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.
[...] 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. Beamon (University of Washington) Strategic Logistics Management. Stock, James R. and Douglas M. Lambert 4th ed. Boston: McGraw-Hill (CHAPTER Emergency relief logistics : an evaluation of military, non military and composite response model. [...]
[...] In the commercial area, the supply chain has been implemented carefully and in a long-term perspective; continuous improvement is at stake and every aspect of the logistics process is controlled in order to spot weaknesses and areas for changes. Performance is a key aspect and is always linked with minimizing costs and maximising profits logistics activities As there are many logistics activities, all the information about similarities and differences have been gathered in a table in order to simplify the reading: Logistics Commercial logistics Humanitarian logistics activities Customer service Customer service is made There are no real of the care activities “customers” as people to customers that receiving goods and support the delivery of services don't purchase the product/service. [...]
[...] is generated from random events which are unpredictable in terms of timing and location Inventory It uses well defined Due to the high variation management methods for determining in lead time, demands and inventory levels based demand location, inventory on lead time, demand and management is a stake much target customer service more challenging. levels. Logistics This activity is crucial in both logistics insofar communications as communication represent the link between the logistics process and people/customers. Materials This activity is similar for both logistics. [...]
[...] Communication and Coordination Most of the problems we've underlined have solutions that could be implemented but those solutions would not be completely effective without improving communication and coordination as well. First, it is essential to find a solution to the split up in two of the whole supply chain. To do so, the ERP system we've talked about might be as good solution as it would to ensure an instant sharing of the information between international and local supply chain. [...]
[...] 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. [...]
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