ESG carries out study on the subject of "New order of logistics"

The study "New order of logistics", which was carried out by ESG Elektroniksystem- und Logistik-GmbH in cooperation with LOG Logistik-Systembetreuungs-Gesellschaft mbH demonstrated new methods for the main logistic processes of the Bundeswehr. Special attention was paid to the inclusion of a stronger logistical integration of industry while concentrating the Bundeswehr´s logistic forces and resources on its core tasks to maintain operating minima. The study identified saving and rationalisation potential in Bundeswehr logistics in the course of a restructuring of the operational and organisational structure, with the aim of better fulfilling the expectations of the new logistical tasks at a time of a diminishing defence budget and reduction of personnel.

The expanded functional spectrum of the Bundeswehr requires a flexible, task and deployment oriented structuring. The concurrent guaranteeing of the equipment deployment readiness of the armed forces with the most cost-effective logistic performance in the future requires a different emphasis on objectives in peacetime and during periods of military deployment. If national logistic performance in peacetime - wherever meaningful and possible - should be aimed at cost-effectiveness, then in a period of military deployment the fulfilment of the task should be given the absolute highest priority. This requires a reorganisation of Bundeswehr logistics, which incorporates all the participating departments and procedures in the logistics scenario - including trade and industry.

In agreement with the requirements of each armed service the aim of the study was to work out pragmatic and quickly convertible solutions for the optimisation of the main logistic processes of application management, equipment maintenance, equipment requirements, equipment management, transport as well as logistic management, including the corresponding information technology. In this respect the main emphasis was placed on an integrated approach, high cost-effectiveness, the retention of the required military core competencies, the ability to project logistic performances as well as the ability to cooperate with other nations.

Within this prescribed framework conditions the following results were obtained during the course of the four-month study:

• Analysis and evaluation of the actual situation of Bundeswehr logistics with emphasis placed on the operational and organisational logistic structure and the accompanying main logistic processes.
  
• Definition of the future logistic core responsibilities of the Bundeswehr, which must also maintain the core competencies and operational minima for troops in the future and the derivation of the logistic tasks arising from this, that in the future can be improved, wherever possible and at least just as economically, by commercial activity.
• Analysis and evaluation of the main logistic processes derived from solutions for their optimisation and improvement as well as an account of the resulting savings potential.
• Derivation and definition of change requirements in the current organisational logistic structure resulting from the modified main processes with suggestions for future structures and their incorporation into the top levels of organisation in the Bundeswehr.
• Description of problems, organisational structures and interfaces (Supply Chain Management) of the two newly-designed, organisational elements for the superior level logistic requirements and performance within the framework of future Bundeswehr logistic systems.
• Summarised presentation and quantification of all potential for saving and improvement resulting from the suggestions for the reorganisation of logistics.
• Creation of a model for the realisation of the proposals for the reorganisation of logistics within a five-year period with recommendations for a further course of action.

The study demonstrates new solution approaches for the optimisation of logistic processes and for the optimisation of the logistic systems of the Bundeswehr overall. The results of the study form a basis within the framework of the creation of benchmarks for the conceptual and planned development of the armed forces and also for the "Common Security and Future of the Bundeswehr" Commission.