Performance Measurement in Humanitarian Logistics · Okt-11 ild - Performance Measurement in...

Performance Measurement in

Humanitarian Logistics

Matthias Klumpp (FOM ild)

Hella Abidi (FOM ild)*

International Workshop on


Essen, 10th of October 2011

Agenda

2 Okt-11

1. Motivation

2. Literature Review

3. Performance Measurement

4. Status Quo

5. Future Development

ild - Performance Measurement in Humanitarian Logistics

1. Motivation

Increasing quantity of natural and man-made disasters

High economic damage and high number of affected people and

deaths

Challenges in humanitarian logistics in comparison with their

commercial counterpart

Improving and promoting efficiency and effectiveness in

humanitarian logistics

Performance measurement in humanitarian logistics remains elusive

Reduction of complexity, increase of service quality and lead times

Focus on a link between logistics and funding

What are the inputs and outputs and how can the

impact in a such productive environment be measured?

3 ild - Performance Measurement in Humanitarian Logistics Okt-11


Source Content

Davidson 2006 Presentation a framework of KPIs for performance

measurement of an international humanitarian organization

during an immediate response operation- is used by IFRC

Beamon and Balcik 2008 Development of three-part framework for performance

measurement: resource metrics, output metrics and

flexibility metrics

Schulz and Heigh 2009 Demonstration „Development Indicator Tool“ of IFRC for

performance measurement and management of regional

logistics units in prepositioning relief goods and support of

disaster relief operations

Tatham and Hughes 2010 Shows the challenge of developing outcomes or

effectiveness metrics so that the achievement of the relief

operation as a whole can be more readily understood

(comparison to medical field)

Widera and Hellingrath 2011 Identification of KPIs such as responsiveness, reliability,

cooperation, inventory etc… based on requirement of

humanitarian logistics according to the work of Beamon and

Balcik 2008, VDI 2001, van der Laan et al. 2009, Tomasini

and Wassenhove 2009, Blecken 2010, Samii 2008,

Erdmann 2003



Commercial Logistics Topic Humanitarian Logistics

Maximize Profit Main target Save lifes and provide beneficiaries with aid

Stable Demand pattern Unstable

Predictable Supply pattern Unpredictable and unsolicited donation

Commercial products Flow type Medicine, food, water, shelter

Predetermined Lead time Zero lead time

Safety stocks Inventory control Challenging inventory control

Location of warehouse Logistics network Ad hoc distribution facilities

Highly developed Technology Less technology

Based on standard

supply chain metrics

Performance

measurement

Time to respond the disaster, meeting donor

expectation, percentage of demand supplied



Consolidation of quantitative and qualitative information

Present business organization

Simplify complex structure and systems

Performance of supply networks and logistics

Improving ressource allocation

Saving of logistics costs

Increase of service quality, innovation, efficiency and lead

times

Support company and organization in their activity

Achieveness of specific targets to judge the situation



Financial performance

Political performance

Service performance

Process performance

Quality performance


Efficiency of

humanitarian

organization

Target:

Optimization of logistics

process and determination

of efficiency

Increase provision

benefeciaries with water,

shelter and medicine supply

Cooperative network of

humanitarian organization

and donor

Mitigation of logistics costs

Transparence along the

humanitarian relief chain,

high flexibility and reliability


Reliability

Flexibilty

Quality

…

Process costs

Personal costs

Inventory costs

Transport costs

Handling costs

….

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4. Status Quo


Supply Chain in Yogyakarta

was three times faster than in

Pakistan and six time faster

than for the tsunami

75% of all required items were

available for distribution within

the first eight weeks

The distance relief items were

transported to Yogyakarta was

reduced by 46% compared to

Pakistan

The cost of packages delivery

was 83% less expensive in

Yogyakarta than in Pakistan

Example for performance

measurement by IFRC Source: Jahre and Heigh 2008


Performance indicator for humanitarian logistics organization

Strategical

Tactical

Operative


Assesement Procurement Transport Warehousing Distribution

• Preparedness

• Response

• Recovery

Disaster

• Shelter relief

• Medical support

Shelter & resettlement • Water

• Building

• Infrastructure

Reconstruction

• Health care system

• Education

Economic & social development


Theoretical and mathematical models to measure and

evaluate efficiency in humanitarian logistics


Efficiency measurement methods

KPI (measurement method of 1.

generation)

Production function (measurement

method of 2. generation)

Output

oriented KPI

Input oriented

KPI

Ratio of input

to output KPI

Parametric

method (DFA,

SFA)

Non-

parametric

method (DEA,

FDH)


Input

- Donor (Euro)

- Personal costs

- Inventory costs

- Logistic and Transport costs

- Procurement costs

Output

Quantity of

- Food,

- Drugs,

- Clothes,

- Shelter,

- Electricity,

- Water?


Periodic

measurement of

performance

after disaster

Input Process Output Outcome Impact

Aid

reciepient/benefit



Project (Name of organization

and no.) Score Institution

AGENCY FOR TECHNICAL

COOPERATION AND

DEVELOPMENT (2 Projects:

P15, P32)

27,60% Private

ALLIED RECOVERY

INTERNATIONAL (2 Projects: P3,

P25) 19,30% Private

INTERNATIONAL

ORGANIZATION FOR

MIGRATION (2 Projects: P10,

P25)

13,30% Public

SAMARITAN'S PURSE (2

Projects: P16, P24) 100,00% Eclessial

WORLD VISION

INTERNATIONAL (2 Projects: P9,

P29) 94,80% Eclessial

Performance Measurement in


Thank you for your attention!

Matthias Klumpp (FOM ild)

Hella Abidi (FOM ild)*

[email protected]

International Workshop on


Essen, 10th of October 2011

Performance Measurement in Humanitarian Logistics · Okt-11 ild - Performance Measurement in...

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