The Aspect of Logistics Management or Humanitarian Logistics in UNICEF - Case Study Example

Logistic Management Report Executive Summary The aspect of logistics management or humanitarian logistics has become a significant concern in today’s modern context due to the augmented level of nationalisation along with globalisation. The different kinds of utility such as form, place and time play an imperative part in supply chain functions as they determine the generation of greater value to the customers by a significant level. In order to conduct effective logistics activities, it is quite necessary to overcome the challenges that might generally arise by a greater extent. Before analysing different logistics activities that can add significant value to a humanitarian emergency aid response in terms of form, place and time utility, diverse challenges along with the factors that can help in overcoming these challenges has been taken into concern. Moreover, a humanitarian organisation i.e. UNICEF has been considered in order to demonstrate the different logistics activities such as warehousing, transportation and coordination amid others that can add significant value to a humanitarian emergency aid response in terms of place, form and time utility. Table of Contents Executive Summary 1 Introduction 3 Definition of Form, Place and Time Utility 4 Form Utility 4 Place Utility 4 Time Utility 5 Factors to Solve Different Logistics Challenges 6 Discussion about Different Logistics Activities with Example 7 Packaging and Materials Handling 8 Warehousing 9 Transportation 10 Coordination 11 Conclusion 14 References 16 Introduction The significance of logistics management is incessantly mounting in different fields due to increased level of globalisation as well as nationalisation. Logistics management is fundamentally described as an imperative part of supply chain procedure that intends to plan, employ as well as control the flow of services along with information and storage of goods for the purpose of meeting the requirements of the customers. The conception of logistics management has been proved to be quite beneficial especially for dissimilar industries, which supports them to optimise their distribution procedure which ultimately results in raising their effectiveness as well as competitiveness by a significant level (Tseng & et. al 2005). The governments belonging to diverse nations have recognised the significance of execution of en effective logistics management procedure that can impose considerable impact upon their respective economies (Australian Government n.d.). In this similar context, the conception of humanitarian logistics refers to a specialised network that is generally created through effectual flow of services, information and finances between different suppliers and beneficiaries among others with the intention of delivering physical support to them. It has been apparently observed that the idea of humanitarian logistics not only enhances the different logistics activities that occur at every phase of production process but also improves the steadiness of various humanitarian operations by a greater extent (Kovacs & Spens 2009). In this paper, a detailed analysis of important logistics activities in relation to a humanitarian relief organisation will be taken into concern. Moreover, the different logistics challenges that can be overcome and the various logistics activities that can add significant value to a humanitarian emergency aid response in terms of form, place and time utility is also considered in this paper. Definition of Form, Place and Time Utility Form Utility The perception of form utility refers to the condition or the form of a particular product that can be utilised by the consumers and is of greater value to them. In general, it has been viewed that form utility is related with the manufacturing as well as production process. In this similar context, it can be affirmed that form utility fundamentally signifies value added to goods along with materials through an effectual assembly or manufacturing procedure. It has been apparently observed that certain valuable logistic activities such as packaging can also deliver form utility. With regard to modern business context, form utility generally involves making a particular product or material ready for use on behalf of the customers. The major significance of form quality utility lies with reference to the fact that it broadly enhances the marketability of a product by transforming its physical attributes (Coyle & et. al 2008). Place Utility In relation to logistics management or humanitarian logistics, place utility refers to the transformation in the physical location of a product. The notion of place utility is described as the procedure of raising the attractiveness of a specific product by changing its physical location or setting. In accordance with the modern business context, most of the business organisations execute place utility by involving the shipping of a finished product to certain sites that are much accessible to the customers as compared to the location where the products have been originally manufactured. The idea of logistics management executes place utility by transporting goods from the production points to certain locations where huge demand exists for the products. It has been viewed that logistics generate place utility primarily through effective transportation and tend to add superior financial value to the products or materials. The significant aspect of place utility has been identified to raise market competition as well as product accessibility by a greater extent. Most of the business organisations employ place utility with the intention of increasing the attractiveness of a product by changing the attributes of the physical setting of a product (Coyle & et. al 2008). Time Utility Another major concept of time utility denotes