Logistics Command

Defence Logistics System and Defence Forces Logistics Command

Defence Attachés accredited to Tampere, 13 September 2017

Major General Timo Rotonen Chief FDFLOGCOM

FDF Logistics Command UNCLASSIFIED Outline

Part 1: The Finnish Defence Forces and the logistics system after the defence reform

Part 2: FDF Logistics Command

Part 3: Joint logistics services

Part 4: Materiel Procurements and System Overhauling

FDF Logistics Command UNCLASSIFIED 2 Part 1

The Finnish Defence Forces and the logistics system after the defence reform

FDF Logistics Command UNCLASSIFIED 3 Establishment of the Logistics Command

Army Material Command

Navy Material Command

Air Force Material Command FDF Logistics C5 Agency's Project Unit Command

Centre for Military Medicine

Logistics School

The largest project in Defence Forces Reform 2015

FDF Logistics Command UNCLASSIFIED The Enabler

DEFENDING SUPPORT PARTICIPATION IN PARTICIPATION IN FINLAND’S TO OTHER INTERNATIONAL INTERNATIONAL TERRITORY AUTHORITIES ASSISTANCE CRISIS MANAGEMENT AND ITS CITIZENS

FDF Logistics Command UNCLASSIFIED The Peace-time Establishment 2015

CHOD Active Duty Personnel ~12 000 + annually Defence ~21,000 conscripts Command ~18,000 reservists

C5 Agency Research Agency Defence Intelligence Agency Logistics Command Shared Services Centre

National Defence Navy Air Force Army University Guard Karelia Air Karelia Pori Kainuu Armd Jaeger Utti Jaeger Army Coastal Fleet Jaeger Command Bde Bde Bde Bde Bde Academy Regt Regt (SOF) Coastal Brigade Lapland Air Regional Regional Regional Regional Regional Regional Regional Command Offices Offices Offices Offices Offices Offices Offices Uusimaa Brigade Satakunta Air Command Naval Academy Air Force Academy

FDF Logistics Command UNCLASSIFIED Part 2

FDF Logistics Command

Commander Heikki Lamminen Chief Administration Division

FDF Logistics Command UNCLASSIFIED 7 Tasks of the Logistics Command

1. Logistics Operational Readiness 2. Logistics Services 3. Life-Cycle Management

The Logistics Command is to create the prerequisites for the use of capabilities and the implementation of operations regardless of the state of readiness or the operating environment.

8 FDF Logistics Command UNCLASSIFIED Defence Forces Logistics Command

 approx. 2 200 employees  permanent facilities in 38 municipalities Chief

Deputy Chief

Director of Finance Headquarters

Logistics School

3rd Logistics 3rd Explosives’ Regiment Joint Systems 1st Logistics 2nd Logistics Explosives Centre for Military Logistics Centre Centre Regiment Regiment Centre Medicine Regiment

FDF Logistics Command UNCLASSIFIED 9 Appropriation

The Logistics Command's appropriation is approx. €1.5b a year

0,3 %

16,8 % million euros Infrastructure 258,9 34,6 % Operational costs 616,3 Salaries 130,2 Defence materiel 534,9 39,9 % Crisis Management 4,9 8,4 %

10 FDF Logistics Command UNCLASSIFIED Logistics Command personnel

Personnel groups 1. Officers 6 % 2. Officers (eng.) 13 %

3. Warrant officers 8 %

4. NCOs 4. Civilians 7 % 66 %

Women 30%, men 70%

FDF Logistics Command UNCLASSIFIED 11 Development potential

• Improvements in the consolidation phase 2015 - 2017 • streamlining financial planning • improving procurement process and information system (SAP SRM) • improving materiel life cycle management

• Identified development areas • simplification of the process to collect information on the customer's needs in regards to materiel and service • developing the information systems and their use • developing the acquisition process

• A medium-term development plan derived from upper level strategies

FDF Logistics Command UNCLASSIFIED 12 Part 3

Joint logistics services

FDF Logistics Command UNCLASSIFIED 13 Joint Logistics Services / FDF LOGCOM

• Procurement (over 60,000 euros) • Ammo storage and supply • POL Supply • Maintenance via Systems Centre and Strategic Partners • Life Cycle Management • Strategic Movement and Transportation • Medical Services (Military Medical Centre) • Real Estate Management • Environmental Protection

Though, Unit level logistics belongs to units. Also, maintenance in regards to wartime troop production has larger responsibilities

FDF Logistics Command UNCLASSIFIED Fundamentals of Logistics in the FDF

1. The military component 2. The civilian component

The Military Component The Civilian Component

Strategic level Operational level Tactical level Technical level

”Factory” ”Foxhole”

