Procurement efficiency through the creation of a virtual supply chain

The efficient acquisition, management and distribution of logistics is one of the highest priorities for defence organisations and is one area where the implementation of modern web and internet based solutions can have immediate financial and manpower benefit.

Focused logistics can be described as managing the process from manufacturer to end user with little or no time delay (velocity) and with limited requirement for asset storage and management.

The advent of e-commerce encompassing e-procurement and e-logistics enables the focused logistics to be a reality and ensures that the supply velocity meets expectations.

On line auctions have attracted immense interest in the defence world and these are being used in a limited way, which nevertheless, demonstrates the value in terms of price reduction and speed of delivery.

The businesses supporting the defence operations -- logistics, transportation, human resources, et cetera have recognised the need to re-engineer their business processes from delivery-from-inventory to just-in-time acquisition, multi-modal delivery and self-service

Today the need is for reduced stock holding, close interaction with manufacturing supply, efficient transportation and rapid deployment to the critical demand point. The use of NATO stock numbers supports efficient and accurate stick holding and a Codification Agency, web linked directly with defence suppliers, accelerates rapid supply to the end user.

As stock levels are reduced accurate and timely information flow becomes critical. Links with industry and the demanding end user in the field must be maintained at all times.

The business drivers that have established the standards, and have been adopted by commercial industry, are now common solutions in the defence world. E-Commerce, E-payment, Supply Chain Management, Buying portals and auctions, supply vehicle tracking with GPS and sophisticated warehouse logistics management applications are solutions adopted by the defence


Linking supplier to Procurement organisation and out to end-user is recognised as offering benefit in the drive towards logistics velocity and reduced asset management cost. Logistics applications, which are E-Enabled, deliver a coherent and coordinated solution whilst improving visibility and financial control.

Improved communication and infrastructure connectivity support the overriding goal to reduce asset cost thereby freeing up capital to be spent on resources for the front line warfighter.

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