Military Supply Chain Management and People's Liberation Army Logistics

By Rajiv Chauhan

Military logistics is a relatively new word to describe a very old practice; the supply, movement and maintenance of an armed force both in peace time and under operational conditions. Logistic considerations are generally built into battle plans at an early stage. Without logistics, tanks, armored personnel carriers, artillery pieces, aircraft are just numbers on a table of organization and equipment.
Through this book an endeavor has been made to understand the logistics of People’s Liberation Army (PLA) of China. An introduction to the theory of supply chain management and logistics of foreign Armies is discussed. Today ‘Revolution in Military Logistics’ (RML) is taking place in the People’s Liberation Army. An attempt has been made to study this evolution, development and rapid modernization of the People’s Liberation Army logistics.

• Language: English
• Publisher: VIJ Books (India) Pty Ltd
• Release date: Jan 1, 2015
• ISBN: 9789382652977

Rajiv Chauhan

Commissioned in Indian Army Ordnance Corps on 14 June 1986, Col Rajiv Chauhan over a period of 28 years has served in various Ordnance units. He has commanded an Ordinance depot in the Eastern sector. The officer was the Senior Provision Officer (SPO) of two central depots of the Indian Army. He was also a member of the computerized inventory control project dealing with the automation of the Indian Army inventory. He has worked in military related logistics research at United Services Institution of India (USI) as a Senior Research Fellow.

Book preview

1

Understanding Supply Chain Management

and its Processes

Introduction

Supply Chain Management (SCM) has assumed great importance in the business world and seems to be the new mantra for success. Although the military was the first to recognise the critical role of integrated management including logistics management, the same has been successfully imbibed by business organisations in the achievement of competitive advantage as Supply Chain Management. It took almost 70 years of the previous century for the basic principles of logistics management to evolve and be clearly defined. To understand supply chain it is imperative to define logistics management.

Effective logistics management can provide a major source of competitive advantage and a position of enduring superiority over competitors in terms of customer preference. This can be due to the ability of a firm to differentiate itself in the eyes of the customer and by operating at a lower cost and hence at higher profit. Successful companies either have a productivity advantage or a value advantage. The productivity advantage gives a lower cost profile and the value advantage gives the product or offering a differential plus. Logistics management can provide a multitude of ways to increase efficiency and productivity and hence contribute significantly to reduce unit costs. Logistics costs represent a significant proportion of costs and it is possible to make major cost reductions through re-engineering logistics processes. It has the potential to assist the organisation in the achievement of both a cost/productivity advantage and a value advantage.

Evolution of Supply Chain Management

The concept of supply chain management while relatively new is in fact no more than an extension of logistics. Logistics management is primarily concerned with optimising flows within an organisation while supply chain management recognises that internal integration by itself is not sufficient. Supply chain management has evolved through four stages as under:-

(a) Stage 1. Complete functional independence where each function such as production, purchasing, materials control, distribution and sales was in complete isolation from one other irrespective of the impact.

(b) Stage 2. Limited functional integration between adjacent functions such as distribution and inventory management or purchasing and materials control

(c) Stage 3. Establishment and implementation of an end-to-end internal integration - planning framework.

(d) Stage 4. Complete external integration and coordination extended upstream to suppliers and downstream to customers.

Whilst logistics is essentially a planning orientation and framework that seeks to create a single plan for the flow of product and information through business, supply chain management builds upon this framework and seeks to achieve linkage and coordination between processes of others in the pipeline, suppliers and customers and the organisation itself. The focus of supply chain management is on cooperation and trust and the recognition that when properly managed ‘the whole can be greater than the sum of its parts’.

Supply Chain

A Supply Chain is a network of organisations that are involved through upstream and downstream linkages in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer. For example a shirt manufacturer is part of a supply chain that extends upstream through the viewers of fabrics to the manufacturers of fibres and downstream through the distributors to the retailers to the final consumer. Each of these organisations is inter-related and dependent upon each other.

Supply chains are essentially a series of linked suppliers and customers, where every customer is a supplier to the next downstream organisation until a finished product reaches the ultimate user. All organizations are part of one or more supply chains. Whether a company sells directly to the end customer, provides a service, manufactures a product or extracts material from the earth, it can be characterized within the context of its supply chain. Until recently, organizations focused primarily on their direct customers and internal functions, and placed relatively little emphasis on other organizations within their supply chain network.

A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. Within each organization, such as a manufacturer, the supply chain includes all functions involved in filling a customer request. These functions include, but are not limited to, new product development, marketing, operations, distribution, finance, and customer service.

Supply Chain Management

The underlying philosophy of supply chain management is that of the planning and coordinating the materials flow from the source to user as an integrated system rather than, as was often the case in the past managing the goods flow as a series of independent activities. The goal is to link the distribution network, the manufacturing process and the procurement activity in such a way that customers are serviced at higher levels and yet at lower cost to achieve the goal of competitive advantage through both cost reduction and service enhancement. It requires both internal functional and external functional integration.

The mission is to plan and coordinate all those activities necessary to achieve the desired levels of delivered service and the quality at lowest possible cost. It is the link between the Market Place and the operating activity of the business. The scope spans the organisation from the management of raw materials through the delivery of the final product. In the past firms sought to achieve cost reduction or profit improvements at the expense of the supply chain partners. Now they have realised the fallacy and are striving to make the entire supply chain competitive, through added value and reduced costs.

