sg.c

om.a

u

STRENGTHENING COMMUNICATION ALONG THE LOGISTIC CHAIN

THE LINK

Department of Defence

Department of Defence

Department of Defence

Logistics Professionalisation

Australian Defence Strategic Logistics Strategy

Defence Logistics Transformation milestone

THE LINKA U S T R A L I A N D E F E N C E L O G I S T I C S M A G A Z I N E

ISS

UE

8 A

PR

IL 2

011

The Link: Australian Defence Logistics Magazine is a professional logistics journal published twice annually in hard copy and online by Joint Logistics Command.

Its objectives are:

• Topublisharticlesinengaging,non-technicallanguagethataddtothelogisticsbodyofknowledge,andenhancetheprofession of logistics and the image of logisticians

• ToinformtheDefenceandwidercommunityofthestrategicrole and scope of logistics in supporting operations and the raise,train,sustainfunctionsoftheAustralianDefenceForce

• TohighlightadvancesandachievementsinDefencelogistics

• TosupporttheprogramoflogisticsreformintheAustralianDefenceOrganisation

Submissions for The Link are most welcome. Writers’ guidelines are on the Joint Logistics Command intranet site or can be requested from the editor.

TheviewsexpressedinThe Link are the contributors and not necessarily those of Joint Logistics Command or the DepartmentofDefence.

MsTerryFoster Editor,The Link POBox7913 CAnBErrABCACT2610

Phone: 0262664538

Email: JLC.communications@defence.gov.auTH

E L

INK

“Learning is the only thing the mind never exhausts, never fears, and never regrets.”LEONARDO DA VINCI

i

THE LINKA U S T R A L I A N D E F E N C E L O G I S T I C S M A G A Z I N E

Air Vice-Marshal Margaret Staib, AM, CSC

Commander Joint Logistics

Late last year I launched the Australian Defence

Strategic Logistics Strategy. Positioned in the context

of the reforms described in the Defence White Paper

2009 and the Strategic Reform Program, the Australian

Defence Strategic Logistics Strategy is an overarching

strategic document with a five year outlook for

Australian Defence Logistics.

In addition to our Australian Defence drivers, the

Strategy was developed in order to meet the challenges

of globalisation and future trends in global commercial

logistics. It articulates where we are going in Australian

Defence Logistics and is underpinned by eleven themes

that articulate how we are going to get there. There

is an article about the Australian Defence Strategic

Logistics Strategy in this issue of The Link.

One of the eleven themes is Logistics Workforce

Planning. The demands of tomorrow’s logisticians will

differ greatly from those of today and to meet these

demands, the Australian Defence Organisation is

committed to professionalising its workforce. In this

spirit I welcome you to the April 2011 edition of The Link

with its focus on the up-skilling and professionalisation

of the Australian Defence Logistics workforce.

Regards,

Defence Strategic J4

Air Vice-Marshal Margaret Staib

Commander Joint Logistics

TH

E L

INK

ii

Contents

Logistics professionalisation 1

Preparing for the Next Wave: The Future Logistician and the Global Supply Chain 4

Learn, Unlearn, and Relearn 6

Logistics Learning for Coalition Operations 8

The Future of Logistics Education for the ADF 10

The Future of Logistics, the Human Factor: Art versus Science 12

Women Moving Forward Mentoring Program 14

Explosive Ordnance Workforce – Rationalisation of Common Training 16

Australian Defence Strategic Logistics Strategy 2010-2015 18

Recognition through Certification 22

Managing Global Supply Chains 23

Defence Signs Memoranda of Understanding with Border Security Partners 24

Australian Defence Logistics Conference 2010 26

Exercise Tests More Than Defence 28

Coming Up 30

Defence Logistics Committee Update 31

1

The demands on the skills and knowledge of Defence logisticians are as changing as the context in which we work.

The increasing complexity of operational platforms,

communications mechanisms, deployment strategies

as well as reliance on foreign allies and private industry

will certainly impact on the way logistics support is

provided in the future. To complement the changing

nature of operational and platform support delivery,

business management practices must be redesigned

and matched with enhanced corporate skill sets to

ensure sustainment and supply chain resilience for

totally effective logistics support to operations.

Logistics Workforce Planning is one of the eleven

Strategic Logistics Themes described in the Australian

Defence Strategic Logistics Strategy. Now and into the

future, Defence requires highly motivated, educated

and professional logisticians who are masters of their

Logistics professionalisation

“Defence requires highly motivated, educated and professional logisticians who are masters of their trade, capable of managing complexity in an ever changing environment and comfortable working at an operational level with joint, combined, interagency, non-government, private and multinational partners. ”

TH

E L

INK

Air Vice-Marshal Margaret Staib, AC, CSC Commander Joint Logistics Defence Strategic J4

trade, capable of managing complexity in an ever

changing environment and comfortable working at

an operational level with joint, combined, interagency,

non-government, private and multinational partners.

Furthermore, the characteristics of the future Australian

Defence logistics model will require leaner and more

efficient work practices that harness new technology

to increase visibility while reducing the requirement for

labour intensive activities such as stocktaking.

trade, capable of managing complexity in an ever

changing environment and comfortable working at

an operational level with joint, combined, interagency,

non-government, private and multinational partners.

Furthermore, the characteristics of the future Australian

Defence logistics model will require leaner and more

efficient work practices that harness new technology

to increase visibility while reducing the requirement for

labour intensive activities such as stocktaking.

To equip today’s logisticians for tomorrow we need

to work towards developing a strong program of

skilling and professionalisation against the existing

logistics proficiency framework while expanding our

understanding of the skilling impacts of future platform

and operational requirements.

Professionalisation is more than just training or skilling.

It is the ongoing commitment of logisticians to engage

with industry innovation combined with a personal

drive to deliver continuously improved logistics to

global Defence operations. It is the enduring belief

that through open and frank discourse we can create

innovative solutions to supply chain challenges in

the globalised environment and deliver to our nation

a modernised and efficient logistics workforce that

demonstrates mastery of technology and unparalleled

determination in delivering excellence in its field.

Achieving an industry standard of professionalism

provides all of us an important benchmark by which we

can ensure our logisticians are comparable to industry

standard. Much like the Certified Practicing Accountant

status has done to the accounting field, a professional

logistics accreditation standard assures Defence,

and other industry employers, that an individual has

personally committed to a high standard of professional

development and contribution to logistics literature. It is

this standard to which I wish our logisticians to aspire.

Make no mistake – I am not under the impression that

our logistics capability should become the same as a

commercial counterpart. Our business is substantively

different to a commercial operation that operates

under a ‘just in time’ construct. We are never just

in time; we are always just in case. Our slow stock

movement inventory and requirement to achieve the

highest level in safety and security should always set

To equip today’s logisticians for tomorrow we need to work towards developing a strong program of skilling and professionalisation ... while expanding our understanding of the skilling impacts of future platform and operational requirements.

TH

E L

INK

2

3

organisations across the globe and engage in

meaningful professional discourse that will promote

innovation in our logistics practices. The academy

concept is in its infancy and I keenly anticipate

feedback from those taking up this new opportunity

for professional development.

The world in which we operate is innovating and

modernising rapidly. We need to be engaged with

the changes in our field in order to position ourselves

to respond rapidly to Defence requirements in a

global and interoperable environment. It is because

of this requirement that I am passionate about

understanding and engaging in industry trends and

ensuring my logisticians are at the forefront of industry

conversations on innovations in our field. The upgrade

of Defence platforms in our generation will result in

unparalleled shifts in both acquisition and sustainment

logistics models and the logistics function needs to

respond to this generational opportunity to strengthen

the Australian Defence capability.

I encourage all logisticians to engage with the

professional programs available to them.

the benchmark in the broader industry. Despite these

differences there is much that we can learn about

how the private sector operates even if we determine

that certain practices, because of our uniqueness, are

unable to be applied.

I have instigated a number of programs to ensure

that Defence logistics continues its path

towards professionalism.

The Logistics Postgraduate program is particularly

important to me. The program provides a unique

development opportunity for selected logisticians

and will result in original academic research in the

field of logistics. I am delighted that this program

is underway with Ms Judy Doyle and Commander

Matthew McCormack as the first two successful

candidates. I eagerly await the production of their

research on their chosen topics looking at the impact

of the increasingly globalised supply chain and the

accelerated advent of information communication

technology in Defence logistics.

While the Logistics Postgraduate program is open

to all Defence logisticians, two other programs are

available only to personnel within Joint Logistics

Command (JLC) at this stage – the JLC Certified

Practicing Professional Logistician program and

the development of a ‘supply chain academy’ for

senior logisticians. The JLC Certified Professional

Logistician program provides all JLC logisticians

with the support to achieve professional accreditation.

The supply chain academy program raises the

professionalisation bar higher for our future logistics

leaders. Working in partnership with consultancy firm

Accenture, JLC is introducing an online environment

where our senior logisticians can interact with

counterparts from leading private and government

TH

E L

INK

We need to be engaged with the changes in our field in order to position ourselves to respond rapidly to Defence requirements in a global and interoperable environment.

