Logistics Management Is Important in Ensuring Effective Delivering of Humanitarian Emergency Aid - Essay Example

HUMANITARIAN LOGISTICS MANAGEMENT by Student’s name Code+ course name Professor’s name University name City, State Date Executive Summary Humanitarian aid is a central part of disaster management in the contemporary world. With such calamities as hunger, drought, earthquakes and floods, the need for proper planning and management of aid is an exceptionally important concept. Arguably, planning such things as logistics in nonprofit organizations is considerably difficult compared to coordinating such things in profit motivated organizations. The key logistics activities that are applied to the planning and distribution of humanitarian aid include such things as inventory management and transportation management. Such activities add value to humanitarian aid efforts through creating utility in the items that form the subject matter of the aid. For instance, it is through transportation that place utility is created. The conveyance of goods and services as well as people and caregivers from one place to another creates utility in all the concerned resources. Similarly, warehousing creates time utility in the sense that it ensures the availability f the goods and services at the right time. Warehousing, coupled with such things as packaging and bulk breaking, creates from utility in the goods that have been availed to the consumers. Time, form and time utilities are the things that create usefulness in a commodity. The paper explains the manner in which logistics management is important in ensuring effective delivering of humanitarian emergency aid in times of adversity. Introduction With the nature of uncertainties in the contemporary world, the need for proper logistics has been on a constant rise over the past one decade. The main difference between an events calling for the intervention of humanitarian efforts today varies from an event of the same nature that took place ten years or so ago in many ways. Perhaps the most notable cause of the difference is the progressive change in demographics. Demographics in the third world, which is more vulnerable than the developed world, are volatile is such a way that they are exceptionally dynamic. The population size, density and pressure in the third world change every single day, causing the need for humanitarian aid to go up significantly (Zanjirani et al 2011). Among the most important forms of humanitarian aid in the affected areas is the provision of food by such associations as the UN’s Food and Agriculture Organization, an agency of the United Nations that concerns itself with distributing food to the areas hit by such calamities as famine, drought floods and earthquakes. The transportation of such food, and distributing it to the needy, calls for serious logistics management strategies, principles and methodology. Such logistics are meant to create the various types of utilities and eliminating such inconsistencies as delays and insufficient supplies. This paper endeavors to explain how logistics activities can add value to humanitarian emergency aid through the eyes of a professional responsible for logistics improvement in a humanitarian emergency aid. The Nature of Humanitarian Emergency Aid Unlike many profit motivated organizations, the humanitarian aid organizations operate in such a way that philanthropy becomes a central idea. In actual sense, philanthropy replaces the profit maximization goal of a profit motivated organization. Much like the profit motivated organizations; the humanitarian emergency organizations procure goods and services through a similar procedure. The shipment and distribution of the goods meant for humanitarian aid is rather technical since the demand and supply of goods meant for aid is not as regular and foreseeable as the demand and supply of goods and commodities in a business setting (Apte 2010). Perhaps the most outstanding feature about humanitarian emergency organizations is the fact that demand is considerably volatile and unpredictable. Striking a balance between demand and supply is quite taxing in as far as logistics are concerned. It is for this reason that place utility becomes a central concept in humanitarian aid. The storage and maintenance of goods meant for consumers is exceptionally vital. It is for this reason that warehousing or inventory management and transport management become centrally important. Similarly, coordinating and packaging are extremely important as auxiliary activities in the creation of utility. The key logistics activities Primarily there are two significant activities that are involved in the logistics management process. Apparently, logistics is concerned with the acquisition of the desired commodities, usually materials and end products. Such acquisition is concerned with the purchasing or sourcing; the transportation and the warehousing management. From these functions, it is clear to see that the principal logistics activities in humanitarian emergency organizations as: transportation management and inventory management. Typically, inventory management is concerned with the movement of stocks. On the other hand transportation refers to the actual transference of goods and humans from one location to another (Schulz 2008). The combined efforts of the transportation managers and the stock management personnel can go a long way in striking a balance between demand and supply, despite the volatility of the humanitarian emergency response organizations. Utility theory Fundamentally, utility is concerned with the level of satisfaction that an individual reaps from the consumption of a commodity or use of a service. Utility cannot be measured in units, but can be estimated through such concepts as the theory of diminishing marginal utility (Cahill 2007). For the purposes of this case, utility refers to the usability of the product, or the amount of relevance attached to a commodity. Again, for the purpose of this case, utility will be analyzed into three categories, namely: time utility, place utility and form