SCM & Logistic in Military
SCM & Logistic in Military
SCM & Logistic in Military
Military Services
Professor: Dr.Farahani
By: Mohammad Molana
E-mail: Molana@Aut.ac.ir
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Contents:
Definitions
Origins of military logistics
SCM & Anticipatory Logistics
Performance Based Logistics (PBL)
Relating SCOR Model to DoD Logistic Chain
Revolution in Military Logistics (RML)
E-Commerce in a Canadian Military Logistic
Can Finnish Defense Forces (FDF) Benchmark U.S. Military to
meet its logistics needs?
Case Study: Iran’s NEZAJA Logistics Model
Refrences
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Definitions
Military supply:[1]
the procurement, distribution, maintenance while in storage and salvage of
supplies, including the determination of kind and quantity of supplies.
The producer phase of a military supply extends from determination of procurement
schedules to acceptance of finished supplies by the military services.
The consumer phase of a military supply extends from receipt of finished supplies by
the military services through issue for use or consumption.
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Definitions (cont’d.)
Military logistics:[2]
the art and science of planning and carrying out the movement and
maintenance of military forces. In its most comprehensive sense, it is
those aspects or military operations that deal with:
Design, development, acquisition, storage, distribution, maintenance,
evacuation, and disposition of material.
Movement, evacuation, and hospitalization of personnel.
Acquisition or construction, maintenance, operation, and disposition of
facilities.
Acquisition or furnishing of services.
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Origins of military logistics[2]
The word “logistics” is derived from the Greek adjective “logistikos” meaning
“skilled in calculating” .
Research indicates that its first use in relation to an organized military
administrative science was by the French writer, Antoine-Henri Jomini, in
1838
The first administrative use of the word was in Roman and Byzantine times
when there was a military administrative official with the title Logista. At that
time, the word apparently implied a skill involved in mathematical
computations.
The military activity known as logistics probably is as old as war itself.
In the early history Each warrior was his own logistician.
The men who provided support to the fighters constituted the first logistics
organization.
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Origins of military logistics[2] (cont’d.)
judgments must be based not only upon professional knowledge of the numerous
aspects of logistics itself but also upon an understanding of the interplay of closely
related military considerations such as strategy, tactics, intelligence, training,
personal and finance.
In major military conflicts, logistics matters are often crucial in deciding the
overall outcome of wars.
More generally, protecting one's own supply lines and attacking those of an
enemy is a fundamental military strategy.
For instance, tonnage war- the bulk sinking of cargo ships - was a crucial factor in
World war II. The failure of the German Navy to sink enough cargo in the Second
Battle of the Atlantic allowed Britain to stay in the war.
Military logistics has pioneered a number of techniques that have since become
widely deployed in the commercial world. Operational Research grew out of
WWII military logistics efforts.
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Anticipatory Logistics: The Army's Answer to
Supply Chain Management [3]
Anticipatory logistics uses technologies, information systems, and procedures to
predict and prioritize customer requirements and provide appropriate
sustainment.
Future logisticians will use current and future technologies as tools to monitor
supply levels and equipment conditions for combat units. They also will use
decision support software to determine the best use of combat service support
assets.
The Army is experimenting with the concept of anticipatory logistics for class III
(petroleum, oils, and lubricants), class V (ammunition), and maintenance.
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SCM’s components [3]
SCM has seven components
Corporate Military
Suppliers Suppliers
Procurement Procurement
Manufacturing Manufacturing
Transportation Transportation
Warehousing Warehousing
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Corporate & Army SCM models [3] (cont’d.)
Most notable significant differences are the dual directional arrows on the chart
for transportation and for distribution and warehousing in the Army SCM
model. These illustrate that the Army may retrograde equipment and
components for maintenance or retrograde personnel for medical care.
Other differences are in the external factors that affect the supply chain. These
factors include
Joint interoperability among the services' command, control,
communications, computer, and intelligence systems.
Deployment of forces.
2. The need to reduce the logistics footprint of the Army's future forces.
The Army is exploring how to better support brigade combat teams (BCTs) by
using some underlying SCM concepts, such as information and
communication technologies, order management, and transportation using
current and new technologies.
