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Strategic Defence Supply Chain Security Management

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NL ARMS Netherlands Annual Review of Military Studies 2016

Part of the book series: NL ARMS ((NLARMS))

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Abstract

Defence supply chains (SC) are increasingly geared towards expeditionary operations. Organized on a short notice, they support the theatre in a flexible and efficient manner, relying on limited resources and sourcing from multiple suppliers. Defence SC face risks as they are susceptible to disruptions. As a risk subcategory, SC security risks—which this chapter focuses on—concern intentional, man-made disruptions. Research so far has explored security as a generic concept and pertaining to SCs involving commercial firms. Less attention has been paid to defence SC and organizations. The objective of this chapter is to give insight into the management of SC security risks (as part of the planning and mission management process) within defence organizations. To this end, the role of risk management and adaptive capability are introduced and synthesized. Military logistic planning processes then embed these concepts in the defence context, leading to operational military SC security risk management. A short empirical study at the Dutch Directorate of Operations’ Joint Staff J4 unit and long-term experiences in military logistics of the first author substantiate our conceptual findings. The chapter concludes with directions for future research: multiple-supplier strategy, creation of an adaptive operational SC network and information-based SC transparency. These network-level initiatives complement nation-based defence SC management, contributing to SC adaptivity and efficiency.

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Notes

  1. 1.

    Sheffi and Rice 2005.

  2. 2.

    DSyS 2016.

  3. 3.

    Hameri and Hintsa 2009; Natarajarathinam et al. 2009.

  4. 4.

    Moustakis and German 2009; Russell and Saldanha 2003; Wolfe 2003.

  5. 5.

    This unit takes care of logistics during military missions.

  6. 6.

    de Bakker 2012.

  7. 7.

    Material logistics can be understood in a limited sense (focused on equipment) and in a broader sense (products and services required for force generation excluding personnel logistics).

  8. 8.

    Davids et al. 2013.

  9. 9.

    NATO 2014, p. 2-L-5.

  10. 10.

    MoD 2015a, b, p. 9.

  11. 11.

    Autry and Bobbitt 2008.

  12. 12.

    Closs and McGarrell 2004.

  13. 13.

    Closs and McGarrell 2004.

  14. 14.

    Sheffi and Rice 2005; Speier et al. 2011; Markmann et al. 2013.

  15. 15.

    Closs and McGarrell 2004.

  16. 16.

    Markmann et al. 2013.

  17. 17.

    Markmann et al. 2013.

  18. 18.

    Sodhi et al. 2012.

  19. 19.

    Slovic 1987; Acedo and Florin 2007; Markmann et al. 2013; Rice and Caniato 2003; Zsidisin et al. 2004.

  20. 20.

    Sheffi 2001; Rice and Caniato 2003; Kleindorfer and Saad 2005.

  21. 21.

    Rice and Caniato 2003; Zsidisin et al. 2004.

  22. 22.

    Tang 2006.

  23. 23.

    Peleg-Gillai et al. 2006.

  24. 24.

    Chopra and Sodhi 2004; Tang 2006.

  25. 25.

    Hintsa et al. 2009.

  26. 26.

    For more details see Hintsa et al. 2009.

  27. 27.

    Tang 2006.

  28. 28.

    Seifert and Langenberg 2011.

  29. 29.

    Jean-Louis et al. 2007.

  30. 30.

    Nilsson and Waidringer 2004.

  31. 31.

    Caniels and Gelderman 2005.

  32. 32.

    Porter 2008.

  33. 33.

    Flavin 2007.

  34. 34.

    Ivanov et al. 2010.

  35. 35.

    Pettit et al. 2010.

  36. 36.

    Ivanov et al. 2010; Lee 2004.

  37. 37.

    Chopra and Sodhi 2004; Christopher 2011.

  38. 38.

    Tang 2006.

  39. 39.

    Folke et al. 2005; Provan et al. 2007.

  40. 40.

    van Fenema et al. 2014.

  41. 41.

    Kraatz 1998; Faust et al. 2015.

  42. 42.

    Newig et al. 2010; Jüttner and Maklan 2011.

  43. 43.

    Staber and Sydow 2002; Tang 2006.

  44. 44.

    Gartner and Blanken 2012; Dumke 2011; Tang 2006. LOC is a traditional logistics term, where communication refers to physical transportation, Scott et al. 2000.

  45. 45.

    Hulsmann et al. 2008.

  46. 46.

    Hulsmann et al. 2008; Bartholdi III et al. 2010.

  47. 47.

    Hammond 2008.

  48. 48.

    Kress 2002.

  49. 49.

    Ivanov et al. 2010.

  50. 50.

    ‘In an operational environment, logistic information, combined with operational information and intelligence, provides full logistic situational awareness. This helps staff assess, plan and manage logistic resources in a coordinated manner… The recognised theatre logistic picture should provide a snapshot of the logistic situation’, MoD 2015a, b, p. 30.

  51. 51.

    Janssen 2007; van Heck and Vervest 2007.

