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Supply Chain Design for the Military and Defense Industries

The military and the defense industry that supports it have large, complex and volatile supply chains. A country’s military needs supplies where its troops are deployed, regardless of how difficult the task of getting it there.

Despite the rigorous requirements, military supply chains still need to focus on costs and efficiencies that private sector organizations struggle with, including:

  • Combining scalability with “must have” responsiveness
  • Increased use of risk-sharing partner networks
  • Cost overruns in programs
  • High-risk and demand volatility
  • Keeping pace with a constantly-changing distributed supply chain

LLamasoft has built Supply Chain Guru capabilities to support the military and defense industry. For instance, multi-period optimization is used in program analysis to understand lifecycle supply chain costs for a program. Analysts use enterprise simulation to predict service level and cost implications of adding variability to supplier and transportation lead times.