Newswise — A University of Arkansas business researcher and logistics expert is monitoring Haiti relief efforts and says that despite important differences between commercial and humanitarian logistics, key applications of commercial logistics can be applied to the rapid-response phase of the disaster recovery operation.
“The differences between conventional, commercial logistics and humanitarian logistics are real and significant,” says David Swanson, logistics researcher in the Sam M. Walton College of Business. “Commercial logistics operations generally are predictable and cost- or profit-oriented. Like the Haiti earthquake itself, humanitarian logistics are not predictable, and cost really isn’t a consideration, because people are starving and dying. However, as we saw with Hurricane Katrina, there are critical areas of commercial logistics that apply to humanitarian relief efforts.”
In a recent paper, “Commercial Logistics Concepts Applied to Humanitarian Logistics,” Swanson identified four areas in which humanitarian logistics can learn from commercial logistics. These areas include:• New product releases, when suppliers and retailers cannot predict how many units will sell and thus have to be flexible in responding to consumer demand• Taxi dispatch, which is basically directing traffic at critical stages of the supply chain• Shortage inventory allocation, decisions about how to best use limited inventory.• And order fulfillment, which are methods that can be used for the final distribution of products to consumers.
There are many applications of rapid response in commercial logistics, Swanson says, most notably in the pharmaceutical and medical supply industries.
There has been increased interest by commercial logistics professionals to apply their skills to assist response and recovery processes, Swanson says. A good example of this was Wal-Mart’s response to Hurricane Katrina. Because the company had a sophisticated logistics operation, it was able to rush water and aid supplies to Louisiana and Mississippi faster than government agencies and non-government relief organizations.
Swanson is a supply chain consultant who has specialized in logistics systems and logistics project management. He has provided supply-chain services for Wal-Mart, Pearle Vision, Sears, Canon, Kodak, MCA, Universal Studios and other companies. He earned a master of business administration, with a concentration in logistics and transportation, from the University of Tennessee in 1990 and is currently a doctoral student in logistics at the University of Arkansas.
Swanson’s paper on the application of commercial logistics to humanitarian and disaster relief operations is available upon request.
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