NATO Logistics Handbook October 1997

Chapter 10: Cooperative Logistics Introduction 1001. In order to successfully implement cooperative logistics arrangements, they should have the following characteristics: They should be mutually beneficial to all participants. Each participant must gain something (reduced costs, increased jobs, etc.) from the arrangement, i.e. a "win-win" situation. They should be politically acceptable and consistent with national interests and policies. They should be economically sound, and be based on the comparative economic advantage of participating countries to provide goods and services at lower cost. They should clearly be militarily beneficial, and enhance NATO's capability to meet its future missions. Ideally, they should also have peacetime applications; this will maximize the degree of economic benefit and cost-effectiveness inherent in cooperative arrangements. They should be tailored to the unique strengths and needs of each participating country. 1002. Cooperative logistics cover a wide range of activities which can be considered interrelated with, and/or supportive of, logistic support for the Alliance. They can be either bilateral or multilateral: one country provides another country (or countries) with specified logistic services or materiel in exchange for payment, reimbursement in kind, or other specified logistic services or materiel (barter). An example could be that one country provides ammunition to another country in exchange for maintenance services for vehicles. They can also be realised in joint international initiatives to develop large projects together. In order to enhance logistic cooperation, NATO established NATO production and consumer logistics organizations, steering committees and military agencies, and developed cooperative logistics techniques.