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Maritime Logistics Community News : November 2009
40 NAVY SUPPLY NEWSLETTER SPRING 2009 Introduction This is not to discount the excellent work of many in this space but rather to acknowledge that Navy logistics needs to refocus after a significant period of not being the most informed or informative customer. Further, Navy logistics needs to play an active and influential part in the Strategic Reform Program (SRP) and Procurement Reforms. This article presents a framework for the concentration of Navy resources and guidance to other Groups on what to expect from Navy strategic logistics. This will not be the final say on the direction of Navy logistics, particularly at the strategic level, and it is anticipated that many changes will be needed as Navy adapts to the evolving logistics environment. How did Navy Logistics Get to Where we are Now Over the past 10 years, the face of logistics in Navy and indeed Defence has changed. Under the Defence Reform Program, Navy sustainment under the old Naval Support Command moved into the newly formed Support Command Australia and later to DMO to unite sustainment with acquisition. Separated from sustainment, warehousing and distribution moved to the newly formed Joint Logistics Command (JLC). To resource the new roles being performed by the DMO and JLC, Navy provided many Supply and Engineering billets. This enabled the support work to continue and ensured that Navy's interests would be promoted within the new organisations. These changes have lead Navy away from 'doing' logistics activity1 to directing, monitoring, and influencing the activities (guidance and governance) of those providing the logistics services. These very important tasks have been a struggle for Navy in terms of understanding the full expanse of the guidance and governance role and allocating sufficient resources to do it well. More now than ever, setting logistics requirements for future capability, articulating the sustainment needs for transition and in service forces, input to ADF policy and establishing a governance framework to ensure that the required products and services are forthcoming, is critical to capability. What is Influencing the Future? The Defence White Paper provides a comprehensive vision for Defence in 2030. It demands of us many things including having the people and major systems that can both ensure the security of Australia and its immediate neighbourhood but also contribute to regional and global peace and stability. To achieve this vision and the accompanying Defence Capability Plan, and further the logistics evolution, more reform is required. Primarily this will be through the Strategic Reform Program (the Pappas and McKinsey's Review) and Procurement Reform (the Mortimer Review). For Navy, this will mean increased responsibility for capability becoming accountable for acquisition and sustainment outcomes. At the same time the strategic reform program will be driving us to make savings whilst maintaining capability and becoming cost conscious regarding our demand behaviour. In achieving these requirements Navy logistics has an enormous role to play. For example, there is a greater need to ensure the quality and accuracy of sustainment requirements in the Materiel Acquisition and Materiel Sustainment Agreements, and then the performance of the DMO must be managed effectively. This work should not stop with the DMO, Navy logistics must also effectively engage with JLC and DSG to ensure that support is to the standard required to provide Navy capability. Additionally, Navy's demand behaviours and culture needs to become more cost conscious and this is where the NGN cultural evolution will assist in actively promoting this signature behaviour. The Framework Taking into account the way Defence logistics has changed and the direction of the reforms, the revitalised logistics framework is designed to better reflect the environment, cater for the future and more appropriately link the Navy as a logistics customer with the Defence agencies providing the logistics support. The framework aims to describe how Navy can better shape the products and services provided to it and influence its logistics and sustainment future. It seeks to ensure that Navy and its suppliers do not contribute to a legacy of future deficiencies but establish a solid foundation for the cost effective sustainment of capability, by influencing robust yet agile, cost effective and connected logistic chains, systems and organisations. The framework takes into account all levels of logistics activity, strategic, Fleet and ship which all differ to varying degrees. This is represented in the diagram below which also acknowledges the Fleet/Ship tasks regarding ship deployment activities. A Navy Logistics Framework for the Future This article represents the start of the reinvigoration and refocusing of Navy logistics at the strategic level. BY CAPT SIOBHAN BACON, RAN 1 The one major exception to this is deployment logistics -- getting the ship off the wharf with what it needs onboard to undertake training and/or operations and it remains a major part of Navy logistics for which we are reasonably well resourced.