Performance-Based Logistics
Performance-based logistics is no longer a new phenomenon in material handling. It is a logistics model that defines specific goals and metrics to evaluate success. The term is largely used in the US military. Performance-based logistics in the Department of Defense is referred to the purchase, maintenance and support of a product or weapons system. The contractor oversees the movement of the system and its components to the correct locations and also hires agents who maintain proper coordination between shippers, manufacturers, service technicians, trainers and other companies associated with the weapon system.
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The benefit to the contractor is that it gets not only a product contract but also a revenue stream for the life of the product. PBL contracts are still awarded to contractors on an ad hoc basis, rather than consistently, throughout the DOD.
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