Selecting ERP for Performance Based Logistics (PBL)
Major suppliers and systems integrators working within the military are already getting involved in performance-based logistics (PBL) contracts. Performance-based logistics is a different way of doing business. It is a logistics support solution that shifts traditional DoD inventory, supply chain, asset sustainment, and technical support functions to the supplier for a guaranteed level of performance at the same or reduced cost.
Even middle-market and smaller suppliers are beginning to address PBL contracting as the military accelerates its move toward this innovative and efficient way of systems acquisition and sustainment. These contracts will increase the involvement of suppliers in services delivered after the sale, placing new demands on business systems that were not designed for this type of business model. Suppliers will need to invest in new technology designed to help them profitably meet the requirements of PBL contracts.
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