utility. Time utility The concept of time utility comes about in the sense that the time gap between the arising of a need and the satisfaction of the need is well monitored and administered (Christopher & Tatham 2011). For instance, where the a patient in dire need of drugs is in Pakistan and there are drugs in China, which can help cure the individual, the drugs will not be said to be having time utility since by the time they arrive in Pakistan, there is a high probability that the patient will have died. Similarly, preparing a meal in the evening, gives the meal time utility since it can be taken for dinner. Similarly, calling a doctor when a person is in good health does not create time utility. On the contrary, having a doctor arrive just at the point when the patient was about to die and needed such services, gives time utility to the services of the doctor. Form utility Form utility is created when the commodity is altered into a state in which it can easily be consumed. For instance, the manufacturing process gives form utility to the goods since they can be consumed better in the manufactured or processed form. For instance, consumption of the materials used in the manufacture of drugs does not give any utility since such materials cannot help the patient get better. Packaging and processing are other ways of creating form utility. Place utility Place utility is created where and when the commodities are found at the right place at the right time. For instance, the fact that the humanitarian agencies located their distribution centers at places where calamities are likely to occur, explains place utility. A doctor in Britain cannot attend to a patient in South America at the very instant that the patient needs the care. As such the patient does not reap utility from the services of the British doctor. Inventory management Just like in the profit motivated world, the process of managing stocks in the humanitarian organizations endeavors to minimize the act of holding too many stocks, while at the same time maintaining stocks that is adequate to strike a balance between demand and supply. As a professional concerned with handling the process of logistics at FAO, I would discourage the holding of too many stocks as this would increase the chances of the commodities going bad. Considering that FAO deals with food and agricultural products, it is a matter of common knowledge that such commodities go bad easily (Organization 2001). As such, it would be appropriate to estimate the approximate amount of food required before placing an order for the food and other commodities from whichever source. It would be inappropriate to order for fewer stocks since the commodities meant for humanitarian aid are essential in saving the lives of the affected people. Inventory management majorly concerned with the supply chain, is a multiple step process that is concerned with balancing the supply side with the demand side. Since demand is in such a way that predictions are practically impossible, such methods as Just in Time (JIT) are extremely important and appropriate. Just in Time (JIT) is a method of managing inventories in such a way that the supplies are made when the commodities are needed. The major aim of this method is to reduce the holding costs. The holding costs are usually very high where the stocks are stored awaiting demand. In this method, the storage services such as the labor and space are paid for to keep goods that are lying idly (Cozzolino 2012). Although this method may be good for those goods that are used as the raw materials in some companies, it is extremely unsuitable for humanitarian emergency organizations. It is worth noting that JIT is a way of reducing the chances of the commodities being declared obsolescent. Even though such concepts as obsolescence may not apply in such organizations as the humanitarian FAO, it is important to note that the commodities stored may go bad by the time they are needed. Just in time methods of handling stocks are the effective tools of reducing the personnel required in inventory management. The method is as well a way of creating time utility in the sense that it enables the consumers to access the commodities as and when they need them. Like all other humanitarian agencies, the FAO handles the issuance of drugs and medicines. The just in time method of handling stocks will enable the organization avail the medicines as and when they are needed. The organization will thence create time and form utility since the drugs are virtually useless to the user if he or she cannot access them when they need them (Mangan 2008). This is why using both JIT and the traditional method becomes important since in humanitarian assistance emergencies are a common occurrence that may call for immediate intervention. Apparently, a doctor in the United States cannot yield any utility to an individual in Afghanistan since they are geographically far apart. This creates the need for transportation management in humanitarian emergencies. Transportation management Transportation is concerned with the physical conveyance of commodities and intangible products from one location to another. The transportation of goods, people and services can be done through the various means available to man. Perhaps the most important form of transport in all sectors of the world is road transport, popularly known as transport by land. This form of transport is common in places and situations where the distance to be covered is considerably short, with the load to be transported being significantly heavy and bulky. In the world of humanitarian aid and emergency activities, the most prominent form of transport is air transport. This is the case due to the fact that airplane is the greatest form of transports. Apparently, the issue of time is of essence when it comes to emergency situations. Considering that the help needed by the people trapped in calamities is urgent, such means as the road or sea transport will not likely create time utility (Dangelmaier 2010). Similarly y, these two forms will not be in a position to yield place utility