by Gary Pearce, ASCI ACT Chapter President and ASCI ILS College Secretary
This article is part A of a 3 part series.
Australasian Supply Chain Institute (ASCI) has introduced a fourth stream in their supply chain program, that being Integrated Logistics Support (ILS) along with the other three streams, Procurement, Operations and Logistics. The question, what is ILS? There are many descriptions that can answer that, which all are relatable, one definition I like is:
Integrated Logistics Support (ILS) is the management and technical process through which supportability and logistic support considerations are integrated into the design of a system or equipment and taken into account throughout its life cycle. It is the process by which all elements of logistic support are planned, acquired, tested, and provided in a timely and cost-effective manner.
ASCI ILS College has a definition:
Integrated Logistics/Product Support is a set of related disciplines focused on the cost-effective; definition, design, development, delivery, and ongoing operation of a harmonised Support System to specified Products or Product Families.
What is the origin of ILS? ILS was developed in response to the realisation that United States (US) Defense acquisition programs were often producing complex Materiel Systems that were unreliable, poorly supported and costly throughout their life cycle. This situation was exacerbated by the increasing cost of in-service support for such systems, with costs rising significantly as a proportion of total acquisition costs.
ILS originated in the 1960s in the US Department of Defense (US DoD) that identified deficiencies in its ability to support military hardware, particularly at a cost affordable to Congress. The need for an integrated approach to logistic support, involving production and through life support, hence Integrated Logistic Support (ILS) was introduced, also called military logistics. The US DoD saw that without an integrated approach, they were producing ineffective and inefficient support solutions.
The Australian Defence Organisation adapted ILS during the 1970’s to have applicability during the In-Service Phase (and Disposal Phase) in the recognition that an integrated approach to monitoring and modifying Supportability for the Materiel System will ensure that the best balance between LCC and operational and preparedness requirements continues to be maintained.
ILS should be applied to ensure that supportability considerations influence the concept and design of an item and to ensure that logistic support arrangements are consistent with the design and each other throughout the item’s life.
The successful application of ILS will result in a number of customer and supplier benefits. For the customer, these can include increased satisfaction, lower logistic support costs, greater availability and lower life cycle costs. For the supplier, benefits can include lower logistic support costs, a better and more saleable item with fewer item modifications due to supportability deficiencies.
My experience in ILS is largely in Defence, therefore this article Defence centric. Can ILS be used in non-Defence environments, of course it can, industry and organisations have fleets of trucks, vehicles, forklifts, buses, trains, aircraft ferries, plus machinery, manufacturing facilities, information and communications technology (ICT), infrastructure, etc, just to mention a few.
By using the processes, principles and functions of ILS, non-Defence companies can achieve the same benefits, that is efficiencies and effectiveness over the life of their equipment/systems. Where Defence gets real benefit from ILS, which includes technical integrity, is capability support over its life, referred as life of type, which can be in-service from 10 years up to 40 years.
Imagine what could occur if a forklift or an ICT was kept in-service for up to 40 years without recognised/proper processes, sounds frightening doesn’t it. Later in a follow-up article a term called Integrated Product Support (IPS) will briefly be discussed, and how it is replacing ILS, to the point IPS fundamentally has the same functions and processes.
ILS should ensure that:
Elements of ILS
The management framework of ILS is divided into key elements known as ILS Elements or Support Elements. Throughout the world the number of these elements vary, however in reality they all have a strong relationship, countries such as the USA and UK have variants of the elements. As an example, the ADF has ten key elements, shown in the figure below, which are those factors to ensure materiel can be supported whilst in service.
The individual elements contain a number of specific responsibilities within the acquisition and sustainment environment. It should be noted that each element has a strong association with other elements, and are ineffective on their own hence the word ‘Integrated’.
In the early 2000’s the ADF’s acquisition and sustainment organisation, known then as the Defence Materiel Organisation (DMO), today the Capability Acquisition and Sustainment Group (CASG) introduced a variant of the ILS Elements referred to as the five Support System Constituent Capabilities (SSCC), which are overlaid in the above figure.
The reasoning behind this was the prime focus on the Materiel System. The Materiel System is a composite of equipment, skills and techniques capable of performing or supporting an operational role, or both and is the combination of the Mission System and the Support System.
The ILS Elements of Engineering Support, Maintenance Support, Supply Support, and Training Support map directly into the SSCC’s having the same names and functions. The other six ILS Elements are ‘product-based’ support elements, also referred as resource/enabler elements, map into each of the SSCC’s because these product elements are integral to the ability of each SSCC to perform its function and deliver services.
