The examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject.(September 2023) |
Part of a series on |
War |
---|
Military supply-chain management is a cross-functional approach to procuring, producing and delivering products and services for military materiel applications. Military supply chain management includes sub-suppliers, suppliers, internal information and funds flow. [1]
A supply involves the procurement, distribution, maintenance while in storage, and salvage of supplies, including the determination of kind and quantity of supplies. United States Department of Defense definitions refer to a "producer phase" and a "consumer phase":
A supply chain is a set of linked activities associated with providing material from a raw material stage to an end user as a finished good. [3]
Supply control is the process by which an item of supply is controlled within the supply system, including requisitioning, receipt, storage, stock control, shipment, disposition, identification, and accounting. [4]
A supply point is a location where supplies, services and materials are located and issued. As a single moving entity, [5] a supply point location is temporary and mobile, normally being occupied for up to 72 hours. [6]
Sub-suppliers are those suppliers who provide materials to other suppliers within the supply chain. In other supply chain management contexts they are referred to by tier, second-tier suppliers serving first-tier suppliers, etc. [7] The European Union refers to sub-suppliers in its objective to improve cross-border market access in the defence sector. [8]
Military logistics is the science of planning and carrying out the movement and maintenance of armed forces. In its most comprehensive sense, those aspects of military operations that deal with: a. design and development, acquisition, storage, movement, distribution, maintenance, evacuation, and disposition of materiel; b. movement, evacuation, and hospitalization of personnel; c. acquisition or construction, maintenance, operation and disposition of facilities; and d. acquisition or furnishing of services. [9]
The main difference between the concept of logistic management and supply-chain management is the level of information gathered, processes, analysed and used for decision making. An SCM-based organization not only having concerns with its immediate clients but also handles and forecasts the factors affecting directly or indirectly their supplier or suppliers or on their client or clients. If we exclude this information part out of supply chain model then we can see the logistic management part of the business.
Unlike standard supply-chain management practices world-wide, some major concepts are not supported in the military domain. For example, the "just-in-time" (JIT) model emphasizes holding less (or no) inventory, whereas in military supply chains, due to the high costs of a stock-out (potentially placing lives in danger), keeping huge inventory is a more acceptable practice. Some examples of these are the ammunition dump and oil depot.
Likewise, the military procurement process has much different criteria than the normal business procurement process.[ citation needed ] Military needs call for reliability of supply during both peace and war, as compared to price and technological factors.
In commerce, supply chain management (SCM) deals with a system of procurement, operations management, logistics and marketing channels, through which raw materials can be developed into finished products and delivered to their end customers. A more narrow definition of supply chain management is the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronising supply with demand and measuring performance globally". This can include the movement and storage of raw materials, work-in-process inventory, finished goods, and end to end order fulfilment from the point of origin to the point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.
Communications security is the discipline of preventing unauthorized interceptors from accessing telecommunications in an intelligible form, while still delivering content to the intended recipients.
Logistics is a part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the point of consumption according to the needs of customers. Logistics management is a component that holds the supply chain together. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items.
A supply chain, sometimes expressed as a "supply-chain", is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers. Meanwhile, supply chain management deals with the flow of goods within the supply chain in the most efficient manner.
A value chain is a progression of activities that a firm operating in a specific industry performs in order to deliver a valuable product to the end customer. The concept comes through business management and was first described by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.
The idea of the value chain is based on the process view of organizations, the idea of seeing a manufacturing organization as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources – money, labour, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits.
Materiel are supplies, equipment, and weapons in military supply-chain management, and typically supplies and equipment in a commercial supply chain context.
Procurement is the process of locating and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. The term may also refer to a contractual obligation to "procure", i.e. to "ensure" that something is done. When a government agency buys goods or services through this practice, it is referred to as government procurement or public procurement.
A purchase order, often abbreviated to PO, is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services required. It is used to control the purchasing of products and services from external suppliers. Purchase orders can be an essential part of enterprise resource planning system orders.
The Association for Supply Chain Management (ASCM) is a not-for-profit international educational organization offering certification programs, training tools, and networking opportunities to increase workplace performance. Formed in 1957, it was originally known as the "American Production and Inventory Control Society" or APICS. The mission of the organization is to advance end-to-end supply chain management. APICS merged with the Supply-Chain Council in 2014, and the American Society of Transportation and Logistics in 2015.
Purchasing is the process a business or organization uses to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations.
In the United States, a group purchasing organization (GPO) is an entity that is created to leverage the purchasing power of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPO members.
The Defense Logistics Agency (DLA) is a combat support agency in the United States Department of Defense (DoD), with more than 26,000 civilian and military personnel throughout the world. Located in 48 states and 28 countries, DLA provides supplies to the military services and supports their acquisition of weapons, fuel, repair parts, and other materials. The agency also disposes of excess or unusable equipment through various programs.
Military logistics is the discipline of planning and carrying out the movement, supply, and maintenance of military forces. In its most comprehensive sense, it is those aspects or military operations that deal with:
The Indian Railway Stores Service (IRSS) is one of the Group A central engineering services of the Government of India. The officers of this service are procurement and logistics specialists, contract managers on the Indian Railways, providers of logistics for the transportation of material from and within various railways as well as the planners and maintainers of the intelligent warehousing with automated storage and retrieval systems on the Indian Railways. The IRSS officers undergo training at National Academy of Indian Railways (NAIR) for a period of 18 months which includes two months certification course at IIM Khozikhode and a foreign training.
The Marine Corps Systems Command (MCSC) is the acquisition command of the United States Marine Corps, made up of Marines, sailors, civilians and contractors. As the only systems command in the Marine Corps, MCSC serves as Head of Contracting Authority and exercises technical authority for all Marine Corps ground weapon and information technology programs. MCSC is headquartered at Marine Corps Base Quantico.
In a supply chain, a vendor, supplier, provider or a seller, is an enterprise that contributes goods or services. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain. Today, these terms refer to a supplier of any goods or service.
VSE Corporation is an American company which provides supply chain management support and consulting services for land, sea, and air transportation assets. VSE serves commercial customers as well as the United States Government, including the United States Department of Defense (DoD). Operations include: supply and distribution; maintenance, repair, and overhaul (MRO) services for ground transport and aviation; vehicle and equipment refurbishment; IT and health care IT solutions.
Military acquisition or defense acquisition is the "bureaucratic management and procurement process", dealing with a nation's investments in the technologies, programs, and product support necessary to achieve its national security strategy and support its armed forces. Its objective is to acquire products that satisfy specified needs and provide measurable improvement to mission capability at a fair and reasonable price.
An invitation to tender is a formal, structured procedure for generating competing offers from different potential suppliers or contractors looking to obtain an award of business activity in works, supply, or service contracts, often from companies who have been previously assessed for suitability by means of a supplier questionnaire (SQ) or pre-qualification questionnaire (PQQ).
ISO 22300:2021, Security and resilience – Vocabulary, is an international standard developed by ISO/TC 292 Security and resilience. This document defines terms used in security and resilience standards and includes 360 terms and definitions. This edition was published in the beginning of 2021 and replaces the second edition from 2018.