as they may not manage to facilitate the right time and right place. Transport is exceptionally important as it contributes to both place and time utility. Research indicates that in humanitarian emergency logistics, transport consumes up to 50% of the costs and the time (Kovacs & Spens 2012). Worth noting is the fact that transport is the link between the source or producer of the commodities and the consumers of the same. In actual sense, transportation is the factor behind the coordination of the whole logistics planning. The fact that just in time method of handling inventories is becoming a popular method in the field of humanitarian emergencies logistics is enough indication that transport, if effective, is a factor of central importance. Apparently, almost all major humanitarian concerns deal with the delivery of food and medicines as well as the evacuation of the entrapped individuals. Apparently, medicines in a city pharmaceutical are not useful to a man that has been injured in a tragedy 100kms away without transport. Packaging and handling of commodities Talking of form utility, packaging and breaking bulk are the most important activities in the logistics process. Packaging entails the wrapping of commodities as well as the classification of the commodities into their various uses. Packaging is part of the storage process and is concerned with the small scale products such as medicines and long life foods. Obviously, the humanitarian emergency sector is more concerned with packaging readymade foods than any other sector of the world (Gunn 2012). For instance, when FAO goes on rescue missions in places hit with hunger, packaged readymade food is a common thing is their inventory. Canned meat and such things as glucose are common as well. Worth noting is the fact that packaging increases the usability of the commodities. It is for this reason that the activity of packaging is associated with form utility. Apparently food cannot be consumed in the raw form, if it is not packed into proper containers since it will likely go bad in due course. The fact that the foods are all durable means that, in order for them to be utilized for the projected purpose, they must be packed well in such a way that they can be both portable and preserved. Warehousing Arguably, warehousing is the most significant part of inventory management. The act of warehousing is one that entails storing commodities in large scale. Goods kept in a warehouse are planned for in such a style that they can aid the entity strike equilibrium between humanitarian demand and donor supply. Demand and supply are among the most difficult factors to control in the humanitarian sector since the volatility with which the forces arise is extremely high. The United Nations, arguably the largest humanitarian organization concerned with emergencies and managing disasters, maintains substantially large warehouses where the commodities meant for aid are stored. The warehouses are used to handle foodstuffs and medicines as well as other basic needs that come in handy in times of adversity such as during the outbreak of such things as floods and drought. The warehouses are associated with both time and place utility. This is because, besides storing the commodities till the time when they are required, the warehouses are strategically situated in such a way that offering the aid becomes a little convenient (Kovacs & Spens 2011). For instance, the warehouses may be located in those areas that are prone to such calamities as floods. Utility is created through bringing the commodities closer to the consumer and reducing the time gap between the time of production and consumption. Coordination Much like in business organizations, the activities in the humanitarian organizations need to be highly coordinated. Coordination includes such efforts as proper and effective communication. Apparently, coordination is concerned with serving the urgency with which humanitarian aid is needed. The fact that coordination establishes a link between the supply and the target of the commodities is enough evidence that it is among those commodities that create time utility. According to management theorists, coordination, a function commonly referred to as directing, is one function that pulls all the resources together and enhances the effectiveness of each of the independent resources (Gunn 2012). In offering humanitarian aid, coordination concerns itself with such things as linking the donors to the needy people through such organizations as the FAO, linking the poor nations and communities with the developed world, as well as, linking all relevant government agencies to the organizations handling the administration of the aid. Conclusion In conclusion, it is worth noting that all the activities of the logistics process are equally vital in adding value to humanitarian emergency agency or organization such as FAO. The processes, which principally include transportation management, inventory management, packaging and coordinating, are associated to the three main forms of utilities. The fact that warehousing and transportation enable the aid givers to work conveniently is one of the most relevant examples indicating how the concept of place utility comes in. the fact that all the activities of the logistics process reduce the time gap between the source of the help and the people in need, explains time utility. Similarly, considering that the activities facilitate the conversion of the commodities into ore consumable forms creates form utility. Finally, it is of essence noting that the primary difference between the logistics process in the humanitarian sector and the business sector is the fact that in the humanitarian sector, the forces of demand and supply are rather unpredictable. Reference list Apte, A. 2010. Humanitarian Logistics: A New Field Of Research and Action. Boston, Now. Cahill, K. M. 2007. The Pulse of Humanitarian Assistance. New York, A Joint Publication of Fordham University Press and the Center for International Humanitarian Cooperation. 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