Insights on the costs of humanitarian logistics: A case study analysis

Hein, Christian; Behrens, Florian; Lasch, Rainer Article Insights on the costs of humanitarian logistics: A case study analysis Logistics Research Provided in Cooperation with: Bundesvereinigung Logistik (BVL) e.V., Bremen Suggested Citation: Hein, Christian; Behrens, Florian; Lasch, Rainer (2020) : Insights on the costs of humanitarian logistics: A case study analysis, Logistics Research, ISSN 1865-0368, Bundesvereinigung Logistik (BVL), Bremen, Vol. 13, Iss. 1, pp. 1-17, https://doi.org/10.23773/2020_3 This Version is available at: https://hdl.handle.net/10419/297180 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Received:11 June 2019 /Accepted: 22 January2020 /Publishedonline:19 February2020 ©TheAuthor(s)2020 This articleis publishedwith Open Access at www.bvl.de/lore Insights on theCostsof Humanitarian Logistics ACase StudyAnalysis ChristianHein ·FlorianBehrens · Rainer Lasch ABSTRACT Theaimof thispaperis to investigate howhumanitarian organizations keep trackof their logistics costs. Furthermore, first insights regardingtheextent of logistics costsin humanitarian operations areprovided andtheunderlyingrelationshipswith theobjectives, theformsof cooperation, andtheprocessesof the humanitarian actors areexamined.In orderto answer theresearch questions, aqualitativecase study with expert interviews in sixhumanitarian organizationsis applied. Theresultsshow that therecordingof logistics costsinpracticeisratherlimited.Thefiguresgiveninthe literatureare onlyrealistic undercertain circumstances –in some casescostscanbe much lower. Thedegree of projectautonomyandthedisaster phaseareshown to have thegreatestimpacts. This work providesfirst insights into thelogistics costsbasedmainly on the investigationinto sixGerman organizationsand, hence, is limitedin itsgeneralizability.However, since little empiricaldata andfewscientificcontributions areavailablein this context, thepaper provides more specific evidence of theactual levelof logisticscosts andtheunderlyingdependencies. KEYWORDS:humanitarian logistics·logistics costs· humanitarian organization·case study 1. INTRODUCTION Theoverwhelmingchallenges createdby disasters worldwide, both naturalandman-made,cannot be ignored. In just thepast 20 years, more than 1.3 million peoplehave lost their livesas adirect result of naturaldisastersand a further 4.4 billionwere injured, displaced, or in need of humanitarian assistance.In thesame period of time, theglobal economic damage is valued at about$2.9 trillion US,mainly caused by climate-relateddisasters[1]. Even though theabsolute economic losses aregreater in high-income countries, therelative damage is farhigher in low-income regions, further hamperingtheir development. Accordingto the UNISDR [2], climate change will increase expected losses in future. Unfortunately, not onlyarenatural hazardstriggering humansuffering, but man-made conflicts arealsoinflictingimmenseharm to people andcommunities. Consider thesituationof Syria, where13.1 million peoplearein need of humanitarian assistance andmore than 5.6million have fledtheir homes since 2011 [3]. In allthesedevastatingsituations,urgent humanitarian assistance must be provided to support theaffected communities. Particularly uncertainties regardingthetrigger, time, andextentof disasterspose significant challenges to theresponders andincrease thecomplexity of humanitarian operations [4]. Relief operations arefurther characterized by an extensive number of humanitarian actors;during theIndian Oceantsunamiin 2004,forexample, more than 700 Non-Governmental Organizations (NGOs) from about 40 differentcountrieswere involved, most of them operatingindependentsupply chains andmaintaining their ownfundingandoperationalsystems[5,6]. However, to meet thesechallenges,humanitarian actors,particularly NGOs,rely substantiallyon external financial donations.In 2017,an amount of $27.3billion US wasallocatedto international humanitarian response [7]. In this context, it is noted that logistics accountfor a considerable proportion (upto 80 percent)of disaster relief costsandtasks Logistics Research (2020) 13:3 DOI_10.23773/2020_3 ChristianHein Department of Business Management andEconomics, Chair of Business Management,esp. Logistics, Technische UniversitätDresden, Mommsenstr.13,01062 Dresden, Germany Tel.:+49351463-34995 Fax: +49351463-37779 E-mail:[email protected] www.dresden-logistik.de FlorianBehrens E-mail: fl[email protected] Rainer Lasch E-mail:[email protected] 2 2. THEORETICALBACKGROUND 2.1. LogisticsAccounting in aCommercial Context Theexisting understandingof logistics in acompany or organization has a decisive influence on whichareas of responsibility andcompetence areassigned to it. Thedesign of thelogisticscost accounting is therefore fundamentallydependenton thisunderstanding, which hasundergone a significant change overtheyears. Logisticshas evolvedfrom the original understanding of transportation,handling, andstorageto