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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