Published by Blakes for more
than a quarter of a century
than a quarter of a century
Mercedes - Benz UK Defence
SOUND BUSINESS SAVES LIVES
DaimlerChrysler (UK) Ltd's mission is to delight the customer through its products and services. But what does this mean in a defence context? After all, the redeployment of the Black Watch in Iraq was hardly a supermarket chain redistributing its goods with a fleet of DaimlerChrysler-supplied 'Actros' trucks. Fortunately, this is not lost on Mercedes-Benz UK Defence. DC UK's mission to delight the customer can easily be translated. I would suggest that what is required in a defence context is cost-effective sustainable availability. From peacetime activities, through peacekeeping/making to all-out war, availability is sometimes a matter of life and death for our armed forces.
DaimlerChrysler is, of course, a truly global player. For example, this year alone DaimlerChrysler will build to order 100,000 trucks. As one civil servant in the MoD put it recently, all of the requirements for a forthcoming wheeled-vehicle project could be built at DaimlerChrysler's factory in Woerth in one morning. Consequently, for some there is a mistaken belief that we do not need or are not interested in military business in the UK. It is a little known fact, that DaimlerChrysler has been supplying vehicles to government bodies and armies globally for decades. For example, NATO allies have enjoyed the benefits of our vehicles for some years. About 80,000 UNIMOG and G-Wagons have been supplied to NATO. This fact alone in the era of European integration, coupled with the operational interoperability requirement, must be a strong factor in future procurements.
Since the relatively recent establishment of Mercedes-Benz UK Defence, a department of DCUK backed by International Government Business in Stuttgart, we are now recognised as a 'key supplier' to the MoD. It is DaimlerChrysler's strategic goal to become a major supplier to the UK defence market and, in particular, the MoD.
The benefits to the company are obvious to us. As a company, we believe that the MoD needs long-term reliable partners to deliver its wheeled-vehicle requirements. Our philosophy is to add to the enhancement of the SMART procurement process by explaining and proving that we can bring innovation and value for money. We have started, and will continue, to do this in a number of ways.
In any successful procurement, the balance of risk between supplier and customer must be right. It should, of course, be remembered that the supplier is in business, but getting the balance wrong could mean lives lost for the armed forces. Occasionally, however, procurement bodies misinterpret risk. To meet our business goals, it simply is not in our interest to pass too much risk to the MoD. There are too many synergies between the defence and commercial market. The Land Rover experience is testimony to this.
Commercial risk can also be exaggerated with regard to the consequences on performance, time and cost downstream of a project at the expense of benefits to the customer. Whilst DaimlerChrysler develops vehicles for a global market, its philosophy is evolutionary. Proven parts are mainly used in military developmental projects that will become military off-the-shelf vehicles. Configuration control and build standard shouldn't be an issue. Truck axles, for example, were designed in the early 1970s and have not changed. We 'do not fix that which is not broken'. Similarly, our advanced technology reduces the risk of obsolescence. An example: we were the first truck manufacturer to introduce on-board Telematics and diagnostic systems (called Telligent) to give early driver warning of any failures, electronic diagnosis and lengthening of service periods. Also, each vehicle on our production line can be built to a particular specification. For example, we can build the same truck type for Australia or the UK to their specification or build-standard. The commercial risks to the customer of a global fleet of the truck they are buying are negligible, but the benefits are high.
Our advanced technology, provided it is 'soldier proof', can also bring benefits operationally and lessen risk. Our Euro 4 solution is based on the addition of Urea (we call it Addblue). However, unlike some of our competitors, operationally, F-34 can be used without `Addblue' if it is not available and Euro 4 emission standards can be achieved later without penalty. The logistic and cost benefits are obvious.
The MoD follow the practice of Integrated Logistic Support (ILS) whilst establishing its support requirements. This is a well-proven systems engineering methodology and is, actually, a commercial imperative. Clearly, there are periods in any conflict cycle when the armed forces have to support themselves. However, situations change quickly operationally and much needed resources have to be diverted. This is where a contractor such as DaimlerChrysler can bring innovation and benefit. There is hardly a country in the world where we are not represented and all dealers are linked to the Global Logistic Centre in Germesheim. Parts can be flown anywhere in 48 hours. If not practical for operational reasons, we simply feed the military supply chain. Similarly, due to the terrorist threat it may not be reasonable for a local dealership to provide support. However, the dealer in the neighbouring country could provide support. We have done this in the Balkans and are currently adopting the same support strategy in the Middle East.
DaimlerChrysler go to great lengths to collect and use field data in the concept, design, development and production of its commercial and military vehicles. In service too, our systems are designed to save money. Warranty claims are reduced by taking early corrective action when appropriate. We have a very sophisticated Data Reporting and Corrective Action System (DRACAS, in Defstan 00-60 terms). This is particularly important when producing 300,000 trucks in a typical warranty period.