aholistic approach, wherelogisticsinfluencesvariousareas of acompany as well as thecurrentcross-company perspectiveof managing supply chains [12].Weber[13] describes a four-stage phase model forthis development process, whichreflectsthelevelof logisticalknowledge up to thecurrentcross-companyperspective of managing supply chains. Nowadays,thereexist differentcost accounting systems, whichdiffer accordingto their distinct objectives.They canbe classifiedaccordingto thetwo dimensions “time-relation of costs” and“volumeof allocated costs”. A distinctionis made between actual andplanned cost accounting within thetemporal relation andbetween full andpartial cost accounting within thescopeof cost allocation.Full cost accounting is the origin of today’scost accounting systems. It is based on theallocation of direct andoverheadcosts, whereasdirect costscanbe assigned toacertainproduct directlyandoverheadcostscan only be assigned to theproducts via a breakdownto cost centersanda subsequent allocation viaoverheadsurcharges.Cost accounting is carriedoutin threestages:cost type, cost center,andcost unit accounting [14].Thefull cost accounting system hasconsiderable potential for improvement, particularly regardingthebreakdownof overhead costs. It canbe criticized that theinaccurate allocation of overheadcostsleadsto insufficientand unreliable informationformanagers.Furthermore, thedifferentiationof thecosts, particularly forstorage andtransport costs, is unsatisfactory.Activitybasedcostingaddressesthis deficit by providing a methodologythat enablestheallocation of overhead andsupport coststo individual processes.It is therefore particularly suitable fortheallocation of logistics costs. By assigningoverhead coststo differentprocesses, it is possible to breakdown thecoststo theindividual products accordingto their actual consumption. Thus, more precise informationabout thecostsof processes, products,andcustomers canbe generated [13]. Thechallenges posedby logisticscost accounting arecaused by thevariousdifficultiesin enteringand allocating logistics costs. As aclearunderstanding of thetermlogisticsis indispensable here, different companies or organizationscanhave individual understandings of theterm“logistics”. Taschner speaks in this contextof aBabylonian linguistic [8–10].Logisticsplays a crucial role in humanitarian operations.It influencestheeffectiveness of relief significantly anddetermines thespeed,thecoverage, andthus thecostsof humanitarian organizations [11].Unfortunately, theacademic literaturedoes not provide more detailconcerning theproportionof logisticseffortsin humanitarian operations.Hence, it remainsunclearwhether thestated numbersactually relate toonespecific organization or type of disaster or whichactivities areincludedwithin theterm logistics. Thereis no profound survey on thecostsof logisticsin humanitarian operations or of humanitarian organizations. Therefore, this paper aims at providingclarityabout theshareof logistics in humanitarian operations,as well as in terms of thecostsincurred.Theunderlying connection between theobjectives,thecooperation, as well as theprocesses of thehumanitarian actors andtheir resultingcostsareof particular importance in this context. In addition, the reasonsandobstacles forlogisticscost accounting should be mentioned. The following research questions will be answered: 1. Howdo humanitarian organizationsrecord their costs, particularly regardingtheir logistics activities? 2. Which factors arecriticalforthelevelandthe relevance of logistics costsin humanitarian operations in relation to thecharacteristicsof the respective actors? 3. Whichpotentialsandhurdlesdo humanitarian organizations facein acquiring their logistics costs? In orderto examinethesequestions andsince little empiricaldata andscientificcontributionsare availablein thisfield of research, a qualitativecase study is considered appropriate. Expert interviews were conductedin sixGerman humanitarian organizations. Subsequently, a qualitativedata analysis wasperformed to answer theresearch questions. Theremainderof this work is organizedas follows: After abrief introduction to commercial logisticsand particularly thedeterminationof costs, adescription of humanitarian logisticsandtheircosts, including analysis of literature, is provided. In sectionthree, the methodological processof conducting thecase study is outlined.Next,theresultsarepresented and discussed.On thisoccasion, recommendationsfor theintroduction of logisticscostsaccountingin the humanitarian context aregiven. Finally, theconclusion andan outlookareprovided. 