TH

E L

INK

4

Preparing for the Next Wave: The Future Logistician and the Global Supply Chain

Judy Doyle’s enthusiasm for logistics

professionalisation has led her to pursue a Masters

of Philosophy under the Logistics Postgraduate

Sponsorship Program. Judy is going to investigate

logistics of the future—the proposal title is ‘Preparing

for the Next Wave: Supply Chain Globalisation’. The

following is a synopsis of her proposal.

The term ‘global supply chains’ is commonly used

today in the logistics field. Today’s supply chains

are becoming increasingly complex and globally

connected, and require logisticians to embrace new

technologies. Within Defence, the Strategic Reform

Program (SRP) acts as a catalyst for these changes,

as it demands greater efficiencies.

The study will assess emerging trends in materiel

logistics support concepts, as well as analyse the fact

that the logistician of the future will need decision-

making support tools in order to assess new support

concepts. Judy will compare Defence logistics to

industry models and identify synergies, as well as look

at current supply chain systems compared to those

of the future Defence Force and how to build a bridge

between the two.

Finally the study will examine the ways in which Key

Performance Indicators (KPIs) are appropriate in

Defence and what skills future logisticians will require.

Judy Doyle Logistics Postgraduate Sponsorship Program recipient

TH

E L

INK

5

The Link put the following questions to Judy.What is your connection to Logistics?

It makes me seem old to start and count the

numbers, but I have been working the logistics

field for over 20 years. For the last four years, I

have been working in the DMO looking after

logistics professionalisation. Those four years

have been exceptionally rewarding as we were

able to see the materiel logistics profession be

established and be nationally recognised through

formal qualifications. Prior to that (apart from a minor

divergence into secondary maths teaching), I was a

Logistics Officer in the RAAF; my career started at

ADFA in 1986 (the year it opened).

Why is this study important?

The fact that Joint Logistics Command (JLC) has

offered two postgraduate sponsorship (there will also

be a PhD student starting in 2012) demonstrates

the commitment that exists to the development of

the logistics workforce. Sponsoring postgraduate

positions will encourage an increased level of

original academic work. This recognises that the

logistics environment is increasingly complex

with supply chain globalisation and the advances

in information technology being just two aspects

that are dramatically changing the way things are

done. Leading organisations need to constantly

look for ways to improve their effectiveness, in this

age of the SRP this is particularly essential. In my

opinion these are some of the factors that makes

this study important.

What is it about this topic that has made you so enthusiastic about taking on this challenge?

Most people who have had any dealings with me

over the last four years will know that I am passionate

about logistics professionalisation. I know that

statement that we never stop learning sounds trite,

but I truly believe it and consider that

there is real value in stepping outside of the pace of

a hectic work environment to do it. The chance to

pursue a research based degree was particularly

appealing as it offers a level of academic freedom

and provides the opportunity to contribute to

the logistics knowledge base. Coming from

DMO, I’ve observed (arguably from afar), the

challenges that many of my logistics colleagues are

facing with the introduction of new capabilities. I’m

really interested in exploring how the technological

advances will change the nature of logistics support

in the future and in particular consider how well

prepared the Australian Defence Organisation (ADO)

is to capitalise on these more innovative practices

and recognise the impacts they will make. It’s a

really interesting field that I can see has value across

the ADO and that’s what makes me enthusiastic

about this challenge (and it is a challenge).

What can this study contribute to Defence Logistics?

I’d be thrilled if it was a lot, but I have a lot

of work to do for that to be a reality. As indicated

previously, the key aim of a research degree is

to create knowledge about something we don’t

know. At this stage it is too early to say what that

new knowledge will be, as I need to research what

is already out there. I will be focusing on what

work has been done on the complexity of logistics

support for future capabilities and considering

how we can best manage in this ever changing

and demanding environment and see if we need to

make any changes. If we don’t, that’s fine too, but the

world is changing too quickly for us not to pause and

consider in depth the impact of what lies ahead of us.

One other thing on a personal front, I am very

thankful for being given this opportunity. There are

not many organisations that offer the opportunity

for full time study and I am very aware of that fact.

Already at this very early stage I can see it as being

very rewarding—very hard work, and somewhat

intimidating at times, but I know that it will help me

to grow professionally.

The Link looks forward to publishing the results

of Judy’s analysis when it is complete.

TH

E L

INK

6

Jayne Melling Education and Training Officer, Strategic Logistics Branch, Joint Logistics Command

As we all know change is part of our everyday lives

and this applies not only to our personal lives but also

our roles within the Australian Defence Force. The

Education and Training team from the Directorate of

Strategic Logistics Policy, Strategic Logistics Branch

worked throughout 2010 in conjunction with numerous

organisations to ensure that the learning available to

Logistics personnel was current and relative to their

present working environments.

This included the revision of the Logistics suite of

eLearning courses available to all personnel through

Campus. The ‘Introductory Module on Logistics

in Defence’ (IMLD) and the ‘Logistics Support to

Capability’ packages have been updated and the

‘Support to Operations’ package is currently being

amended and is due to be re-released on Campus mid-

year. In addition, significant instructional design work is

being undertaken on the IMLD through a partnership

with Defence Learning Services. This will result in a far

more user-friendly, concise and tailored package.

A new eLearning course, the ‘Coalition Logistics

Education Package’ (CLEP) was added to the suite

and released on Campus in February 2011. Logistic

Officers (03-05) who deploy as a part of, or to provide

support to, a coalition operation will benefit most

from this package. Similarly the package provides a

broader application to all personnel involved in joint

and coalition operations and is available to all Defence

staff on Campus.

Last year the ‘Operations Contract Management

Course’ (OCMC), introduced as a pilot in 2009,

came to fruition. The OCMC is a four day attendance

course, targeted at Defence members whose role

involves contract management in the Joint Operating

Environment, both in deployed situations and in

support roles in Australia. This course is primarily

aimed at the management of offshore service contract

management and delivery, and is designed to meet

the contractual needs of Joint Logistics Command

Supply Chain Branch, Head Quarters Joint Operations

Command and deployed logistics personnel involved

in contract support. Two courses were programmed to

be delivered in 2010 but due to demand, three courses

were conducted. Two courses will be conducted in

Learn, Unlearn, and Relearn

TH

E L

INK

7

2011, the first at Randwick Barracks 5–8 April and the

second in September at a location to be determined.

Currently the Education and Training team is working

towards having the OCMC cross-credited to other

qualifications which were nationally endorsed in

December 2010. Defence, in consultation with

the Transport and Logistic Industry Skills Council,

has developed two higher level qualifications in

Deployment Logistics:

TLI50510 Diploma of Deployment Logistics•

TLI60210 Advanced Diploma of Deployment •

Logistics.

These nationally recognised qualifications have been

developed for most logistics occupations. Previous

recognition was based on specific trades/occupations

such as warehousing, supply etc, however there was

very little recognition for service officers, warrant

officers and civilian equivalents as they moved from

specialist roles into broader logistic managerial/

operational jobs. At these higher levels there is a

convergence of skills such as planning, organising,

managing, advising, reviewing and administering and

fewer specialist skills.

The two diplomas cover the skills required to deploy

personnel and resources in support of operations.

These qualifications are contained in the Transport and

Logistics Training Package and support recognition

arrangements for both Defence and civilian companies

working in a deployed logistic context. More detailed

information can be found at the Transport and Logistic

Industry Skills Council website: http://www.tlisc.com.

au/index.php?menuID=158

The Education and Training team from the Directorate

of Strategic Logistics Policy continues to review the

training needs within the logistics domain, making

available to personnel the opportunity to learn,

unlearn and relearn.

Tell us about the other hats you wear

All Reservists (Active and Specialist) should recently have received mail asking about your civil skills (formal, self-claimed, experience) for the Civil Skills Data e-survey.

It is very important that you complete this survey as it helps the Australian Defence Force better identify people with specific skills that can be drawn upon for emergencies, exercises and deployments.

You will receive a half day pay for preparing and completing the survey and it will also help your Reserve career.

There’s still time for you to complete the survey. Make sure you have all your paperwork ready – licences, degrees and other qualifications – before you start.

If you have any questions about the survey, or any of the information collected, please email your query and PMKeyS number to ADO.CivilSkillsData@defence.gov.au

You can complete the survey on your own or a Defence computer, but you should complete it as soon as you can.

CIVILSKILLSDATASkills in Reserve

Visit www.civilskillsdata.com today

It’s time to complete the Civil Skills Data e-survey

MGDMO0138_CSD FPC Magazine.indd 1 1/04/11 2:40 PM

TH

E L

INK

8

Logistics Learning for Coalition OperationsGroup Captain Phillip Gunnell Strategic Logistics Branch, Joint Logistics Command

Winston Churchill is reputed to have remarked during

World War 11 that the ‘only thing in war worse than

having to fight with allies is having to fight without allies.’