  52. 52.

    An example of decentralized optimization is calculation of routes at the actor level http://corporate.tomtom.com/releasedetail.cfm?ReleaseID=788391. Centralized optimization, on the other hand, strives for network level performance such as maximizing transportation flows (http://delta.tudelft.nl/article/reducing-congestion-with-artificial-intelligence/29203).

  53. 53.

    Grover and Kohli 2012; Ivanov et al. 2010.

  54. 54.

    Wang and Wei 2007.

  55. 55.

    Rushton et al. 2014.

  56. 56.

    Dani and Ranganathan 2008; http://scrmblog.com/review/agile-supply-chains-and-uncertainty.

  57. 57.

    Scenarios may be used in a limited sense (considering alternative modes of transportation) or in a more extensive manner (covering alternative sourcing options).

  58. 58.

    NATO 2010a, b, 2013a, b.

  59. 59.

    NATO 2010a, b, p. 1.

  60. 60.

    DOPS/J4 is in the lead of the LOPGT within Dutch MoD.

  61. 61.

    Within Dutch MoD two types (sets) of assumptions are used. For Asset Management a set of specific factsheets—only for the main weapon systems—is used and for inventory management a framework of directives has been designed. A common set of generic (joint) logistic assumptions is currently not available.

  62. 62.

    Quote of Lieutenant General Alfred M. Gray, Jr., United States Marine Corps MoD 2015a, b.

  63. 63.

    MoD 2015a, b, p. 7.

  64. 64.

    MoD 2005.

  65. 65.

    MoD 2005, p. A-23.

  66. 66.

    MoD 2005, p. 78.

  67. 67.

    For example Readiness, Responsiveness, Reliability, Flexibility, Cost, Assets.

  68. 68.

    NATO 2013a, b, pp. 3–56.

  69. 69.

    MoD 2005, p. 44.

  70. 70.

    NATO 2013a, b, pp. 1–2.

  71. 71.

    Lessons Learned from recent operations in Iraq (SFIR), Afghanistan (ISAF) and Kosovo (KFOR); nations are not able or willing due to national regulations to share (operational) logistic information.

  72. 72.

    See http://www.defenceiq.com/air-land-and-sea-defence-services/articles/fujitsu-s-eric-bownes-discusses-the-future-of-defe/ and http://www.defenceiq.com/air-land-and-sea-defence-services/articles/why-equipment-and-supply-chain-management-is-centr/.

  73. 73.

    See http://www.defenceiq.com/air-land-and-sea-defence-services/articles/why-equipment-and-supply-chain-management-is-centr/.

  74. 74.

    MoD 2015a, b, p. 118–5.11.

  75. 75.

    Together with the Netherlands Industries for Defence and Security Foundation (NIDV), the defence organization assesses which activities may be contracted out to the commercial sector, MoD 2012, p. 11.

  76. 76.

    Pijpers 2013; van Fenema et al. 2014; Xiao et al. 2007.

  77. 77.

    Collective responsibility is a set of NATO’s and nations’ individual and largely complementary obligations to cooperatively organize and deliver the overall logistics support of NATO operations, taking into account one another’s requirements and constraints, NATO 2013a, b, pp. 1–2.

  78. 78.

    Christopher 2011.

  79. 79.

    http://www.defenceiq.com/air-land-and-sea-defence-services/articles/the-top-3-challenges-for-defence-logistics-experts/.

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Acknowledgments

The authors are grateful to MoD Directorate of Operations’ DOPS/J4 and for feedback from NL ARMS editors and reviewers, Jan Willem Proper, and Jantine Verkaik. This research was supported by the Netherlands Defence Academy.

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Authors and Affiliations

  1. Faculty of Military Sciences, Netherlands Defence Academy, Breda, The Netherlands

    Ton van Kampen, Paul C. van Fenema & Nynke Faber

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  1. Ton van Kampen
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  3. Nynke Faber
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Correspondence to Ton van Kampen .

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Editors and Affiliations

  1. Faculty of Military Sciences, Netherlands Defence Academy Faculty of Military Sciences, Breda, The Netherlands

    Robert Beeres

  2. Faculty of Military Sciences, Netherlands Defence Academy Faculty of Military Sciences, Breda, The Netherlands

    Gwendolyn Bakx

  3. Faculty of Military Sciences, Netherlands Defence Academy Faculty of Military Sciences, Breda, The Netherlands

    Erik de Waard

  4. Faculty of Military Sciences, Netherlands Defence Academy Faculty of Military Sciences, Breda, The Netherlands

    Sebastiaan Rietjens

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van Kampen, T., van Fenema, P.C., Faber, N. (2016). Strategic Defence Supply Chain Security Management. In: Beeres, R., Bakx, G., de Waard, E., Rietjens, S. (eds) NL ARMS Netherlands Annual Review of Military Studies 2016. NL ARMS. T.M.C. Asser Press, The Hague. https://doi.org/10.1007/978-94-6265-135-7_13

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