October 1997

Chapter 10: Cooperative Logistics

NAMSA Specific Cooperative Logistics Projects

1037. NAMSA, already performing various cooperative logistics functions, was invited by the SNLC in 1991 to develop a mechanism to further expand and formalize the role it can play as required by nations in coordinating bilateral and multilateral initiatives in this field. As a result of that tasking the following projects are now under development or have been implemented under the general heading of NATO Logistics Stock Exchange.

NATO Logistics Stock Exchange

1038. The NATO Logistics Stock Exchange is a concept that puts into place a mechanism whereby requirements of any business kind can be met from available resources at any time and within the shortest possible delay at the most optimal price. This can best be guaranteed by bringing together in one place, electronically, all the information necessary to run the logistic business. The NATO Logistics Stock Exchange is gradually put in place by the projects such as the N-MCRL (paragraph 927) Stock Holding and Asset Requirements Exchange (SHARE), Common Item Materiel Management (COMMIT), and Provisioning File Items (PROFIT).

Stockholding and Asset Requirements Exchange (SHARE)

1039. SHARE is a logistic support capability that provides subscribers to this service with a means to screen materiel asset availability, NATO-wide, to satisfy routine or urgent requirements (existing or future); report materiel asset availability for potential future exchange; consolidate requirements for subsequent joint procurement action; and manage a pool of insurance type items for mutual support. SHARE makes maximum use of electronic data interchange procedures to minimise cost, reduce paperwork, and increase speed of operations. Its capability resides in a powerful and comprehensive Electronic Data Processing (EDP) System which is available to all subscribers and is accessible through international communication links, safeguarded by the necessary security controls. Type A services (redistribution and mutual emergency) are being implemented. Type B services whereby customers can process requests for materiel provisioning in a consolidated manner or on a random basis have now been put into place and are operational.

1040. SHARE may also be used in support of peacekeeping and disaster relief operations by NATO member countries. International organizations may equally use SHARE, subject to prior approval by the NAMSO Board of Directors.

Common Item Materiel Management (COMMIT)

1041. COMMIT aims at the joint management of NATO common items by applying the principle of virtual stock pooling. The inventories of all users of a particular NSN are subject to joint management whereby the total future predicted demand of NATO is covered by the total stock of all users. When the global reorder point is reached, one simple replenishment order will be provisioned. The key to this concept lies in the creation of visibility of individual item usage data and the analysis and computation of the NATO global predicted future item usage. This concept permits Armed Forces to largely reduce their inventories and the risk of future excesses whilst at the same time improve the service level. It is a structured way to achieve the elimination of duplication, small infrequent orders to industry, obtain better prices and deliveries thanks to pro-active consolidation as a result of joint planned stock management.

Provisioning File Items (PROFIT)

1042. PROFIT aims at establishing an electronic commerce capability whereby requirements can be ordered on-line from industry at the NATO Logistics Stock Exchange. As such, it is a pro-active provisioning source file in which industry permanently reports its standing offers for materiel and services.

NATO Ammunition Data Base (NADB)

1043. The NADB provides an authoritative source of NATO ammunition interchangeability, technical and logistic information on CD. Users can search information on NSN, item name, ammunition model number, manufacturer, weapon, user nation and other criteria.

Forum Applied Logistics Consultancy NATO (FALCON)

1044. NAMSA has proposed to establish a permanent forum to promote cooperation in the field of logistics. This forum is to study, discuss and provide training by means of seminars, workshops and formal courses in the field of logistics in general, but cooperative logistics in NATO in particular.

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