making the products available to the customers in due course of time. The modern business organisations greatly prioritise upon this significant feature of time utility as this feature aids them to deliver their respective products to the customers within prescribed time and thus earn greater profitability along with productivity. It has been viewed that logistics generate time utility by making appropriate maintenance in the inventory process, transportation and the tactical setting of goods as well as services ( Sheth & Parvatiyar 1995). The idea of time utility has been recognised to be an imperative one considering the modern business context as it broadly focuses upon two significant aspects. These include lessening lead time and most importantly diminishing inventory levels through the execution of certain logistics associated policies such as just-in-time (JIT) process of inventory control. The organisations strongly realise that they can attain superior satisfaction level of the customers by delivering their respective products to the customers at a suitable time and also in an efficient manner (Coyle & et. al 2008). Factors to Solve Different Logistics Challenges The perception of logistics or logistics management has become a vital part in every business entity as well as in every economy. However, it has been apparently observed that there exist certain crucial challenges while conducting different logistics activities. In this similar context, the challenges include mitigating the supremacy of the wholesalers, comprehending the composite arrangement of the distribution channels along with certain legal based issues. Furthermore, the other critical challenges related to different logistics activities comprise material flow, configuration in the logistics network and information flow among others. In this connection, there exist certain significant factors that can solve the aforementioned logistics challenges by a considerable level. From the perspective of mitigating the logistics challenge in relation to complex arrangement of the distribution channels, the factors such as appropriate distribution of different products from plants to various warehouses along with identifying the service areas as well as the location of warehouses can be employed (Cheong 2003). With the aim to tackle the challenge concerning the network configuration of logistics, the solutions regarding logistics network design must be based upon certain vital information. The information that needs to be considered is about recognising the plant locations along with their capability to produce goods, identifying the locations of the customers along with their demands in buying a product and complying with the service-level requirements. Moreover, the other information encompasses spotting the accessible transportation links along with their respective costs and identifying the potential locations of the warehouses. In relation to coping up with the logistics challenge concerning material flow, better coordination techniques need to be implemented. Besides, in this regard, effective coordination particularly with the downstream customers or retailers as well as the upstream manufacturers or suppliers is also required in order to tackle the logistics challenge regarding material flow. Finally, from the standpoint of mitigating the challenge relating to wholesalers’ dominance, the establishment of effectual long-term interrelation with the wholesalers is also quite necessary (Cheong 2003). Discussion about Different Logistics Activities with Example The different sorts of logistics activities relating to supply chain management such as warehousing, transportation and coordination among others are liable for the movement as well as the storage of products or materials from the beginning of the production process till the deliverance of the final products to the end customers. In this similar context, it has been apparently observed that the different aforementioned logistics activities act as a supportive action that significantly create concern for the modern business organisations by a greater extent. Moreover, the aforesaid activities are often considered to be the key constituents particularly in the field of logistics management or humanitarian logistics as they largely contribute in completing the overall logistics tasks successfully (Lai & Cheng 2009). A few of the important logistics activities have been described hereunder. Packaging and Materials Handling Packaging and materials handling is generally considered to be one of the major logistics activities, which imposes considerable impact upon the effectiveness and the competence of the retail supply chains at large. This is owing to the reason that this particular logistics activity i.e. packaging and materials handling acts as an interface between the entire supply chain process and the customers. This logistical activity is viewed to be a synchronised method of preparing different products in a safe as well as in an efficient manner so that the products can be delivered to the customers in accordance with the requirements of the customers and thus maximising profits (Saghir 2004). It has been viewed that different governments of diverse nations like Australia have proclaimed to introduce legislations in packaging different brands such as tobacco among others (Commonwealth of Australia n.d.). In this regard, a practical example has been considered concentrating upon humanitarian emergency aid at a humanitarian organisation i.e. United Nations Children’s Fund (UNICEF) that delivers long-term humanitarian support to the children of different developing nations. The logistics activity of packaging as well as materials handling can add significant value to a humanitarian emergency aid response in terms of form and time utility. Relating to the example of UNICEF, it has been observed that the organisation