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Some Actions for enhancing
Anticipatory Logistics [3]
In an endeavor to revolutionize anticipatory logistics at the wholesale
level, the Army is forming a strategic alliance with SAP to integrate and
streamline the wholesale logistics process. The benefits will include a
synchronized global supply, distribution, and financial network that will
increase weapon system readiness and manage mission-based
requirements more responsively.
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Future of SCM & Anticipatory Logistics [3]
Industry's SCM and the Army's anticipatory logistics for supporting
future combat forces are similar. Whereas anticipatory logistics
concentrates on the wholesale and tactical (brigade and below levels),
which is a small slice of the supply chain that culminates with the
customer, SCM takes a holistic approach to the entire supply chain.
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Performance Based Logistics (PBL) [8]
PBL is a strategy for weapon system product support that meets
performance goals for a weapon system through a support structure
based on long-term performance agreements with clear lines of
authority and responsibility.
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12 Steps of PBL [7]
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12 Steps of PBL [7] (cont’d.)
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PBL & SCM [4]
Military supply Chain
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DoD & SCM [4]
The DoD supply chain process encompasses those government and
private-sector organizations, processes, and systems that individually or
collectively play a role in planning for, acquiring, maintaining, or
delivering material resources for military or other operations conducted in
support of the United States national defense interests.
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DoD & Supply System [4]
The DoD supply system is predicated upon Wholesale and Retail supply
processes, similar to the private sector.
In many cases (i.e. DLA) the assets are not even procured or owned by the
military Services.
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DoD & Supply System [4] (cont’d.)
The retail supply systems are owned and managed by the individual
military Service Departments, and are usually located at operating
locations, either in the Continental United States (CONUS) or outside the
United States (OCONUS). In general, all retail supply functions are
operated by organic DoD personnel, including military personnel where
applicable.
*********
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Categories of supply support items in DoD [4]
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DoD & SCM [4] (cont’d.)
In the private sector, the vast majority of items transitioning through a
supply chain originate as newly manufactured items, while in DoD a
significant percentage of items used to meet supply requirements come
from repaired items.
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DoD & SCM [5] (cont’d.)
To supply materiel and logistics services to DoD units throughout the
world, the DoD Components maintain a supply chain consisting of :
weapon system support contractors,
retail supply activities,
distribution depots,
transportation networks including contracted carriers,
Military Service and Defense Logistics Agency (DLA)
integrated materiel managers (IMMs),
weapon system program offices,
commercial distributors and suppliers including manufacturers,
commercial and organic maintenance facilities and
other logistics activities (e.g., engineering support activities (ESAs), testing
facilities, cataloging services, reutilization and marketing offices).
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Relating SCOR Model to DoD
Logistic Chain[4]
Although efforts have been made to reflect the DoD supply chain process in the
SCOR model (primarily through use of the “Make/Repair” process shown in the
graphic), its use and application within DoD is still evolving.
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Relating SCOR Model to DoD Logistic Chain [6] (cont’d.)
The goal in planning for supply chain management is to facilitate integration
between business partners, including suppliers and customers. In DoD,
organizational realities and the constraint of out-moded systems and legal
requirements must be taken into consideration. The challenge for DoD is to
develop and maintain planning coordination and integration across
organizations and over time to reduce costs, increase customer satisfaction and
improve weapon system readiness.
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Relating SCOR Model to DoD Logistic Chain [9] (cont’d.)
In government, material sourcing involves a number of distinct, but related activities. These include:
Schedule deliveries from suppliers; receive, verify, and transfer product; and authorize supplier
payments.
Identify and select supply sources when not predetermined, as for engineer-to-order product.
Manage business rules, assess supplier performance, and maintain data.
Manage inventory, capital assets, incoming product, supplier network, import/export
requirements, and supplier agreements.
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Relating SCOR Model to DoD Logistic Chain [10] (cont’d.)
Activities included in make-repair include:
Process returned items
Schedule production activities, issue product, produce and test, package, stage
product, and release product to deliver.
Finalize engineering for engineer-to-order product.
Manage rules, performance, data, in-process products (WIP), equipment and facilities,
transportation, production network, and regulatory compliance for production.
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Relating SCOR Model to DoD Logistic Chain [11] (cont’d.)
In government, material delivery involves a number of distinct, but related activities. These include:
All order management steps from processing customer inquiries and material orders to routing
shipments and selecting carriers.
Warehouse management from receiving and picking product to load and ship product.
Transporting material from source to destination.
