 In this dynamic environment, our world manifests different type of

disaster irrespective of their type and nature and huge amount of losses
were recorded at all levels. To this end elucidate type of disaster faced in
Ethiopia starting from 2012 Geez C. Address the following points clearly.
1. Size of loss recorded in all cases
2. humanitarian response provided,
3. Humanitarian principles vis-à-vis their application adopted by different
international organizations like UNICEF’S, UNHCR etc
4. Basic challenges experienced
5. Recommendation you have or way forward
….

You
a nk
 S

 (
Humanitarian Ideologies(HI)
 We can group agencies into three traditions based on these
ideologies:
Faith-based organizations
Dunantists
Wilsonians
Faith-based organizations
 Combines religious values with social goals.

 They are ecumenical and do not impose their values

on the beneficiaries they serve.

 Examples -Catholic Relief Services.

Dunantists
 The principles advocated by Henry Dunant- launched the Red Cross
Movement in 1875.

 Uphold the principles of impartiality and Neutrality a

 Advocate a non-interventionist strategy in conflict.

 This group also includes

 Oxfam,
 Save the Children,
 Médecins Sans Frontières (Doctors Without Borders), and
 Action Contre la Faim (Action Against Hunger)
Wilsonians
 They encompass former president Woodrow Wilson’s ambitions to project US
values and influence as a force for good in the world.

 Although it started out as a US movement, first seen in action throughout the

marshal plan, it now spans the whole political spectrum (e.g., Cooperative for
American remittances to Europe (CARE), founded after WWII to deliver US
army food parcels surplus during the marshal plan).

 Wilsonians and faith-based organizations could be said to have built-in conflict

of interest depending on how much their ideologies influence their agenda
(political or religious).
HOW MUCH WAS GIVEN-2012
 The international humanitarian response declined from US$19.4 billion in 2011 to
US$17.9 billion in 2012.

 The scale of humanitarian needs fell marginally in 2012, but the funding gap in the
United Nation’s (UN) Consolidated Appeal Process (CAP) was at its widest in over a
decade.

 Government donors, which include European (EU) institutions, provide the largest
share of the total international humanitarian response.

 Their contributions declined by 5.9% in 2012, from US$13.8 billion to US$12.9 billion.
Government Donors
 Government donors give the largest amount of HA, on average
accounting for over 70% of the IHR since 2007.

 OECD DAC donors provide the majority of governments‘ IHA (over

90% since 2007), but the balance is slowly shifting.
Government Donors
OECD DAC MEMBERS
 Australia,
 Austria, Belgium, Canada, Denmark,
 Finland, France, Germany, Greece,
 Ireland, Italy, Japan, Luxembourg,
 the Netherlands, New Zealand,
 Norway, Portugal, Spain, South
 Korea, Sweden, Switzerland, the
 United Kingdom, the United States
 and EU institutions.
NON-OECD DAC MEMBERS
 Bulgaria, Chinese Taipei, Cyprus,
 Estonia, Hungary, Israel, Kuwait,
 Lithuania, Latvia, Liechtenstein,
 Malta, Poland, Romania, Russia,
 Saudi Arabia, Slovak Republic,
 Slovenia, Thailand, Turkey and the
 United Arab Emirates.
Individual/private donors(Public to NGO)
 individual and private (UN, NGOs, Red Cross) donations have
represented up to 26% of all IHA between 2007 and 2011.

 Individual and private donors also play a critical, although little

understood, role in GHA.

 Private donors are thought to have provided more than a quarter of

all HA over the past five years, largely in the form of voluntary
contributions from the public to NGOs.
Individual Vs Private donors cont…
 Foundations such as:
 Bill and Melinda Gates Foundation
 IKEA Foundation-in 1943 by Ingvar Kamprad, -Home furnishing
 Crédit Suisse Group,
 ING and Microsoft Corporation

 Provided similar levels of funding from 2007 to 2011, at US$1.4 billion and US$1.5
billion respectively.
 Companies and corporations US$1.5bn
 Other private donors US$2.1bn
 Individuals US$15.0bn
Domestic government(DS) response
 Growing and increasingly institutionalized domestic response to
crises and investment in Disaster Risk Reduction (DRR).
 DS by the governments, communities and civil societies of countries
hit by emergencies is critical, especially in the first 72 hours.
Our Approach
Tailor-made, participatory, theory & practice
•we will Adhere to the principles of adult education, including:
What we hear – we forget
What we see – we remember
What we do – we understand
*Interactive lectures
*Plenary discussions
*Two way approach