NCS Booklet 2017
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THE NATO CODIFICATION SYSTEM CONNECTING GLOBAL LOGISTICS THROUGH TECHNOLOGY - 1 - 1 www.nato.int/codification - 2 - FOREWORD FROM NATO The North Atlantic Treaty Organisation ensure codification of an item at any time (NATO) Codification System facilitates of its life span. This results in an overall codification services to its 63 partner effective NATO Codification System, nations that form the NATO Codification ensuring that any NCS member nation System (NCS) framework. Its mission is can be confident that they will get the to provide a uniform NATO Codification item they require, wherever they may be System that serves as a global reference operating. standard for materiel identification, and This booklet provides Defence Staffs, represents a key enabler in support of Business Owners, Operators and similar NATO and multinational interoperability, International Organisations, with an NCS and aims at harmonising logistic systems. overview and background, allowing you to Individual National Codification Bureaux better understand the role of the NCS and (NCBs) codify all items manufactured its many Codification Bureaux. It explains within each member nation, sold either how the NCS concept fits within the global to their national defence forces or to logistics system in support of defence international customers from the 63 forces, showing the wide range of vendors partner countries. and partners, both inside and outside of this organisation. Although originally a purely NATO organisation, the NCS is now by far larger If you have any questions regarding the than NATO itself. Over one third of the NATO Codification System, or the work world’s nations belong to the system, of the NCBs, please do not hesitate and thereby encouraging interoperability contact your National Codification Bureau, and fostering standardization, as a lever they are always available to assist in any to ease joint deployments and offer way they can. a general logistics melting pot for all potential partners and allies. Mr Ernest J. HEROLD, Deputy Assistant Secretary General; The NCS has been the chosen method for the identification of all managed stock Defence Investment Division; items since its first development soon after NATO HQ WWII. By creating an effective relationship between the military and its suppliers, and ensuring proper codification, the NCS has become a critical enabler for international and multinational military organisations to effectively manage stock and maintain an effective armed force. Internationally, the role of an NCS nation is to work with their own industrial base to - 3 - FOREWORD FROM CHAIRMAN OF THE NATO GROUP OF NATIONAL DIRECTORS OF CODIFICATION (AC/135) On behalf of the NATO Group of National Moreover, in December 1957 the NATO Directors of Codification (Allied Committee Council established AC/135, and today 135), it gives me a great pleasure to we continue to expand the Codification welcome you to the guide to the NATO spectrum in providing the data required Codification system. to support combat readiness and interoperability. Codification touches virtually every area of the supply chain: in practice it Once again I welcome you to this guide addresses the challenge to correctly and I hope that you and the organisation identify material and exchange complex you represent will benefit from this technical data regardless of language study into the world of the NATO barriers. The technological support is a Codification System. key enabler to codification success, thus it’s important that all parties involved Thierry Vanden Dries in realisation of codification recognise Chair NATO Allied Committee 135 this including: codification project leaders, technology experts, operations managers and specialists with a dedicated codification interest. Originally a purely NATO organisation, the codification system is now far larger than NATO itself, 63 nations belong to the system which has become a common supply language throughout all logistics operations. The NCS managing committee highlights the importance of economic developments, thus aspiring to engage in direct dialog with industry partners to promote codification practices and to present the complete set of functionality and the associated benefits. - 4 - CONTENTS Foreword From NATO 03 The myth of the manufacturer’s part number 22 Foreword From Chairman of the NATO Allied Committee 135 The NCS Concept 22 (NATO Group of National Directors Fit, Form and Function 23 of Codification) 04 NATO Stock Number (NSN) 24 Contents 05 NATO Commercial and Government Codification in the 21st Century 07 Entity code (NCAGE) 26 Overall Findings 08 Codification Contract clause The job of the National requirements 27 Codification Bureaux (NCBs) 10 National responsibility 27 The NCS, its national codification Data requirements 28 bureaux and industry 11 NATO Master Catalogue of The Relationship between the NCS, Reference for Logistics (NMCRL) 29 the NCB, the national defence force and industry 11 In physical terms 29 The NATO Codification System (NCS) 13 Structure of the NMCRL 29 The capabilities of codification 14 NMCRL Web 31 What is codified 16 In summary 35 COTS 16 FAQs 36 Exceptions 16 In conclusion 38 Task 16 Case studies 39 In Summary 17 Abbreviations in use in this document 44 Principle aims of the NATO Codification System 18 In Summary: 18 Membership of the NATO Codification System 19 The World According to Codification 20 Strategic objectives of the NCS 21 - 5 - - 6 - CODIFICATION IN ST THE 21 CENTURY Logistics staff often take it for granted The purpose of this guide is to introduce that the NATO Codification System the reader to the complexities and (NCS) is recognised as important to the opportunities of the NATO Codification advancement of logistics, but they do not system, to show the importance of often state the reasons nor understand technology in the system and to allow the how the system works and the gains that reader to see the value codification adds can be made by adopting the newest to the logistics world. technological changes. The purpose of this guide is to provide a review of the technological advances that the NATO Codification System (NCS) brings to a country’s logistics operations and to the NATO alliance and its partners. Codification touches virtually every area of the supply chain: in practice it addresses the challenge to correctly identify material and exchange complex technical data regardless of language barriers. The technological support is a key enabler to Codification success. Codification impacts upon all parties involved in realisation of logistics support, whether it be to the military or other governmental organisations, in conflict or disaster relief, in industry or commerce. - 7 - THE BENEFITS OF CODIFICATION A study carried out on behalf of the NCS • Other related benefits make the case governing committee, AC/135 by LSC for codification even more favourable Consulting of the UK identified a number ◦ inventory reduction of specific issues surrounding the benefits and cost avoidance directly attributable to ◦ reduction in warehousing costs the operation of the NCS. ◦ lower purchase prices per item The primary questions to be answered by through purchasing larger, the study were: consolidated volumes of items • Is codification providing value for ◦ shorter re-supply times money? ◦ ability for different nations to share • Is the NATO Stock Number (NSN) a supply chains unique mechanism by which to achieve ◦ ability for different nations to share the relevant identification requirements inventory or are there alternatives? ◦ the recognition by Industry of shared • Does codification ultimately contribute benefit through using the system. to the operational effectiveness of military capability? • Is there a definitive view of the benefits of codification, settling the debate once and for all? OVERALL FINDINGS • The prevention of unnecessary inventory growth by the use of accurate codification is alone sufficient to justify the total cost of the Codification System within Defence logistics. - 8 - ITEM OF PRODUCTION VS ITEM OF SUPPLY Item identification is the most important The system employs rules for “naming” element of the codification system each Item of Supply using standard because it establishes a unique naming conventions to ensure uniformity identification for every Item of Supply. among users. The NCS controls these The identification consists of the minimum naming conventions using a dictionary of data required to establish clearly the Approved Item Names. Each approved essential characteristics of the item, i.e., name is given a five digit numeric code. those characteristics that give it a This code-based system provides for easy unique character and differentiate it from translation and communication between all others. nations in varying languages. After an item has a name, a suitable supply The NCS identification process is based classification is determined. on the “Item of Supply” concept. The term “Item of Supply” refers to an item required for acquisition in order to satisfy a logistics need. It can consist of one or many “Items of Production” having equivalent “fundamental characteristics”. This is the primary driving principle behind the NCS, the recognition that many manufacturers may each make an item of production but all of them conform to one Item of Supply. This means that the principles of interoperability, multinational logistical support and effective inventory management all drop out of one simple number. - 9 - The real