3 Insights on theCostsof Humanitarian Logistics – A Case Study Analysis therearesignificant differenceswhichcharacterize thehumanitarian environmentandpose specific challenges [22].Humanitarian logisticsis shaped by ahighlyvolatile anddynamicenvironment. As the time, thelocation, thetype,andthesize of adisaster areoften unpredictable andthelead times canbe very shortor even non-existent, humanitarian logisticsmust cope with more uncertaintiesthancommercial logistics does [23].Therearefurther unknowns in capabilities, personnel, processstability,and even other actors on site, especially at thebeginningof relief operations [24].In addition,humanitarian logisticians must work undergreattime pressure;whiledelays might be acceptable in thecommercial context, atimely response in humanitarian operations is essential for people’ssurvival [8]. Hence, theultimate ambition of humanitarian organizations is to save livesandto reducesufferingwhilethestrategicobjectivein the commercial contextis to generate financial returns; with theformer,financesare more seen as constraints rather than objectives [23]. Accordingto Dijkzeul andReinhardt[25],the international humanitarian system is not consistent withinitsintensions, rules, anddecision-making processes.Rather,it is asystem characterized by lowinstitutionalization andpopulatedby agrowing number of actors and networks.Thesehumanitarian actors include,amongst others,Non-Governmental Organizations, agencies of theUnited Nationswith humanitarian mandates,andtheRedCross andRed Crescent Movement [22].However, humanitarian aidhasthecommon goal of ensuring thesurvival of people in need,followingthefour centralhumanitarian principles of humanity,impartiality,independence, and neutrality [11].Accordingto thediversityof humanitarian actors,theterminologyused in this field varies greatly, often interpreted and utilizedin different ways [26]. In disaster management,thereis usually a distinctionbetween differentphases,wherethecyclic classificationinto mitigation, preparedness,response, andrecoveryhasbecome commonplace[27].Kovcs andSpens[11] distinguishbetween thethreephases of preparation, immediate response,andreconstruction. Theactivities cannot be modeledstrictlyin sequence, as they mightvary,repeat, or overlapaccordingto thedisaster scenario.Developmentcooperation must be distinguishedfrom humanitarian assistance as it includeslong-termandsustainable measures to reduce povertyandfoster socioeconomic improvements [28]. 2.3. LogisticsAccounting in aHumanitarian Context Humanitarian actors areusuallyunable to finance themselves through income from theservices they provideandaretherefore dependenton external financing.In thehumanitarian context, themajor sourcesof fundingforNon-ProfitOrganizations (NPOs) arepublic grants anddonations.Public funds diversity, whichmakescomparabilityacross company boundaries more difficult [15]. Of particularimportance in thiscontextis theproblem of delimiting logistics costs. Traditionally, theareasof transport, handling, andstorageareassigned to logistics. But therecould already be problems of allocation here as well,as a transport process on a conveyor belt canbe part of the production process, or it canbe assigned to logistics. Afurther challengewhen recordinglogisticscostsis thewayin whichperformanceis measured. While quantitative keyfigures canbe used inproduction, qualitativekeyfigures such as reliabilityandcustomer serviceserveas thebasisforperformance measurement in logistics. Thedifficulty is to adequately convertthe qualitativekeyfigures into quantitatively measurable andusable cost data.Moreover, logistics includes administrative services, whichareparticularly difficult to include in thecalculationdueto their overhead cost character [13].Theseproblemsrequire an additional effort that shouldnot be underestimated in orderto map thelogisticscostsuniformlyandcorrectly. However, it is necessary to weighup thecostsandbenefitsof the degree of accuracy of logisticscost accounting on an individualcompanybasis. 2.2. Humanitarian Logistics Although logistics hasalways been involved in humanitarian operations,itsstatus in practice and academic literaturewasnotrecognized before the beginningof the21st century[16]. This recognition seemsoverduesince logisticsplays a particularly importantrole in humanitarian operations.Logistics influencestheeffectivenessof humanitarian operations significantly anddetermines thespeed,thecoverage, andthecostsof humanitarian organizations. Thescope of humanitarian logisticsis quitebroad,as it is used as “anumbrella term for a mixed arrayof operations” [11].Nevertheless, humanitarian logistics resembles commercial logisticsin generalandis defined as “the processof planning,implementing andcontrolling theefficient,costeffectiveflowandstorageof goods andmaterials,as well as relatedinformation[...]for thepurpose of alleviatingthesufferingof vulnerable people”[17]aswellas“[.. .] meetingtheendbeneficiary’s requirements”[18].Both of thesedefinitions arewidely used in academic literature,e.g. by vanWassenhove [8],Kovács andSpens[11, 19], or Schulz andBlecken [20].Remarkably,vanderLaan et al.