NATO
Logistics
Handbook
October 1997
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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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