Logistics. In brief. Appeal No. MAA /04/2009. This report covers the period 01/01/2008 to 31/12/2008.

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1 Logistics Appeal No. MAA /04/2009 This report covers the period 01/01/2008 to 31/12/2008. Taking stock of relief items in the Panama Regional Logistics unit in International Federation In brief Programme purpose: The programme seeks to consolidate the existing logistics resources in the regional logistics unit (RLU) of Geneva, Kuala Lumpur, Dubai and Panama. The global logistics unit will strive to expand its reach and capacity worldwide. Programme(s) summary: The global logistics units in Geneva, Kuala Lumpur, Dubai and Panama are delivering services in procurement, warehousing, dispatch of goods and project management to help fulfil the Federation strategy of shortening the response and recovery period. To respond to the new disaster management (DM) strategy, the global logistics unit seeks to expand its level of support, both geographically and numerically, by reviewing the number and location of its RLUs, stocks and subregional stock locations. To achieve its objective, the Logistics and Resources Mobilization department (LRMD) continues to develop a range of systems and tools in the form of framework agreements, online logistics standards, Logic (warehouse system) and HLS (procurement, tracking and reporting systems), emergency items catalogues, a humanitarian procurement centre and key performance indicators. Such tools allow the measurement of service delivery, enhance accountability, and facilitate the management of emergency relief in response operations. RLUs continue to provide strengthened support and capacity building to National Societies through regional training and tailor-made logistics workshops to respond to specific National Society requests.

2 The secretariat has developed a cost-recovery mechanism to ensure the sustainability of the RLUs which provide logistics services to National Societies, as well as cost-effective, rapid delivery of relief items in emergencies. This mechanism is successfully implemented and reported on a monthly basis. Financial situation: The total budget is CHF 3,366,820 (USD 3,206,495 or EUR 2,244,547), of which 85 per cent covered. Expenditure overall was 70 per cent. The variance between expenditure and budget coverage is due to lower spending in terms of systems and computer hardware, as well as in international staff costs, because a number of positions remained vacant for periods of time during the year. Click here to go directly to the attached financial report. No. of people we help: Over 23 million people have benefited from disaster response in Our partners: In terms of logistics capacity response and support for its tools, the International Federation relies on all Partner National Societies. Stock has been financed, donated or prepositioned by the Directorate-General for Humanitarian Aid (DG ECHO), the UK Department for International Development (DFID), as well as the American, Canadian, British, Netherlands, Japanese and Swiss Red Cross Societies. Human resources (HR) support has been provided by the American, Australian, Danish, Finnish, Norwegian and New Zealand Red Cross Societies. Tool development has been supported by the Japanese, Qatar, Luxembourg and Norwegian Red Cross Red Crescent Societies and the International Committee of the Red Cross (ICRC). Context Against a background of increased needs and vulnerability, due especially to weather-related disasters such as floods, storms, cyclones, drought and extreme temperatures, the awardwinning logistics unit of the International Federation is seeking support to consolidate its existing logistics resources in Geneva, Kuala Lumpur, Dubai and Panama. The unit will also strive to expand its reach and capacity worldwide. With the centralized strategic management function in Geneva, the three RLUs have provided proven operational response, coordination and logistical capacity building within their regions. In addition, their stocking policy allows them each to provide immediate assistance with 5,000 family kits within 48 hours, and a further 15,000 kits within 14 days. The three RLUs have supported an average of 21 major operations per month, and organized 22 logistics workshops from January to December: The Kuala Lumpur RLU received 1,634 tons in its warehouse, and it dispatched a total of 1,269 tons to main emergencies in Myanmar 452 tons, in China 173 tons, in India 101 tons, in Nepal 153 tons, and in Vietnam 52 tons and to ongoing operations. The Panama RLU received 1,019 tons in its warehouse, and it dispatched a total of 920 tons (approximately for 37,000 families). The Dubai RLU received 667 tons in its warehouse, and it dispatched a total of 618 tons. The Kuala Lumpur RLU, with the strong support of the Dubai RLU, coordinated the delivery of 104,000 family tents in response to the earthquake in China. Analysis of the regionalization approach to the logistics support confirms quantifiable improvements in the disaster response supply chain in every aspect; from reducing delivery times and costs, to increasing effectiveness and efficiency. 2

