Table of ContentsIntroductionDeficiencies in the Old Red Cross Supply ChainRoles of IT in the New Red Cross Supply Chain RedOther elements of the new Red Cross supply chainBusiness outcomes for the Red CrossFree assetsConclusionIntroductionThe International Federation of the Red Cross (IFRC) is an organization whose operational activities are filled with unpredictability and urgency, and good many of the fundamental principles that apply to normal commercial supply chains do not integrate as easily. It is difficult to find a prototype that can meet the needs of the organization. Prior to the full implementation of Humanitarian Logistics Software (HLS) in September 2003, Red Cross business processes relied on spreadsheets and manual processes within the Geneva office. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayDeficiencies of the old Red Cross supply chainThe overall incompetence of the supply chain model is due to its centralized system. The fact that all information had to be transmitted through the team in Geneva before reaching the different organizations through a single channel leads to a significant inefficiency problem. As a result, the International Federation was incompetent to organize relief efforts in a timely manner. Its aid only began reaching victims a few weeks after the disaster, which also continued after other humanitarian organizations were dispatched to the site. This ineffective conduct by the International Federation left donors questioning whether their money was worth it and questioning whether the International Federation was competent enough to manage a world-class supply chain capable of responding to emergency situations. efficiently and cost-effectively. Many organizations send unsolicited goods, which hampered the International Federation's ability to obtain and distribute needed relief. They did not have a proper system to sort the donated items, which hampered the progress of the delivery of goods. Lack of coordination was another shortcoming of the previous supply chain model. The failure to regulate transportation resulted in high costs for multiple transatlantic flights and shipments that could have been avoided. There was also a lack of transparency about who was sending what and to which locations. Roles of IT in the New Red Cross Supply Chain In processing transactions, technology has helped speed up the transmission of information. The system maintains country and disaster data for regional units, so they can intelligently preposition supplies. The main activities processed are accomplished via digital networks. Upon learning of a disaster, staff will quickly capture and evaluate key requirements based on disaster type and location. The system can group the necessary elements and generate the mobilization table. The goods needs are then processed and expressed in a mobilization table, and donors can provide money to purchase the goods or provide the goods themselves. Thanks to technology, the system has become more flexible and adaptable. Procurement and mobilization can first be initiated by logisticians, while field personnel analyze the actual requirements of theproject. Each type of disaster would involve different aid packages. For example, an earthquake in a cold mountainous area will likely require winterized tents and field hospitals, while flooding in the tropics will require hygiene kits and water purification to combat diseases. This allowed for greater flexibility, as the system is able to differentiate between different needs and allocate aid accordingly. The new technology has also improved order tracking and delivery coordination. HLS integrates tables to track shipping information on the cloud and can generate records such as shipping documents, merchandise receipts, and reports on where current items are located and where they can be expected. During the tsunami that hit Southeast Asia in 2004, IFRC leadership had the first opportunity to measure the supply chain from needs to delivery. They could establish the specific date a community need was identified and track the date goods were provided to meet that need. Other elements of the new Red Cross supply chain. The IFRC has decided to establish new regional logistics units in Dubai, Kuala Lumpur and Panama, with the aim of reorganizing its downstream supply chain towards a decentralized model. These units preposition supplies in warehouses for the most common disasters in their region, so they provide rapid support during the initial phases of operations since the units are nearby. The International Federation also has a new development called Trace the Face, which offers people a cloud service. research and reporting service called Safe and Well Website. It's a database where refugees can report that they are okay and safe, or search for a loved one amid the chaos. This helps alleviate the psychological stress that this could cause. For purchasing, the software makes it possible to manage supplier relationships upstream by following agreements and calls for tenders, as well as by generating standard purchase orders, invoices and production reports. Important business relationships are enabled and mediated by digital technology. Purchasing can access real-time information they would typically request from their supplier. Intimacy with suppliers allows them to provide vital inputs, which reduces costs. Red Cross Business Results IFRC said HLS helped improve their response time by 30%. Despite problems, after the Indonesia earthquake, the supply chain was up and running in just three days, less than a third of the time it took the IFRC to mobilize during the quake of land in Pakistan the previous year. This increased the timeliness of information for decision-makers at headquarters and in the field. Operations were also much more profitable, with costs estimated to have been cut in half. They had reduced inventory transportation and storage costs associated with their global operations. They had revised their distribution system so that the most essential supplies were kept close to the most likely disaster sites. This revision allowed goods to be shipped by road or sea, instead of coming from overseas, leading to higher transportation costs. It led to a dramatic reduction in the costs of delivering assistance programs and was.