European Defence Logistics 2007

The market for logistics services in the defence sector is huge, but at the same time it is also highly specialised. Unlike many other sectors, third party logistics providers play only a small part in a market which is dominated by the 'Systems Integrators', that is, the big weapons' manufacturers.

The market has seen fundamental changes over recent years. Previously the supply organisations of armies, navies and air forces were largely concerned with the storage and transport of ammunition, fuel and food. These concerns are still great but with manning levels in armies shrinking and the forces becoming dominated by vastly capable automated weaponry, the focus of armed forces logistics activities has shifted.

What is emerging is an emphasis on the delivery of 'capability' rather than the delivery of spares. The responsibility of maintaining a whole weapon system is moving from the armed forces towards the weapons' manufacturer. The advanced programmes propose looking towards the 'systems integrators' to handle almost all of the maintenance and logistics activities; handing over the aircraft to the air force only when it has to fly.

The impact which these ideas are having on systems' integrators is substantial. Logistics has become a central aspect of their 'offer to the market' even though these companies still view themselves as engineering specialists.

What information does European Defence Logistics 2007 contain?

European Defence Logistics 2007 provides a road map to this complex and fast-changing market. The report offers an ideal introduction to the opportunities which this sector presents to a wide range of different players: IT providers, contract logistics companies, freight forwarders, road and rail contractors, air cargo and shipping operators. Its in-depth examination of the sector is essential reading for defence logistics staff, consultants and analysts.

European Defence Logistics 2007 contains sections on:
• The logistics requirements, strategies and policies of the three main European Defence Departments: United Kingdom, France and Germany.
• The IT systems presently employed and their functionality.
• Analysis and overview of the key European systems’ integrators: Rolls Royce, Thales, Agusta Westland, BAe and EADS.
• The developing role of the third party logistics sector in the market and the key players.
• An analysis of the use of logistics in the recent Iraq War, examining its success and failures.

The report also contains a section on the logistics employed by the British Army during the Iraq War, critiquing its effectiveness and the repercussions it has had, both operationally and politically.

1.0 Contents

About Transport Intelligence

2.0 Introduction

3.0 Executive Summary

3.1 Logistics in the Defence Sector: a Definition

3.2 Defence Logistics - a discrete activity

3.3 Weapons Systems Complexity - The driver of logistics

3.4 Logistics at National Ministries of Defence

3.5 Size of the Market

3.6 Estimates on Future Spending

4.0 An overview of Defence Logistics in Europe

4.1 Spending in Europe: Comparative & Absolute

4.2 The Defence ‘Postures’ of Different European Nations

4.3 Structures of Armed Forces

4.4 The Structure of European Defence Production

4.5 Main Defence players in Europe

4.6 Principal Weapon Systems Programmes run by European Defence Manufacturers for
European States

4.7 Role of American Companies in European Defence Logistics

4.8 Estimate of Logistics Spending within European Defence Sector

4.9 Prospects for the Future

5.0 Major European Defence Markets

5.1 United Kingdom

5.1.1 Defence Logistics Organisation

5.1.2 Objectives of FDSCi and the DSDA

5.1.3 Defence Transport and Movements Agency (DTMA)

5.1.4 DML

5.1.5 Technology

5.1.6 Future of Defence Logistics in the UK

5.2 Germany

5.2.1 Type of Armed Forces

5.2.2 Operations

5.2.3 Impact of German Military Posture for Logistics

5.2.4 Armed Forces Logistics Infrastructure

5.2.5 Developments in Defence Logistics

5.3 France

5.3.1 Defence Technology and the French Defence Supply Chain

5.3.2 Organisation of Defence Logistics within France

5.3.3 Outsourcing

5.3.4 Future of Defence Logistics in the French Armed Forces

6.0 Weapons Systems Manufacturers

6.1 BAe Systems

6.1.1 Logistics at BAe Systems

6.1.2 CS&S

6.1.3 Logistics infrastructure management at BAe Systems

6.2 EADS

6.3 Thales

6.3.1 Naval Logistics

6.3.2 Logistics Delivery and Thales-Geodis Freight Logistics

6.4 Rolls-Royce

6.4.1 Service Levels and Logistics

6.4.2 Logistics and Services Management Organisation at Rolls-Royce

6.4.3 Example: RAF C130- Lockheed/Marshalls/Rolls-Royce Teams

6.5 Finmeccanica / AgustaWestland

6.5.1 AgustaWestland and logistics

7.0 Logistics Service Providers in the Defence Sector

7.1.1 Freight Forwarders

7.1.2 Air Cargo Carriers

7.1.3 Shipping lines

7.1.4 Road transport

7.1.5 Warehousing

7.1.6 IT

8.0 Appendix 1: UK Forces’ Logistics in the Iraq War

8.1 Commercial providers in Iraq

8.2 DHL

8.3 FedEx

8.4 EGL

8.5 Agility (PWC Logistics)

9.0 Contact Transport Intelligence