The fifth SSCC, Operating Support, delivers services for the operation of the Mission System, or directly enables the Mission System to be operated in its intended role. Although Operating Support is an SSCC, it is not an ILS/Support Element because it does not have a logistic outcome; rather, it has an operational outcome.
The ILS Elements include all those functions and resources necessary to ensure that each Mission System can be, and contribute to be, effectively supported while in service. These can be seen from the following functions and descriptions. ILS activities associated with the elements are based on considerations, identification, processes, and not on physical day-to-day services.
To be continued...Part B and Part C to be released as a series.
ASCI Professional Accreditation Scheme
ASCI provide individuals with professional acknowledgement and recognition of competence through registration under the scheme. Registration under this scheme provides professional recognition of competence through the confirmation and acknowledgement to the individual and by implication, to the industry, of his/her career achievements against an industry accepted, globally aligned set of standards, on par with other professional disciplines in industry.
Gary Pearce is a retired ILS Practitioner with over 20 years direct ILS experience, and 50 years Defence and Defence Industry experience. He holds a Masters in Management Studies-Logistics (UNSW) and Master of Project Management (USQ). He also has accreditation as a Registered Practitioner ILS (ASCI), Certified Professional Logistician (Transport & Logistics Certification Council) and Certified Associate in Asset Management (Asset Management Council). In addition, he has an Associate Diploma in Engineering (Maintenance)-Electronics (ADF). Gary is currently the ASCI ILS College Secretary and ASCI ACT Chapter President. Previously he was a SCLAA Director and SCLAA ACT Division President.
Dr Tom Janoshalmi, ASCI President
Following a two-year hiatus due to the pandemic, ASCI recently held their annual conference #ChainAction, ASCI 2022 Supply Management Conference appropriately themed Supply Chain Sustainability, in early April over four consecutive mornings in an online format.
11 March 2022
Following a two-year hiatus, #ChainAction, ASCI 2022 Supply Chain Management Conference is refreshed and will be held from 5 – 8 April 2022, in an online format, themed Supply Chain Sustainability.
Over the last few years, particularly with the impact of COVID-19 on the global economic market, businesses have been focusing more on their supply chains. They have realised the integral role their supply chain plays within their business operations and sustainability. There is now a stronger focus on an organisation’s dependence on sustainable and resilient supply chains, particularly as businesses are back operating and evolving.
ASCI’s conference, in its third year as the largest gathering of supply chain managers, leaders, and practitioners in Australia, will provide insights into key trends and considerations regarding Supply Chain Sustainability.
ASCI President Dr Tom Janoshalmi said the conference theme and program has been refreshed addressing the main challenge the sector has faced over the last few years with the pandemic.
“ASCI is pleased to bring our highly anticipated and valued annual conference back to the supply chain sector. The comprehensive conference program includes national and international speakers, providing relevant and valuable content across four key topics: Supply Chain Ethics, Supply Chain Strategy, Supply Chain Management, Supply Chain Technology”, said Dr Janoshalmi.
The conference theme carries through from daily key note addresses to the information sessions and the panel discussions addressing a wide range of topics from ethical considerations to the application of modern technology towards supply chain sustainability.
Dr Pieter Nagel, Director of ASCI Professional Accreditation Scheme said ASCI’s Professional Development Colleges will also play a significant role in the conference.
“The Operational Streams within the conference program include invited speakers’ information sessions and panel discussions which will be Chaired by the College’s Presidents for each operational stream: Procurement/Supply Management, Operations Management, Logistics Management, Integrated Logistics Support/Product Support. In addition, ASCI members can also gain 20 continuous professional development points (CPD) towards their registration under ASCI’s Professional Accreditation Scheme”, said Dr Nagel.
Tickets are on sale now, with access to recorded sessions for ASCI members to accommodate people’s busy diaries. Full conference details and program can be found on ASCI’s website.
Program details and purchase tickets - www.asci.org.au/event-4723915
ASCI MEDIA RELEASE
ASCI kicks off the new year with a new President and ambitious vision
2 March 2022
ASCI hits the ground running in the new year, with a new President and a new ambitious vision.
ASCI President Alexandra Riha announced her resignation as ASCI President, in February 2022. Dr Tom Janoshalmi, ASCI Vice President and Board Director has been appointed as the new ASCI President and Board Chairman.
Dr Janoshalmi comes to ASCI with a wealth of expertise and successful career within the digital supply chain sector.
