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PER/AO/8642/07

LOGISTIC MANAGEMENT IN THE MALAYSIAN ARMY :

TO WHAT EXTEND HAVE WE PROGRESSED

INTRODUCTION

1. Logistic play a vital role assisting the commander to sustain the battlefield in order
to have a good result in their war campaign. Without logistics, the battle group can’t prolog
the battle and can cause the defeat for the troop in battlefields. What is the definition of
logistic management? Logistic management can be defining as a process of planning,
organizing, leading and controlling for equipment, transportation, and service. Some
researcher said the logistic management is an organization plans their provision, assets,
services, equipments and their budget to the maximum usage and at the same time can
reduce the damage of products.

2. Revolution in military logistic has been design for the Malaysian Armed Forces
especially the Malaysian Army to organize the capability and resources in logistic in order
to enhance the logistic toward the new millennium. In order to become the most credibility
army, the planning in term of logistic modernization aspect in army has been design and
been practiced.

3. Malaysian army has been set up to achieve our readiness of logistic support target
that is 80 percent at all time. Through the research made by all formation, our readiness is
about 70 to 75 percent. The research also found some major constrains that be an important
reasons why Malaysian Army failed to fulfill the level of readiness target such as budget
from Ministry of Defense and the quality of the products.

AIM

4. The aim of this paper is to highlight the achievement or extent that Malaysian Army
has progressed in logistic management.

SCOPE

5. The scope of this paper will cover as follows:

a. The achievements and planning that has progressed.

b. The problem facing and solutions in logistic management.

c. Conclusion.

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THE ACHIEVEMENTS AND PLANNING THAT HAS PROGRESSED

6. Malaysian Army in new millennium is focusing more in their modernization in order

to achieve the readiness of logistic support target. Logistic planning and the implementation
have been made in term of mobility, firepower, communication and material.

a. Mobility. In term of mobility, Malaysian Army is expecting in receiving

new vehicle for replacement old vehicle that is not suitable anymore in economic
wise. Other than that, army also has the relationship with Local Defense Industri in
Research and Development (R&D) in order to make the mobility in army is more
modern. Army is also prepared the Life Extension Programmed for the vehicle that
still being using. The purpose of this programmed is just to ensure the life extension
for the vehicle is can be extend and more effective to suit with the requirement for
Malaysian Army.

b. Fire Power. In order to make the army more affective and be able to
conduct the operation in conventional warfare such as single service operation or
joint operation, the implementing of the state of the art in term of new weapon
system has already being developed. Most of the unit has given with the modern
weapon such as new tank and ADNAN mechanized battalion, modern artillery gun
system and vehicle which can fix with the gun.

c. Communication. Army is more concern of the ability of their personnel

to operate the new system especially in conducting the new device such as
communication system and all system that all computerized. Therefore, Army has
enforced the information technology (IT) as a tool in management. Computerized
Information System especially for logistic has already implemented in army such as
SISPIK, SPMTD and CODIMS. The development and enhancement of the system
is more important in order to optimize effectively the scares resources. So this
system can implement effectively and every logistic decision can be more
competent.

7. In order to ensure the logistic support goes together with new structure of
Malaysian Army, new organization has been plan for the better man logistic support in the
field by developing Area Logistic Command. This organization is available at every area
command and responsible for logistic is also in progress for the new infrastructure.

8. However economic downturn late 1990's has influence on the logistic planning and
it slows the process of getting new capital. Therefore all the planning has been postponed
the implementation until the Eight Malaysian Budget (RMK 8). It also effect on the
infrastructure development where all the privatize project has been postponed.

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9. To ensure of the life of expansion of the equipment is not the new agenda especially
when it occur during the economic downturn. The enforcement in logistic management by
Standard Operating Procedures (SOP) has already existing long time ago and this system
offer a good life of expansion for the equipment if it has been followed. A control agency
(Logistic Department) which the task is to ensure all the instruction are follow and all the
weaknesses is to overcome very detail. There are many vehicles and equipment is still can
be use even though the life of the equipment already beyond the capabilities.

10. Scheduled maintenance and corrective maintenance is us as a strategy to ensure the

life of expansion for the equipment and vehicle still remain and also as a yard stick to
enhance the effectiveness of the maintenance system. Beside that, the total quality
management (TQM) to be adapts in logistic management continuously and also to generate
the new idea to keep the excellence of logistic management. The most important things to
keep the life of expansion for the equipment are to impart the maintenance culture and
concept of ownership to each individual so they can think that the equipment is belonging
to them.