Australia has always fought within a structure of

alliances and coalitions. The difference being that

an alliance represents a formal obligation for mutual

support, while a coalition is an ad hoc arrangement.

Therefore, an understanding of the nuances of

logistical support to coalition operations is a necessary

skill for any ADF logistician. With increasing global

intersection of political, economic and social interests

it is likely the need for coalition cooperation in the

successful prosecution of warfare in the 21st century

will only increase.

ADF CAMPUS–The Coalition Logistics Education PackageTo assist future ADF Logistics Officers posted to

Coalition operations, an eLearning program has been

developed, titled the Coalition Logistics Education

Package (CLEP) which is now available on Campus.

The CLEP is useful to Logistics personnel and non-

logisticians serving within, or providing logistics

support to, a Coalition Operation.

The CLEP covers the Defence organisations of each

of the Quadrilateral Logistics Forum countries (United

States, United Kingdom, Canada and Australia) and

compares Defence capabilities. In addition, the package

details each country’s logistics support to capability

and examines over 50 of the highest priority training

objectives contained within the Coalition Logistics

Education Framework (referred to below).

Leaders of the Quadrilateral Logistics Forum (L-R): Major General Jeff Mason (UK), Lieutenant General Kathleen Gainey (USA), Major General Mark McQuillan (Canada) and Air Vice-Marshal Margaret Staib.

TH

E L

INK

9

This package is one of several measures to enhance

the awareness and knowledge of Coalition logistics

officers to the force capabilities and logistics support

practices of traditional Coalition allies. The examples

of Coalition operations in Iraq and Afghanistan at the

very beginning of the 21st century highlight inter-

dependence. Therefore, it is in your interest and your

effective contribution to Coalition Operations that you

become more familiar with the Force capabilities and

organisation of our traditional allies. By using this three

hour, non-assessable package, you will gain particular

insight to, and knowledge of the nuances of Coalition

Logistic Support to Operations.

Background to the Development of the Coalition Logistics Education PackageThe Quadrilateral Logistics Forum was established to

accelerate the resolution of key logistics interoperability

issues. In 2004 the senior joint logisticians of Australia

(AS), UK, Canada (CA) and the US agreed that better

harmonisation of national activities was needed to

produce effective solutions to multinational logistics

problems. To help execute direction from the QLF

Principals, it was agreed that the officers of the

Multinational Office (MNO) of the US Joint Chiefs

of Staff Director for Logistics would be used as a

coordinating agency.

Coalition Logistics Education Framework (CLEF)

describes the skills, knowledge and attributes required

of a logistician in the Coalition operating environment.

This framework provides a level of agreement for

training and education between allies to improve both

interoperability and delivery of the operational logistics

effects for the Joint Force Commander (JFC). The

CLEF identified ten major functional competencies,

broken down into 32 Areas of Competence and 130

Training Objectives.

Coalition Logistics Education Package (CLEP)

is an eLearning product developed simultaneously

with the CLEF. Both products have been developed

by an Australian led QLF Working Group and

transitioned into NATO Community through a NATO

Senior Logistics Steering Board chaired by the ADF

Commander of Joint Logistics (AVM Margaret Staib)

on the 20 Oct 11.

Feedback. Any feedback on the package would

be appreciated. Please direct your email to

Phillip.Gunnell@defence.gov.au

“An understanding of the nuances of logistical support to coalition operations is a necessary skill for any ADF logistician.”

TH

E L

INK

10

The Future of Logistics Education for the ADF

Academia needs to take leadership in this area but at

present it is the industry bodies such as The Chartered

Institute of Logistics and Transport in Australia (CILTA)

and The Supply Chain and Logistics Association of

Australia that are calling for changes in future education

for logistics professionals and practitioners.

Certainly the economic impact of logistics justifies

more effective education. The 2009 Transport and

Logistics Industry Skills Council (TLISC) claimed that

Australian supply chain industry employs an estimated

500,000 staff.

Elizabeth Barber Lecturer in Logistics, University of New South Wales Canberra Campus

There is still great debate concerning the required

curricula of future logistics courses. One school of

thought suggests that required skill sets should vary by

industry whilst another school opposes such a notion

arguing that logistics education should be broad and

encompassing to satisfy industry’s diverse needs.

There is strong evidence that logistics and supply chain

management across Australian universities is somewhat

fragmented being delivered in departments as diverse

as industrial engineering, production, marketing and a

management science. Across these departments little

research has been undertaken to project the future

evolution of logistics’ educational needs.

TH

E L

INK

11

The sector contributes $90 billion annually to the

economy yet this is with a shrinking labour pool and

poor retention rates, ageing workforce and extreme

transport infrastructure pressures. Within this climate the

Australian Bureau of Transport and Regional Economics

(BTRE) predicts bulk freight movements to increase,

interstate bulk freight to double and container traffic to

triple over the next decade.

It is little wonder that the growth of logistics courses in

colleges and universities has been unprecedented in

the past decade.

Both undergraduate and postgraduate courses

world-wide have multiplied but many fail to reflect the

multi-disciplinary nature of the discipline. One university

that does seem to have satisfied its industry and

students is the US Army Logistics University in Fort

Lee Virginia. It has seven pages of course offerings

ranging from Strategic Deployment Planning, Armament

Systems Maintenance to Joint Logistics Courses.

As one of the most dynamic industries in the

world today, the logistics industry needs to have

professionals well educated and the ADF which is

fully reliant on support from procurement to disposal

of its assets needs an up to date and confident

logistics core to ensure its success. Because of

the large component of logistics activities that are

outsourced by the ADF, a strong and dedicated

course on Performance Based Logistics is required

to ensure these contracts are well managed. Further

the seemingly ever increasing involvement of the

ADF in humanitarian aid in our region calls for a

broad Humanitarian Logistics subject, one of which

is currently under development at Australian Defence

Force Academy (ADFA) to be ready for delivery in 2012.

Dedicated courses such as those given at Fort Lee

would be unsustainable in our small military force but

the quality of logistics education needs to be superior

and thus future needs in education should be gained

from the wide spectrum of subjects given from a

range of universities, for example, ADFA specialises in

procurement and logistics management; the Institute

of Transport and Logistics (ITLS) at Sydney University

provides superior education in transportation. The

dynamics of the industry and the needs of the logistics

in the ADF require that personnel should keep abreast

with their changing requirements by filtering the range

of offerings from a range of universities. Perhaps

a radical option to achieve this would be a central

educational cell within the ADF to negotiate with all

Australian universities to fulfill the dynamic and diverse

logistical education needs that cover in house training,

affiliations with industry associations and the academic

education of the ADF in the future.

“The growth of logistics courses in colleges and universities has been unprecedented in the past decade.”

TH

E L

INK

12

The Future of Logistics, the Human Factor: Art versus Science

The physical, economic and cultural facets of our world

have changed and will continue to do so. Increasing

globalisation and ever longer and more complex supply

chains, the discipline of logistics has become even more

sophisticated and adaptable. Furthermore the countless

manifestations of statistics and analysis pervade our

world and profoundly affect the social, economic and

cultural outlooks of societies and individuals.

Yet, the human factor, the wild card, the uncontrollable

risk or the invaluable reward that glues and connects

the interactions with these amazing scientific

advancements and breakthroughs is forgotten.

Logistics can be modelled, analysed, visualised and

optimised, but has it been humanised?

The term logistics comes from the Greek logos,

meaning ‘speech, reason, ratio, rationality, language,

phrase’. The word logistics has its origin in the French

verb loger to ‘lodge or quarter’. At its core, logistics

is imbued with humanness and yet has evolved to

become the language of commerce. It is this collision

of science and art, the intersection of the material

world with the human factor, the physical or cognitive

property of an individual or social behaviour which is

specific to humans and influences the functioning of

systems that will be the real challenge.

While globalisation, technology, security, terrorism,

natural disaster and sustainability will be key future

components of the discipline of logistics, it is the

evolution of the language that poses the greatest

opportunity? What is the best way to learn any

language? It is commonly agreed that immersion

is the best approach.

Adam Voak Institute for Supply Chain Management, Victoria University

As you learn more about the culture in which the

language is spoken, individual words and phrases

are given colour and valuable clues to context are

revealed. It is for this reason that you will see a rise in

the art of logistics, a new language that will articulate

an immersion for the pursuit of humanness within our

systems, the emotive connection to a possible future

and a focus on design thinking.

In the future, logistics will be a symphony of science

and art. It will evoke an ability to humanise the

systems and frameworks of commerce. Logisticians

of the future will need to be creative, adaptive, and

innovative. They will have a deep understanding of

social accountability and responsibility and be able to

cope with the unpredictability associated with change.

They will also need the ability to combine empathy and

rationality to meet user needs and to drive business

success. Inspiration, ideation and implementation will

no longer be vague concepts.

They will form the foundation of a new vocabulary

of competence, which will combine the intuitive/

emotional, the art with the rational/analytic, the

science. The logistics professional of the future will

need to evoke a holistic interdisciplinary approach to

foster human-centred enterprises, and to design the

systems in which we live and in which we aspire to live

in. The ultimate focus is a move away from the ‘how’ to

the ‘why’?

