Performance Measurement in
Humanitarian Logistics
Matthias Klumpp (FOM ild)
Hella Abidi (FOM ild)*
International Workshop on
Humanitarian Logistics
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?
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2. Literature Review
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
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2. Literature Review
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
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3. Performance Measurement
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
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3. Performance Measurement
Financial performance
Political performance
Service performance
Process performance
Quality performance
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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
3. Performance Measurement
Reliability
Flexibilty
Quality
…
Process costs
Personal costs
Inventory costs
Transport costs
Handling costs
….
Ou
tpu
t In
pu
t
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4. Status Quo
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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
5. Future Development
Performance indicator for humanitarian logistics organization
Strategical
Tactical
Operative
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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
5. Future Development
Theoretical and mathematical models to measure and
evaluate efficiency in humanitarian logistics
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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)
5. Future Development
Input
- Donor (Euro)
- Personal costs
- Inventory costs
- Logistic and Transport costs
- Procurement costs
Output
Quantity of
- Food,
- Drugs,
- Clothes,
- Shelter,
- Electricity,
- Water?
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Periodic
measurement of
performance
after disaster
Input Process Output Outcome Impact
Aid
reciepient/benefit
5. Future Development
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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
Humanitarian Logistics
Thank you for your attention!
Matthias Klumpp (FOM ild)
Hella Abidi (FOM ild)*
International Workshop on
Humanitarian Logistics
Essen, 10th of October 2011
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