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Phase 1 Individual Project (LOG676) - Coursework Example

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Summary
This paper addresses the similarities and the differences between the humanitarian logistics and the business logistics which are essential in the understanding their nature and the functionality. This are shown below (Smith, 2009)
I. Both have documentation and receipting. For…
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Phase 1 Individual Project (LOG676)
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LOGISTICS Introduction This paper addresses the similarities and the differences between the humanitarian logistics and the business logistics which are essential in the understanding their nature and the functionality. This are shown below (Smith, 2009)
Similarities
I. Both have documentation and receipting. For any transaction to be effective the receipts are vital to prove the transaction. The receipts are important for the accountability and the future reference.
II. Both the logistics have the collaborations which are vital for the smooth running of the business. Business logistics involve the collaborations with other business and suppliers. The humanitarian logistics have the collaborations with the donors to source the funding for their engagements and helping disasters.
III. Both involve the transportation and the main equipment such as trailers to ferry donations and also the business logistics may use the heavy tracks to deliver goods to their customers.
IV. Both involve the human resources in their endeavors and activities. Business logistics require skilled labor and in the case of humanitarian logistics the engagement of volunteer labor is administered.
V. In the both cases we have Key performance indicators. Ordinarily, the business logistics is usually based on the performance metrics while in the humanitarian logistics it is based on the time to respond to a given disaster.
VI. Both the logistics have the financial flow in their engagements. The business logistics have a bilateral and a known financial flow. The humanitarian logistics have the unilateral financial flow from the donors to the beneficiaries.
The differences are also vital in their understanding of the logistics (Renata, 2012)
Differences
I. The objective of business logistics is profit maximization where the appropriate strategies are instilled to avoid losses. In contrarily, the objective of humanitarian logistics is to help and save the lives of people who are in disasters.
II. The business logistics clients include the final consumers of goods and services while those of humanitarian logistics are include the beneficiaries who are usually the people who have been affected by the disasters.
III. The business logistics have two to three supplies previously known by the business while the humanitarian logistics have multiple donors and suppliers who met without prior agreement or engagements. (Renata, 2012)
IV. In the business logistics the engagement time frame usually lasts for years while in the humanitarian logistics it lasts for weeks or months depending on the magnitude of the disaster.
V. Ordinarily, the demand patterns in business logistics are stable and can be predicted using forecasting techniques as opposed to the humanitarian logistics where the demand patterns are irregular, volatile and very uncertain.
VI. The material flow in the business logistics includes the product market while in the humanitarian logistics it includes features such as shelter, food, hygiene, cleaning kits including the vehicles.
Conclusion
In conclusion it can be noted that the difference and the similarities discussed above are vital in the understanding this types of logistics.
Works Cited
Renata. (2012). An Overview of Humanitarian Logistics. Retrieved 2014,
from http://www.abepro.org.br/biblioteca/icieom2012_submission_274.pdf
Smith, A. (2009). Strategic cost management in supply chain. Mc-Gill Hall . Read More
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