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UNITED KINGDOM NATIONAL CODIFICATION BUREAU
NATO Logistics Stock Exchange An NSN Success story
Richard Ireland
Head of UK NCB World Codification Forum
Wednesday 25th May 2017
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What is the NLSE?
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NLSE:
A dedicated, secure e-Logistics capability incorporating all related business
functions:
• Logistics
• Procurement
• Finance
It has been certified by the NATO Office of Security certified and IBAN audited
The tool is developed, maintained & provided by NSPA
Defined, sponsored & governed by the 20 participating Nations
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Who uses NLSE?
Austria
Belgium
Canada
Denmark
Finland
France
Germany
Greece
Hungary
Italy
Netherlands
Norway
Lithuania
Poland
Portugal
Spain
Sweden
Turkey
Ukraine
United Kingdom
16 NATO Nations plus 4 Partner Nations
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NLSE Capabilities… • Visibility
– 6M lines of national logistics data
– 5M unique NSNs
• Redistribution
– Solution to Obsolescence, Urgency, MOQ, Demil Costs
– Support Allies’ Operational Capability
• eCat1
– 25,000 NSNs from 500+ suppliers
– 600 eCat1 Contracts available
– Essentially outsourced procurement function
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Success Story 1
Lynx Helicopter Tail Blade Assemblies
• High cost/long lead time • Purchased qty 40 u/s • Recovered 97% • 75% saving • On stock in 3 months
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Success Story 2.
Calibrated Spanner
• Used on Puma MRH • 11 month lead time • Purchased 2 from
Portuguese Air Force • Received in 4 days!
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Success Story 3. Chemlights from Cyalume
•1st use of eCat1
•1200 orders
•Value of 56M€
•Net savings 28%
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Success Story 4. Mine Detection Systems from Vallon
•18M€ in 2010
•Savings of 32%
•Total Support
Concept
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Success Story 5. Supply of surplus GEM engines to Denmark
• Supply of 2 surplus GEM engines to DEN in support of Lynx helicopter.
• 1.3 MEUR Return On Capital Expenditure (ROCE)
• Avoidance of GBR demil & scrappage costs.
• Enhance DEN operational capability.
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Missed opportunity: Story 6 • Marine Engine supplier refused to
provide source data as part of codification process
• Demanding payment for a limited set of source data
• UK unable to codify these engines
• A NATO nation wished to purchase the same engines through NLSE using UK support arrangements
• Forced to go to Open Competition; this supplier lost £Millions in sales
• Could we have used NLSE to obtain bigger buying power?
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Industry Benefits
• Source Data Acquisition – willingness:
• Data Quality
• Exclusivity of sales Opportunity
• Relationship benefits for NCB & Industry
• No need to repeat tendering with each nation
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Opportunities for your own Success Stories
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Potential
• 63 Countries using the NATO Codification System
• The more countries that use the NLSE, the more buyers
and sellers exist to manage surplus stock and to exploit
opportunities to share support agreements &
procurement
• Can you drive implementation of NLSE in your nation?
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Costs and Benefits • Costs
– Annual participation cost at national level
• Benefits
– Unlimited system access and tasking of NSPA
– Established legal framework and mechanism for
multinational cooperation
– ‘Hard’ financial savings in excess of 35M EUR (30%)
– ‘Soft’ savings in greater logistical visibility, reduced lead
times & workload, and ability to task NSPA
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Process
Buyer Seller
Create Order Accept Order
Armed
Force
NSPA
Data
Mgr Supplier
NSPA
Finance
NSPA Finance
Automatic Debit
Amount + Fees
Supplier Payment
According to OP
Ready for shipment
Shipment of the Order
NSPA
Monitoring
Codification / LSA
(Where Required)
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Final Thoughts…
• The NLSE is directly accessible online
• Free for your nation’s Project Teams to browse
without obligation
• There are many opportunities & benefits for little
effort
• Not just for your procurement, but also to
rationalise your surplus materiel
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Questions & Answers