[21] avoidthe additional flow-characterizationof efficiencyandcosteffectivenessby defining humanitarian logisticsas “the processof planning, implementing andcontrolling the flowandstorageof goodsandmaterials as well as relatedinformation[... ]”. Humanitarian logisticsincludes a wide range of activities andprocesses, such as preparedness, procurement,transport, warehousing, andtraining acrossalldisaster phases [11].Although thesetasks arecloselyrelated to thoseof commercial logistics, 4 forlogisticsstands at about 80 percent.Most of the other sourcesquotesimilarfigures forlogisticscosts. It should be mentioned that none of theprimarysources providean empiricalstudy of logisticscosts, but simply present thecostsin one sentence andwithout further explanation. It therefore remainsunclearto what extent logisticscostsaredistinguishedfrom other costsand whether aparticular organization or catastrophe type wasused as abasisforthis reported percentage. In order to examinealsopractitionerliterature, both Tatham’s bibliography[38]as well as the KLU’sHumanitarian LogisticsDatabase[39], with together atotalof over one thousand entries, were used forfurther investigations.Thesecomprehensive collectionsof literature on humanitarian logistics include notonly academic journalentries(asit is the case with theliteraturereview of Leiras et al.[35]), butalsocontributions to booksandconferences as well as thosefrom practitionermagazines or journals. Thecorrespondingpractitioner literaturehave been identifiedandafterwards thefull textsanalyzed in thesame wayas theacademic literature. Theresults aresimilarto thoseabove.Costsare mentioned in more than threequartersof thearticles.Onlytwo contributions[40, 41]referto thelevelof logistics costsin humanitarian operations.Thesearealsogiven here as 60 to 80 percent andlack further explanations. Context-relatedoptimization modelsdo notseem to be relevant from theperspectiveof practitioners,as there is no mention at all. Theimportance of cost efficiency is rather emphasized here. It wasthus shownthat therearealmost no empirical studieson logisticscostsin humanitarian operations or aid organizations. Vaillancourt et al.[42] arean exception; they examined factors influencing supply chaincostsin humanitarian health projects.The resultsshowedthat thesize of thehumanitarian aid intervention (intermsof thenumber of targeted beneficiaries)andtheorganizational form hada significant influence on thesupply chaincostsin the projects.NGOs hadlowercostscompared to UN agencies.In addition, it became clearthat not allcost drivers mentioned in theliteraturehadan influence. Theinvestigations,however, were limited to thearea of projectcostsfor health interventions and, therefore, requiremore detailedinvestigations.It raisesthe issueof therebeinguncertaintyregarding theexact scopeandprocesses of logistics in thehumanitarian context[11], a demarcationproblemthat also existsin thecommercial sector (cf. section2.1).In an effort to create acommon understandingforthe field,Blecken [24] hasestablished a referencemodelandassigned specificareasof responsibility. However, it remains unclearwhat thecurrentpracticesin thehumanitarian organizationsthemselves areandwhat understanding of theterm prevails. areoften subject to special conditions and, as aresult, NPOs are more limitedin theirfreedom of decision. NPOs avoidsuch dependencies by financing themselves with donations. Thetotalamount received through donationsis largelydependent on thewillingness of thepublic to donate andcanvary greatlyover time. Oneissueof contention includesearmarkeddonations, whichrestrict theuseof donations to aspecificproject [29, 30]. In addition, financing long-termprojects and preventive measures is particularly difficult [31].In thehumanitarian non-profitsector, simple accounting systemsarecommon [32].However, it shouldbe critically notedthat most accounting methodswere createdfor a profit-maximizing contextandare therefore notentirely suitable in thehumanitarian context[33].Organizations financedby institutional donors must provide reports on theuseof funds in accordance with donor requirements.Thewillingness to providecomprehensivedisclosure is often limited, partly dueto theincreasedformal effort involved in accounting.However, aid organizationsareinterested in thetransparency of their costs[34].Humanitarian actors have to deal with this conflictof interestbetween effort andbenefit of detailedcost accounting. In theacademic literature, theissue of costsin humanitarian logisticsis treatedrather controversially. On the one hand, thereareanumber of articles that implicitlyinclude costsin their considerations.In their overview, Leiras et al.