Abstract
In the context of public emergency management, dueto its public function and accountability, thelogistics outsourcing decision-making is constrained byrigid institution, extensive involvement, and multi-objectives.Meanwhile error cost inspection, lacksupervision, and avoiding the difficult and dwelling on the east may take place in the performance. So, government serviceoutsourcing risk management is necessary. Theefforts of government service outsourcing risk assessment and management can provide betterpublic service with less cost. Based on analyzing public logisticsoutsourcing risks structure, this paper applies risk matrix to public logistics outsourcing management. By the processof checking the public logisticsoutsourcing program’s requirements and its technique availability, identifyingthe risks and impacts, evaluating the potential effects and probability, assessing the risk ratings withexpected standard, and implementing plan management, it mayoperate public logistics outsourcing riskmanagement dynamically and mitigates the risks efficiently.
Keywords: Logistics Outsourcing, Public Emergency, Risk Management, RiskMatrix
1. Introduction
In brief, publicemergency refersas the events that can endanger public security as a whole.Facing the worsen environment with human beings, unexpected incidents,either nature or artificial, burst out morefrequently over the world. An individual, a group, an organization,a company or a communitymaysufferfromsuch emergency. Butpublic emergency, which may bea nature disaster, an accident disaster, a publichealth emergency or a social safety incident,[1]can bring a great harmto social welfaresand public safety. Therefore, public emergency management has to takes roles for a disaster’sprecaution, control, and relief. Wherein,emergency logistics management plays an importantpart. As a popular practice, logistics outsourcingpresentsa strategic, interactionaland multi-beneficial contractingexecutionto get a professional service and quick response with a less money.However, emergencylogistics outsourcing isthe career with highlyrisk, which will come up againstvehicle destroyed, people loss,and provision not intime and not in place. Moreover, in the context of publicemergency management, due to itspublic function and accountability, the logistics outsourcing decision- making is constrained by rigidinstitution, extensive involvement and multi-objectives.Meanwhile error cost inspection, lacksupervision, and avoiding the difficult and dwelling on the east may take place in the performance.[2]So, risk management of logistics outsourcing underpublic emergency is an important way to efficientlycontrol logistics risk, and guarantee governmentoperation performance.
Inrecent 10 years, many researchers have studied onpublic service outsourcing, logistics outsourcingrisk, and emergency logistics risk. Viewing with publicservice outsourcing[3][4],it was argued that governments had extensively implemented public services outsourcing and developedinto a stage at which the point of attention was equity and balanceof effectiveness. This was beyond the argument onmarketing versus planning. Public-Private Partnership and collaborativemanagement,ratherthan outsourcing itself, wascalledfor. So, the success of outsourcingwas constrained bymany factors. And risk evaluation andcontrol have to be requiredto promotegovernment service capability effectively. Forlogistics outsourcingrisk, a risk matrix was appliedto the risk assessment, andsomemeasures were put up to degrade the risk.[5]Also, it has be done to analyze the features ofemergency logistics and its risk, build up a model for emergency logisticsrisk analysis, whichincludes emergency logisticsrisk identification, assessmentand ranking.[6]Those researches make public service outsourcing andemergency logistics risk wellknown, and have given more ideas for government to manage outsourcing risk. However,there are few literatures for risk management of logisticsoutsourcing under public emergency. Also, some complex, detailed, innovative researchesare needed. For example, the evaluation on thedegree and importance on public outsourcing risk are stilllack of a good measure to steer for practice. Inthis paper, based on analyzing public logistics outsourcing risks structure, it will,from the view of supply chain management, presenta risk matrix for public logistics outsourcingmanagement. Our aim is to provide a rational and operational risk evaluation tool for a government to managelogistics outsourcing risk under public emergency.