3 Through the improved utilization of logistics resources within the Movement, the RLUs will increase their coverage with a coordinated programme of accessing local stockpiles of relief goods. The scope, scale and geographic distribution of this scale up will be driven by the monitoring and support provided to the developing DM strategy. Progress towards outcomes The following objectives were identified to consolidate the existing logistics resources, and to expand logistics reach and capacity: Scale up from the existing capacity to deliver an agreed set of relief items for a maximum of 5,000 families within 48 hrs, and a further 15,000 in 14 days, through monitoring and support of the developing DM strategy. Support Red Cross Red Crescent disaster preparedness, response and recovery activities with higher quality logistics services, including human resources, systems, tools, and procedures. Objective 1: Scale up from the existing capacity to deliver an agreed set of relief items for a maximum of 5,000 families within 48 hours, and a further 15,000 in 14 days, through monitoring and supporting the developing DM strategy. Outcome/Expected result: Improved alignment of logistics resources supporting disaster response plans and strategies, and increased level of access to stock without necessarily increasing the Federation stock holding. Key activities Review stockholding components, so as to improve the alignment of content and the appropriateness of relief items. Maintain and scale up the capacity in each RLU to support the target. Review RLU locations and number to support the 2008 to 2009 objectives. Review and possibly integrate subregional stock holdings within the Movement and others, to make better use of existing resources. Develop contingency plans to improve access to emerging multiple emergencies which will improve collaboration and cooperation across DM. Achievements After the delivery of stock to the operations in Myanmar and in China, the three main National Societies holding stock in Kuala Lumpur (British, American, and Japanese Red Cross Societies) increased substantially the number of family kits they had prepositioned. The RLU in Kuala Lumpur reached the target stock highlighted in the strategy (stock for 20,000 families). In close coordination with the shelter department, 29,000 shelter kits were pre-positioned in key locations (5,000 in Nairobi, 4,000 in Harare, 6,000 in Panama, 7,000 in Dubai, and 7,000 in Kuala Lumpur). Out of this, 13,000 were dispatched to Myanmar; 6,400 to the Southern Africa floods (Mozambique and Malawi); 2,500 to the West and Central African floods; 5,800 to Haiti, Cuba and Turks and Caicos; and 7,000 to Nepal. New procedures to manage such stock have been drafted and agreed by technical departments. Initial discussions have started with other technical departments like water and sanitation and relief to review actual stock holdings, and to adjust the basket of items in alignment with disaster response plans. 3

4 Additional human resources fully funded by key Partner National Societies (American, New Zealand, Finish, Australian, Danish, and Italian Red Cross Societies) have reinforced the regional logistics units to scale up response capacity. Two new framework agreements for long-lasting impregnated mosquito nets were signed. In addition to pre-positioned stock of items in the International Federation s warehouse, the International Federation now has access to supplier stocks in its warehouses in Africa (Uganda, Sudan, and Nigeria) at preferential prices. To develop cost-effective solutions and preparedness actions to all sectors of disaster preparedness and disaster relief, LRMD is a permanent member of the disaster management team, and heads of RLUs are participating in the zone planning meetings. In addition, logistics staff in Geneva has participated in the DM coordinators workshop to integrate DM plans in the logistics strategy. A series of meetings have been conducted with the Spanish, Australian, New Zealand, Mexican, Salvador and French Red Cross Societies, as well as with the Iranian Red Crescent Society to discuss ways to engage on initiatives together. For example, to include existing national stock as part of the global stock strategy to avoid duplication of stock holdings, and to maximize movement resources. Objective 2: Support Red Cross and Red Crescent Societies disaster preparedness, response and recovery activities with higher quality logistics services, including human resources (HR), systems, tools and procedures. Outcome/Expected result: Operations benefit from a higher quality, proven and qualified human resources to maximize the impact of logistics services. The development of existing and new tools enables logistics activities to be measurable and reported, supporting increased professional competence. Key activities Develop and formalize minimum standards in logistics and procurement HR resources in field operations. Update and/or develop logistics standards and manuals, including logistics procedures, Air Operations, a relief item catalogue and environmental aspects. Further develop key performance indicators and the logistics dashboard to include impact-measuring against benchmarks, as well as to determine trends. Continue to develop the humanitarian procurement centre service to the Movement and external organizations. Achievement and constraints Logistics rosters for logistics and procurement coordinators/delegates were developed, and resources from this roster were deployed to Bangladesh, China, Myanmar, Haiti, the Horn of Africa and Zimbabwe. Regional development has been enhanced with a total of 22 workshops with 461 participants ranging from specialist procurement and fleet training, Logistics Regional Disaster Response Team (RDRT) training, Regional Logistics Workshop, Emergency Response Unit (ERU) logistics training to workshops tailored for specific National Societies (example the Mexican and Thai Red Cross Societies and the Iranian Red Crescent Society). LRMD provided support by facilitating technical sessions to six National Societies ERU training courses in 2008 (logistics ERU training organized by the British, Spanish, Swiss, and the Finnish Red Cross Societies, and two relief ERU trainings organized by the French and Benelux Red Cross Societies). One regional disaster response team 4