FDF Logistics Command UNCLASSIFIED 15 Way ahead

• More agility

• More efficiency

• Reduced Logistics footprint

• Environmental Protection

• Better situational awareness

• Safe Ammo storage

• Improved personnel competence

FDF Logistics Command UNCLASSIFIED FDF Logistics Command UNCLASSIFIED 17 Finnish Defence Forces Logistics Command

Materiel Procurements and System Overhauling

Defence Attachés accredited to Finland Tampere, 13 September 2017

Colonel Petri Lammi Chief,Joint Systems Centre

FDF Logistics Command UNCLASSIFIED Outline

Part 1: Joint Systems Centre

Part 2: Capability Development and Materiel Procurements

Part 3: Strategic Partners and maintenance

FDF Logistics Command UNCLASSIFIED 19 Part 1

Joint Systems Centre

FDF Logistics Command UNCLASSIFIED 20 Defence Forces Logistics Command

Chief

Deputy Chief Headquarters Chief Financial Officer

Logistics School

1. 2. 3. Joint Systems Explosives Centre for Military Logistics Logistics Logistics Centre Centre Medicine Regiment Regiment Regiment

FDF Logistics Command UNCLASSIFIED 21 Joint Systems Centre

Chief

Deputy Chief

Administrative Division

Land Maritime Air C4ISR Project Systems Systems Systems Systems Division Division Division Division Division

FDF Logistics Command UNCLASSIFIED JSC tasks and duties

The Logistics Command

The FDF Logistics Command is to

1. Provide logistics services 2. Procure materiel and services 3. Manage the lifecycle of materiel, inc maintenance 4. Organize medical health care 5. Manage real estate and facility management 6. Provide technical expertise

The Defence Forces Logistics Command is to create the prerequisites for the use of capabilities and the implementation of operations regardless of the state of readiness or the operating environment.

FDF Logistics Command UNCLASSIFIED 23 JSC fact sheet

 Personnel. 516 employees  Professions  28 officers  167 ENGO  17 WO  304 civilians  Gender  17% women  83% men  Permanent facilities in 5 locations  Tampere Air Systems Division

 Vuores Administration division  Tikkakoski Project division Army systems division  Turku C4I systems division  Riihimäki Air Systems Division

C4I Systems Division Navy Systems Division

FDF Logistics Command UNCLASSIFIED Procurement and maintenance Budget 2017 (M€)

Annual budget 1 557 M€ by budget sources

Crisis Management Others

Capability System Development overhaul and and maintenance Procurements

FDF Logistics Command UNCLASSIFIED 25 Part 2

Capability Development and Materiel Procuremens

FDF Logistics Command UNCLASSIFIED 26 Strategic planning cycles

Government 2007-2011 Government 2011-2015 Government 2015-2019 Government 2019-2023

White White White White Paper Paper Paper Paper 2009 2012 2016 2020

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

PAG MOD MOD MOD Strategy 2030 2013-2014 Strategy Strategy

FDF Desired FDF Desired FDF Desired FDF Desired End State 2025 End State 2030 End State 2036 End State xxxx

Defence Defence Concept Concept

CDP CDP CDP 2013-2024 2017-2028 2021-2032 CDP = Capability Development Programme PAG = Policy Advisory Group Devel. Devel. Devel. ("Kanerva's Committee") Plan Plan Plan

Strategic Strategic Strategic research 2030 research 2036 research 2040

FDF Logistics Command UNCLASSIFIED 27 From Capability Definition to Procurement

Defence system desired end state Process owned by J5 – Based on White Papers, CHOD and system requirements guidance and Defence Forces strategy work.

Defence Forces' Required capabilities are developed into programs. A program covers all elements required for the use of Capability Development Programme a capability (DOTMLPFI). Work lead by J5.

Defence sub-system Capability Development Program subdivides into nine development programs, each owned by a service branch development programmes (9 ea) or a department of the Defence Command.

Tasking from Capability Owner Capability owner tasks the Logistic Command to procure to Logistics Command the required materiel and build a sustainment system.

Procurement of materiel and Logistics Command procures the materiel and creates a sustainment system that meets requirements for creation of sustainment system independent operations.

