1. Prepared for: Host Nation Conference GQA June 2008 NAMSA Transformation Mr Nico Oorebeek

2. TRANSFORMATION Unique in space and timeContinuous for life…..

3. What is transformation ? • Substantial and lasting change • Driven by external factors • Forced to adapt to stay relevant

4. Why transformation ? Geo Political change Security threat change Technology change Socio-economical change

5. What do we want ? • Stay RELEVANT • A more modern and more responsive NAMSA at an overall lower cost

6. Scope of transformation Stream A Adopt Modern Logistics Concepts • A1 Logistics Support Concepts • A2 In-Theatre Logistics Support • A3 Business model(s) • A4 Logistics Capability Support • A5 IS architecture • A6 Inventory Management • A7 eLogistics • A8 Public Private Partnerships

7. Scope of transformation Stream B Modernize Business Management • B1 Activity Based Costing (ABC) • B2 Balanced Score Card • B3 Controlling • B4 Customer Value Model • B5 Management Culture • B6 Electronic Office • B7 Organizational Alignment

8. NOT on Target, but not critical NOT meeting expectations ON Target

9. Structured approach to transformation PHASED APPROACH STREAM AAdopt Modern LogisticsConcepts I II III IV V AS-IS TO-BE GAP BC IMP Ongoing project activities Ongoing project activities InitialImplementation Ongoing project activities ApproveBusinessCase Analysis &Decision STREAM BModernize Business Management Analysis Definition Phase START 2005-2006 Phase I ongoing2006 Phase II May2007 Phase III Autumn 2007 Phase IV Autumn 2008 Phase V ongoingand 2009

10. Findings A1 • In 50 years NAMSA grew from a materiel distribution centre to • Multi-national logistics facilitator

11. Findings A1 • 1958-1968 Materiel Distribution Centre • 1968-1975 Materiel Support Centre • 1975-1985 Weapon Systems Mgt Support • 1985-2000 Logistics Support Provider • 2000-2008 Multi-National Logistics Facilitator

12. Findings A1 Focus :In-service support weapon systems Tasks :Supply, Maintenance, Technical Support 1958-1985 Capabilities :Bespoke Central IT software Dial up, point-to-point communication No or Limited office automation Focus :Logistics Support Provider Tasks :Supply, Codification, Maintenance Technical Support, Procurement, Config Mgt, Strategic lift, UOR, In-theatreSupport, Acquisition 1985-2008 Capabilities :ERP and dedicated IT software internet and dedicated communication Full suite of office automation

13. Future environment Focus : Multi-National Logistics Facilitator Tasks : In-Theatre Support, UOR, Strategic Lift CRO (Disaster & Humanitarian), NATO Common Defence Initiatives, Environmental control and RecyclingSupply, Maintenance, Technical servicesMulti-national codification, EngineeringInfra structure support & acquisition 2008-2015 Capabilities :Full Business Partner integration & e-Logistics ERP and dedicated IT software Enterprise Content Management Internet and dedicated communication Full suite of office automationMobile global information & com capabilities

14. Main Focus • Performance based logistics • Synergetic effect of in-theatre experience • Defining customer service products • Measurable Performance • Customer satisfaction • Financial turnover, Cost, Time, Quality and Added Value

15. Controlling • As part of management Controlling takes into consideration • systematically and consistently • ALL aspects related to the effective and efficient use of “resources” in the achievement of business results • In accordance with strategic goals

16. Tools and concepts • Product Based Costing • Balanced Score Card • Customer value Model

17. Process Review • Business processes • Administrative management processes

18. Travel on Duty process • 3600 travel orders (TDY) annually • Admin time spent per TDY order • authorization and reimbursement claim • NOW 12 hours • NEW PROCESS 7 hours • Total administrative cost • NOW 2.2 Million Euro • NEW PROCESS 1.4 Million Euro

19. SUMMARY • NAMSA Transformation very much driven by the spirit of ISO 9001 EXTERNAL FACTORS CONTINUOUSLY CUSTOMER VALUE FUTURE RELEVANCY

20. Questions ?