Dr Janoshalmi is SVP and General Manager of SAP’s Next Generation Cloud Delivery. In his current role, Tom focuses on developing and implementing strategies for high customer impact technology adoption to enable supply chain resilience.
Dr Janoshalmi has a 20-year track record of leading successful digital transformations with Global Fortune 500 companies. Since joining SAP, Tom has held several executive leadership positions, including Chief Growth Officer at Digital Business Services, Line of Business general management in Asia Pacific and in the Americas. Prior to joining SAP, Tom was Supply Chain Manager at Freudenberg Automotive.
Dr Janoshalmi holds a Doctorate degree from Newcastle University in Operations Research and a Business Degree from Stanford Graduate School of Business. He is a guest professor at Karlsruhe Institute of Technology, Germany.
“I am excited to take ASCI to the next chapter, refresh it and develop it further for the benefit of our sector, corporate members and members.
Since the pandemic the way we do business has changed, the supply chain has changed and businesses are facing more pressures than ever before. We are fully committed to supporting the sector and creating a recognised Supply Chain profession - enabling individuals to be recognised registered experts and businesses to build sustainable and profitable supply chains", Tom said.
ASCI has started the year strong and is finalising its strategy refresh, with the objective of providing exceptional member experience and professionalising Supply Chain Management.
ASCI strategy moving forward will be focused around the following four pillars:
ASCI provide individuals with professional acknowledgement and recognition of competence through registration under the scheme.
Offering professional development opportunities through ASCI professional colleges.
ASCI as the voice of supply chain professionals.
ASCI is refreshing its value proposition to the supply chain sector, corporate members, members, and partners. ASCI continuous professional development programs innovative learning experiences, mentoring and resources will be developed further to enable individuals to be at the forefront of supply chain management and best practices.
“Refreshing what ASCI means to industry and what we provide to our members and industry is essential to professionalise and support the supply chain sector to become more sustainable and resilient for the future, while promoting best practice, innovation and excellence. Individuals have valuable professional opportunities to be professionally acknowledge and recognised as experts in their field through registration under ASCI’s professional accreditation scheme”, said Dr Janoshalmi.
ASCI will continue to represent the voice of supply chain professionals at various Government policy consultation forums to shape the future of supply chains.
In other ASCI news, ASCI’s annual conference is confirmed for the first quarter of 2022. Further information to come shortly.
The Australasian Supply Chain Institute (ASCI), formally apicsAU, is a professional institute serving across the various sectors of supply chain management to foster professionalism in the supply chain.
Operating in Australia since 1963, ASCI is a non-profit organisation, with chapters nationally.
In addition to extensive education programs, ASCI offer local activities that facilitate the exchange and advancement of practical knowledge, ideas and techniques. Activities include meetings, short courses, site visits and conferences.
Membership of ASCI is open to any person with an interest in operations management and provides access to education programs, a network of industry professionals, real-world learning opportunities, articles and information.
by Aitor Marroquin, EV Cargo
Global supply chains continue to grow in depth and complexity at an unprecedented rate. Retailers are increasingly diversifying and de-risking their supply chains, changing traditional ‘East-West’ sourcing models into a more balanced strategy including near-shore production and mid-distance alternative markets. The continuing growth of omni-channel is also pushing retailers to re-think how to thrive in an industry where real-time stock availability and fast reaction times are now a must to remain competitive.
In addition to increased complexity, the industry is also facing exceptional levels of disruption. The impact of COVID-19 to supply chains has been evident and widely reported by mainstream media worldwide, affecting stock availability, shortages of production and shipping prices. However, while the pandemic has put supply chain on the map, disruptions in the industry are not new. Challenges such as port strikes, weather conditions, supply/demand space constraints and shortages of labour have been common over the last decade.
As a result, retailers are looking to review the level of control and visibility within their supply chains. A common challenge in the industry is simple to articulate, yet surprisingly difficult to overcome: the lack of a centralised and accurate ‘end to end’ view of the supply chain from product source to end customer. Retailers often use multiple systems and tools, spreading responsibilities across many departments, to track different stages of the supply chain. This practice runs the risk of creating disconnects and losing sight of the bigger picture. In order to achieve lead time reductions and flexibility, retailers are shifting their focus beyond just the movement of goods, by going upstream and aligning all processes involved in the product development lifecycle in to a single agreed critical path.
