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The Army's traditional mass-based logistics system involves stocking a large inventory of parts and supplies that may be required to satisfy mission requirements. The intent of maintaining a large inventory is to shorten the length of time required to obtain parts and supplies when they are needed. These "iron mountains" of stocks are regarded as dependable, readily available sources of supplies required for forces to be rapidly deployable, highly mobile, and sustainable. Maintaining iron mountains of supplies places heavy demands on Army resources that are increasingly scarce, including warehouse space, personnel to operate warehouses and move supplies, and space on transporters. However, budget reductions have continued to decrease the funds allocated to resource these functions over the years.
Following the end of the Cold War, most Americans felt that overseas threats to U.S. interests had been reduced greatly. Thus, during the 1990s, politically motivated changes produced an austere fiscal environment that limited the Army's ability to carry out the policies and commitments mandated by the National Military Strategy. When the military operational structure was reduced even as military commitments around the globe increased, Army supply logistics became inadequate. Budget constraints restricted routine vehicle repairs, delayed deliveries of parts and supplies, and impeded the implementation of vehicle maintenance initiatives and modernization programs.
After Operation Desert Storm, the Army began a shift from just-in-ease stockage to a more cost-effective. velocity-based logistics system that closely parallels the distribution system used in the commercial sector. With this system, known as just-in-time distribution, buyers communicate with suppliers electronically to order needed supplies that are shipped directly to the user without the need for warehouse storage. Just-in-time distribution replenishes needed items as consumption occurs and substantially reduces the inventory. An electronic supplier-buyer interface also eliminates several steps in the ordering process, thereby speeding delivery of supplies.
Just-in-Case Stockage
For users of just-in-case stockage, the quest for a part usually begins with an attempt to get the item from another in-theater unit that may be stocking it against some future need, may already …