IndexIntroductionDeficiencies in the previous Red Cross supply chainRoles of IT in the new Red Cross supply chainOther elements of the new Red Cross supply chainBusiness results for the Red CrossComplementary resourcesConclusionIntroductionThe International Federation of the Red Cross (IFRC) is an organization whose operational activities are characterized by unpredictability and urgency, so many of the fundamental principles that apply to normal business supply chains do not adapt so easily. It is difficult to find a prototype that can meet the needs of the organization. Before the Humanitarian Logistics Software (HLS) was fully implemented in September 2003, the Red Cross's business processes relied on spreadsheets and manual processes in the Geneva office. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Shortcomings in the Previous Red Cross Supply Chain The overall incompetence of the supply chain model is due to its centralized system. The fact that all information had to be passed through the Geneva team before it reached the various organizations through a single channel resulted in a significant inefficiency problem. Therefore, due to this, the IFRC was not competent to organize relief efforts in a timely manner. Its assistance did not begin reaching victims until weeks after the disaster, an extended period after other aid organizations had been dispatched to the scene. This inefficient conduct of the IFRC led donors to reflect on the usefulness of their money and to further doubt whether the IFRC was adequate enough to operate a world-class supply chain capable of responding to emergencies efficiently and cost-effectively. Many organizations would send unsolicited goods, which interfered with the IFRC's ability to obtain and distribute needed relief goods. They did not have an adequate system to sort the donated items and this hindered the progress of the delivery of the goods. Lack of coordination was another shortcoming of the previous supply chain model. Failure to regulate transportation resulted in high costs for multiple transatlantic flights and shipments that could have been avoided. There was also an absence of transparency about who was sending what and even to which locations. Roles of IT in the Red Cross's new supply chain In transaction processing, technology had helped speed up the transmission of information. The system maintains country and disaster data for regional units, so they can intelligently pre-position supplies. The processed core businesses are implemented via digital networks. After learning of a disaster, staff will timely input and estimate key requirements based on the disaster type and location. The system can aggregate the necessary items and generate the mobilization table. The needs for goods are then worked out and expressed in a mobilization table and donors can provide money to purchase the goods or they can provide the goods themselves. With technology, the system has become more flexible and adaptable. Procurement and mobilization can be initiated first by logisticians, while field staff analyze the actual project requirements. Each type of disaster would involve different types of aid. For example, an earthquake in a cold mountainous area will likely require winter tents and field hospitals, while on the other hand floods in the tropics would require kitssanitation and water purification for disease control. This has allowed for greater flexibility as the system is able to differentiate various needs and allocate aid accordingly. The new technology has also enabled better tracking of orders and better coordination of deliveries. HLS incorporates tables to track shipping information on the cloud and can generate records such as shipping documents, goods receipts, and reports on where items in the pipeline are currently located and where you can expect them to be. During the tsunami that occurred in Southeast Asia in 2004, IFRC management had the ability to measure the supply chain from requirement to delivery for the first time. They could establish the specific date a community need was identified and track when goods were supplied to meet that need. Other elements of the new Red Cross supply chain The IFRC has decided to re-establish 3 regional logistics units in Dubai, Kuala Lumpur and Panama, in a bid to revamp its downstream supply chain into a decentralized model. These units pre-position supplies in warehouses for the most common disasters in their areas, to ensure timely support during the initial phases of operations as the units are located nearby. The IFRC also has a new development called Trace the Face, which offers a cloud people tracing and reporting service called the Safe and Well website. It is a database where refugees can report that they are safe and well, or look for a loved one amid the chaos. This helps alleviate the psychological stress it may cause. For procurement, the software helps manage upstream supplier relationships by tracking agreements and requests for quotations, as well as generating purchase orders, invoices and standard production reports. Meaningful business relationships are digitally enabled and mediated. Procurement is able to access real-time information that they would normally require from their supplier. Intimacy with suppliers allows them to provide vital inputs that reduce costs. Business Results for the Red Cross The IFRC said HLS helped improve response times by 30%. Although there were problems after the earthquake in Indonesia, the supply chain was up and running in just three days, less than a third of the time it took the IFRC to mobilize for the earthquake in Pakistan the previous year. This increased the timeliness of information for decision makers at headquarters and in the field. The operations were also much more convenient, estimated to have reduced costs by half. They had reduced transportation and inventory storage costs to operate on a global scale. They had revised their distribution system so that the most essential supplies were kept close to the most likely disaster locations. This revision allowed goods to be shipped by road or sea, rather than coming from overseas, which leads to more expensive transportation costs. It has led to a dramatic reduction in costs for the provision of care packages and was awarded the European Supply Chain Excellence Award5 in 2006 and was the overall winner for all sectors that year. The software also handles appeals to potential donors, helping avoid the duplication that has plagued previous efforts. Donors are also a crucial part of the IFRC to make aid operations possible, and this has led to improved decision-making. We appeal to the requirements, asking donors to support the activities.