FDF Logistics Command UNCLASSIFIED 28 Role of Ministry of Defence

− Leads the defense materiel policy

− Directs materiel projects

− Reviews all over 4 million euro procurements and passes them to the Minister for approval

− Directs international armaments cooperation

− Acts as the export control authority for defence materiel

FDF Logistics Command UNCLASSIFIED 29 Defence Procurement

Administrative Units Logistics Command • Civilian procurements below national • All defence and security procurements threshold value (60 000 EUR) • All other defence materiel • Procurements based on annual or procurements framework agreements • All civilian procurements above national threshold values, which are not based

on annual or framework agreements

NOTES: • Establishes and manages annual or • All procurements over 4 MEUR are reviewed framework agreements by MoD Commercial Board and approved by • Manages cooperation with government the Minister • All property management services are central procurement body Hansel

procured by Logistics Command

• All sales are executed by Logistics Command (including services)

FDF Logistics Command UNCLASSIFIED 30 Main Ongoing Procurement Programs

AGM-158 Joint Air-to-Surface Standoff Missile (JASSM) - Integration test flights ongoing at NAS China Lake, CA - Live fire planned for Q3/2017

Leopard 2A6 - Deliveries for 100 surplus units from the Netherlands ongoing - Final delivery 2019

NH90 Tactical Transport Helicopter - All 20 helicopters have been delivered - Early deliveries being retrofitted to FOC configuration

K9 Thunder Self-Propelled Howitzer - Contract signed for 48 surplus units from - Deliveries starting 2017

Squadron 2020 Multi-Role Corvette - Entering basic design and combat system procurement phase - Four ships planned, deliveries starting 2021

Program HX, Replacement of F/A-18C/D Hornet - RFI responses received, RFQ out Q2/2018 - Deliveries planned 2025 – 2030

Graphics: MTV Oy FDF Logistics Command UNCLASSIFIED Part 3

Strategic partners and Maintenance

FDF Logistics Command UNCLASSIFIED 32 Strategic Partners

• Strategic Partners: Certain domestic industry partners who also have a wartime role – Partnering is defined in MoD level strategies

• Key features of the Strategic Partnership are formalised in a Strategic Partnering Agreement – Long term relationship between the FDF and the Partner – Well-defined roles and mandates – The partner has a critical war-time role in supporting the FDF – Broad information exchange and common development targets covering also readiness planning

FDF Logistics Command UNCLASSIFIED 33 Examples of Strategic Partnering

Army and Navy maintenance

Air Force maintenance

Catering services

Munitions

Real estate management

Secure network operations

FDF Logistics Command UNCLASSIFIED Roles in Maintenance

Defence Command – Prioritises and approves Services' utilisation plans – Determines resource allocation

Service Commands Logistics Command – Set operational requirements – Performs life cycle and – Set usage volume and maintenance planning availability requirements – Performs materiel functions (partly) and procurement

Operating Units – Line maintenance: checks, replenishments

Industrial Partners – Shop level maintenance, repairs, modifications – Equipment maintenance and repair

FDF Logistics Command UNCLASSIFIED Two level maintenance concept in FDF

LEVEL 2

• Special tools, facilities and unique spare INDUSTRIAL MAINTENANCE parts also on component level (Partners like MILLOG, PATRIA, • e.g. complex maintenance, modernizations INSTA) and MLUs, spare part management

• Own tools and spare parts as well LEVEL 1 resources by organic units USER LEVEL SERVICE • e.g. Trouble shooting, simple periodical (Field Maintenance) and corrective maintenance with replacement • Responsibility to maintain and develop own capabilities and forces for maintenance

FDF Logistics Command UNCLASSIFIED Maintenance outsourcing: positive experiences

+ Clear customer - service provider -model + Better cost effective + Faster response and increase in flexibility + Improved cost awareness within Defence Forces + Improved quality of the maintenance + Better situational awareness (spare parts, availability) + Improved planning procedures inside FDF + Standardization of maintenance for the first time! + Improved life cycle management + Co-exercises  Better war time readiness

FDF Logistics Command UNCLASSIFIED Maintenance outsourcing: some challenges

- At a very beginning - internal resistance to change

- Know-how of maintenance on practical level may decrease in FDF - Lack of responsibility when using equipment - Reporting of system awareness (ICT challenges) (SAP) - Responsibilities ( Performance, System and Maintenance) - Diversity between the User level (field maintenance) and the Industry level maintenance need to be determined case by case

FDF Logistics Command UNCLASSIFIED 38 Way ahead

 Readiness first  To develop situational awareness in material and systems  To buy operational readiness  To reduce overlapping  To develop storaging and spare part logistics  ”Joint use” CIS  To deepen partnership  Increase trust between the FDF and Partners on every level  To develop personnel competence

FDF Logistics Command UNCLASSIFIED FDF Logistics Command UNCLASSIFIED 40