Performance‐based logistics: a portfolio for contracting military supply

The purpose of this research is to analyse military logistics providing a decision support instrument for contracting in defence supply chains.

This instrument – the Performance‐Based Logistics (PBL) portfolio – is developed following the contingency approach. Qualitative interviews and illustrative examples from Germany, Austria and Switzerland are used to validate the portfolio.

The proposed portfolio examines a military demand in respect of its required effectiveness (robustness and resilience), and the suppliers' ability to influence efficiency (forecast and supply risk). In combination, the contingencies are used to recommend three alternative types of PBL contracting.

This paper is based on conceptual work with illustrative case examples. Therefore, although the authors believe that the PBL portfolio provides useful guidance for further research, the empirical applicability of this instrument must be proven.

The research on PBL is gaining importance, but still there remains a deficiency of theoretical grounding and management instruments. This study is a first approach to use the contingency framework for developing such an instrument. The value of the PBL portfolio lies in supporting normative decision making for contracting military supply.