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AFCSC/DMW/DP/JC/91

EVALUATING THE IMPACT OF INFORMATION TECHNOLOGY IN THE

MANAGEMENT OF NIGERIAN NAVY LOGISTICS SYSTEM AND SUPPLY
CHAIN

INTRODUCTION

1. Logistics and supply chain management has always been important for the
military, transporting men and equipment to the battle-front in a timely and
coordinated fashion has since the time of Alexander the Great, given armies a
decided advantage. 1In major military conflicts, logistics matters are often crucial
in deciding the overall outcome of wars. For instance, during the tonnage war, the
bulk sinking of cargo ships was a crucial factor in World War II. The successful
U.S. submarine campaign against Japanese maritime shipping across Asian waters
effectively crippled its economy and its military production capabilities.2

2. In a tactical scale, during the Battle of Ilomantsi, the Soviets had an

overwhelming numerical superiority in guns and men, but managed to fire
only 10,000 shells against the Finnish 36,000 shells, eventually being forced to
abandon their heavy equipment and flee the battlefield, resulting in a decisive
Finnish victory.3 One reason for this was the successful Finnish harassment of
Soviet supply lines.4 The overwhelming military success of Operation Desert
Storm in Kuwait in 1990 was in part due to the logistics and supply chain

1. Dupuy, R. Ernest; Trevor N. Dupuy (1970). The Encyclopedia of Military History (revised ed.). New York: Harper & Row.

2. Id.

3. Id.

4. Id.

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management expertise of U.S. General William (Gus) Pagonis. 5 Logistics is not
only about the supply of matériel to an army in times of war. It also includes the
ability of the national infrastructure and manufacturing base to equip, support and
supply the Armed Forces, the national transportation system to move the forces to
be deployed and its ability to resupply that force once they are deployed. 6 The
success of military operations depends largely on the ability of nations to provide
adequate materiel and services in support of their forces.7

3. The council of logistic management defines logistics as that part of supply

chain process that plans, implements, and controls the efficient, flow and storage of
goods, services, and related information between the point of origin and the point
of consumption in order to meet customer requirement. 8 In normal sense, it can be
defined as right product, at the right place, in right time, and in right condition. 9
However supply chain consists of all stages that are required to satisfy the
customer request.10 It starts from supplier passes through manufacturer, distribution
and retailer then finally reaches the customer. Logistic management is a means
whereby the needs of customers are satisfied through integration and coordination
of the supply chain.11 The supply chain management is the oversight of materials,

5. Id.

6. Foxton, P D. Powering War: Modern Land Force Logistics, Brassey's, London, 1994.

7. Gen Schwarzkoff, quoted in EI OKPO, ‘Logistics Policies for Naval Operations: The Nigerian Navy Case’. A Paper Presented at the CONSAC, at Ijebu-

Ode on 23 Nov 98.

8. Christopher Martin, Logistics and Supply Chain Management, Pitman Publishing Co London, 2001.

9. IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668 PP 19-24, https://www.iosrjournals.org.assessed 27

February 2021.
10. Id.

11. Id.

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information and finances as they move in the process from supplier to
manufacturer, wholesaler to retailer then to customer.12

4. On the other hand, Information Technology (IT) is the use of computers to

store, retrieve, transmit, and manipulate data or information.13 IT is an umbrella
term that includes any communication device or application, encompassing radio,
television and cellular phones.14 It also includes computer networking, hardware
and software, satellite systems as well as the various services and applications
associated with them.15 These applications include video-conferencing and distance
learning.16 The application and development of IT has had significant effects on
many industries, especially in the field of logistics. Technology plays a major role
in success of supply chain by enhancing the overall effectiveness and efficiency of
the logistics system.17

5. Globally, various nations Armed Forces are using different IT tools in

digitalizing logistics system for effectiveness. For instance, the United States Navy
Force (USN) is working with the Naval Warfare Systems Command (SPAWAR)
to develop the Naval Operational Supply System (NOSS) to replace and
consolidate its 15 legacy logistics applications.18 NOSS will allow for forecasting,
procurement, and accountability of supplies across all supplies and communities,
thus finally enabling enterprise wide automation of supply. Moreover, NOSS will
12. Id.

13. Schmandt-Besserat, Denise (1981), "Decipherment of the earliest tablets", Science, 211 (4479): 283–85.

14. Kia, M., Shayan, E. Ghotb, F. (2000) The Importance of Information Technology in Port Terminal Operations, International Journal of Physical

Distribution & Logistics Management, 30 (3/4) 331-34.

15. Id.

16. CS Pub 1-02 Excerpt, http://www.logisticsworld.com/logistics.htm Accessed 8 Mar 21.

17. IOSR Journal of Business and Management, op.cit., p.19.

18. The SPAWAR list. http://www.public.navy.mil/spawar/Documents/List.pdf.

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allow the USN to aggregate and analyze supply data using a business intelligence
framework.19 Ultimately, NOSS allows the USN to be better poised to respond to
peacetime and wartime logistical issues, while increasing cost and resource
savings. SPAWAR is expected to complete NOSS by 2021. 20 While NOSS is being
built, USN Supply Corps personnel will work with the fleet to ensure current
logistics procedures are updated in preparation for the installation of NOSS.21

