The Benefits of N-CORE are immense...
Reduction in warehousing costs
- Lower prices paid per item through purchasing larger, consolidated volumes of items
- Inventory reduction
- Shorter re-supply times
- Lower purchase prices for items
- Ability for different nations to share supply chains
- Ability for different nations to share inventory
- The recognition by Industry of shared benefit through using the System
- GREATLY Improved Codification Quality
- Automated processes that will Reduce Workload
- Time Saving Standardized Processes
- Reduction of Codification Error Rates
- Customizable at User Level and Modular Designed
- Made in Germany
We are also developing Biometric Tools to WARD OFF "Present and Next Generation" Cyber-Attacks
Type of benefit: impact on logistic support system: rationalized inventory
Role of Codification: KPMG performed a survey of several different industrial sectors and discovered examples of inventory rationalization ranging between 15 and 50% arising from the adoption of effective cataloguing. Such rationalization is already in place for defence because of the NATO Codification System.
Quantified impact: Reduced cost. At the time of the survey, the total US defence inventory was USD 4.5 billion, so the Codification System is preventing inventory growth in the range USD 0.8 to 4.5 billion. The underlying mechanism for inventory reduction is the System identifying an average (mean) of two items of production for each item of supply.
Type of benefit: delivered benefit: faster, better, cheaper logistic support system
Role of Codification: Historically, the UK MOD had not required Codification of items within the inventory of the Royal Fleet Auxiliary (RFA) ships. In 2007, the MOD began to realize that various problems were affecting the ships, including lack of accountability for stock, overspend and configuration control issues (impacting the sign-off of safety cases). These problems prompted a decision to Codify the RFA inventory, which included over 45,000 types of item.
Quantified impact: Reduced cost. Of the items, approximately 25% already existed within the Codification System. Thus, the costs of Codification were not as large as would have been the case when the Codification System was still new. As a result of adding the RFA inventory into the wider MOD inventory, the Afloat
Support Team Leader (responsible for the RFA) is willing to state: "The use of the NATO Codification System has saved and is saving the UK Royal Fleet Auxiliary millions of pounds".
Previous studies concerning the business case for Codification
Although the Codification System has a long history of operation, the System attracts persistent questions as to lack of sufficient benefit arising from the degree of cost necessary to operate the System. These questions have required the Codification community repeatedly to put forward the case for the System.
The following studies and presentations have examined the business case for Codification:
- "Benefits of the NATO Codification System", Richard Maison, Deputy, US Defense Logistics Information Service, 1995;
- "DoD cataloging business case analysis", KPMG Peat Marwick LLP (on behalf of US Department of Defense), 1996;
- Study on the costs and benefits of information for materiel management, German MOD, 1997;
- "Costs and benefits of Codification", Lt Col Peter Bohrer, German MOD, 1997-05;
- "Application of NATO Stock Numbers in integrated logistic support based procurement", John Clark, Deputy Chief Executive, UK Defence Codification Agency, 1998;
- "NSN story: National Stock Numbers", US Defense Logistics Information Service, 2001;
- "Why catalogue? The benefits of NATO Codification", AC/135, 2001;
- "Reaping the benefits of the NCS", Lynn Schmoll, US Defense Logistics Information Service, 2002;
- "Who uses catalog data?", US Defense Logistics Information Service, 2002;
- "How a PACS Nation has fully adopted the NCS and made it work (sharing Singapore’s experience)", Bernard Lin, Singapore Defence Science & Technology Agency, 2006;
- "Benefits of utilising the NATO Codification System", Steve Rigsby, Allan Webb Limited, 2011;
- "NSN-MPN simulation report", Canada Director Materiel Policy and Procedure, 2011;
- "Source Supplied Codification project", AC/135, 2011-11.
- N-CORE Overview | PDF [2.96 MB]
- N-CORE SAP Certificate | PDF [445 KB]
- N-CORE NG SAP Certificate | PDF [627 KB]
- ESG ISO 8000 Certificate | PDF [225 KB]
More information are included in the Zip-files.