Outsourcing Wholesale Logistics, A Model for Future Systems

Abstract : This essay outlines and discusses the merits of contracting wholesale logistics for Army weapon systems. The Army has acknowledged that between sixty to eighty percent of the lifecycle costs of a weapon system results from the Operations and Support costs associated with the system. This paper outlines the method to reduce those costs by providing incentives to simultaneously increase operational readiness and reduce logistics requirements of the system at both the wholesale and retail levels. In addition the concept provides the Army a viable industrial base and naturally re-capitalizes the weapon system. The essay looks at two systems, that have begun to incorporate this concept into their lifecycle support plans. The systems, ITAS and Sentinel represent a cross-section of weapon system functions. Their functions include direct fire command and control and sensing, respectively.