Hear from Frost & Sullivan about the concepts and benefits of performance-based logistics. Watch the Webcast. Log-in required.

In today's governmental and military ecosystems, the primary goal of significant cost reduction has inspired a new business model: performance-based logistics (PBL). Using the PBL model, governments and the military acquire both systems and related services based on availability instead of acquiring the systems and then independently contracting for related product support activities.

Performance-based logistics allows:

• Industry partners involved with governmental or military acquisition projects to clearly define products and services to meet the requirements of both ministries and departments of defense – with full transparency of costs and the risks of complex acquisition programs
• Ministries and departments of defense to gain full visibility into system performance, product support activities, and related investments – as early as contract award – reducing costs significantly

Using a performance-based logistics definition of mission profiles and system configuration, even suppliers of main components (including engines, avionic systems, and weaponry) and users (through platoon level) can gain insight into the requirements and performance of the system at any time.

Performance-Based Logistics (PBL) Solutions from SAP

A performance-based logistics solution from SAP can serve as an integrated IT system and the foundation for a future-oriented PBL business model, supporting all aspects of system sustainability, including:

• Contract management across the life cycle of a large acquisition program, from definition and requirements specification, to purchasing, to high-resolution product information and support
• Product support, helping to ensure that all product-relevant information, as well as related maintenance and spare parts information, is available at any point in time

High-profile partners round out SAP's performance-based logistics offering.

Performance-based logistics is supported by:

• SAP for Aerospace & Defense solutions
• SAP for Defense & Security solutions

In addition to performance-based logistics, you might also be interested in:

• Product data management – with SAP Product Lifecycle Management
• Aftermarket sales and support; maintenance, repair, and overhaul (MRO); and spare-parts management – with SAP Service and Asset Management