The logistics professional of the future will need to evoke a holistic interdisciplinary approach to foster human-centred enterprises, and to design the systems in which we live and in which we aspire to live in.

TH

E L

INK

13

TH

E L

INK

14

Megan Hobson Professional Development & Events Manager Chartered Institute of Logistics and Transport Australia

Under contract from the Australian Logistics Council

(ALC), Chartered Institute of Logistics and Transport

Australia (CILTA) will present the third session of the

highly successful mentoring program, Women Moving

Forward. The previous two sessions have involved

more than 130 women from over 100 companies

and government agencies across Australia, including

participants from the Department of Defence.

This program has become the largest, most effective

mentoring program for women in the transport and

logistics (T&L) industry and is being offered with the

financial support of the Australian Federal Government

under the Nation Building Program.

Women Moving Forward (WMF) incorporates a high

quality, self-paced and cost effective mentoring

program, targeting the retention and development of

women. It identifies what women want in their personal

and professional lives and helps get them there. It is

open for all women in T&L, undertaking any role, in any

region, in any T&L company.

Guest speakers involved in the previous sessions have

come from a wide range of backgrounds exposing

the participants to a variety of experiences both from

within and outside the T&L industry. Speakers have

included Air Vice-Marshal Margaret Staib, Captain

Stephanie Moles RAN, Michael Blucher (the third half

sports motivation), Natasha Stott-Despoja (former

Senator and Leader of the Democrats), Tania Whyte

(Linfox), Ivan Backman (former Chairman of the ALC),

Diane Ricardo (Billabong), Hal Morris (CILTA) and

Maureen Frank (Emberin).

In designing the WMF program, the goal was to reach

out to women around Australia in the T&L industry. We

wanted to put them in touch with other women and

support their development by offering a personal and

professional mentoring program.

The WMF program has been created to incorporate

the ‘my mentor’ product, which is a stand-alone

product that utilises CDs, DVDs and a workbook

to present 12 Modules. CILTA has combined it with

live teleconference interviews with guest speakers,

weekly newsletters, a secure website for blogging

and confidential discussions as well as personalised

assistance from the Program Coordinator. This has

enabled us to build a really unique program meeting

the needs of many of the women in our industry.

Women Moving Forward Mentoring Program

Connie Clark, Joint Logistics Command receiving her ‘Women Moving Forward Program’ certificate from CILTA Victoria Section Chairman, Hans Anneveldt.

TH

E L

INK

15

Program Facilitator, Melinda Buker said, “The program

has given me the unique position of working with

women who are doing the program and hearing of

their hopes and successes. It’s been very humbling

and they never cease to inspire me; especially when

it comes to the passion and dedication that they have

for the industry. And of course, the guest speakers

are fantastic. The advice and real-life experiences that

they are happy to recount, and their willingness to be

honest and personal is a testament to their leadership.

The program is simply a great combination of elements

and it continues to grow and get better”.

A number of Defence personnel have participated

in the program. Connie Clark of Joint Logistics

Command completed the program in December

2010 and gave it a resounding endorsement saying,

“I would recommend all levels of Defence Personnel

to complete this amazing program.” (Connie is

pictured receiving her Graduation Certificate).

Current participant Dianne Neale of the Joint Proof &

Experimental Unit said, “I am very impressed with the

program. It certainly provides food for thought and

gives you the strategies for moving forward.”

The first 70 participants to register for the next session

will receive an Australian Government subsidy of $200,

reducing the price to $595 (incl gst).

The next session commences Thursday, 23 June

2011. Registrations for the June 23rd program will

close COB, 3 June 2011. Further information is

available at www.cilta.com.au .

Inquiries:

Megan Hobson, CILTA Professional Development

& Events Manager, megan.hobson@cilta.com.au

TH

E L

INK

16

Explosive Ordnance Workforce – Rationalisation of Common TrainingJohn Ekman Deputy Director Performance, Explosive Ordnance Branch, Joint Logistics Command

Workforce. It can be described as the core capability

of any organisation. Take away the workforce from a

warship, tank or aircraft and what do you have left? An

expensive asset that is not able to be utilised for the

purpose it was built for. The same can certainly be said

of the Explosive Ordnance (EO) domain in Defence.

The Australian Defence Strategic Logistics Strategy

2010 notes that ‘EO is a critical element of the ADF

that delivers lethal effects.’ All the ‘spokes in the wheel’

which enable Defence to deliver ‘lethal effect’ centre

on its workforce.

That workforce must be skilled, qualified and their

knowledge current and broad, encompassing

areas including safety, security, storage, transport,

distribution, testing and end-use.

The Defence Explosive Ordnance Training School

(DEOTS), situated at Orchard Hills in New South

Wales, was established in 2005 as a result of the

2003 EO Training Rationalisation Project. Under a

Memorandum of Agreement between Navy, Army,

Air Force, Defence Material Organisation and Joint

Logistics Command (JLC), the DEOTS is responsible

for shaping and influencing EO Training Defence wide,

the development of common EO curriculum, as well

as the delivery of agreed common EO logistics and

engineering training.

TH

E L

INK

17

While much work had been done on the rationalisation

of EO training post 2003, it was reported to the

Defence Explosive Ordnance Committee (DEOC) in

October 2009 that rationalisation had, for a number

of reasons, not progressed as intended. Enter the

Common EO Training Delivery Working Group.

With the full support of DEOC, the working group

has reinvigorated the rationalisation program. The

first task of the working group was to address EO

Reconnaissance (EOR) and EO Disposal (EOD)

rationalisation from three delivery points to one.

EOR/EOD was identified as a critical capability for

current joint land operations by CDF in August 2009.

It was suggested to DEOC that the rationalisation

of instructors, equipment and training capabilities

would lead to improvements in ADF EO capability,

commonality of doctrine, tactics, techniques,

procedures and interoperability. It was also

acknowledged that there would be potential to realise

savings, make efficiency gains or deliver significant

business improvements. Interestingly, the concept

of a single EOD school catering to the needs of the

services, ‘in the interests of economy and efficiency’,

was first proposed in 1966, and again in 1977.

By December 2010, the three Services, along with

guidance from JLC and other key stakeholders, had

defined the requirement for EOR/EOD rationalisation.

An implementation plan is currently in the final process

of being approved by DEOC members. Over the

coming 12 months resources (people and equipment)

will be relocated, and the DEOTS will move into more

expansive accommodation with improved IT capability

and extra classrooms at Orchard Hills. 2012 will see

the culmination of this effort with the first groups of

EOR/EOD students progressing through rationalised,

common courses.

The working group has now shifted its focus

onto Logistics/Engineering common EO training

rationalisation, with a view to implementation at a

single point of delivery by 2013.

TH

E L

INK

18

Australian Defence Strategic Logistics Strategy 2010-2015Group Captain Andrew Hayes Directorate of Strategic Logistics Policy and Reform, Strategic Logistics Branch, Joint Logistics Command

Future support to operations in the global contextThe Australian Defence Strategic Logistics Strategy

(ADSLS), published in November 2010, is intended

to articulate the challenges faced by Defence in the

logistics environment over the next five years and

what must be put in place at the strategic level to

enable the Groups and Services to provide effective

support for operations.

Why the strategy was developedThe document outlines the key strategic logistics

themes, and their supporting objectives, which must be

realised in order to achieve the vision of a robust, flexible

and responsive logistics system capable of providing

future support to operations in the global context. The

themes provide the underpinning logistics capability to

the ADF. Whilst the strategy provides a five year outlook,

it establishes the foundations that support the Defence

White Paper 2009 and the program of logistics reform

needed to enable Force 2030.

TH

E L

INK

19

Importance of the strategyIn the next two decades the ADF will be confronted

with challenges of combat, security, engagement, relief

and reconstruction activities. Opponent capabilities

will range from improvised explosive devices to high-

technology weaponry.

The Defence Logistics System must transform to

meet the challenges of globalisation and future

trends in commercial logistics. Globalisation will be

a significant factor in the way that Defence conducts

its logistics business. The continual development of

freer movement of information, capital and trade and

the rapid development of, and access to, technology

and communications will clearly impact the Defence

supply chain.

Logistics support to operations relies on extended

and complex supply chains and therefore needs to be

understood in terms of the overall system. Success will

depend on aligning the efforts of Defence agencies,

the industrial base, non-government agencies national

support, and our interagency and multinational partners

to further develop and refine the logistics system.

Implications for defence capability and future operationsThe Defence Logistics Vision is to create a robust,

flexible and responsive logistics system capable of

providing future support to operations in a global

context. The system that will be progressively built

will function at the very heart of the ADF’s capability.

To support the delivery of the Vice Chief of Defence

Force’s output of ‘provide and coordinate logistics

support to operations, exercises and the Raise,

Train, Sustain’ function we have to continue to

build our logistics system around the key Strategic

Logistics Themes and Objectives stepped out in

the Australian Defence Strategic Logistics Strategy

2010-2015 document.