Coordination across activities, such as new product sourcing, new supplier/factory accreditation with ethical requirements, quality control, sample management, packaging and artwork sign off, packaging optimisation, is becoming a crucial step in order to establish a strong supply chain foundation.
Technology can help to tackle this challenge by providing collaborative, holistic and integrated solutions. Centralised platforms allow retailers to plan effectively and react to changes dynamically in an ever-evolving landscape. Effective and transparent critical path management provides a vital role from the moment a decision to source a SKU (when a SKU is added to a product range) until the point the product is in the customer’s hands. Having all parties collaborate on one platform following a standard process and working towards the same goal, gives retailers the best chance of not only meeting the pre-shipment product development lead time but also pushing towards an optimised and agile process.
Technology can help reduce time-consuming and costly data administration by connecting buying, sourcing, supplier, factory, 3rd party auditor, QC parties and logistics providers through data integration. Managing by exception, measuring against KPIs and using the power of predictive analytics to identify trends, provide the right tools for retailers to effectively manage their supply chains from beginning to end.
Global retailers are already benefiting from using technology to manage their critical paths. Some of these benefits include 25% reduction in source to shelf lead time, 20% increase in productivity, and 15% improvement in on-time delivery. Retailers are finding significant opportunities by optimising upstream processes and saving time in the early stages of the product lifecycle.
However, the true potential is unlocked when origin processes are not only optimised but connected and integrated with the rest of the supply chain to provide true end to end visibility. As global supply chains continue to evolve, technology can provide the tools needed by retailers to both remain competitive, become agile and prepare for the uncertainties ahead.
About EV Cargo
Headquartered in Hong Kong, EV Cargo is a leading global freight forwarding, supply chain and technology services company with over $1.4bn in revenue. EV Cargo powers the global economy by managing supply chains for the world’s leading brands, with a vision to transform logistics into a technology industry.
EV Cargo was created in 2018 by Hong Kong-based growth-oriented private equity investment group EmergeVest, facilitating a step-change in value creation via a sizeable, scalable and diversified logistics-technology company, well-positioned for future growth. Now a global leader, EV Cargo is driving the transformation of logistics into a technology industry, underpinned by its core values of growth, innovation, and sustainability as a signatory to the UN Global Compact.
ASCI's last newsletter for 2021 is now out!
Our last newsletter for the year shares ASCI's news and 2021 wrap up - read it now!
After another challenging year in business and life for all, businesses have proven their resilience, ability to adapt and innovate, and drive forward in an unsettled economic climate. From this we have seen in the supply chain sector new markets open up and opportunities arise.
At ASCI we have also been continually evolving throughout the year with staff, State Chapter members, Board Directors, and committee member changes, the annual conference moved to next year to ensure a valuable event is provided, and exciting developments with the Professional Accreditation Scheme.
We have seen this year the Professional Accreditation Scheme doing well with a double increase in registrants for accredited professionals compared to same time last year. ASCI has also just launched its new Professional Development Colleges.
On behalf of ASCI, I would like to thank so many people who volunteer their time, if it wasn’t for these dedicated people ASCI simply would not exist. Sincerely thank the following people for their tireless work during 2021:
ASCI has an exciting year planned ahead in 2022. The 2022 program is live on our website and open for enrolment to programs, courses and events throughout the year so you can plan your professional learning for the whole year now. ASCI’s annual conference is under way and we are currently finalising speakers for the conference which will be held in the first quarter of the year, more information to come soon. Organisations are also appreciating the value in ASCI’s corporate membership packages with interest returning as businesses return back to form of normality.
In 2022 we continue our commitment to working towards professionalising supply chain management with ASCI’s new Professional Development Colleges. I encourage everyone to work towards their accreditation and registrar under the Professional Accreditation Scheme in your chosen stream. After personally gaining my registration in Operations allowing me now to carry the nominals ‘RegPracOps’. I not only feel a great personal achievement within my chosen industry, it has also provided my career a professional recognition.
ASCI wishes you and your family a safe and Merry Christmas. We hope you are also able to get a break away and see loved ones, if you have like many experienced lock downs throughout the year. We look forward to a prosperous 2022 and seeing you at one of our events or working towards your accreditation. Thank you for your ongoing support to ASCI.
ASCI continues to refine and further develop its Professional Accreditation Scheme and has established four Professional Development Colleges aligned to each of the current registration streams.
The role of the Professional Development Colleges is to be the intellectual custodian of each registration stream, whether that is logistics, procurement, operations management or integrated logistics support.
