Our world is undergoing a dramatic transition compared to what we witnessed at the peak of the Industrial revolution. Leading experts estimate this change is happening 10 times faster and at 300 times the scale, or roughly 3,000 times the impact. Disruptive forces are at play in the form of urbanisation, the acceleration of technological change, global connectivity and an ageing population all of which are combining to rewrite the world economy’s operating systems.
There’s a growing swell of opinion that we can no longer look in the rear view mirror to shape the future. In the ‘new world’ executives, policy makers and individuals all need to scrutinize their intuitions from first principles and boldly reset them if necessary.
The future military operational environment will not escape this phenomenon and is likely to be as complex as ever. Mega cities, cyber, regional campaigns, the plains of Eastern Europe and space are all likely to be part of the battlegrounds of the future and arguably the ‘new norm’. Aligned to this is the unprecedented pace of technological advances demonstrated by the fact that it took the telephone 75 years to reach 50 million users, the angry bird app took just 35 days!
Advances in supply chain management are already being integrated to support this complex operational environment which is at the forefront of TVS Supply Chain Solution’s strategy in the work it does in the Aerospace and Defence, Beverage, Automotive and Industrial sectors.
The trends in supply chain management are progressing with a heavy reliance on intelligent systems which will manage the increasing amount of data to create valuable information across a network of supply chains. The ability to gather, store, access and analyse data will continue to grow exponentially. Data analysis will make market pricing transparent via e-sourcing, global trading networks and online communities. Negotiation could become a lost art!
Beyond this aspect of supply chain management we have to consider storage, warehousing and transport services which are all heading towards being totally unmanned. Amazon already utilises 15,000 robots across its warehouses to move c: 400 items per second and they are leading in the use of UAV technology to deliver items which support the view that worldwide spending on unmanned aerial vehicles (UAVs) will more than triple over the next decade, growing from $4 billion this year to $14 billion by 2024.
Paul Kettle from TVS Supply Chain Solutions will be exploring these topics in more detail when he delivers a presentation on ‘Supply Chain Integration to address Operational Complexity’ in DSEi’s East Theatre on Tuesday 15th September.
Delivering the future in supply chain outsourcing
Clearly, ‘supply chain’ is vital to any military force or commercial organisation, however it is often not ‘core’ business or a ‘core’ function hence, in the last 8-10 years, there has been a progressive move to outsource Supply Chain Management to recognised global providers.
Outsourcing to dedicated supply chain management companies can address issues such as efficiency, standardisation and visibility which can often be the pain points of multi-national corporations and large government departments. Through the use of up to date IT systems, processes and facilities a supply chain management provider can deliver real business value in the form of inventory reduction, operating cost reduction and revenue growth.
For the military, outsourcing provides the ability to change the way it sustains its Defence force. This includes replacing multiple information systems with modern, supportable, future proof IT and processes to drive efficiencies and reduce inventory and operating costs. In addition it can present the opportunity to introduce modern facilities to replace old and outdated infrastructure.
The UK MoD has recently taken this strategic step through the outsourcing of the planning, procurement, storage and distribution of its food, clothing, packed fuel, medical equipment, Pharmaceuticals and general engineering supplies in the form of the Logistics Commodities and Services (Transformation) contract which it has let to Leidos Europe.
TVS Supply Chain Solutions is playing a central role in this transformation by utilising its inventory management and global purchasing skill set and experience to deliver significant savings over the course of the contract.
The Logistics Commodities and Services (Transformation) contract, which will run for 13 years, forms a key element of the UK Government’s strategic goal of reducing defence expenditure by delivering efficiencies in the MoD supply chain and is potentially worth up to £6 billion over the course of the contract. It is the first time that the MoD has attempted to outsource its logistics and procurement operations in this way.
“Team Leidos” is led by Leidos, a US-based science, technology solutions and logistics transformation company, and supported by Kuehne & Nagel, international freight and distribution specialist and TVS Supply Chain Solutions, the global procurement and supply chain outsourcing specialist.
The contract became operational on 1st August 2015 with TVS Supply Chain Solutions playing a key role providing the commodity procurement solution, which includes technical data management, inventory management, procurement and product sourcing, for the full range of commodities.
Playing a key role in supporting the MoD supply chain
TVS Supply Chain Solutions provides a range of services to the Aerospace and Defence sector, and has become an integral part of the UK MoD’s supply chain.
From its UK and European headquarters in Chorley, Lancashire, TVS directs a long-standing relationship with the UK MoD, providing services under a number of military contracts, including the C Vehicles Capability PFI(construction fleet), Rapier Air Defence Availability contract and directly providing sourcing and delivery of a wide range of commodity, vehicle and workshop spares supporting the Land Rover, Challenger II, Warrior, CVR (T), CRARRV, Stormer, Titan and Trojan fleets, and field kitchen equipment for the Defence Support Group.
TVS Supply Chain Solutions also operates bespoke defence warehousing facilities in Bicester and North Luffenham.
A global presence
TVS Supply Chain Solutions is part of the TVS Group, which is a global company with a turnover of US $6bn and operations throughout Europe, North America and Asia-Pacific regions. TVS has come to stand for Trust, Value and Service, and these are the foundations of our business.
TVS Supply Chain Solutions is exhibiting at DSEI 2015. Please visit our stand to discuss how we can add value to your business by addressing supply chain pain points and deliver business value. We are located on stand N9500 so please pop by or arrange a meeting with one of our team at the event through contacting us via or +44 (0)1257 225798.