Additionally, by investing in infrastructure, technology

and our workforce through the Strategic Reform

Program we will transform Defence’s logistics

infrastructure, business systems and processes,

information and communications technology, and

materiel maintenance services to be global leaders in

joint logistic solutions for the ADF.

The Australia Defence Strategic Logistics Strategy is available at http://intranet.defence.gov.au/jlc/ sites/_home/ComWeb.asp?page=50900

TH

E L

INK

20

Article to come

TH

E L

INK

21

Article to come

TH

E L

INK

22

Recognition through Certification

Megan Hobson Professional Development & Events Manager The Chartered Institute of Logistics & Transport Australia

The Certified Professional Logistician (CPL) program

provides a benchmark of excellence for measuring

capability and proficiency within the profession

of logistics and supply chain management and

represents the hallmark of logistics professionalism.

The Chartered Institute of Logistics & Transport

Australia (CILTA) is proud to be involved in this valuable

program. We are proud to endorse and support the

CPL, which ensures logisticians are recognised for

their work and ongoing commitment to the profession.

Logistics as a term now embraces warehousing,

freight, transportation and distribution, through to

supply chain management. Today, professionalism of

a high standard is required to manage these complex,

disparate functions in a seamless and integrated

supply chain framework – with a clear understanding

of the need to track not only the movement of the

physical goods or services, but the related flows of

finance and information.

Individuals attaining the CPL are able to demonstrate

that they have the capability to effectively master the

technology and leadership skills required across the

broad range of activities that today constitute logistics.

The CPL is a professional qualification that aims to

provide a definitive standard for measuring capability

and professionalism within the logistics profession.

CPL status enhances your professional credibility

within the industry and also enhances the profile of

the logistics profession. Success of your application

entitles you to use the post nominals CPL.

To qualify as a CPL, an applicant must have, and be

able to provide evidence of, relevant work experience,

qualifications and an active professional involvement

in logistics and supply chain management. There are

nine Exposure Areas used in the assessment including

work experience, education, professional development

and professional membership of supply chain

associations, such as CILTA.

The overall process involves:

establishing that you have attained at least 400 •

points of combined experience, education and

professional involvement

agreeing to abide by CILTA’s code of conduct•

assessment for CPL status requires payment of •

$AU500 (including GST) to CILTA. Thereafter, the

review of your annual CPD activity, to maintain

your accreditation, involves a fee of $AU75

(including GST).

To check your eligibility to become a CPL and to apply

online please visit www.cplinstitute.com

Additionally, we also offer the Certified Transport

Planner (CTP) program for Transport Planners. The CTP

is a professional qualification that provides a definitive

standard for measuring capability and experience in

the Transport Planning profession. It brings together

the breadth and depth of skills required of a modern

Transport Planner and unifies many disciplines - such as

Engineering, Town Planning, Geography and Economic.

CTP status indicates professional recognition, from

peers and employers, of significant experience and

capability to plan, implement, manage and improve

transport planning initiatives.

Applicants are invited to visit the website www.

ctpinstitute.com to test your eligibility and apply

online to become a CTP.

For further information please contact Megan Hobson,

Professional Development & Events Manager, CILTA on

mobile 0459 363 271 or email education@cilta.com.au

®

Certified Professional Logistician

TH

E L

INK

23

Managing Global Supply ChainsWing Commander Neil R. Collie Commanding Officer, Joint Logistics Unit (South)

The supply chain, global supply chain and supply chain managementThe ‘global supply chain’ construct is an extension

of the ‘supply chain’ construct used to describe

the upstream and downstream flows of products,

services, finances and information from a source to

an end-user. Academic and training texts typically

describe supply chains in the form of linear models.1

In a linear model, supply chains are characterised by

a series of nodal points that represent stakeholder

facilities, where static value-add activities occur, such

as raw material production, manufacture, assembly,

storage and distribution planning.2

A number of entities pass through these nodal points,

notably products and services intended for the end-user

(the boxes) but also importantly the information and

data flow (the bytes) and financial transfers (the bucks)

required to make the enterprise work. The human input

consists of the workforce that manages and operates

the supply chain (the bodies) and the knowledge and

skills (the brains) required by the workforce.3

The key point about supply chains is that each product

or service that moves downstream will follow its own

path, with multiple products and services flowing—not

unlike a river joining with its tributaries—towards the

customer. The alternative ‘rope’ metaphor describes

individual supply chains as fibres that are progressively

braided into a rope at the business end, namely the

customer. In a global supply chain, nodal points are

typically located in several different countries. In

simple terms, the supply chain model is ‘globalised’

by locating the nodal points in different countries and

separating those countries by an international border.

Global supply chains have emerged as a direct result

of commercial globalisation, that is, the worldwide

integration and coordination of economic activities

supported by global communications, a global

financial system and global logistics services.4 In this

context, stakeholders seeking to reduce costs are

able to exploit both their own advantages and the

comparative advantages offered by other countries,

such as lower labour costs, access to technology and

production capacity.5 Understandably, global supply

chains are complex, not least because of issues of

culture, distance, the requirement for intermediaries at

key nodal points, differing standards of infrastructure,

border crossing regulations and so on.6

This is an abridged version of an article that

appeared in the Australian Defence Journal, Issue

183, 2010, pages 77-83. The full article can be read

at http://www.adfjournal.adc.edu.au/UserFiles/

issues/183%202010%20Nov_Dec.pdf

This article is reproduced here with the permission

of the Australian Defence Journal.

Story continued on page 33

TH

E L

INK

24

Defence Signs Memoranda of Understanding with Border Security PartnersAlyson Williams Deputy Directory National Logistics, Strategic Logistics Branch, Joint Logistics Command

One of the key themes emerging from the Australian

Defence Strategic Logistics Strategy is the need to

harness support from the National Support Base

through enhanced relationships with other Federal,

State and Territory Government Departments.

Good working relationships with other Government

agencies are critical to the support and enhancement

of ADF operations.

In keeping with this theme, in November 2010,

Defence signed individual Memoranda of

Understanding (MOUs) with the Department of

Agriculture, Fisheries and Forestry (DAFF) and the

Australian Customs and Border Protection Service

(Customs). While each agency has a separate

mandate in protecting our national security, close

cooperation in a whole-of-Government approach

ensures greater protection of Australia’s national and

economic interests.

Managed by Commander Joint Logistics as

the Defence Strategic J4, these MOUs reflect

Defence’s commitment to its role as a responsible

citizen ensuring our compliance with the legislative

requirements that protect our nation’s borders.

Compliance with our statutory and national obligations

is critical in protecting Defence’s reputation and

maintaining our corporate relationships.

The Secretary of Defence Dr Ian Watt and The Secretary of The Department of Agriculture Fisheries and Forestry (DAFF) Dr O’Connell

TH

E L

INK

25

The DAFF-Defence MOU Concerning Quarantine

Procedures, Fees and Requirements for Defence

is a revision of the MOU signed with the Australian

Quarantine Inspection Service (AQIS) in 2005. (Note,

AQIS is part of DAFF.) The new MOU has been revised

to reflect increased operational tempo as well as

organisational and procedural changes pertaining to

quarantine. Signed by both Departmental Secretaries,

the agreement is an affirmation by both agencies of

the continued assurance to work together to protect

Australia’s biosecurity.

The MOU on the Collaborative Working Relationship

Between Defence and Customs is the first over-

arching agreement on border protection matters

between the two departments (outside of Border

Protection Command and maritime operations).

The Defence-Customs MOU is the mechanism

under which all other Customs-related department-

to-department cooperative arrangements will sit.

Separate annexes can be developed to identify a

range of objectives and activities for specific focus

areas such as staff secondments, technical assistance

agreements, or research and development projects.

The aim of both of these agreements is to formalise

the working relationship between Defence and its

federal partners and to allow closer understanding

of the roles and responsibilities of each in their

day-to-day operations. The MOUs will assist the

ADF in effectively and efficiently maintaining its high

operational tempo through minimising damage to

returning ADF equipment as well as preventing risks

to Australia’s biosecurity. Strengthening the respective

staff relationships at the strategic and operational

levels across agencies will also serve to enhance

support to the future force. Nurturing and promoting

strong cross-agency relationships makes it much

quicker and easier to ‘get the job done’.

More information on the MOUs can be gained from

the Directorate of National Logistics on 02 6266 5371

or on the Strategic Logistics Branch website at:

http://intranet.defence.gov.au/jlc/sites/SLB/

comweb.asp?page=61491&Title=MOUs

TH

E L

INK

26

Australian Defence Logistics Conference 2010

TH

E L

INK

27

More than 450 Defence logisticians were encouraged to be innovative in their

approach to logistics reform by speakers at the annual Australian Defence Logistics

Conference held in July 2010. Conference host, Commander Joint Logistics AVM

Margaret Staib invited speakers from industry, international Defence organisations

and the Australian Defence Organisation to share their experiences and insights.

