Report & Analysis

Performance Based Logistics : A Global Trend

Frost & Sullivon Report The defence market benefits from some degree of insulation from the effects of the economic recession but

Date: Issue 34 - May 2012

Performance Based Logistics is a long-term arrangement to optimise the readiness and performance objectives of weapon systems. From a MoD perspective, it is a mechanism to manage and sustain military assets – from individual parts to entire weapon systems – by giving full visibility of the availability and necessary logistic processes for each element of the asset in question. The core objective is to increase performance and the availability of military capability for the Armed Forces. PBL is, therefore, a sustainment strategy that supports warfightersQ most fundamental need: readiness.In order to deliver the high availability rates made necessary by reducing fleet numbers – whether it be aircraft, naval vessels or armoured vehicles – Performance Based Logistics provide a strategy for the sustainment and management of the entire supply chain, maintenance processes, and therefore the sustainability and support of a weapon system. The following synthesises how PBL is implemented:

1) Having understood the need for improved cost performance and availability, procurement bodies decide to implement a PBL strategy to manage some parts or an entire weapon system, either
from their current inventory or as part of a new acquisition. A Business Case Analysis (BCA) is conducted to define performance expectations and results as well as the key actors;