Logistics Performance Management … Case of COVID-19 vaccine distribution

Logistics Performance Management is not a new subject. In Sept 2020, Tiaca and Pharma.Aero conducted a survey (for the readiness of air cargo industries in transporting COVID-19 vaccine) which found that only 28% of respondents were ‘well prepared’ for the undertaking, while 19% described themselves as ‘very unprepared’.
As many of the C-level executives in logistics admit that "One of the biggest fears is that we don’t connect the dots", the real challenge lies there!

This use case describes "how the dots can be connected in a pragmatic way" and how the logistics performance can be addressed in holistic way so as to achieve optimum business performance and maximum returns using KPIwoven.

The use case makes use of ammended possible direct distribution model for the COVID-19 vaccine and freight implications based on information from Pfizer, CDC and other indusrry sources.

As depicted in FIGURE A (Measuring Operational Performance), there are 7 entities involved in direct distribution model. Every entity has got their own challenges. For the pharma companies, the major operational challenge as on today is to ensure the availability of the storage facilities that can manage the extreme temperature requirements while the vaccine is getting transported. The real-life challenge is to contribute in transporting the vaccine between 24 to 48 hours to the destination. As the aviation industry is preparing for this process, unfortunately, (as of while this article is published) there is no minimum standardization policy / SOP available for vaccine specific transportation.

CHALLENGES WHILE "CONNECTING DOTS"

The most obvious operational KPI is Turn around Time (TAT) of each entity while adhering to minimum required quality policy / SOPs. Referring to Figure A above, each of the entities would be using manual / semi-automated or full automated processes for monitoring parameters (metrics) relating to maintaining quality as per their own SOPs as well as the vaccine supplier. Metric is the smallest measurable quark in any performance management system. With traditional solutions the problem is that, the entities in upstream can know the status of the movement of the shipment but not the conditions under which the same is taken care of. Every entity will have their own solutions and ultimately, they form a huge canvas of operational silos. This is true even for the Information Management Infrastructure within every entity (the operational silos exist in majority of the aviation industries even today). Also there is no real-time visibility to KPIs related information among these entites that may be required as an "input" to their internal 'agile processing' and hence to contribute in maintaining the overall TAT.

"CONNECTING DOTS" in PRAGMATIC WAY

KPIwoven makes it possible by effectively and securely bridging these silos and hence "connecting these dots". At an operational level, relevant metrics that are measured manually or automatically can be incorporated. KPIwoven supports qualitative as well as quantitative metrics. As an example, the entity would have deployed an automated system (such as IoT) to measure temperature. KPIwoven can pull/ extract this information and map it to the relevant metrics which is quantitative metric. Any human intervented information that is ultimately mapped to the metric will relate to qualitative metric.

KPIs will be derived from logical or mathematical combinations of such metrics measured. Metrics and KPIs, measured against their expected outcomes (target values) will tell us whether actionable(s) is(are) required. KPIwoven has got in-built communication system so that all entities involved in the process can seemlessly receive relevant alerts and they can communicate with each other over agreed set of actionables and KPIs. The in-built RACI model (blended with ISO20K) makes it possible to assign action item to the responsible so that necessary action can be executed in order to improve/ optimize performance.