Dell Computers, renowned for their rapid supply chain was represented by former

RAAF-logistician Mr Clayton Noble and Mr Vignesh Arumugam. General Manager

Supply Chain and Logistics Bluescope Steel, Mr Ingilby Dickson focused his

presentation on the OH&S aspects of logistics innovation.

A large number of delegates nominated Ms Geneviève O’Sullivan, Director General

Materiel Systems and Supply Chain, Department of National Defence Canada as

the stand-out presenter of the conference. Like Australia, the Canadian Department

of National Defence has recently overhauled the disposal of obsolete inventory,

and when Ms O’Sullivan shared freely of a review of supply chain operations in her

country, many of the lessons learned resonated with her audience.

Navy, Army and Air Force were each asked to nominate a ‘Young Turk’ of logistics

to address the conference. LTCDR Rebecca Levitt, RAN, MAJ Paul Firth and

SQNLDR Jason Bowles made the most of the opportunity to share their views

on improving Service logistics and all acquitted themselves very well under the

questioning of conference delegates.

BRIG David Saul’s final task in uniform was a reprise of his role as Master of

Ceremonies for ADLC. BRIG Saul was warmly farewelled with applause, his clever

combination of wit and protocol will be hard to match in the future. The annual

Australian Defence Logistics Conference is the premier professional development

opportunity for Australian Defence logisticians. ADLC11 will be held at Australian

Defence Force Academy on 7 and 8 July 2011.

TH

E L

INK

28

Exercise Tests More Than DefenceAndrew Mannix General Manager, Defence Logistics BAE Systems Australia

One of Australia’s largest ever Defence exercises was

held in North Queensland in August and September

2010, to test the Army’s ability to fight and operate in

a modern, complex battlespace.

It also proved to be a valuable test of the relationships

between Defence and major contractor BAE Systems.

Exercise Hamel, involved more than 6 000 Defence

personnel, and took place in the region around

Townsville. All logistics support was provided through

Joint Logistics Unit – North Queensland (JLU(NQ)) which

is supported under the Defence Integrated Distribution

System (DIDS) contract by BAE Systems Australia.

For BAE Systems, warehousing activity in support

of Exercise Hamel increased by an estimated 200%

while maintenance activity rose by 20% above the

standard workload.

TH

E L

INK

29

In order to meet the demands of Hamel, BAE

Systems surged labour to assist with numerous

manual tasks, many of which were performed in

a field environment. The company also appointed

a special Liaison Officer which enabled various

customers to receive priority attention and alert

BAE Systems to any changed priorities.

The company met all contract requirements during

Exercise Hamel. Importantly, it did not record any lost

work day injuries or receive any customer complaints.

The planning and execution of Exercise Hamel

was seen as a success both within JLU(NQ) and

throughout the ADF. BAE Systems was pleased to

play a significant role behind the scenes in support of

the JLU, as it strives to build upon its reputation as a

trusted logistics provider.

Supporting ADF personnel and associated

equipment on deployed operations is a complex

and at times arduous activity, key to the success

of personnel deployed in harms way is the

commitment to the trained force here in Australia.

BAE Systems is an integral part of the team and

has demonstrated a commitment to provide timely

and dedicated support in support of the ADF. This

was evident during EX Hamel, the largest exercise

activity carried out by the Defence Forces for many

years. BAE Systems responded to the myriad of

requests in a positive and responsive manner, and

while working in partnership with JLU(NQ), JLU(SQ)

and JLU(N) provided a dedicated and proactive

support as part of the logistics team in support of

the Exercise–a job well done.

– Director General Supply Chain, Joint Logistics Command BRIG Peter Daniel

TH

E L

INK

30

Coming Up

Australian Defence Logistics Conference 2011Hosted by Commander Joint Logistics, the annual

Australian Defence Logistics Command will be held

on 7 and 8 July at Adams Hall, ADFA, Canberra.

Registration

The conference is sponsored by Joint Logistics

Command and free registration for the two-

day event is open to all ADF and Defence ADF

personnel. http://intranet.defence.gov.au/JLC/

Information

Further information can be accessed via:

http://intranet.defence.gov.au/JLC/

Defence+Industry 2011Hosted by DMO, Defence + Industry 2011 will be

held at the Adelaide Convention Centre, 28 to 30

June 2011.

There is a conference dinner on Wednesday 29

June at the Adelaide Convention Centre.

Registration

Registrations are available online via:

http://www.defenceandindustry.gov.au/news.

php/article/id/4

A range of passes are available, with a three day

pass costing $1100 for Defence personnel, and

a one day pass costing between $480 and

$600 – depending on which day you go.

Information

Further information is available via:

http://www.defenceandindustry.gov.au/

Parari 2011 10th Australian Explosive Ordnance SymposiumThe 10th Annual Explosive Ordnance Symposium will

be held at the Sofitel Hotel, Brisbane Queensland

on 8 to 10 November 2011. Delegates proposing to

submit papers should submit and abstract by 29

April 2011 to be considered for the program.

Registration

Delegates fee for the symposium is $800 and

registrations close 2 September 2011.

Information

Register your interest at www.parari.com.au

TH

E L

INK

31

DEFLOGMAN PART 2, VOLUME 1, CHAPTER 5

Roles and Responsibilities of Working Groups and Committees Supporting the Defence Logistics Committee

A new policy which assists Defence in its

understanding of the linkages between the Defence

Logistics Committee and its subordinate committees

and working groups. The policy contains basic

information enabling a reader, unfamiliar with these

supporting groups, a better understanding of their

roles and responsibilities.

DEFLOGMAN PART 2, VOLUME 2, CHAPTER 1

Introduction to the Defence Fuels Manual

A new policy to form an introduction to the Defence

Fuels Manual (DFM). The purpose of the DFM is

to provide policy and broad procedural guidance

for those organisations and staff responsible

for the procurement, management, treatment,

storage, quality surveillance and distribution of POL

across Defence.

Defence Logistics Committee UpdateThe role of the Defence Logistics Committee (DLC) is to provide a strategic focus on, and to be an advocate for, the

vital place of logistics in Defence capability. CJLOG chairs the DLC, which meets every three months.

The DLC’s roles and responsibilities, membership, agendas, papers and minutes are available via the Intranet (DRN)

under VCDF Joint Logistics Command Strategic Logistics Branch Committees/Working Groups.

TH

E L

INK

32

DEFLOGMAN PART 2, VOLUME 2, CHAPTER 5

Capabilities and Limitations of the Australian Petroleum Industry

A new policy to address the need to increase the

overall understanding of Defence with regard to the

Australian petroleum industry, its commercial fuel

supply chain and how it relates to Defence.

DI(G) LOG 4-1-003

Defence Inventory and Assets Manual

A revised policy to support the issue of DEFLOGMAN

Part 2 Volume 5 Defence Inventory and Assets

Manual. When released, the Defence Inventory and

Assets Manual will provide the obligations and policy

for the management of Defence inventory and assets

within the new prescribed governance framework.

It brings together all current Defence policy that

supports inventory and asset management, as well

as additional policy to support new capability being

introduced into Defence.

DEFLOGMAN PART 2, VOLUME 5, CHAPTER 3

ADF Requirements Determination and Management of Reserve Stocks

A revised policy which sets out the obligations and

policy under which ADF requirements determination

and management of reserve stocks is to be

implemented across Defence based on Capability

Managers’ assessments of materiel liability and

priority to meet operational contingencies.

DEFLOGMAN PART 2, VOLUME 5, CHAPTER 6

Defence Materiel Entitlements

A revised policy which sets out the obligations and

policy for the effective and efficient implementation

of a Defence Materiel Entitlements framework to

support the CDF Preparedness Directive.

DEFLOGMAN PART 2, VOLUME 5, CHAPTER 7

Defence Policy on Obsolescence Management

A revised policy which sets out the obligations

and policy under which an effective and efficient

obsolescence management framework is to

be established.

DEFLOGMAN PART 2, VOLUME 5, CHAPTER 8

Automatic Identification Technology

A revised policy which sets out the obligations and

policy for the consistent application of Automatic

Identification Technology (AIT) by Defence logistics

organisations, which will facilitate the re-use

of identifiers between Information Technology

applications and systems. The adoption of AIT

standards ensures re-use of manufacturer, supplier,

distribution carrier and Defence generated identifiers.

DI(G) LOG 4-1-005

Logistics Support to Operations and Exercises Manual

A revised policy to support the issue of DEFLOGMAN

Part 2 Volume 8 Logistics Support to Operations

and Exercises Manual. When released, the Logistics

Support to Operations and Exercises Manual will give

Defence personnel a policy framework for providing

logistics support to the ADF during operations

and exercises.

TH

E L

INK

33

DEFLOGMAN PART 2, VOLUME 8, CHAPTER 1

Overview of Logistics Support to Operations

A new policy which, through provision of context to

DEFLOGMAN Part 2 Volume 8 Logistics Support

to Operations and Exercises Manual, provides

the obligations and policy framework under which

effective and efficient logistics support is provided to

ADF operations and major exercises.