Receive and verify product at customer site and install, if necessary.
Invoicing customer.
Manage Deliver business rules, performance, information, finished product inventories, capital
assets, transportation, product life cycle, and import/export requirements.
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Relating SCOR Model to DoD Logistic Chain [12] (cont’d.)
In the government, a material return involves a number of distinct, but related activities. These include:
Returning defective product including authorizing return; scheduling product return; receiving,
verifying, and disposition of defective product; and return replacement or credit.
Returning maintenance, repair & overhaul (MRO) products including authorizing and
scheduling return, determining product condition, transferring product, verifying product
condition, disposition, and request return authorization.
Returning excess product including identifying excess inventory, scheduling shipment, receiving
returns, approving request authorization, receiving excess product return in Source, verifying
excess, and recover and disposition of excess product.
Managing Material Returns based on business rules that include performance targets, data
collection, returning inventory, capital assets, transportation, network configuration, and regulatory
requirements and compliance.
Whether customers are returning that materiel so it can be repaired or stored for immediate use or as
excess to current needs, the time, quality, cost, and variability incurred in the return process
represents value to DoD activities.
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Revolution in Military Logistics (RML) [13]
The Chief of Staff of the Army (CSA) has stated "the transformation objective is to
field a force that is strategically responsive and dominant every point on the
spectrum of operations ".
This transformation challenges the Army to balance near-term readiness and force
modernization in an environment of increased missions and fewer resources.
At the joint level, change started with Joint Vision 2010 and Focused Logistics; at
the Army level, change started with the Revolution in Military Logistics (RML).
The RML is not only central to preparing for future military operations; it is the
fulcrum of the Army’s effort to balance readiness and modernization.
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Revolution in Military Logistics [13] (cont’d.)
Army transformation is about changing the way we fight.
It is the process of converting the army’s focus and structure from a Cold
War construct to a full spectrum combat force that is strategically
responsive and dominant at every point on the spectrum of conflict.
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Revolution in Military Logistics &
Automation [13]
To harness these economies, the Army must capture, process, and manage
the disparate data and communications systems that make CSS occur.
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Revolution in Military Logistics &
Automation [13] (cont’d.)
At the heart of the CSS information system is the Global Support
System-Army (GCSS-Army).
• maintenance module
• property accountability module
• Ammunition and supply modules
• The integrated materiel management center (IMMC) module
• management module
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Revolution in Military Logistics &
Communications [13]
A seamless logistics system that ties all parts of the logistics community into
one network of shared situational awareness and unified action can be
achieved only in an environment dominated by global, wireless, assured
communications.
These technologies can provide the capability to receive, transmit, store, and
retrieve information in a single seamless logistics system supporting a
modern force in tomorrow's Army:
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Revolution in Military Logistics &
Best Business Practices [13]
Methodologies and applications used in private industry that elevate a
commercial enterprise above the competition are referred to as
"commercial best practices.“
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Revolution in Military Logistics &
Best Business Practices [13] (cont’d.)
These technologies can provide the capability to receive, transmit,
store, and retrieve information in a single seamless logistics system
supporting a modern force in tomorrow's Army:
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Revolution in Military Logistics &
Army Support Provider (ASP) [13]
The Army Materiel Command (AMC) will transform into a more responsive
Army Support Provider (ASP).
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Revolution in Military Logistics &
Single Stock Fund (SSF) [13]
The Single Stock Fund (SSF) was a Headquarters, Department of the Army
(HQDA), initiative to reengineer inventory management functions and
associated financial processes throughout the Army.
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Revolution in Military Logistics &
Infrastructure and Reduced Logistical Footprint [13]
The RML requires increased agility in a number of dimensions. Army logistics will have to
become more agile - structurally, physically, and mentally -in order to cope with the
demands of dynamic RML support to the agile and mobile forces of the Objective
Force, the goal of the current Revolution in Military Affairs (RMA).
• Physical agility enhances the ability to deploy and maneuver the operational
infrastructure of the distribution-based logistics system.
• Mental agility refers to attitude. RML logistics is fast logistics. All logistics
managers in the supply chain need to think several steps ahead, all of the time.
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Revolution in Military Logistics &
Distribution-Based Logistics [13]
The operational concept Distribution-based logistics (DBL) relies on
distribution velocity and precision, rather than redundant supply mass,
to provide responsive support to war fighters.
