Should the outsourcing of the clothing function be relaunched?
A project abandoned in 2013
Based on the realisation that the clothing function generated significant additional costs, the decision was reached in 2010 to consider its outsourcing by entrusting its management to the private sector, which would be responsible for creating, storing and distributing military clothing on the basis of a digital management and ordering system and looking after the human services provided by the MO. The management of clothing of “critical operational importance” was to be carried out under state control in view of the responsiveness required from backup armies called upon to intervene at very short notice in multiple theatres of operations. This project was to result in the loss of the equivalent of 869 full-time jobs.
The Senate report in 2013 indicated that the gains expected from the outsourcing of the clothing function (approximately 350 million Euros) were estimated at 21% with those stemming from rationalised optimised management (ROM) standing at 13%.
The outsourcing project allowing for the organisation of functions by focusing on cost management and importing best professional practice resulted in a good deal of harmonisation in army clothing such as certain dress uniforms, provided that this did not call into question the identify of different armies, standard service (mid-season jackets, regulation parkas, shirts, shoes) and specific combats under similar conditions (effects of combat and flight, underwear, “multi-layer concept”); a single clothing catalogue was therefore established on the basis of standard allocations which constitutes a reference system for joint task forces for their planning and acquisition activities (over 50% of all listed items are common to at least 2 armies). This harmonisation may also result in the use of variants based on the same technical documents which fulfil user requirements with a product which is similar to an existing item.
After consultation with Defence staff and trade unions, the Ministry of Defence decided in 2013 not to opt for outsourcing but instead for the ROM project coordinated by the SCA whose aim was to establish contracts based on joint warfare (planning in 2012 for clothing supplies provided for the conclusions of approximately 67 contracts of which 46% were based on joint warfare and 54% on a single specific army), reduce stock (evaluated at around 800 million Euros) and storage sites and establish an efficient management logistics information system.
Outsourcing within the framework of the optimisation of resources to support Armies
The Ministry of the Armed Forces is continuing with its plans to modernise and enhance the professionalism of armies and in this context is considering the suitability of the support offered for the challenges facing developments in the armed forces. In particular, the decrease in SCA employee numbers within the framework of the refocusing of Army troops on general operations and conclusions favouring outsourcing should help to “get back down to business in this area”. This project was abandoned in 2013 but may be reconsidered as part of the forthcoming strategic review in the context of the law on military programming.
Clothing could be an area which will be given special attention authorising a transfer of expenses to the operational sector. Outsourcing could offer a general service to fulfil the requirements of all the players represented by the SCA, namely the land forces, the air force, the navy and the joint services. The following targets could be set:
Based on the realisation that the clothing function generated significant additional costs, the decision was reached in 2010 to consider its outsourcing by entrusting its management to the private sector, which would be responsible for creating, storing and distributing military clothing on the basis of a digital management and ordering system and looking after the human services provided by the MO. The management of clothing of “critical operational importance” was to be carried out under state control in view of the responsiveness required from backup armies called upon to intervene at very short notice in multiple theatres of operations. This project was to result in the loss of the equivalent of 869 full-time jobs.
The Senate report in 2013 indicated that the gains expected from the outsourcing of the clothing function (approximately 350 million Euros) were estimated at 21% with those stemming from rationalised optimised management (ROM) standing at 13%.
The outsourcing project allowing for the organisation of functions by focusing on cost management and importing best professional practice resulted in a good deal of harmonisation in army clothing such as certain dress uniforms, provided that this did not call into question the identify of different armies, standard service (mid-season jackets, regulation parkas, shirts, shoes) and specific combats under similar conditions (effects of combat and flight, underwear, “multi-layer concept”); a single clothing catalogue was therefore established on the basis of standard allocations which constitutes a reference system for joint task forces for their planning and acquisition activities (over 50% of all listed items are common to at least 2 armies). This harmonisation may also result in the use of variants based on the same technical documents which fulfil user requirements with a product which is similar to an existing item.
After consultation with Defence staff and trade unions, the Ministry of Defence decided in 2013 not to opt for outsourcing but instead for the ROM project coordinated by the SCA whose aim was to establish contracts based on joint warfare (planning in 2012 for clothing supplies provided for the conclusions of approximately 67 contracts of which 46% were based on joint warfare and 54% on a single specific army), reduce stock (evaluated at around 800 million Euros) and storage sites and establish an efficient management logistics information system.
Outsourcing within the framework of the optimisation of resources to support Armies
The Ministry of the Armed Forces is continuing with its plans to modernise and enhance the professionalism of armies and in this context is considering the suitability of the support offered for the challenges facing developments in the armed forces. In particular, the decrease in SCA employee numbers within the framework of the refocusing of Army troops on general operations and conclusions favouring outsourcing should help to “get back down to business in this area”. This project was abandoned in 2013 but may be reconsidered as part of the forthcoming strategic review in the context of the law on military programming.
Clothing could be an area which will be given special attention authorising a transfer of expenses to the operational sector. Outsourcing could offer a general service to fulfil the requirements of all the players represented by the SCA, namely the land forces, the air force, the navy and the joint services. The following targets could be set:
- Securing of supplies for French armies and preservation of skills and jobs in France.
- Being in a position to support armies effectively in the management of product developments in the future.
- Developing a strong, sustainable set of skills in order to guarantee product quality.
- Analysing all the available data and developing annual flow forecasts in order to structure the service range and its organisation.
- Developing a partnership based on professionalism, respect and trust in order to guarantee sustainability and allow for the pooling of individual skills for the benefit of the project.
Outsourcing could cover the following areas:
- The production and supplying of products;
- Logistics;
- Local service;
- The development of new products;
- Recycling.
Outsourcing allowing for the development of French industrial facilities
The strategy promoting the production and quality of supplies is based on the establishment of a group of French manufacturers which will be able to develop thanks to:
- The identification of synergies based on the creation of a common structure associating the operator with industrial partners within an EIG (Economic Interest Grouping) to bring together all “innovation seeking” skills and technical resources;
- The capacity of a research department to design, develop and prepare the industrialisation of all types of clothing. This research department will possess the necessary skills and resources in terms of sponsorship, grading and prototyping as well as quality control;
- Significant volumes with French manufacturers within the framework of a partnership.
- Volumes which are open to other suppliers (in particular within Europe) who are present on the market and focus on quality.
- Recognised manufacturers who act as partnership in charge of production and R&D. They are not considered as simple suppliers or executing subcontractors.
- The contracting terms mean that a competitive position can be maintained in the market in the long term. A percentage of each segment attributed to partners is open to competition in order to maintain economic pressure and not to close the market to newcomers.
- The grouping is to create a network of local agencies for the issuance of clothing and the provision of appropriate services for the training offered. The geographical distribution of the agencies must be consistent with the cartography of Defence Bases. These agencies are designed to act as unique clothing service offices which are capable of providing all the necessary services (taking measurements, issuing products, personal services, returns, operational notifications, etc.).
Conclusion
When the French armies are faced with numerous challenges in terms of maintaining their operational capacities whilst optimising costs, the outsourcing of the army clothing function could allow for a three-fold approach which would be beneficial for the Defence community as a whole:
- Refocusing troops on operational duties,
- Optimising costs,
- Maintaining and supporting the development of French industrial facilities in the area of textiles.
The main issue is not to determine whether or not the system applied in 2013 fulfilled expectations. Thanks to the ROM project, the CESCOF significantly improved the management of its area of expertise. The issue is rather one of determining whether outsourcing would enable the Ministry of the Armed Forces as a whole to move forward in the optimisation of resources for supporting the forces and would encourage the tightening of links between French and European manufacturers within the framework of the European project.