DEFLOGMAN PART 2, VOLUME 8, CHAPTER 5

Amenities Support to Forces Deployed on Operations and Major Exercises

A revised policy which sets out the obligations and

policy under which effective and efficient ADF amenity

provision is to be conducted for deployed forces.

Amenities embrace all the activities and functions that

contribute to the long-term sustainment of wellbeing

and morale of deployed forces.

Much of the materiel comprising the inputs to

Australian Defence Force (ADF) capability is acquired

overseas. Hence, the reality is that Defence has been

managing global supply chains in one form or other

for some time. The support to imported capability

has traditionally involved large amounts of Defence

control and ownership. However, over the last two

decades—and driven by a series of Defence reviews

aimed at increasing efficiency and reducing costs—

internal ownership and control of logistics and support

functions in Defence has progressively been released.

Defence’s confidence in its own ability to outsource

non-core logistics functions has increased to where

third-party provider support has become the norm.

Nevertheless, while much of the responsibility for

various activities within the Defence supply chain

may have been outsourced, Defence remains

accountable for the combined effect. Complex supply

chains obviously require skilled management and

supply chain management (SCM) has emerged as a

recognised business discipline that:

… encompasses the planning and management

of all activities involved in the sourcing and

procurement, conversion and all logistics

management activities. Importantly, it also includes

coordination and collaboration with channel

partners, which can be suppliers, intermediaries,

thirdparty service providers and customers. In

essence, SCM integrates supply and demand

management within and across companies.7

Managing Global Supply Chains Continued

TH

E L

INK

34

The role of Commander Joint Logistics (CJLOG) as

the senior military officer accountable for the oversight

and assurance of the Defence logistics capability8

effectively makes CJLOG the senior Defence SCM.

CJLOG provides either direct management or oversight

of the Defence supply chain ‘in order to ensure

effective integration and coordination of Defence

logistics support for all domestic and operational

requirements’.9 In executing this responsibility—and in

order to remain fully accountable—CJLOG must be

able to achieve complete supply chain visibility.

An increasing number of Defence acquisitions involving

original equipment manufacturers (OEMs) are to be

provided under a ‘global fleet support arrangement’.

These are common in the airline industry, where a

complete logistics solution package is often offered

the customer airline, typically incorporating research

and development, spare parts pooling and warehouse/

inventory management.10 The logic is that an OEM

can achieve economies of scale across an entire (and

often globally-dispersed) fleet, much of which would be

expected to flow to the customer.11

Where a global fleet support arrangement is proposed,

a robust business case analysis (BCA) must support

the proposal. This should comprise a full analysis

and comparison of the options. It must define the

performance requirements that all support solution

options must achieve and, as accurately as possible,

estimate and compare the total cost of ownership

over the capability life cycle. The BCA should include

a full analysis and comparison of explicit and implied

Defence supply chain tasks, including the training

requirement, the costs associated with equipping

personnel to execute those tasks and the costs

associated with necessary changes to the Defence

supply chain infrastructure.

There are also certain specific risks and concerns

that must be considered and, if necessary, mitigated

which include:

the perceived limited Defence influence on •

contractor and other customer behaviour

allowable knowledge sharing•

the security and assurance of supply•

use of proprietary logistics information systems•

use of an OEM’s proprietary parts inventory •

codification system

the deployability of supply systems.•

Defence influence on the contractor and other customer behaviourOnce Defence commits itself to a global fleet support

arrangement, control over strategic fleet management

policy as it affects the Australian portion of the fleet

may be compromised or lost. By definition, a global

fleet support arrangement involves other customers

who have a stake in goods and services that are

part of the arrangement. Of concern is the potential

behaviour of other customers. Where their interests do

not necessarily align, the customer community may

operate in a condition known as ‘co-opetition’.12

Examples are where customers compete for more

than their fair share of the common resource. Some

competitors may indulge in selfish behaviour, such as

TH

E L

INK

35

stockpiling and the abuse of any priority system that

may exist. Two potential effects are of concern; loss

of control over inventory share (where others deplete

the inventory to satisfy their own national interests) and

loss of control over inventory apportionment (where

the OEM acts to regulate customer behaviour ‘for the

greater good’ as perceived by the OEM). Hence, any

partnering arrangement must include an examination

of the strategy to retain control over strategic fleet

management policy as it affects the Australian portion

of the global fleet. Also scrutinised should be the

strategy to ensure that Australian interests prevail in

conditions of ‘co-opetition’, particularly in relation to

pooled inventory share and apportionment.

Knowledge sharingShared information and trust are key requirements for

global fleet support arrangements to be successful.13

However, much of the customer data that an OEM

needs to determine maintenance and inventory

strategies may be classified or commercially sensitive.

Defence has to ensure that the proposed knowledge

and information sharing strategies are in place and,

wherever possible, be ready to release information that

it might have traditionally protected, as lack of trust

and insufficient knowledge sharing are the conditions

behind the failure of 50-70 per cent of commercial

partnering relationships.14

Use of proprietary logistics information systemsSeveral OEMs, including Lockheed Martin and Boeing,

offer proprietary logistics information systems (LIS) that

service a global fleet capability through a ‘hole-in-the-

wall’ concept. Under this concept, the customer inputs

demands on the pooled inventory via a discrete portal,

where the software is hosted either on the customer’s

or the OEM’s enterprise architecture. The use of

proprietary LIS and how it may or may not interface

with Defence’s LIS—and how much it may cost to

achieve this—is a major issue.

In isolation, and as a commercial prospect, proprietary

LIS appear an attractive proposition. However, a

number of difficulties emerge. Proprietary LIS raise

concerns as to security, Defence approved software

issues, licensing issues and so on, particularly if the

LIS need to be loaded on the Defence restricted or

secret communications networks. The central concern

is deployability into a hostile or austere operating

environment, where there is typically limited bandwidth

available for ‘reach-back’ by the deployed—and in all

likelihood secure—communications system.

Similarly, the initial and ongoing training liability for

personnel that operate individual or multiple proprietary

LIS, in addition to generic Defence LIS, may be

significant. It should also be noted that the use of

proprietary LIS goes counter to the Defence intention

to rationalise the range of current-use LIS and limit the

use of non-standard LIS in the future. The stated intent

by Defence for the new military integrated logistics

information system (MILIS), for example, is ‘to provide

a platform for a single system of standardised logistics

processes across Defence in order to provide end-to-

end visibility of the Defence supply chain and the removal

of the requirement for multiple logistics systems’.15

Hence, any proposal to use proprietary LIS in a global

fleet support arrangement should include scrutiny of

its capability to interface with the existing Defence

non-secure and secure communications and IT

systems, in particular MILIS. This scrutiny must elicit

any additional costs associated with the use of LIS,

including hardware, software, software licensing and

training. For deployable systems, the analysis should

aim to determine the estimated bandwidth requirement

and the potential for this to increase as and when

proprietary LIS hardware or software is updated.

Proprietary parts inventory codification systemIn certain global fleet support arrangements, some

OEMs favour the use of their own proprietary parts

inventory codification system. Problems associated

with such systems can compound with each additional

global support arrangement, particularly where each

OEM may insist that only ‘OEM genuine parts’ may

be used on ‘their’ system. The Defence inventory

could end up in the entirely unacceptable position

of being stocked with multiple ‘solely for the use of ’

brands of the same generic item, that may be codified

differently, located in separate storage locations and

TH

E L

INK

36

subject to a different inventory strategy. So the BCA

must include a full analysis of any proposal to use the

OEM’s proprietary parts inventory codification system.

The proposal must also include an assessment of the

system’s validity in accordance with extant Defence

policy and its legality under Australian law.

Deployability of supply systemsDefence cannot assume that a Middle East area of

operations (MEAO) support model is appropriate or

valid for all capability employment scenarios. The

MEAO model is appropriate where predominantly

US-based OEMs are available to service their major

customer and have established reasonable support

structures which the ADF can access. However,

in prosecuting Australia’s other ‘principal Defence

tasks’,16 the availability of OEM services cannot be

based on an assumed US military presence. The BCA

must include an analysis of the deployability of supply

systems in the context of all four ‘principal Defence

tasks’, including an assessment of Defence’s capacity

to act independently within any constraints imposed by

the global fleet support arrangement.

The BCA should also include an assessment of:

the potential cost of making the OEM available •

in the area of operations (AO) in the absence

of other global fleet support arrangement

customers,

an austerity threshold that defines the point •

beyond which the system may not be sufficiently

rugged to operate effectively,

a contractor hazard threshold that defines a point •

beyond which contractors or personnel employed

by the OEM cannot proceed due to unacceptable

physical risk,

a communications infrastructure threshold that •

defines a point beyond which the deployed

communications infrastructure cannot support

OEM communication and IT requirements, and

the capability unique logistics and support •

footprint required in an AO.