11. To ensure that all the formation and headquarters receive the logistic supply within
the timeframe is not easy because it need a proper planning and logistic management.
Therefore army has started to introduce the regionalize logistic supply which all the system
of supply has cut short in order to give the logistic support at the right, right place and right
quantity. Direct delivery from supply chain is implemented and it solved many problems
because this system is able to ensure the supply received quickly.

12. The army also plan to come out with wholesale concept system in the ordnance
depot. The individual will change their equipment direct to ordnance (KOD) as one to one
basis. This system also can let the individual to get their equipment on time without waiting
for a long time to get the clearance and exchange process. This system is not only focusing
directly as customer focus but it can also save the government money and prevent another
hidden cost as well as the unit can focus more on their core business functions effectively.

13. The most critical point is to ensure the supply receive immediately and balance. In
order to overcome this matter, computerized management information system (SPMTD) is
fully implement started in the year 2000. This system enable the logistic management staff
can make the planning and decision correctly. System CODIMS 111 also concern to all
deport rerunning as on real time. This system is more accurate in terms of receiving part
accurately and save cost. Beside that, logistic management also can transfer stock from
deport in order to ensure that the stock which not been using at certain deport can be pass
around to another deport.

14. Malaysian army has plan to privatization the commodity management by no more
keeping or handling any stock commodity. All the requirements will be manage as
privatizations in order to reduce the cost and human resource. The concept of out sourcing
which all the supply is coming from outside and unit will get the equipment as just in time
without taking any longer time.

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THE PROBLEMS FACING AND SOLUTIONS IN LOGISTIC MANAGEMENT

15. Logistic problem is always occur not in the Malaysian Army environment but also
faced by majority armed forces in the world. As far as Malaysian Army concern, the
problem in logistic is because of lack budget. To overcome this problem, army has
classified the unit equipment store to ops Vital, Ops Essential and Ops Desirable. In order
to make the logistic staff will be more concern to equipment which really important for
unit. It also can make the logistic staff to reduce the expenses.

16. The best example that we can see is there are serious problem regarding problem
regarding the financial allocation that have been given for the clothing provision is less
than the allocation demanded by the ordnance to fulfill the need of all soldiers. According
to the Chief Group of Ordnance, Kol Ng Chin Huat, the allocation received is just RM 65
million compared the total allocation demand is RM 150 million.

17. In term of spare parts, the concentration on receiving the services spare parts and
fast moving only in order to overcome the shortage. The introducing of outsourcing of
spares also has introduced. This concept can help the army to get the spare parts very fast.
To achieve the continuation of contract so there is no shortage in spare parts. Furthermore,
army has also need the extra allocation for basis equipment and also requirement of Ops
Vital.

18. Human resources development especially for logistic staff in operating the new
system and technology. Expertise development is continuously where logistic staff was
trained in army training institution and also in university. Therefore logistic staff are to
encourage enhancing their expertise and skill in order to operating the new system in the
logistic in the future. Furthermore, army also signing the MOU with local defense industry
to trained the logistic staff in their industry. Other than that, army is always offering to their
logistic offering and subordinates to gain their knowledge and expertise in local university
or overseas.

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CONCLUSION

19. The planning and the implementation in logistic management are very important to
ensure the readiness of army in term of mobility, fire power, communication and material for
the purpose of defense the beloved country. With the good progressed that we implement and
achieved, army will definitely achieve the readiness of logistic support target that 80 percent
at all time. New logistic organizations has been planning in order to ensure the logistic
support goes together with new structure of Malaysian Army. Army can be proud to
themselves because their logistic management is going toward the positive ways even
through there are still few problems that they have to face.

February 2007

MUHAMMAD SHAM BIN ALI

Kapt
Student Of Admin Course Serial 1/2007

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BIBLIOGRAPHY

1. Berita Tentera Darat, Pengurusan Logistik. May 1999.

2. Berita Tentera Darat, Logistik Dalam Ordnans.September 2004.

3. Buletin Ordnans, Cabaran-Cabaran Dalam Logistik. Oktober 2004.

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