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Revolution in Military Logistics &
Distribution-Based Logistics [13] (cont’d.)
Visibility: The acquisition of near real-time situational understanding, or
visibility, has been a major objective of Force XXI. Visibility can be
grouped into three major categories. First, there is visibility of the
supported war fighting units, The second category of visibility is logistic
capabilities and constraints, The third category of visibility includes
logistic requirements and priorities to the supporting organizations at the
theater and strategic levels.
Capacity: The logistics force must have the physical capacity to act on
the knowledge provided by real time visibility. This includes the array of
materiel systems: the lean but adequate inventories; road, rail and
facilities infrastructure; and skilled personnel.
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Integration of Electronic Commerce in a
Canadian Military Logistic Setting
A conceptual approach [14]
The main goal of this paper is to examine briefly the current EC scenario for
DND and to present a conceptual framework to develop an EC system in a
military logistic environment.
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E-Commerce in a Canadian Military Logistic [14] (cont’d.)
Business processes in a military logistic system
Traditional communication
media such as phone calls, fax,
and purchase orders by mail
are used to purchase goods.
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E-Commerce in a Canadian Military Logistic [14] (cont’d.)
Useful technologies for the development and integration of Open EC Systems
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E-Commerce in a Canadian Military Logistic [14] (cont’d.)
Relationship between DND's business entities and business partners
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E-Commerce in a Canadian Military Logistic [14] (cont’d.)
Important determinants to consider during the development of EC systems
describe the factors that stakeholders (DND, Top Government Officers) and end
users should consider while developing and building military EC systems.
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E-Commerce in a Canadian Military Logistic [14] (cont’d.)
Evaluation framework for the EC system
Two key features should characterize the back-end evaluation function for the EC system as
presented in Figure:
¾ A continuous formative evaluation during the development and implementation of
the EC system assuring the quality of the Web-based electronic markets for business
entities in DND.
¾ A summative evaluation process during the post-implementation operation of the EC
system to assure a 100%-quality assurance.
The main goal of the evaluation program is to assess the 'real' outcomes of the EC subsystem
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Can Finnish Defense Forces (FDF) Benchmark
U.S. Military to meet its logistics needs? [15]
Finland's neighboring countries are Sweden, Norway, and Russia.
Finland has a population of 5.2 million.
Finland's security policy is based on nonparticipation in military alliances
and on a credible national defense.
Finland participates in the North Atlantic Treaty Organization (NATO)
Partnership for Peace program.
Finland's military doctrine is based on a territorial defense that will be
adjusted to meet future threats.
The strength of the wartime FDF is 470,000 men; this will be reduced to
350,000 men by the year 2008.
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Comparison FDF & U.S. Military Logistics [15]
The new, asymmetric battlefield creates new requirements for logistics
systems.
Many countries and their armed forces face the same challenges:
reorganizing the armed forces and reducing defense budgets. The dilemma
all nations face is whether to change their military logistics systems or to
depend on old principles and doctrines.
As U.S. Army logistics is being transformed as a part of the Revolution in
Military Affairs, Many nations look to the United States for guidance.
As U.S. National Security Strategy and National Military Strategy, the U.S.
Armed Forces must respond to the full spectrum of crises all over the world.
Both logistics systems must be able to provide support operations at home,
overseas, and during international crises.
The FDF focuses mainly on logistics operations on its own soil and the U.S.
Army concentrates on operations abroad.
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Comparison FDF & U.S. Military Logistics [15] (cont’d.)
The tools to achieve effectiveness and efficiency are the characteristics of
logistics shown in the table below:
Comparison of Logistics Characteristics
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Comparison FDF & U.S. Military Logistics [15] (cont’d.)
The U.S. and FDF military logistics characteristics with business logistics
characteristics reveals that they are very much alike.
No contradictions, so the direction of development appears to be the same
among them all.
The characteristics of the FDF are comparable, although they are expressed
in different, less concise terms.
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Comparison FDF & U.S. Military Logistics [15] (cont’d.)
An analysis of the comparison reveals that the FDF needs to update two
characteristics:
The second characteristic that the FDF needs to update is integration. CSS
operations must be synchronized with all aspects of operations. The
national logistics system must be able to support international
operations without special arrangements. Although the FDF has a long
history of sending units to peacekeeping missions around the world, the
support system does not respond fully to today's requirements for rapid
reaction and force deployment.