5 member from the Venezuela Red Cross Society participated in the Field Assessment Coordination Team workshop organized by the Canadian Red Cross Society. In depth training of 12 staff s skills in diverse roles, including RDRT/Regional Intervention Team s (RIT) members who are looking to enhance their skills and knowledge, to staff selected to carry Federation activities in international procurement. A trainee delegate programme has been developed from three to six months. So far six delegates have been trained (three in procurements and three in logistics). This training focused on giving in-depth practical training on the Federation logistics procedures in order to increase the pool of deployable logistics human resources. Two of these trainees are now on logistics missions with the International Federation in China and in the Democratic People s Republic of Korea (DPRK). Logic training was conducted in Dakar, and the system set up for three zonal offices in Dakar, Nairobi and Johannesburg. Training was also conducted for ERU delegates of the British, Spanish, Swiss, and Finnish Red Cross Societies. Logic has been successfully deployed in the field to support new operations in Bangladesh, China, Myanmar, Haiti and Zimbabwe. Logic has enabled extended control over the supply chain to the point of distribution. Work has also been completed to add operational enhancements to Logic including new reports, translation into a 3 rd Federation language (French), integration with data from the Humanitarian Logistics Software (HLS) and synchronization improvements. Updates to the HLS system have been completed in the fourth quarter of These updates are intended to improve usability, reduce processing time and keep the technical architecture current for RLUs to support field operations and consignment tracking. Implementation and training activities will be complete in the first quarter of The logistics standards online website platform has been made operational. Changes to enhance the system have been made and will be implemented in the first quarter of The International Federation s logistics manuals have been updated and formatted (fleet and procurement manual). Additional guidelines have been developed for air operations, medical warehousing and construction contracting. All are available on standards online. A new warehouse manual has been published and distributed to all National Societies. It is also available online in English, French, Spanish and Arabic. Logistics job descriptions have also been updated, and are available on the logistics website platform. The quality control tool has been upgraded and translated in French. Logistics FedNet pages have been updated, and are now all available in the four official Federation languages. Emergency items catalogues: nearly 50 technical meetings on medical issues, relief, water and sanitation, vehicles, shelter, personnel safety, food, livelihood, logistics, telecommunications, electrical items, and item bases have taken place so far to review and update standards items specifications. Input has been received from National Societies, operation and procurement staff from both the International Federation and the ICRC. Monthly project management meetings are being held with the International Federation, ICRC and the project manager. Selection of the publishing and web software for the catalogue has been completed and the project is underway with a targeted completion in the second quarter of The baseline review for 2007 and 2008 has been completed in all LRMD structures and has been presented to all key stakeholders (zones/ three RLUs). A new round of consultations has started in February to adjust and review the key performance indicator tool, and incorporate these in the monthly logistics report. Logistics report including feedback from the three RLUs and LRMD in Geneva is produced on a monthly basis and distributed to all stakeholders. A new set of indicators for fleet and procurement have been included in this report. Logistics indicators are under development to better monitor the in-kind mobilization process, and to analyze performance on delivery. A new training package on cost recovery has been developed 5