uses advanced technical specifications while packaging its one of the significant products i.e. vaccines while making any emergency response. Moreover, the organisation maintains its benchmark of packaging large amount of vials or vaccines bearing the symbol of CE or comparable internationally renowned safety standards. In addition, the organisation follows certain effectual guidelines on its international packaging of vaccines that include the use of insulated packaging in order to make sure safe temperature during transportation and explicit labelling which displays expiration dates, weights, packed volumes and needed storage temperatures (UNICEF 2004). The organisation efficiently handles the requisite materials that are required at the time of emergency by introducing safety boxes or puncture-resistant containers in which the syringes or vials are kept. In terms of time utility, UNICEF stores its newly arrived vaccines in refrigerators where the temperature is recorded as well as incessantly monitored numerous times daily. This implies that the humanitarian organisation i.e. UNICEF maintains the exact temperature from the initial stage of the manufacturing process of the vaccines or vials till the end of their use. In terms of form utility, UNICEF follows an effective manufacturing process by introducing as well as developing new and pioneering instruments with the intention of enhancing immunisation safety particularly (UNICEF 2004). Warehousing The logistics activity of warehousing is principally regarded as a certain infrastructure in which the transport operators perform their respective operational functions in an effective manner. This particular logistics activity eventually increases the standardisation, package information as well as protection of a specific product by a greater extent (Saghir 2004). The logistics activity of warehousing can add significant value to a humanitarian emergency aid response of a humanitarian organisation such as UNICEF in terms of place, form and time utility. In this similar context, from the perspective of place utility, it has been observed that the different networks of warehouses of UNICEF have been designed in such a way so that the children can attain requisite supplies quickly at a lesser transportation cost in any emergency. One of the warehouses of UNICEF i.e. The Copenhagen Warehouse which is equipped with advanced technology intends to deliver requisite materials as well as services to the children during emergencies. With regard to form utility, the supply division of UNICEF has introduced, developed as well as designed the requisite products or services in accordance with meeting broad assortment of emergency needs concerning different critical areas. The critical areas include medical care, education as well as the protection of the children. It has been viewed that The Copenhagen Warehouse of UNICEF possesses large number of stocks of different products that are often used in emergency conditions (UNICEF 2012). From the standpoint of time utility, The Copenhagen Warehouse of UNICEF has been identified to hold large quantity of stocks of different requisite services with the intention of making the accessibility of the products in accordance with the requirements of the beneficiaries. By taking into concern the facet of time utility, it can be stated that the humanitarian organisation i.e. UNICEF recognised that different products or services possess dissimilar sensitivities to time. For this particular reason, The Copenhagen Warehouse of UNICEF intends to focus much upon its supply division so that the children along with their families can attain the required supplies quickly at the time of emergencies (UNICEF 2012). Transportation The logistics activity of transportation fundamentally determines the effectiveness of moving products from one particular origin to the other. The significant concern of transportation plays a decisive part in logistics manipulation by a greater extent. In this connection, transportation as a major logistics activity supports in lessening shipment delays and diminishing tracking of lost shipments. Moreover, the logistics action of transportation has been viewed to be an essential aspect that is needed in the entire production process starting from manufacturing to the deliverance of final products to the end customers. In other words, transportation as a logistics activity offers superior logistics competitiveness, lessens operational based costs and promotes effective service quality (Saghir 2004). It has been viewed that the costs related to transportation may be counterbalanced by decreasing inventory-storage related expenditures through making bulk deliveries (New South Wales Government 2000). Relating to the practical instance of UNICEF, it can be stated that the logistics activity of transportation can add considerable value to the organisation i.e. UNICEF in terms of place as well as form activity. From the perspective of place utility, UNICEF executes the aspect of ‘cold chain’ that has been recognised to be a cold storage network which makes sure that one of the important products of the organisation i.e. vaccines or vials are effectually stored as well as transported at the correct temperature. Moreover, the organisation, in terms of place utility has strongly realised that the ‘cold chain’ must stay unbroken for smooth transportation of vaccines from manufacturing locations to ultimate destinations. From the standpoint of form utility, it can be stated that the organisation i.e. UNICEF employs safety boxes along with puncture-resistant sort of containers that hold several syringes or vaccines for the purpose of generating greater value to the beneficiaries (UNICEF 2004). Coordination The logistics activity of coordination is quite helpful for managing as well as organising mutually dependent logistics activities for the purpose of