There are keen commercial reasons for improving the reliability of a truck to the benefit of the customer. Perhaps the only difference is that for Tesco the driver may be delighted - for the armed forces he is still alive.
DaimlerChrysler is, of course, a truly global player. For example, this year alone DaimlerChrysler will build to order 100,000 trucks. As one civil servant in the MoD put it recently, all of the requirements for a forthcoming wheeled-vehicle project could be built at DaimlerChrysler's factory in Woerth in one morning. Consequently, for some there is a mistaken belief that we do not need or are not interested in military business in the UK. It is a little known fact, that DaimlerChrysler has been supplying vehicles to government bodies and armies globally for decades. For example, NATO allies have enjoyed the benefits of our vehicles for some years. About 80,000 UNIMOG and G-Wagons have been supplied to NATO. This fact alone in the era of European integration, coupled with the operational interoperability requirement, must be a strong factor in future procurements.
Since the relatively recent establishment of Mercedes-Benz UK Defence, a department of DCUK backed by International Government Business in Stuttgart, we are now recognised as a 'key supplier' to the MoD. It is DaimlerChrysler's strategic goal to become a major supplier to the UK defence market and, in particular, the MoD.
The benefits to the company are obvious to us. As a company, we believe that the MoD needs long-term reliable partners to deliver its wheeled-vehicle requirements. Our philosophy is to add to the enhancement of the SMART procurement process by explaining and proving that we can bring innovation and value for money. We have started, and will continue, to do this in a number of ways.
In any successful procurement, the balance of risk between supplier and customer must be right. It should, of course, be remembered that the supplier is in business, but getting the balance wrong could mean lives lost for the armed forces. Occasionally, however, procurement bodies misinterpret risk. To meet our business goals, it simply is not in our interest to pass too much risk to the MoD. There are too many synergies between the defence and commercial market. The Land Rover experience is testimony to this.
Commercial risk can also be exaggerated with regard to the consequences on performance, time and cost downstream of a project at the expense of benefits to the customer. Whilst DaimlerChrysler develops vehicles for a global market, its philosophy is evolutionary. Proven parts are mainly used in military developmental projects that will become military off-the-shelf vehicles. Configuration control and build standard shouldn't be an issue. Truck axles, for example, were designed in the early 1970s and have not changed. We 'do not fix that which is not broken'. Similarly, our advanced technology reduces the risk of obsolescence. An example: we were the first truck manufacturer to introduce on-board Telematics and diagnostic systems (called Telligent) to give early driver warning of any failures, electronic diagnosis and lengthening of service periods. Also, each vehicle on our production line can be built to a particular specification. For example, we can build the same truck type for Australia or the UK to their specification or build-standard. The commercial risks to the customer of a global fleet of the truck they are buying are negligible, but the benefits are high.
Our advanced technology, provided it is 'soldier proof', can also bring benefits operationally and lessen risk. Our Euro 4 solution is based on the addition of Urea (we call it Addblue). However, unlike some of our competitors, operationally, F-34 can be used without `Addblue' if it is not available and Euro 4 emission standards can be achieved later without penalty. The logistic and cost benefits are obvious.
The MoD follow the practice of Integrated Logistic Support (ILS) whilst establishing its support requirements. This is a well-proven systems engineering methodology and is, actually, a commercial imperative. Clearly, there are periods in any conflict cycle when the armed forces have to support themselves. However, situations change quickly operationally and much needed resources have to be diverted. This is where a contractor such as DaimlerChrysler can bring innovation and benefit. There is hardly a country in the world where we are not represented and all dealers are linked to the Global Logistic Centre in Germesheim. Parts can be flown anywhere in 48 hours. If not practical for operational reasons, we simply feed the military supply chain. Similarly, due to the terrorist threat it may not be reasonable for a local dealership to provide support. However, the dealer in the neighbouring country could provide support. We have done this in the Balkans and are currently adopting the same support strategy in the Middle East.
DaimlerChrysler go to great lengths to collect and use field data in the concept, design, development and production of its commercial and military vehicles. In service too, our systems are designed to save money. Warranty claims are reduced by taking early corrective action when appropriate. We have a very sophisticated Data Reporting and Corrective Action System (DRACAS, in Defstan 00-60 terms). This is particularly important when producing 300,000 trucks in a typical warranty period.
There are keen commercial reasons for improving the reliability of a truck to the benefit of the customer. Perhaps the only difference is that for Tesco the driver may be delighted - for the armed forces he is still alive.
Mike Rudd CEng, MI Mech E
Defence Business Manager
Mercedes-Benz UK Defence
Copyright © 2005 Blake.