One of the key attributes of a manager is to successfully respond to the end consumer demand. To maximize competitive advantage all members of the organization should work seamlessly to serve the consumer. Integrated logistics is considered to include all aspects of planning, allocating, and controlling the financial and human resources committed to manufacturing support and purchasing operations as well as physical distribution. Management must lead the processes to be efficient, flexible, reliable and resilient. Best use of limited assets and resources to serve customers in a competitive mode should be the overriding aim. Various definitions of what a supply chain constitutes and the basic tenets of its management are listed out in the succeeding paragraphs.

Definitions

The field of study known as supply-chain management involves many academic converging disciplines. This has been synergised by the introduction of Material Resource Planning (MRP), Enterprise Resource Planning (ERP) and Distribution Resource Planning (DRP). A multitude of definitions have been proposed concerning the concept of the supply chain.

(a) According to William C Copacino," Supply chain management refers to the art of managing the flow of materials and products from source to user."

(b) According to Mentzer, SCM is The systemic and strategic coordination of the traditional business functions within a particular company and across businesses within the supply chain, for the purpose of improving the long-term performance of the individual companies and the supply chain as a whole.

(c) According to Ellram and Cooper (1993), supply-chain management is An integrating philosophy to manage the total flow of a distribution channel from supplier to ultimate customer.

(d) Supply chain encompasses all activities associated with the flow and transformation of goods from the raw materials stage (extraction), through to the end user, as well as the associated information flows. Material and information flow both up and down the supply chain.

From the various definitions proposed, it is possible to summarize that the concept of supply-chain management is centered on organisational restructuring and extends to the development of a company-wide collaborative culture. It also embraces a strong sense of the integration of all activities which control the timing and synchronization of material flows.

SCM is one of the most powerful engines of business transformation that basically means delivering the right product to the right place at the right time and at the right price. SCM is the one area wherein much operational efficiency can be gained, thereby reducing organizations costs and enhancing customer service. The evolution is towards internet-based application for SCM.

Logistics. Since SCM has evolved from logistics management it is necessary to understand logistics.

(a) Logistics is 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:

(i) Design, development, procurement, storage, distribution, issue, maintenance, repairs, and disposal of military equipment.

(ii) Movement, evacuation, and hospitalization of personnel.

(iii) Acquisition or construction, maintenance, operation, and disposition of facilities.

(iv) Acquisition or furnishing of services.

(b) The word logistics is derived from the Greek adjective logistikos meaning skilled in calculating. 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 in the science of mathematical computations. Research indicates that its first use in relation to an organized military administrative science was by French writer, Antoine, in 1838, who devised a theory of war on the trinity of strategy, ground tactics, and logistics. The French still use the words logistique and loger with the meaning to quarter.

(c) Logistics is not an exact science. No mathematical formula or set of tables tells precisely what supplies or services will be needed, where and when they will be needed, or the best way to provide them. Responsible officials must make judgments on these matters,

Reviews for Military Supply Chain Management and People's Liberation Army Logistics

[rajivc_18 · Rating: 5 out of 5 stars]

Many Indians of my generation grew up on tales of the 1962 war with China. We were told that the Chinese betrayed our friendship. As time went by, I realized that we were also betrayed by our leaders. This book sets the record straight. The book dives into the period of 1949-1950 when the Chinese annexed Sinkiang and Tibet. Shiv Kunal Verma has devoted space to describing some of the negotiations that took place in the 1920’s. He described how the Americans pressured the English to place Tibet under Chinese suzerainty. The strategic approach that the Chinese have adopted comes through . Mr. Verma explains the reasons why the Chinese occupied Sinkiang and Tibet. He also points out that the world was recovering from World War II in 1949-50. The Chinese preyed on this to annex these two territories. This seems to be a standard Chinese approach. Today, when the world is distracted by Covid-19, they have embarked on another round of expansionary moves. There is a clear expose of Nehru’s failings as a leader – at least, in this aspect. The Non-Aligned Strategy was a disaster. He also points out that Nehru was suspicious of a strong Armed Forces, leading him to reduce investment here. Nothing has changed. Finally, he ignored warnings from people like Sardar Patel and Gen. Thimmaiah. He appointed Gen. Kaul in his place, a man who was clearly incompetent for the task at hand. India’s poor strategic planning on the battle field comes through. It is a tale of sorry leadership and valiant troops. The Chinese, he mentions, were surprised by India’s collapse. It was a failure of leadership. I can sense the anguish that flowed through him when he wrote the book, even though the tone was even-tempered. He has left us to learn, and to infer what we should learn. Know yourself, your terrain, your enemy. Plan, think strategically, execute. Have a plan B. Be unrelenting. The Chinese propaganda machine was effective and smarter than ours. I was surprised to learn that they sent out radio announcements in Hindi, and often interfered with our radio signals. Our people, by contrast, did not even know where Tibet was. This is a brilliant book. It is a sorry tale of how we were let down by poor leadership. It is a tale well told. Have we learned the lessons of 1962? I wonder.