[35] examined atotalof 228 academic peer-reviewed journalarticles.We evaluated thesearticles contextually accordingto their mentions of theterm“cost”.This retrospective evaluation concludedthat only about15 percent of thearticles do not mentiontheterm “costs”.This shows that this issuecannot be classifiedas irrelevant. A frequent mentioning of costs, especiallyin connection with optimization models, is noticeable. On thisoccasion, costsareused as atarget variable foroptimization or forboundaryconditions.Thesearereferred to as socalled deprivationcosts[36], whichtake into account theparticularitiesof thehumanitarian contextby incorporatingexternalitiesin an appropriate fashion. However, only 17 articles provideconcise information on theamount or theshareof logistics costsin the humanitarian context. Acloseranalysis of thesecontributionsandtheir references revealed that thereare a totalof six primarysources, not allof whichare necessarily of an academicnature.In Figure 1, thearticles examined arepresented,as aretheir corresponding citation relationships. A distinctionmust be made between articles that explicitly mentioncosts (grey) andarticles notusingthis termbut describing thelogisticseffort more generally(white). Here,it is notentirely clear whethertheactual costsare meant or not. Further, the citation analysis reveals that thereis disagreement between both interpretations alongthelines of citation. VanWassenhove [8]andTrunick[37] arequoted most frequently,withboth authors statingthat theshare 5 Insights on theCostsof Humanitarian Logistics – A Case Study Analysis Fig. 1: LogisticsCost in Academic Literature 6 triangulation, theestablishmentof achainof evidence forthereader to followtheresearch process, anddraft reviewsby keyinformants arehighlighted[65].Finally, reliabilityconsiderstherepeatability of thecase study andis relatedto thetraceability of theresearch, includingthedocumentationof theresearch process andthedata sources[59].In thefollowing, theprocess of thiscase studywill be outlined comprehensively consideringthesequalitycriteria. 3.2. Case Selection Theselectionof casesis acrucial part of thecase study design.Oneof themain distinctions is between single andmultiple case studies. Multiple case studies represent a levelof replicationthat allows researchersto reveal differencesandsimilarities between thevarious units; they canbe used to showcontrasting resultsfor explainablereasons[65] andenable theidentification of linkages between variablesforcausal understanding [66]. As themainobjectiveof this paper is to make generalstatements aboutthecostsof humanitarian logistics, amultiple case studyis appropriate. The identificationof suitable casesis closelyrelatedto the externalvalidity.Thecasesdiffer sufficiently, but at the same timeinherent similarities enableresearchersto draw conclusionsaboutthesubject underinvestigation. Theappropriatenessof thecasesselected is of higher importance than their number [63]. Vega [61] emphasizes that, particularly in research on humanitarianlogistics,thedefinition of case boundaries is of high importance in orderto ensuretraceability of theresults. Thesecase characteristics should include, amongst others,thedisaster phaseandtype,as well as thegeographical location. In orderto allow a certain universal validity,thereshould be no restrictiononthe type of disaster within thescopeof this case study. In addition, the organizations examined should have thefollowing similarities (literal replication):Theaim of this studyis to examinethecostsin humanitarian logistics, especiallyin relation to thedeployment after theoutbreak of adisaster,therefore only organizations active in this post-disasterphaseshould be examined. Theactivities of the organizations examined should not be limitedto afewregionsbutshould be international. However, only organizationsbasedin Germanywill be considered,as theunderstandingof costsis shaped by specificterminologyas well as thelegalframework. Other country-specificinfluencing factors canthus be neglected. This restrictionis justified by thedesired comparabilityof thestudyresults. Thesame applies to thelegalstatus;only NGOs shouldbe considered. Thereis no UN agency in thefield of humanitarian assistance whichis basedin Germany. However, case studiesregardinghumanitarian logisticsareoften conducted with majorinternational organizations [61]. Within thescopeof this study,smalland mediumsized aid organizationsshould be deliberately includedas well in orderto achieve greater generalizability and 3. METHODOLOGY 3.1. Methodological Justification Littlescientificknowledgeandnocomprehensivedata exists in thefield of humanitarian logisticscosts, as showninsection2.3. Therefore, anopenandexplorative approach,such as acase study,wouldbe appropriate to fill theresearch gap.Accordingto Yin[55, p.13], “a case studyis an empiricalenquirythat (1)investigates acontemporary phenomenon within itsreal life context, especiallywhen (2) theboundaries between phenomenon andcontextarenotclearly evident”.It canbe appliedforvariousresearch purposes andis classifiedinto thethreetypes:exploratory, descriptive, andexplanatory case studies. Anexploratory case study aims at generating research questionsandhypotheses forfurther research [56] andis therefore particularly useful in theearly stageof research [57].However, in most casestheresearch process includes elements from allof thethreetypes. Statisticalgeneralisation is not themain objectiveof case studyresearch [58].Thecase study methodologyis increasingly appliedin logistics andSupply Chain Management [59],butremains subordinate to other research methods. Accordingto Leiras et al.