PROPOSAL FOR A LEAN COMMODITY MANAGEMENT PROCESS FOR THE SOUTH AFRICAN NAVY

Abstract

Commodity Managers (CMs) within the South African Navy (SAN) neednew and innovative ways to achieve effective supply support to their customers. Alook at international trends and what other organisations are doing, presents supplysupport options that will help in formulating an effective commodity managementprocess. The survey, although not an exhaustive benchmarking exercise, doesconclude that the process must be clearly defined, visible and comprehensible.Recommended options are presented within four category levels due to thelevel at which the change or decision can be authorised:? The national strategic level – Automatic Inventory Replenishment (AIR)and Cost Centre Accounting (CCA).? The military strategic level – Transportable logistic support and standardcontainerisation.? The operational level – Anticipated service life, commercial equipmentsupportability and outsourcing.? The tactical level – Repair as a source of supply, Life Cycle Costing(LCC) and critical replenishment procedure.The implementation of any of the recommendations proposed shouldenhance the supply support activities carried out by CMs. A combination ofapproved recommendations promises to lead to the formulation of an effectivecommodity management process that will enhance end-user service delivery,utilising fewer funds and with a reduced staff requirement.