Optimizing humanitarian logistics enhancing medical supply distribution

Medical supplies journey from ICRC headquarters in Geneva through regional logistics centers to crisis areas worldwide. However, this process encounters various challenges, including predicting demand, procurement, and timely distribution. Addressing these challenges, the ICRC partnered with ETH Zurich to develop advanced inventory planning tools.

By leveraging the collaboration, the ICRC introduced inventory calculators and planning processes in twelve locations globally. This initiative led to a remarkable 24 percent reduction in medical inventory without compromising service quality, resulting in savings of 3.6 million Swiss francs. Notably, in Yemen's Sana’a warehouse, inventory investment decreased from 2.5 million to 0.99 million Swiss francs, accompanied by reduced storage costs.

Previously, inventory targets were based on average annual requirements, leading to inefficiencies. However, with the new inventory calculator, developed through logistics research, the ICRC can better balance supply and demand for each product. This data-driven approach ensures optimal resource utilization and minimizes supply chain disruptions.

Integration of ETH Zurich's planning tools into ICRC's logistics software has improved inventory management. With reliable delivery times, the ICRC can ensure a service level of 98 percent for certain items. For products with fluctuating demand, a flexible approach targets an immediate supply of 85 percent of demand until stabilization.

The collaboration has not only yielded financial savings but also improved coordination between logistics specialists and healthcare teams on the ground. By enhancing supply reliability, healthcare facilities can improve forecasting, facilitating logistics planning and enhancing medical supply quality. These outcomes are relevant beyond ICRC, offering insights for similar humanitarian organizations facing logistical challenges.

MEDICA-tradefair.com; Source: ETH Zurich