[35] andChiappettaJabbouret al.[60], more empirical evidence is needed in humanitarian logistics. Forthis reason, case studyresearch designs areparticularly recommended [61]. Giventhe complexity of humanitarian logistics [62],thelimited knowledgeof costsin humanitarian logistics,andthe open,explorativeresearch questionsof this study, a case study approach is considered appropriate to meet theresearch needs and to generate direction forfurther research. Arigorous research progressis crucial, especially when carryingoutcase studies, as this research methodologyis subject to generalandcase-specific criticism [59, 63]. Thesecritiquesoften center around comprehensibilityandtraceability,amongothers. Therefore, Stuartet al.[64] proposed a five-stage research process model includingthedefinitionof the research question in thefirst step andtheinstrument developmentin thesecond, consideringmainly the case selectionprocess(cf. section3.2).Thesestepsare followedby data gathering(section 3.3) andanalysis (section 3.4) andcompletedwiththedissemination stage. In orderto avoid methodological criticism, compliance with certainqualitycriteria is important here.Stuart et al.[64] distinguishbetween external, internal, andconstructvalidity as well as reliability. Externalvalidity refers to thegeneralisation of the resultsof case studiesandis closelylinked to the selectionof thecases. Internal validity refers to making thecorrectinferences from thedata andis mainly relevant forexplanatory case studies[65].Construct validity ensuresappropriatemeasures foranswering theresearch questions. Multiple data sourcesfor 7 Insights on theCostsof Humanitarian Logistics – A Case Study Analysis way, thecontentandcourse of theinterviews are focusedon thesubject areasrelevant to thestudy and comparabilityof thecontentis ensured[69].At the same time, however, it is essential not to restrict the course of theinterview toomuch in orderto be able to include anyadditional topics considered importantby theexpert [70].This requirementis alreadyanchored in theprincipleof openness in qualitativeresearch.For this reason, deviations from theguidelines arenot only permitted, butalso necessary. Fortheinterviews, aguidelinewasdesigned which wasused forallinterviewees.Theguidelinecontent wasdeveloped accordingto the methodologyby Helfferich[71],whichis dividedinto thefour steps of collecting, checking,sorting, andsubsuming. Sorting andsubsumingthequestionsultimately ledto asubdivision of theguidelineinto thefollowing three thematic blocks:generalquestionsabout organization, understandings of terms andconcepts,andquestionson logisticscost accounting in the organization.In thelast sectionof theinterview, a distinctionis made between twopossible scenarios:The organization already carriesoutlogisticscost accounting or hasnot yet implementedsuch aprocedurein itscost accounting. Since it is notknownbefore theinterviewwhether andto what extentlogisticalcostsarerecorded,the thirdsectionof theguidelineis dividedinto these twosections.Thestructureof theguidelineandthe question areascan be foundin the Appendix. Allinterviewswere conductedby telephone or Skype. Atotalof ten interviews in six organizations, each lasting20 to 50 minutes,were conducted,which aresummarized in Table2. Themain interviews took placein JanuaryandFebruary 2018. A moredetailed classificationof the organizations surveyed is givenin section4. In addition to theinterview data,publicly accessiblematerials such as annual reportsand homepagesof the organizationswere used.To clarify specificquestionswhicharoseduring theprocess of analysis,follow-up interviews in threeof those organizations took place(cf. Table2). to identify potential coherences.The organizations examined shouldfurther differ in their mandate andthe sector in whichthey operate in (theoreticalreplication). Thecompositionof literal andtheoreticalreplication canbe foundin Table1. Withinthedatabase of theGerman CentralInstitute for Social Issues(DZI)[67],76 German organizations which met thecriteria stated abovecouldbe identified. Those organizations have been categorizedthroughan analysis of publicly accessible informationmaterials, such as the organizations’ websites andannual reports, in orderto ensure thetheoreticalreplication. Thus,thetheoreticalreplicationcouldbe ensured. It wasnot possible in allcasesto select andcontact specificinterview partners withinan organization.The selectionof suitable experts was hence usuallycarried outby theaid organizations themselves.Therefore, ashort descriptionof theresearch project andthe interview guide, reducedto themain questions, were sent as an appendix.In this way, it wasensuredthat the interviewee hadthe necessaryexpert knowledgeto answer theresearch questions. Ultimately,interviews were conductedin sixof these organizations. 