6 jointly with the finance department, and one cost-recovery training was held for staff in the Dubai RLU. The logistics and resource mobilization department continues to offer humanitarian procurement centre (HPC) services to Red Cross and Red Crescent National Societies. LRMD is running a development project and has commissioned a consultants company to develop a business case, and look into the expansion of its service provision through the HPC to third parties (external to the Red Cross Red Crescent movement). The project was completed in three phases: Phase 1-business case development including a real time business analyses and outlining the internal systems requirements for professional service provision; Phase 2-review and develop the required HPC documentary package, including the HPC charging mechanism tool development review and an update of the procurement manual and development of additional chapters, in particular, related to the procurement of services, information technology/telecommunication equipment and maintenance services; and Phase 3 - procurement for website development. The procurement portal was officially launched in November Working in partnership Eleven National Societies have signed a formal service agreement to utilize logistics services provided by the global logistics units: the Australian, American, British, Canadian, Danish, German, Kenyan, Japanese, Luxemburg, New Zealand and Swiss Red Cross Societies. The Austrian, Belgium, Finnish, Hong Kong, Kenyan, Norwegian, Spanish, South Korean, Hong Kong Red Cross Societies, along with the Qatar and Iranian Red Crescent Society have expressed interest and use services on an ad-hoc basis. The annual National Society logistics meeting was held in Dubai for 40 participants from 21 National Societies, the International Federation and the ICRC. A National Societies user group was constituted, whose main objective is to ensure greater National Society input into global logistics solutions. The user group participated in the September planning meeting. LRMD is an active member of the logistics cluster and participates in quarterly meetings. The International Federation has been fully engaged in charting the development and objectives. Facilitators from the International Federation and participants from ERU logistics rosters are actively engaged in the logistics response team trainings organized by the global logistics cluster cell. Contributing to longer-term impact The global pre-positioning strategy has contributed to eco-friendly logistics by reducing the distance needed to transport goods, especially via airlift. The global logistics programme is producing several tools and systems that will not only provide guidance to its operations and to National Societies, but will also be used by other actors (HPC, emergency items catalogue, and standards online). By constantly revising and raising its standards of logistics, the International Federation can remain a leader in the field of logistics management, and use its position to promote best practices with other organizations. Looking ahead LRMD s strategic approach over the next two years will focus on sustainably increasing and then stabilizing, the coverage and accessibility for the provision of all logistics services for National Society programmes and operations through the zonal structure. In addition, LRMD s long-term 6

7 strategy will be aligned with both the DM Strategy and Strategy Specifically LRMD will focus on four key objectives. To further sustainably increase delivery speed, quality and capacity of logistics services to disaster-affected communities, whilst reducing the cost and impact on the environment. This will be achieved by extending the current permanent RLU infrastructure stock capacity by creating an additional number of stock locations, with supporting transport agreements by the end of To stabilize the LRMD network logistics services so they can be both coordinated with other organizations capacities, and create tools and processes to ensure that selected LRMD procurement and delivery services, particularly those linked to shelter activities, are ready to be opened up to external humanitarian organizations by the end of These will then be operated on a cost-recovery basis for external actors in To further increase National Society programme and operations access to LRMD s logistics specialists by co-locating the current RLUs with zonal offices where appropriate, and placing additional permanent personnel in each of the other zone locations by the end of Based on long-term Federation goals (Strategy 2020) and the DM strategy, to finalize a three-year LRMD strategy ( ) by the end of 2009, and implement a perpetual planning budgeting and reporting system that will provide the basis for delivering the strategic objectives by the end of w we work How we work The International Federation s activities are aligned with its Global Agenda, which sets out four broad goals to meet the Federation's mission to "improve the lives of vulnerable people by mobilizing the power of humanity". Contact information For further information specifically related to this report, please contact: Global Agenda Goals: Reduce the numbers of deaths, injuries and impact from disasters. Reduce the number of deaths, illnesses and impact from diseases and public health emergencies. Increase local community, civil society and Red Cross Red Crescent capacity to address the most urgent situations of vulnerability. Reduce intolerance, discrimination and social exclusion and promote respect for diversity and human dignity. In the International Federation s secretariat: Philip Jones, Head, Logistics and Resource Mobilization Department; phone: ; and fax:

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