Military supply-chain management is a cross-functional approach to
procuring,
producing and
delivering products and
services for military
materiel
Materiel or matériel (; ) is supplies, equipment, and weapons in military supply-chain management, and typically supplies and equipment in a commerce, commercial supply chain management, supply chain context.
Military
In a military context, ...
applications. Military
supply chain management
In commerce, supply chain management (SCM) deals with a system of procurement (purchasing raw materials/components), operations management, logistics and marketing channels, through which raw materials can be developed into finished produc ...
includes sub-suppliers, suppliers, internal information and
funds flow.
Terminology
A supply involves the
procurement
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 ...
,
distribution,
maintenance
The technical meaning of maintenance involves functional checks, servicing, repairing or replacing of necessary devices, equipment, machinery, building infrastructure and supporting utilities in industrial, business, and residential installa ...
while in
storage, and salvage of supplies, including the determination of kind and
quantity of supplies.
United States Department of Defense
The United States Department of Defense (DoD, USDOD, or DOD) is an United States federal executive departments, executive department of the federal government of the United States, U.S. federal government charged with coordinating and superv ...
definitions refer to a "producer phase" and a "consumer phase":
*the producer phase of a military supply extends from determination of procurement schedules to acceptance of finished supplies by the
military service
Military service is service by an individual or group in an army or other militia, air forces, and naval forces, whether as a chosen job (volunteer military, volunteer) or as a result of an involuntary draft (conscription).
Few nations, such ...
s
*the consumer phase of a military supply extends from receipt of finished supplies by the military services, through issue for use or
consumption.
A
supply chain
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, while supply chain management deals with the flow of goods in distri ...
is a set of linked activities associated with providing material from a
raw material
A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials/Intermediate goods that are feedstock for future finished ...
stage to an end user as a
finished good.
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
Accounting, also known as accountancy, is the process of recording and processing information about economic entity, economic entities, such as businesses and corporations. Accounting measures the results of an organization's economic activit ...
.
A supply point is a location where supplies, services and materials are located and issued. As a single moving entity, a supply point location is temporary and mobile, normally being occupied for up to 72 hours.
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. The
European Union
The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
refers to sub-suppliers in its objective to improve cross-border market access in the defence sector.
Logistics
Military logistics
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:
* Design, development, Milita ...
is the science of planning and carrying out the movement and maintenance of
armed forces
A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. Militaries are typically authorized and maintained by a sovereign state, with their members identifiable by a ...
. In its most comprehensive sense, those aspects of
military operations that deal with: a.
design
A design is the concept or proposal for an object, process, or system. The word ''design'' refers to something that is or has been intentionally created by a thinking agent, and is sometimes used to refer to the inherent nature of something ...
and
development,
acquisition,
storage,
movement,
distribution,
maintenance
The technical meaning of maintenance involves functional checks, servicing, repairing or replacing of necessary devices, equipment, machinery, building infrastructure and supporting utilities in industrial, business, and residential installa ...
,
evacuation, and
disposition
A disposition is a quality of character, a habit, a preparation, a state of readiness, or a tendency to act in a specified way.
The terms dispositional belief and occurrent belief refer, in the former case, to a belief that is held in the mind b ...
of materiel; b. movement, evacuation, and
hospital
A hospital is a healthcare institution providing patient treatment with specialized Medical Science, health science and auxiliary healthcare staff and medical equipment. The best-known type of hospital is the general hospital, which typically ...
ization of personnel; c. acquisition or
construction
Construction are processes involved in delivering buildings, infrastructure, industrial facilities, and associated activities through to the end of their life. It typically starts with planning, financing, and design that continues until the a ...
, maintenance, operation and disposition of facilities; and d. acquisition or furnishing of services.
[Defense Technical Information Center]
DOD Dictionary of Military and Associated Terms – Logistics
/ref>
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.
Limitations of military supply chain
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
A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. Militaries are typically authorized and maintained by a sovereign state, with their members identifiable by a d ...
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
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 ...
process has much different criteria than the normal business procurement process. Military needs call for reliability of supply during both peace and war, as compared to price and technological factors.
See also
* Ammunition dump
* Loss of Strength Gradient
* Principles of sustainment
* Supply-chain management
References
{{reflist
External links
Department of Defense - Supply Chain Material Management Regulation
*
Military logistics
Military terminology