3.3. Data Gathering Throughdiverseresearch methodsandtheuseof differentdata sources, triangulationcanbe ensured, whichin turnenhances thevalidity of theresearch [61]. Thefundamentals of this work suggestthat internal data from thehumanitarian organizationsis of great importance when lookingto analyzetheir costsand, therefore, a strong orientationtowardstheknowledge of thepersonsworking within the organizations is necessary. Semi-structuredexpert interviews arean effectiveandflexibletool forobtaining information relevant forthis investigation[68].Followingthetopic of this paper,employees of humanitarian organizations canbe regardedas expertswhohave special knowledge of logistical processes or internalcost accounting. A guidelinewasused to support theinterviews. In this Legal Status Seat of Organization Area Projects (Countries) Budget [Mio.€] Funds(Share Public:Private) Mandate O1 NGOGermanyInternational 85 (23) 27.7 80% : 20%Multi-Mandate O2 NGOGermany International1212(81) 232.2 71% : 29% Development O3 NGOGermany International86(44) 46.8 67% : 33% Multi-Mandate O4 NGOGermany International 422(67) 36.1 0% :100% Humanitarian O5 NGO Germany International 107(46) 158.10% : 100% Humanitarian O6 NGOGermany International66(36) 15.4 16% : 84%Multi-Mandate Table 1: Case Selection 8 Instead, it must be adapted totheindividualresearch situationwith regard to theobject of investigationand theresearch material. Theanalysis technique used in this paper fordata evaluation is basedonthestructuring of content, which seeksto extractandsummarize informationon specific topics andcontentareasfrom theavailableinterview data.However, the method will notbe adopted unaltered,butwill be supplemented andadjusted in its approach,especiallywith regard to category formation. Inthepresentwork,thecategories were first deductively elaborated on thebasisof conceptual andtheory-based preliminaryconsiderations andappliedto thematerial. In addition to thedeductiveapproach,it is also possible to developthecategories inductivelyfrom theexisting material. Thesetwotypes of category formationare notto be understood as mutually exclusive. Such acombined approach is particularly useful forthe present work,as it is notpossible to foreseeallcontent aspectsdueto thecharacteristics of expert interviews andtheassociated open approach to data collection. Internal validity ensuresthesignificanceof the causal mechanisms understudy. Therefore, data analysis wasconducted separately by theauthors and checkedforplausibility with therelevant literature [55]. Allstepsof codingandparaphrasingwere documented to guaranteerepeatability andensure reliability[65] usingthesoftware MAXQDA (version 2018). 4. RESULTSANDDISCUSSION 4.1. Main Focusof Activities and Organizational Structure Regardingthesix organizations interviewed,allare engaged in disaster relief,but in differentforms. O1 is asmallGerman aid organization, mainly financedby project-related public funds. Thefocusis on various sectors, includingwater, sanitation andhygiene, shelter,education, as well as health.Although the projects aretriggeredby acutedisasters, the measures usuallystartin therehabilitation andreconstruction phase. O1 workstogether with project partners,butalso hasitsownlocalstaffandoperates countryoffices.O2 is areligion-based organization andone of thelargest humanitarian actors in Germany. Their focusis clearly on developmentcooperation.However, O2 is also committedto theinterestsof theaffected population after disasters. The organization exclusivelyworks together with localprojectpartners and none of their ownstaffis sent to projectsnor do countryoffices exist. O3 is part of aworldwide network of national societies andis alsodeeply rooted in disaster relief in Germany itself.Theaidprovided ranges from acuteemergency anddisaster aidto developmentcooperation. Theareas of focusinclude preventionandmitigation as well as foodsecurityandhealth.O3 worksalmostexclusivelyon thebasisof requests from national sister organizations Table 2: Overview of Expert Interviewed Fieldof Activity Number of Interviews Total Duration E1 Emergency Response Coordinator 240min. E2 Emergency Response Coordinator 250min. E3 Responsiblefor Procurement, Logistics, andCrisis Management 255min. E4 Spokesmanof Logistics WorkingGroup 125min. E5 LogisticsCoordinator 150min. E6 DeputyHead of Warehouse & Logistics 235min. To triangulate theresultsof theinterviews, annual reports of all organizationsidentified viathedatabase of theDZI(cf. section3.2) were consulted.Those76 reportswere examined content-relatedaccordingto the mentionof logisticsin generalandin particular of logisticscosts. In orderto soften therestrictionto German organizations andto enablean international comparison, at leastto some extent, annual reportsof organizations from other countrieswere additionally examined,includingAustria, theUnited Kingdom, andtheUnited States of America. ForAustria, those organizationswere selected whichcooperate with theAustrian DevelopmentAgency andarelisted on itswebsite[72]. Thefounding members of the Consortium of BritishHumanitarian Agencies were electedfortheUnited Kingdom[73] andthedatabase of DevelopmentAid wasconsulted fortheidentification of US aid organizations[74].Thus, a totalof 115annual reportswere evaluated. 