On October 10, 2024, Yoong Solutions hosted its third roundtable event
in collaboration with the Chartered Institute of Transport and Logistics
(CILT). Keynote speaker Vice Admiral Andy Kyte, Chief of Defence
Logistics and Support (CDLS) at the UK Ministry of Defence, addressed
key challenges and opportunities in defence supply chain resilience.
This article summarises the key takeaways from the roundtable.
Vice Admiral Andy Kyte’s keynote highlighted the critical challenges
facing defence logistics in an increasingly complex and dangerous global
environment. He emphasised the shift from uncontested to contested
logistics, where supply chains are vulnerable at all levels. In
particular, he mentioned resource scarcity, the need to rapidly
reconfigure between peacetime and wartime operations, cyber security
threats, and the challenges of integrating diverse supply chain elements
across an estimated 100+ different platforms across the MoD. The Vice
Admiral stressed the importance of resilience as a component of national
security, noting the potential for defence spending to surge from
2.5%-4.5% to up to 50% of GDP in wartime.
He highlighted the problems of underinvestment, legacy IT systems, and
inflexible contracts, while proposing solutions such as digital
modernisation, improved industry collaboration, and the need to value
supportability and availability in procurement decisions. He emphasised
that doing nothing is not an option, calling for innovative approaches
to overcome these challenges and prepare for future conflicts should
they arise.
The roundtable discussion brought together a diverse array of industry
leaders, logistics experts, and defence professionals to address the
complexities of supply chain resilience in an increasingly volatile
global landscape. Participants shared insights from various sectors,
highlighting the interconnected nature of modern supply chains and the
need for adaptive strategies.
An example of this was a participant from the eCommerce sector, who
detailed the £multi-million impact of Russian sanctions on their
operations, whilst retail experts described the challenges of
forecasting in an era of erratic demand patterns. Others pointed out the
potential for defence logistics to benefit from innovations in
commercial distribution and last-mile delivery.
A key focus was the tension between peacetime efficiency and crisis
readiness. Many advocated for a fundamental shift in contracting models,
moving away from rigid, time-based agreements towards more flexible,
outcome-oriented contracts that can accommodate surge capacity when
needed. The concept of “always-on” contracts was proposed as a
potential solution to enhance responsiveness during crises. It was
however agreed that this would come with an associated cost.
Participants dived into the
challenges posed by
legacy IT systems and siloed organisational structures. They emphasised
the critical need for real-time data visibility and advanced analytics
to support decision-making, as well as the potential for
automation to streamline warehouse operations
and other supply chain functions.
The discussion underscored the need to view supply chain resilience not
merely as an aspiration, but as a critical investment in national
security and long-term operational sustainability. Attendees agreed on
the urgent need for concrete actions to create a more agile, integrated,
and robust logistics ecosystem capable of withstanding future challenges
and conflicts.
Innovative contracting models, real-time data visibility, enhanced
collaboration between sectors, plus modernisation, sustainable practices
and workforce development will play a defining role in building a more
agile, integrated and robust defence supply chain. This will ensure that
logistics systems are prepared to tackle challenges today and, in the
future, safeguarding national security and operational sustainability.
