Traditional Support vs Performance-Based Logistics (PBL) Strategies in Supporting Aerospace & Defence Customers

Introduction

The aerospace and defence industry has always been at the forefront of innovation, and it is essential to keep military operators equipped with the latest technology and capabilities to meet their mission requirements. One critical aspect of keeping these systems running is the sustainment strategy used to maintain them.

Traditionally, the industry has relied on transaction-based sustainment, where support is provided on a case-by-case basis. However, over the years, there has been a shift towards performance-based logistics (PBL) strategy, where sustainment is measured by system performance and availability.

This article will succintly discuss the characteristics that differentiate PBL from traditional support strategies, the differences between the two strategies in the aerospace industry, and how a military operator or a Department of Defence can adopt and implement PBL strategies.

Characteristics of Performance-based Logistics

Performance-based logistics is a support strategy that focuses on system availability and performance, measured against pre-defined metrics. Under a PBL strategy, industry partners provide the necessary logistics support to ensure that military systems are ready and available when needed. Some of the characteristics that distinguish PBL from traditional support strategies include:

1. Outcome-Based: PBL focuses on meeting specific outcomes and performance measures as defined by the customer. The industry partner is responsible for meeting these objectives and is incentivized based on performance.
2. Integrated Logistics Support: PBL requires the integration of logistics, engineering, and maintenance support functions to ensure system availability and performance. This integration allows for a more holistic approach to sustainment, resulting in better overall performance.
3. Lifecycle Management: PBL takes a lifecycle approach to sustainment, ensuring that systems are maintained throughout their entire lifespan. This approach results in reduced lifecycle costs, improved system availability, and increased reliability.

Differences between Traditional Support vs Performance-Based Logistics (PBL)

Traditional support strategies are based on transactional support, where sustainment is provided on a case-by-case basis. In contrast, PBL is a performance-based support strategy that focuses on system performance and availability. Some of the key differences between the two strategies include:

1. Focus: Traditional support strategies are reactive, focusing on fixing issues as they arise. In contrast, PBL is proactive, focusing on preventing issues from occurring by ensuring system availability and performance.
2. Cost: Traditional support strategies are typically more expensive than PBL strategies. PBL strategies are based on outcomes and performance measures, which result in lower lifecycle costs and increased system availability.
3. Integration: Traditional support strategies do not integrate logistics, engineering, and maintenance support functions, resulting in a fragmented approach to sustainment. In contrast, PBL requires the integration of these functions, resulting in a more holistic approach to sustainment.

Adopting and Implementing PBL Strategies

To adopt and implement PBL strategies, military operators or a DoD must take the following steps:

1. Define Outcomes: The first step is to define the outcomes and performance measures that the industry partner must meet. These outcomes should be aligned with the mission requirements of the military operator.
2. Select Industry Partner: Once the outcomes are defined, the military operator must select an industry partner with the necessary expertise and capabilities to meet the defined outcomes.
3. Integrate Support Functions: The military operator and the industry partner must integrate logistics, engineering, and maintenance support functions to ensure a holistic approach to sustainment.
4. Incentivize Performance: The industry partner must be incentivized based on performance, ensuring that they are motivated to meet the defined outcomes and performance measures.
5. Monitor and Evaluate: The military operator must monitor and evaluate the industry partner's performance to ensure that the defined outcomes and performance measures are being met. Any issues that arise should be addressed promptly to ensure that system availability and performance are not impacted.

Conclusion

In conclusion, as the aerospace industry is experiencing a shift from traditional support strategies to PBL, this new type of support is focused on delivering outcomes and improving system performance, reliability, and maintainability. performance-based logistics is a powerful strategy for supporting aerospace and defense customers, particularly airforce military operators.

PBL focuses on achieving measurable performance outcomes, taking a holistic approach to logistics management, and emphasizing continuous improvement. Adopting and implementing PBL strategies requires a shift in mindset and organizational culture, with a focus on collaboration, performance metrics, and feedback mechanisms.

Moving away from older sustainment strategies requires a concerted effort by all stakeholders in the supply chain, with a commitment to continuous improvement and a willingness to invest in new technologies and systems.