3.4. Data Analysis Acontentanalysis wascarriedoutbasedonthe qualitativedata collectedviainterviews andadditional material available on the organizations’ websites. From a scientificpointof view, a varietyof qualitative procedures areavailablefortheanalysis of the material. Expert interviewsandcontentanalyses,as qualitative methods,aresubject to generalcriticism when compared to quantitative research.This criticismis particularly directed towardsthevalidity andreliabilityof theresults obtained [55].In the interestof qualitativeresearch,strict adherenceto qualitystandardsshould therefore be sought in order to ensure generalrecognitionof theresearch results. Onesuch systematic, rule-based procedureforthe interpretationof qualitativedata is thequalitative contentanalysis accordingto Mayring[75],which will be used in thefollowing. Despitethesystematic approach of theanalysis andworkingwith predefined rules, Mayring emphasizes that contentanalysis is not always astandard instrument with thesame structure. 15 Insights on theCostsof Humanitarian Logistics – A Case Study Analysis 13.Weber J (2012) Logistikkostenrechnung: Kosten-, LeistungsundErlösinformationen zurerfolgsorientierten SteuerungderLogistik. Springer Vieweg, Berlin,Heidelberg 14.Olfert K(2013) Kostenrechnung. Kiehl, Herne 15.Taschner A(2016) Logistikkosten bestimmen undabgrenzen. Controlling &Management Review 60(2):39-43 16.Kovács G, SpensKM (2011) Trends and developments in humanitarian logistics: A gap analysis.International Journalof Physical Distribution & LogisticsManagement 41(1):3245 17. Thomas A, KopczakLR (2005) From logistics to supply chainmanagement:Thepath in.http:// www.fritzinstitute. org/PDFs/WhitePaper/ FromLogisticsto.pdf . Accessed 31 October2019 18.Thomas A, Mizushima M (2005) Logistics training: Necessity or luxury?ForcedMigration Review 22:60-61. 19.Kovács G, SpensKM (2009) Identifying challengesinhumanitarianlogistics.International Journal39(6):506-528 20. SchulzSF,Blecken A (2010)Horizontal cooperationin disaster relief logistics: Benefits andimpediments.InternationalJournalof PhysicalDistribution & LogisticsManagement 40(8/9):635-656 21.vanderLaanEA,deBritoMP,VergunstDA (2009) Performance measurementin humanitarian supply chainmanagement.InternationalJournal Risk Assessment andManagement 13(1):22-45 22.Pettit S, Beresford A (2005) Emergencyrelief logistics: An evaluation of military, non-military andcompositeresponse model. 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MaierSD,Beck T, Vallejo J, Horn R, Söhlemann J-H, Nguyen TT (2016) Methodological approach LIST OF ABBREVIATIONS DZIGerman CentralInstitutefor Social Issues E1-6 Expert 1-6 KLUKühneLogisticsUniversity NGONon-Governmental Organizations NPONon-ProfitOrganizations O1-O6Organization 1-6 RQ1-3Research Question 1-3 UN United Nations UNISDR UN OfficeforDisaster Risk Reduction WASH Water,Sanitation, andHygiene REFERENCES 1. CRED,UNISDR (2018) Economic losses, poverty & disasters: 1998-2017. https://reliefweb. int/report/world/economic-losses-povertydisasters-1998-2017. Accessed 31 October2019 2. UNISDR (2015) Global assessment report on disaster risk reduction. United Nations, Geneva 3. UNHCR(2018) Syriaemergency. http://www. unhcr.org/syria-emergency.html.Accessed 31 October2019 4. Chakravarty AK (2014) Humanitarian relief chain: Rapid response underuncertainty. InternationalJournalof Production Economics 151:146-157 5. 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Beltz, Weinheim APPENDIX Interview Guideline IGeneralquestionsabout the organization –descriptionof the organization’s activities in the field of humanitarian aid –interviewee’s area of responsibility in organization –termdefinitionof emergencyanddisaster relief –financing of projectswithin the organization/ fund sources II Understand concepts –understandingof logistics within the organization/tasks andactivities assigned to logistics –difference between emergencyaidand developmentcooperation –“Are logistics costsspecificallybroken down in your organization?” III Yes: logisticscostsarebroken down –objectives of collecting logistical costs –implementation of logistics cost accounting in organization – evaluation andusageof data –amount of logisticscosts –processes or activities causingthehighest logistical costs –difficulties or obstaclesin implementinglogistics cost accounting IV No:logistics costsarenotbroken down –practice of cost recordingin organization –criteria forselectingpartner organizations –reasonsfor not recordinglogistical costs –advantages anddisadvantagesof abreakdownof logisticscosts –futureplansforseparate logisticscost recording 59.PedrosaAM,NäslundD, Jasmand C (2012) Logisticscase study basedresearch:Towards higher quality. 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