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Performance Based Logistics (PBL) Design

PBL helps you Manage Suppliers not Supplies!

PBL is a multi-year arrangement (commercial or organic) whereby the supplier is held accountable to customer-oriented performance requirements such as reliability improvement, availability improvement, and reduced delivery times. The goal of PBL is to improve logistics support to the fleet. As a result, all or part of the Supply Chain in effect becomes managed by the supplier. In order to be effectively applied on a case by case basis, PBL must provide the fleet increased Reliability and/or Availability at the same or a reduced cost. Moreover, any PBL application must pass a Business Case Analysis first.

PBL suppliers can provide:

• Warehousing / Transportation
• Configuration Management
• Repair / Overhaul / Replace
• Guaranteed Reliability
• Consumable Piece Parts
• Obsolescence Management
• Guaranteed Availability

Military Applications
There is an urgent need for significant improvements in DoD logistics operations. Ideal environments can be found within the development of Joint Warfighter Capabilities, as well as for the new National Defense Strategy as a whole. Historical data tells us weapon system sustainment is 80% of current logistics costs. PBL is the current DoD approach to implement customer-focused weapon system sustainment. Numerous programs are successfully implementing PBL to achieve increased readiness, reduced cost, and improved performance.

Future weapons systems support requirements will demand even more powerful PBL capabilities.
Examples include:

• Rapid deployment and sustainment to support the new national defense strategy

• End-to-End management of the sustainment pipeline to meet warfighter needs
xxx- Commodities
xxx- Weapon system support

• Dramatically reduced deployed footprint
xxx- Weapon sustainment
xxx- Combat support

• Smooth material flow with minimal hand-offs

• Appropriate information systems to manage the business
xxx- Input/output relationships (matching readiness and cost)
xxx- Credible financial management information
xxx- Decision support systems

ERA™ offers significant benefits for the establishment of a PBL depot or other support capability. The enterprise can be re-designed to accommodate the specific performance parameter(s) in question.


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