1. THE NATO CODIFICATION SYSTEM:
1.4. BENEFITS OF THE NATO CODIFICATION SYSTEM:
1.4.2. ECONOMIC ADVANTAGES
- The data base allows the designer and project manager to
screen for parts which are already stocked in the supply system
and which could be utilised rather than producing a new IoS
concept. This practice reduces the variety of Items of Supply to
be managed and eliminates unnecessary costs for identification,
storage and other related supply functions. Nearly 50% of the
components used in the design of new equipment are already
codified in the NATO inventory.
- Improved determination of materiel requirements and
budgeting through greater knowledge of Items of Supply in stock.
- Effective co-ordination in procurement by enabling the
elimination of concurrent acquisition and disposal of the same
IoS, consolidating orders from several users to benefit from
price reductions on bulk purchases and having visibility of
several potential sources of supply.
- Effective use of assets by enabling supply support
interchange between linked organisations and between nations.
- Reduction of national and NATO inventories, warehouse space,
data maintenance and personnel through the elimination of
duplication of an IoS.
- Improved surplus and excess materiel disposal operations
through the uniform identification of each Item of Supply,
including the prevention of erroneous disposal.
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