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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