Addressing global fleet support concernsThe challenges faced by Defence are also being

faced by the US, UK and others. In the case of the

Joint Strike Fighter (JSF) project, technology transfer

and ‘operational sovereignty’ are serious issues in

the UK.17 Other potential partners are struggling with

similar concerns.18 Italy, for example, shares the UK’s

unease over potential loss of industrial, technological

and operational sovereignty and the legality of spares

ownership arrangements.19 It is understood, through

informal discussion with USAF and RAF logisticians,

that both the US Department of Defense and the UK

Ministry of Defence (MODUK) have stipulated that

all proprietary LIS must interface with their national

military LIS. Both are also understood to be insisting

they must maintain national inventory visibility and

accountability, and retain control over the training

liability for logistics and support personnel.

Faced with multiple national and global fleet support

arrangements, the British have developed the ‘Purple

Gate’ integrated distribution solution. It is based on

five principles: the control of materiel and equipment

entering the joint supply chain; centralised control

and consolidation of the flow of materiel; a common

standard consignment tracking method; agreed

TH

E L

INK

37

standards of physical and documentary consignment

preparation; and access to joint supply chain transport

and materiel-handling facilities to enable onward

movement to air and sea ports of embarkation.20

The impetus for ‘Purple Gate’ stemmed from

dissatisfaction as to the level of uncontrolled and

independent distribution activities in support of

individual platforms in the Middle East and was

developed as a method to reimpose supply chain

discipline. ‘Purple Gate’ thinking has already been

subject to Australian Defence scrutiny as a potentially

useful model21 and could be extended in an Australian

context to encompass the three mutually-dependent

networks—logistics control, logistics information and

logistics physical—described in the ‘Future Joint

Logistics Concept 2025’.22

The way forwardThis ‘triple network’ thinking is likely to be further

explored in the forthcoming ‘Future Joint Logistics

Concept 2030’ as a pathway to achieving the

‘synchronised and integrated, robust and flexible,

innovative and responsive’ Defence supply chain that

is at the heart of the vision for Defence logistics to

2030, which foresees a ‘robust, flexible and responsive

logistics system capable of providing future support

to operations in a global context’.23

Not unlike the MODUK supply chain, Australia’s

Defence supply chain comprises ‘traditional’ products

and services, sourced via bilateral or multilateral/

coalition agreements, OEM national or global fleet

support arrangements or local contracting within an

AO from third party providers or host nation support.

To return to the rope metaphor mentioned earlier,

there has to be a point at which the various fibres that

represent the individual supply chains are integrated

into the rope that is the Defence supply chain.

The further development of this model should be

strongly encouraged and supported across Defence,

with particular attention to developing sound

integration parameters that may then be applied as

Defence supply chain policy.

TH

E L

INK

38

ConclusionThis article has described the supply chain and

global supply chain constructs and has emphasised

the need for effective and integrated supply chain

management under global fleet support arrangements.

It is not proposed that Defence should avoid global

fleet support arrangements. However, any proposal to

provide capability support through such arrangements

must be critically assessed. Defence must also

exploit the work that has already been done overseas

in addressing some of the concerns regarding

global fleet support arrangements, acknowledge

the importance of current work being conducted in

Australia and encourage future work in this area.

NOTESJ.T. Mentzer et al, ‘Defining Supply Chain 1. Management’, Journal of Business Logistics, Vol. 22, No.2, 2001, p. 1.

ProductionPlanning.com website, Supply Chain 2. Management, at <http://www.productionplanning. com/supplychainmanagement.asp> accessed 11 February 2010.

R. Tomasini and L.N. Van Wassenhove, Humanitarian 3. Logistics, Basingstoke, UK: Palgrave Macmillan, 2009, pp. 4-6.

P.S. Bender, ‘Global Supply Chains’, in J.A. 4. Tompkins and D. Harmelink (eds.), The Supply Chain Handbook, Raleigh, North Carolina: Tompkins Press, 2004, p. 31.

M. Kotabe and M.J. Mol (eds.), Global Supply Chain 5. Management, Northampton, Massachusetts: Edward Elgar Publishing, Vol. 1, 2006, p. xii.

P. David and R. Stewart, International Logistics: the 6. management of international trade operations, (2nd Edition), Mason, Ohio: Thomson Learning, 2008, pp. 23-4.

David and Stewart, International Logistics, p. 21.7.

CDF Directive No. 6/2008—Chief of Defence Force 8. Directive to the Defence Strategic J4, Canberra: Australian Defence Headquarters, 9 January 2009.

CDF Directive No. 6/2010—Chief of Defence Force 9. Directive to the Defence Strategic J4, Canberra: Australian Defence Headquarters, 27 May 2010.H. Wong, D. Van Oudheusden and D. Cattrysse, ‘Cost Allocation in Spare Parts Inventory Pooling’, Logistics and Transportation Review, Vol. 43, No. 4, 2007, pp. 370-86.

F.J.P. Karsten, M. Slikker and G.J. Van Houtum, 10. Spare Parts Inventory Pooling Games, Eindhoven, The Netherlands: School of Industrial Engineering, Eindhoven University of Technology, 2009, pp. 1-2.G.B. Dagnino and G. Padula, ‘Co-opetition Strategy: a new kind of interfirm dynamics for value creation’, Stockholm, Sweden: conference paper presented at The European Academy of Management Annual Conference, 9-11 May 2002, p. 2.

C. Sheu, H.R. Yen and B. Chae, ‘Determinants 11. of supplier-retailer collaboration: evidence from an international study’, International Journal of Operations and Production Management, Vol. 26, No. 1, 2006, pp. 24-49.

M. Jackson, S. Williams and D. Brook, ‘A Culture of 12. Commitment’, Defence Management Journal, No. 40, February 2008, pp. 18-23.

I. Peek, ‘Defence Pioneers the Next Generation of 13. Integrated Logistics’, Defence Magazine, May/ June 2007.

Defending Australia in the Asia Pacific Century: Force 14. 2030, Canberra: Department of Defence White Paper, 2009, p. 13.

A. Wilson, ‘F35 Jet Raises Tensions With US Over 15. Technology Sharing’, UK Sunday Telegraph, 30 August 2009, Section B, p. 7.

J. Gertler, F-35 Joint Strike Fighter (JSF) Program: 16. Background and Issues for Congress, Washington DC: report for the United States Government Congressional Research Service, 2009, pp. 13-4.

M. Nones, G. Gasparini and A. Marrone, Europe and 17. the F-35 Joint Strike Fighter (JSF) Program, Rome, Italy: Istituto Affari Internazionali, 2009, pp. 12 and 76-7.

UK Ministry of Defence, ‘The Purple Gate’, UK Joint 18. Service Publication 886—The Defence Logistics Support Chain Manual, Vol. 3, Part 3, 2008.

F. Kresse, ‘Purple Gate—Operational Supply Chain 19. Integration’, Melbourne: unpublished Joint Logistics Command (Supply Chain Branch) discussion paper, 2008.

Future Joint Logistics Concept 2025, Canberra: Joint 20. Logistics Command, 2007, pp. 8-9.

Australian Defence Logistics Strategy 2010 – 2015, 21. Canberra: Joint Logistics Command, 2010, p. 1.

Future Joint Logistics Concept 2025, Canberra: 22.

Joint Logistics Command, 2007, pp. 8-9.

Australian Defence Logistics Strategy 2010 – 23.

2015, Canberra: Joint Logistics Command,

2010, p. 1.

Wing Commander Collie assumed command of JLC

Joint Logistics Unit (South) at RAAF Edinburgh in

January 2011.

The Link: Australian Defence Logistics Magazine is a professional logistics journal published twice annually in hard copy and online by Joint Logistics Command.

Its objectives are:

• Topublisharticlesinengaging,non-technicallanguagethataddtothelogisticsbodyofknowledge,andenhancetheprofession of logistics and the image of logisticians

• ToinformtheDefenceandwidercommunityofthestrategicrole and scope of logistics in supporting operations and the raise,train,sustainfunctionsoftheAustralianDefenceForce

• TohighlightadvancesandachievementsinDefencelogistics

• TosupporttheprogramoflogisticsreformintheAustralianDefenceOrganisation

Submissions for The Link are most welcome. Writers’ guidelines are on the Joint Logistics Command intranet site or can be requested from the editor.

TheviewsexpressedinThe Link are the contributors and not necessarily those of Joint Logistics Command or the DepartmentofDefence.

MsTerryFoster Editor,The Link POBox7913 CAnBErrABCACT2610

Phone: 0262664538

Email: JLC.communications@defence.gov.auTH

E L

INK

“Learning is the only thing the mind never exhausts, never fears, and never regrets.”LEONARDO DA VINCI

sg.c

om.a

u

STRENGTHENING COMMUNICATION ALONG THE LOGISTIC CHAIN

THE LINK

Department of Defence

Department of Defence

Department of Defence

Logistics Professionalisation

Australian Defence Strategic Logistics Strategy

Defence Logistics Transformation milestone

THE LINKA U S T R A L I A N D E F E N C E L O G I S T I C S M A G A Z I N E

ISS

UE

8 A

PR

IL 2

011