The HUMLOG Institute

» Humanitarian Logistics and Supply Chain Research Institute – HUMLOG Institute

» Foundation in Apr 2008 by the Hanken School of Economics and the

National Defence University

» Board including representatives of humanitarian organisations

(currently UNICEF Finland and Huoltovarmuuskeskus/NESA)

» Partnership programme for companies, humanitarian organisations

and universities / research institutes

» Major current research projects

» Relief Supply Chain Management (RelSCM): Academy of Finland

project

» Food Security and Development: Commissioned Development

Research by MFA, together with Väestöliitto

HUMLOG Institute

Major research projects

» Resilience in Disaster Relief and Development Supply Chains: Managing Challenges of Climate Change, Urbanisation and Security

» Academy of Finland project (2011-2015)

» Partners: Clark University, CSIR, Högskolan i Borås, IFRC East

Africa, MIT, NUIM, RC/RC Climate Centre

» Relief Supply Chain Management (RelSCM)

» Academy of Finland project (2008-2012)

» Food Security and Development: Commissioned

Development

» MFA project (2009-2011)

» Partners: Väestöliitto, Tribhuvan University

HUMLOG Institute

Activities at the HUMLOG Institute

» Practitioner workshops / Training

» Organisation of regular practitioner seminars

»Last Mar 2012 on “Innovations in Climate Risk Management:

Linking the Humanitarian and Private Sectors” by Pablo Suarez,

RC/RC Climate Centre

»Next Oct 23/24 Final seminar on “Relief SCM”

» Tracks at practitioner conferences

» Education

» MSc and PhD courses

»MSc: Humanitarian Logistics, Nordic Course in Humanitarian

Logistics

»PhD: Relief SCM, SCM in Disaster Relief, SCM in Development Aid

» BSc, MSc and PhD students and theses within the subject

HUMLOG Institute

Publications

» Editorial of the Journal of Humanitarian Logistics

and Supply Chain Management

» Special issues in academic journals

» e.g. International Journal of Risk Assessment and

Management (Vol.13 No.1), International Journal of Services

Technology and Management (Vol.12 No.9), Management

Research News (Vol.32 No.11)

» ... and many journal articles, conference papers etc.

» Anthology Relief Supply Chain Management in Disasters

HUMLOG Institute

How to measure quality in humanitarian operations?- Challenges in developing performance measurements

Ira Haavisto PhD student/ Project researcher Hanken School of Economics, Helsinki Humanitarian Logistics Institute Jarrod Goentzel Director, MIT Humanitarian Response Lab Massachusetts Institute of Technology

Research purpose

» Understanding perceptions of strategy and performance expectations across the organization

» What is the objective of a humanitarian supply chain?

» Measure the output of the supply chain processes

» What are the logistics activities and processes?

» How do they perform?

» What is quality in humanitarian operations and how can it be measured?

Humanitarian logistics literature on performance and strategy

» de Brito et al. 2007 » Schulz and Heigh 2007

» Beamon and Balcik 2008

» Blecken et al. 2009

Limited research found on strategy and/or strategy development in humanitarian supply chains. Limited/no research found on strategy and process alignment, and performance expectations in humanitarian operations.

How to identify the strategy and the objective of the supply chain: examples of SC strategy dimensions

Chase et al. (2003) Responsiveness and efficiency

Russell and Taylor (2003)

Efficiency and flexibility

Ballou (2004)

Cost reduction, capital reduction and service improvement

Mahadevan (2007)

Responsiveness and efficiency

Heizer and Render (2007)

Supplier negotiation, partnership (long-term), vertical integration

Methodology

Case study Phase 1: Identifying processes and main functions (August 2010)

»Process mapping

» Process mapping through manuals and work flow charts

» Semi structured Interviews on processes (20 interviews)

Phase 2: Understanding perceptions of strategy (Spring 2012)

»Strategy analysis

» Mission and strategy statements

» Semi-structured interviews with field management and HQ management (17 interviews)

Phase 3: Reporting analysis (Summer 2012)

»Performance measurement metric

»Survey to verify initial findings

Developing performance measurement indicators

Strategy

Outcomes

Processes

Policy

Indicators

Objectives Top Down

Bottom Up

Activities

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Humanitarian supply chain Processes

(Blecken et al., 2009)

Planning

Grant meeting: Program, Logistics, Finance

Needs assessment: Program

Procurement

Purchase request: Program

Purchase request: Logistics

Sending supplies: Supplier

Receiving supplies: Logistics

Storing supplies: Logistics

Replenishment: Program, Logistics

Needs assessment: Program

Authorities PR: Program manager

Supplier selection: Logistics

Bid process: Logistics

Purchase order: Logistics

Dispatching: Logistics

Inventory: Logistics

Quality control: Logistics

Distribution: Program, Logistics

Transporting supplies (?): Supplier, Logistics

Quality control (?)) Program

Transport

Inventory management

Delivery

Monitoring /Reporting

Donor reporting: Program, Grant

Financial reporting: Finance

Performance Measurement::

Logistics, Program

Internal audit: Internal audit

External audit: Donor, Auditor

Learning

Overall operations in case organization = Information flow in-between processes

Grant application: Grant, program

Program planning: Program

PR, PO

Discrepancies Delivery

Order

Discrepancies

Identified need

PR,

Store release form

Strategy Analysis: Understanding of objective and strategy in case organisation

Strategy Objective

“Efficiency” Do it right the first time- on

expected time- within budget

Quality (of process) Service level

Integration Communication, activity and own

initiative

Innovation Constant development

Accountability Process accuracy

Reliability Dependability, Trust, Service level

Case organization: Performance measurement examples

Objective Measurement

Efficiency On expected time- within budget

PRs (and inventory )value/grant/month Logistics expenditure/grant/month PR lead-time/grant

Ok Ok Ok

Quality (of process)

Service level Estimated PR value/ actual PO value PR value per month/ value of accounted supplies # of mistakes in PRts data Prefect order rate Amount of spot checks conducted

Ok ? Ok Ok

Integration Communication, own initiative

Amount of procurement plans/ grant Amount of confirmations sent of received PRs/ PRs

? ?

Innovation Constant development

Country logistics cost/ average Received PRts reports on time Received Country monthly reports on time Amount of field sites with system (prologs or other)

Ok ? ? Ok

Accountability Process accuracy Internal audit Amount of spot checks conducted

? ?

Reliability Dependability, Trust, Service level

Expected arrival date/ actual arrival date Inventory / grant ,after close of grant Complaints

? ?

How to measure quality?

Examples of measurement » Delivery date accuracy: orders

deliver on expected date/ total

orders

» Order accuracy: orders without

any mistakes/ total orders

» Estimation accuracy of

procurement cost: actual

procurement value/ estimated

procurement value

Challenges » Dissimilar supply chain objective

depending on program objective, length and demand characteristics (not only phase of response)

» Dissimilar objectives (long term) on strategy and operational (short term) level

» Dissimilar objectives depending on level in organization/ department

Further information: HUMLOG Institute: www.hanken.fi/humloginstitute MIT Humanitarian response lab: http://humanitarian.mit.edu/ Contact Ira Haavisto at: haavisto@hanken.fi

HUMLOG Institute