coping up with demand changeability along with unnecessary inventory. An effective coordination amid the suppliers, retailers, distributors as well as manufacturers among others would eventually support the firms towards attaining flexibility along with facilitating them to enhance their logistics procedure by a greater extent (Saghir 2004). It has been apparently observed that a few of the governments of diverse nations had endeavoured to work in a cooperative, consistent as well as in a transparent manner in order to make sure effective coordination (Commonwealth of Australia 2010). The logistics activity of coordination can add significant value to a humanitarian emergency aid response at large. Relating to the practical instance of UNICEF, it can be affirmed that coordination, as a form of logistics activity can add significant value in terms of form, place and time utility. From the perspective of form utility, the organisation i.e. UNICEF delivers its products or services that can be consumed as well as that are of greater value to the beneficiaries at the time of any emergency by coordinating with different groups that include non-governmental organisations (NGOs), UN agencies and various regional institutions. With regard to place utility, the organisation intends to make the accessibility of its products or services as per the requirements of the beneficiaries during emergencies by acting as a coordinating agency ensuring that the requirements of different programme sectors relating to health, chid protection and education among others are properly addressed. From the standpoint of time utility, the organisation desires to make the availability of its products or services to the beneficiaries at prescribed time by consulting with different emergency relief groups such as Inter-Agency Standing Committee (IASC) at the time of the occurrence of large-scale emergencies (UNICEF 2005). Thus, on the basis of the above discussion, it can broadly be stated that the aforementioned logistics activities can add significant value to a humanitarian emergency aid response in terms of form, place and time utility by a significant level. Conclusion The perception of logistics management or humanitarian logistics as a form of supply chain management plays an imperative part in different industries as well as organisations which imposes considerable impact upon their production along with distribution procedure at large. This particular aspect is incessantly becoming a crucial concern due to increased nationalisation and globalisation level. In this similar context, the various significant facets that include place, form and time utility contribute towards the development as well as the enhancement of supply chain functions that support the organisations or industries in terms of generating greater value to the customers. However, there exist several challenges while conducting different logistics activities that encompass legal based issues and complex arrangement of distribution channels. The different factors such as effective coordination and forming long-term interrelation with various groups such as retailers, investors or suppliers can support in overcoming the aforementioned challenges relating to logistics activities. The different logistics activities such as warehousing, coordination, transportation, packaging along with materials handling can add significant value to a humanitarian emergency aid response in terms of form, place and time utility by a greater extent. In this regard, a practical instance of UNICEF has been taken into concern. It has been identified that the organisation i.e. UNICEF employs innovative technical specifications while packaging its one of the major products i.e. vaccines. Moreover, the organisation forms a broad network of warehouses that has been designed in such a way so that the children along with their families can attain the requisite services quickly during emergencies. In addition, the transportation logistical activity of UNICEF focuses upon the utilisation of ‘cold chain’ in order to effectively store and transport the vaccines at correct temperature. Finally, the organisation coordinates with different groups such as NGOs and UN agencies among others and acts as a coordinating agency so that the beneficiaries can avail their requisite services at prescribed time. Thus, it can be stated that the aforesaid logistics activities can add considerable value to a humanitarian emergency aid response in terms of form, place and time utility. References Australian Government, Freight Logistics, Transport, viewed 07 January 2013, http://www.infrastructure.gov.au/transport/freight/index.aspx Coyle, J. J. & et. al 2008, Supply chain management: a logistics perspective, Cengage Learning, United States. Cheong, M. L. F 2003, ‘Literature review’, Logistics Outsourcing and 3PL Challenges. Commonwealth of Australia, Plain Packaging of Tobacco Products No Date, Tobacco, viewed 07 January 2013, http://www.health.gov.au/internet/main/publishing.nsf/content/tobacco-plain Commonwealth of Australia, Key Principles 2010, Critical Infrastructure Resilience Strategy, viewed 07 January 2013, http://www.tisn.gov.au/Documents/Australian+Government+s+Critical+Infrastructure+Resilience+Strategy.pdf Kovacs, G. & Spens, K 2009 ‘Identifying challenges in humanitarian logistics’, International Journal of Physical Distribution & Logistics Management, vol. 39, iss. 6, pp. 506-528, (online EMERALD) Lai, K. H. & Cheng, T. C. E 2009, ‘Just-in-time logistics’, Gower Publishing, Ltd, United Kingdom. New South Wales Government, All The Right Moves 2000, Transport & Logistics, viewed 07 January 2013, http://www.business.nsw.gov.au/__data/assets/pdf_file/0014/14090/profile_transport_and_logistics_profile_201105.pdf Saghir, M 2004 ‘Introduction’, The Concept Of Packaging Logistics, pp. 1-31. 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