NATO Logistics Stock Exchange · Success Story 5. Supply of surplus GEM engines to Denmark •...

UNITED KINGDOM NATIONAL CODIFICATION BUREAU

NATO Logistics Stock Exchange An NSN Success story

Richard Ireland

Head of UK NCB World Codification Forum

Wednesday 25th May 2017

What is the NLSE?

NLSE:

A dedicated, secure e-Logistics capability incorporating all related business

functions:

• Logistics

• Procurement

• Finance

It has been certified by the NATO Office of Security certified and IBAN audited

The tool is developed, maintained & provided by NSPA

Defined, sponsored & governed by the 20 participating Nations

Who uses NLSE?

Austria

Belgium

Canada

Denmark

Finland

France

Germany

Greece

Hungary

Italy

Netherlands

Norway

Lithuania

Poland

Portugal

Spain

Sweden

Turkey

Ukraine

United Kingdom

16 NATO Nations plus 4 Partner Nations

NLSE Capabilities… • Visibility

– 6M lines of national logistics data

– 5M unique NSNs

• Redistribution

– Solution to Obsolescence, Urgency, MOQ, Demil Costs

– Support Allies’ Operational Capability

• eCat1

– 25,000 NSNs from 500+ suppliers

– 600 eCat1 Contracts available

– Essentially outsourced procurement function

Success Story 1

Lynx Helicopter Tail Blade Assemblies

• High cost/long lead time • Purchased qty 40 u/s • Recovered 97% • 75% saving • On stock in 3 months

Success Story 2.

Calibrated Spanner

• Used on Puma MRH • 11 month lead time • Purchased 2 from

Portuguese Air Force • Received in 4 days!

Success Story 3. Chemlights from Cyalume

•1st use of eCat1

•1200 orders

•Value of 56M€

•Net savings 28%

Success Story 4. Mine Detection Systems from Vallon

•18M€ in 2010

•Savings of 32%

•Total Support

Concept

Success Story 5. Supply of surplus GEM engines to Denmark

• Supply of 2 surplus GEM engines to DEN in support of Lynx helicopter.

• 1.3 MEUR Return On Capital Expenditure (ROCE)

• Avoidance of GBR demil & scrappage costs.

• Enhance DEN operational capability.

Missed opportunity: Story 6 • Marine Engine supplier refused to

provide source data as part of codification process

• Demanding payment for a limited set of source data

• UK unable to codify these engines

• A NATO nation wished to purchase the same engines through NLSE using UK support arrangements

• Forced to go to Open Competition; this supplier lost £Millions in sales

• Could we have used NLSE to obtain bigger buying power?

Industry Benefits

• Source Data Acquisition – willingness:

• Data Quality

• Exclusivity of sales Opportunity

• Relationship benefits for NCB & Industry

• No need to repeat tendering with each nation

Opportunities for your own Success Stories

Potential

• 63 Countries using the NATO Codification System

• The more countries that use the NLSE, the more buyers

and sellers exist to manage surplus stock and to exploit

opportunities to share support agreements &

procurement

• Can you drive implementation of NLSE in your nation?

Costs and Benefits • Costs

– Annual participation cost at national level

• Benefits

– Unlimited system access and tasking of NSPA

– Established legal framework and mechanism for

multinational cooperation

– ‘Hard’ financial savings in excess of 35M EUR (30%)

– ‘Soft’ savings in greater logistical visibility, reduced lead

times & workload, and ability to task NSPA

Process

Buyer Seller

Create Order Accept Order

Armed

Force

NSPA

Data

Mgr Supplier

NSPA

Finance

NSPA Finance

Automatic Debit

Amount + Fees

Supplier Payment

According to OP

Ready for shipment

Shipment of the Order

NSPA

Monitoring

Codification / LSA

(Where Required)

Final Thoughts…

• The NLSE is directly accessible online

• Free for your nation’s Project Teams to browse

without obligation

• There are many opportunities & benefits for little

effort

• Not just for your procurement, but also to

rationalise your surplus materiel

Questions & Answers