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Comparison FDF & U.S. Military Logistics [15] (cont’d.)
Comparison of Logistics Functions
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Comparison FDF & U.S. Military Logistics [15] (cont’d.)
The CSS functions of the FDF are similar to U.S. Army logistics functions.
(See the table above.) The main difference is that combat health is a
logistics function for the FDF and a personnel function for the U.S. Army.
The new logistics functions are supply, combat health, field services,
maintenance, and transportation.
The effects of this change are widespread and create the need to streamline
many things.
Areas needing improvement include not only manuals but also CSS unit
organizations, the ideology of older logisticians who are used to doing
things the old way, and CSS personnel training systems.
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Comparison FDF & U.S. Military Logistics [15] (cont’d.)
The FDF supply classification system correlates with the U.S. Army
classification only in principle, because the FDF uses neither the U.S.
Army supply class system nor the NATO classification system.
Making the FDF supply system compatible with U.S. or NATO systems
undoubtedly would increase its usefulness.
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Comparison FDF & U.S. Military Logistics [15] (cont’d.)
A fundamental difference between FDF and U.S. Army ideology is the
method the FDF uses to support its combat forces.
The main principle of U.S. Army logistics doctrine is to release
operational commanders from worrying about logistics arrangements by
giving the responsibility to logisticians. Army's organizational modularity
makes it possible to provide interchangeable and tailor able units to meet
changing needs.
In the FDF, the commander has total responsibility at all levels, which is
why organizations at brigade and below are fixed. They are also more
logistically independent, because forward support battalion-level
capability is built into the brigade organization.
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Case Study: Iran’s NEZAJA
Logistics Model
ﭘﺸﺘﻴﺒﺎﻧﻲ ﻣﻨﻄﻘﻪ اي
½ ﺳﺘﺎد و ارﻛﺎن
½ ﮔﺮدان ﻧﮕﻬﺪاري و ﺗﻌﻤﻴﺮات
½ ﮔﺮدان ﺑﻬﺪاﺷﺖ و درﻣﺎن
½ ﮔﺮدان ﻣﻬﻨﺪﺳﻲ
½ ﮔﺮدان آﻣﺎد و ﺗﺮاﺑﺮي
½ زاﻏﻪ ﻣﻬﻤﺎت
ﭘﺸﺘﻴﺒﺎﻧﻲ ﺗﻴﭗ /ﮔﺮدان /ﮔﺮوﻫﺎن /دﺳﺘﻪ
01:10 59
ﺑﺎ ﺗﺸﻜﺮ از ﺗﻮﺟﻪ ﺷﻤﺎ
01:10 60
References
[1]. URL: http://www.answers.com/topic/military-supply-chain-management-1Wikipedia from
DoD Dictionary of Military and Associated Terms
[2]. URL: http://www.answers.com/topic/military-logisticsWikipedia
[3]. URL: http://www.almc.army.mil/ALOG/issues/SepOct02/MS774.htm
[4]. URL: https://acc.dau.mil/CommunityBrowser.aspx?id=32523
[5]. URL: https://acc.dau.mil/CommunityBrowser.aspx?id=46502
[6]. URL: https://acc.dau.mil/CommunityBrowser.aspx?id=46490
[7]. URL: https://acc.dau.mil/CommunityBrowser.aspx?id=22412 from jp4-09
[8]. URL: https://acc.dau.mil/CommunityBrowser.aspx?id=32529
[9]. URL: https://acc.dau.mil/CommunityBrowser.aspx?id=46491
[10]. URL: https://acc.dau.mil/CommunityBrowser.aspx?id=46492
[11]. URL: https://acc.dau.mil/CommunityBrowser.aspx?id=46493
[12]. URL: https://acc.dau.mil/CommunityBrowser.aspx?id=46494
[13]. Aundre F. Piggee, ‘Transformation – Revolution in Military Logistics’ , USAWC strategy
research project, U.S. Army War College CARLISLE BARRACKS, PENNSYLVANIA
17013
[14]. URL: http://www.rmc.ca/academic/busadm/staff/stpierre/research/icis2000_e.html
[15]. URL: http://www.almc.army.mil/ALOG/issues/JanFeb03/MS788.htm
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