The Professional Development Colleges are the foundation of ASCI's ongoing learning/Continued Professional Development objectives. The Colleges will be responsible for ASCI's formal definition of the aligned registration stream. They have scoped the respective domains consisting of key elements and focus areas that will structure ASCI's Continued Professional Development and training opportunities.
The Colleges have commenced the development of online resource libraries to support the ongoing learning in each of the streams of registration.
They will also assist the ASCI Technical Committee to ensure that the registration and accreditation processes are consistent with fundamental contextual thinking relevant to each stream and provide further technical advice and inputs to the broader ASCI CPD program.
In future, the Colleges will develop guidance and potential career path illustrations for candidates towards their career development as practitioners in the longer term.
Each College is led by a College Council that is responsible for the functioning and operations of the College. The College Councils comprise Registered Practitioners only, providing an exclusive opportunity for Registered Practitioners to be instrumental in the further development of the scheme.
The four Colleges are:
The establishment of these professional development colleges is a significant step in progressing toward ASCI's objective of professionalising supply chain management. It is the first time in Australia such colleges have been established for supply chain disciplines, and ASCI is excited to lead this exciting opportunity for the supply chain sector.
The ASCI Ethics Committee is inviting members to express their interest in joining the Ethics Committee.
The ASCI Ethics Committee forms one of the critical components of ASCI as a Professional Accreditation Body.
The purpose of the ASCI Ethics Committee is to have the necessary mechanisms in place to ensure that the ASCI Ethics Management Program is designed to have formalised structures for ensuring that ASCI and its members are perceived as fair, honest, responsible, and just. The Committee serves as the ASCI Ethics Management Program; it conveys ASCI’s corporate values and guides ethical challenges.
The Committee comprises of dedicated ASCI Members who bring their own unique set of skills, experience, and gifts to the Ethics Committee and contribute to the development of the Ethics program. The Ethics Committee and Ethics Management Program form an essential element of the ASCI professionalisation program.
The ASCI Ethics Committee members share and uphold the ASCI Ethics Commitment, values, the standard of conduct and professional principles.
For more information please read the ASCI Ethics Committee, functions and obligations of members.
If you are interested in expressing an interest in serving as a committee member, please complete the expression of interest form.
ASCI’s AGM was held on Saturday 6th November 2021 and was open for ASCI members to attend as a guest via Zoom. The following Board Director appointments and farewell took place at the AGM.
Alexandra Riha was re-elected to the Board of ASCI as Director and re-appointed as ASCI President. Alex was initially appointed as ASCI President in December 2019.
Alex brings to ASCI a wealth of industry experience and a genuine passion for the institute and the supply chain sector. "We are committed to creating a recognised Supply Chain profession - enabling individuals and businesses to build sustainable and profitable supply chains", stated Alex. Alex is also registered as an Operations Practitioner under ASCI Professional Accreditation Scheme.
ASCI Treasurer Geoff Palm retired from his position as ASCI Board Director and Education Officer.
Geoff has made a huge contribution to ASCI where he first joined the WA Chapter in 1993 and then became a Director for ASCI and ASCI President in the early 2000's. More recently Geoff has been the ASCI Treasurer, ASCI Education Officer and the person behind the enquiries email and phone. Geoff has not only been an active Board member he has also organised and ran all of the ASCI programs for members throughout the course of the year.
Geoff’s established career in supply chain enabled him to bring his valuable expertise and insights to ASCI while illustrating his commitment to his profession and to the supply chain sector. In addition, Geoff saw and helped guide ASCI through many changes over the years.
Everyone at ASCI would like to thank you, acknowledgement and farewell Geoff for his tireless and ongoing work he has done for ASCI. We wish you Geoff a relaxing retirement however we will no doubt see you at one of our events in the future.
Following Geoff’s retirement, ASCI would like to extend a warm welcome to Michael Harich as Treasurer, and was previously an ASCI Board Director.
Michael took over as ASCI Treasurer on 6 November, following outgoing Treasurer Geoff Palm.
Michael has a long career in the supply chain sector and his experience ranges from sales and business development, solution design, implementation, project management, operational and performance management to controlling and optimisation. While also being active with ASCI, Michael has his own renovation business in Sydney. Welcome Michael and we all look forward to working with you in your capacity as Treasurer.
A/Prof Flavio Macau, lead research investigator and ASCI WA Chapter President, has finalised ASCI’s State of Supply Chain Management Report 2021.
The report highlights are now available, with the full report available for download to ASCI members .
To find out how you can become a member and work towards your professional accreditation contact us for more information.
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