6. More so, the Indian Navy in 24 October 2017 launched an Integrated

Logistics Management System-Air ILMS (Air) which would bring management of
the entire naval aviation inventory online, replacing the earlier ILMS (Air)
application, which has been in use since 2002. 22 The Version 2 provides enhanced
user experience and new functionalities for efficient material management and
spares accounting, asset visibility, trend analysis of all stores and spares associated
with the naval aircrafts besides improved supply chain management.23 The
application is also capable of being used by ships at sea.24

7. In line with global best practices and modern store accounting, the Nigerian
Navy (NN) in 2017 worked with Messrs HIIT to setup an ILMS in all its 4 Depots
located in Lagos, Port Harcourt, Sapele and Calabar for effective inventory control
of store items.25 The ILMS was designed to provide real time access of inventory

19. Id.

20. Id.

21. Id.

22. Indian Navy, https://www.indiannavy.nic.in/content/navy-launches-house-inventory-management-system-%E2%80%93-ilms-air-version-2. Assessed 10

Mar 21.
23. Id.

24. Id.

25. Nigerian Navy, https://www.navy.mil.ng/commands/logistics-command/ Assessed 7 March 2021.

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between Naval Headquarters (NHQ), Headquarters Logistics Command (HQ LOC)
and the depots in order to monitor as well as ascertain reorder levels of store
items.26 Furthermore, the process was engineered to provide room for forecasting
through an adequate and robust supply chain management system. Despite this
effort, it was observed that the ILMS has not been able to achieve its goal. For
instance, the NHQ and HQ LOC cannot access the inventory of the depots. 27 This
has made it difficult for timely sharing of relevant information and vital data for
decision making to be obtained in real time. It is against this backdrop that this
paper seeks to identify the areas IT has impacted on the management of NN
logistics systems and supply chain.

8. The purpose of this paper is to suggest ways of improving the impact of IT

tools on Logistics Management Supply Chain (LMSC) in the NN. This paper will
be limited to application of IT in inventory management at Lagos Logistics Depot
(LLD). This is the only NN depot with an operational ILMS for its inventory
management functions. It is assumed that the impact of IT at LLD would be
applicable to other depots. The paper shall cover an overview of the IT application
in ILMS at LLD, the impact of IT tools in NN logistics management and supply
chain and way forward.

AIM

9. The aim of this paper is to evaluate the impact of IT on LMSC in the NN

with a view to making recommendations.
26. Report on Integrated Logistics Management System at Lagos Logistics Depot presented to FOC LOC by Cdr KA Suara on Apr 20., P.1-5.

27. Id.

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OVERVIEW OF INFORMATION TECHNOLOGY APPLICATION IN
INTEGRATED LOGISTICS MANAGEMENT SYSTEM AT LAGOS
LOGISTICS DEPOT

10. LLD consists of sub units which include Technical Store (TS), Naval
Materiel Store (NMS), POL dump and the Air Store (AS). The NMS and POL
dump are located in Apapa while the AS is located in Ojo. The TS on the other
hand is collocated with the HQ LLD in Victoria Island. The ILMS is setup at HQ
LLD with a total of 8 computer systems. The computer systems are distributed as
follows; 5 computers in the ILMS training room, 2 computers in the server room
and one computer in the office of the Comd. All the systems are interfaced through
a Local Area Network (LAN) generated from a server room with an active internet
subscription.28

11. The ILMS main module operates by receiving and processing an order
online by creating and editing inventory, managing services and handling
documentation between manufacturers, suppliers, warehousing, and transportation.
The orders are managed effectively to avoid double handling errors. The orders,
inventory, supplier and consumer are synchronized in one system. Order
management software (OMS) receives orders from all sales channels and monitors
them from the moment they are placed until the order delivery is confirmed.29

12. At LLD, Inventory management is a vital part of the supply chain

responsible for controlling and documenting the amount of items for delivery. So,
automating from classic spreadsheets to inventory management systems (IMS)
28 . Id.

29 . Logistics Management Systems: How Warehouse, Transportation, and Distribution Software Work. https://www.altexsoft.com/blog/business/logistics-

management-systems-how-warehouse-transportation-and-distribution-software-work/ assessed on 21 Mar 21.

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delivers the needed clarity centralizing all the data in a single location through an
inventory management system. The inventory and pictures of all store items have
been uploaded on to the ILMS. IMS tracks and reports any inventory changes,
maintains balance in replenishment avoiding stock-outs and excess stock. The
system tracks low stock levels and sets automatic re-ordering for each product.
Meanwhile, it reduces the risk of ordering excess by estimating product demand. In
addition, daily transactions on issue of store items are updated on the system
regularly.

13. It is pertinent to state that, the stores at Apapa and Ojo do not have
computer systems installed for ILMS. Thus, the transaction vouchers are brought
from the units and are captured either at the end of the day or the following day.
This does not provide for real time access on store items. Furthermore, Petroleum
Oil and Lubricant (POL) at LLD are not captured on the ILMS platform. 30 There is
the need to capture POL management in the ILMS for proper accountability and
distribution by including POL to the IMS platforms.

IMPACT OF INFORMATION TECHNOLOGY TOOLS ON NIGERIAN

NAVY LOGISTICS MANAGEMENT AND SUPPLY CHAIN

14. The ILMS was designed to provide real time access of store items at the
depot to NHQ and HQ LOC. This process was achieved through the integration of
computer systems at the Depot, Command and NHQ levels on a single platform.
However, recent reports indicate that the Depot inventory and stock balances
cannot be accessed by NHQ and HQ LOC. This integration could be achieved
through the application of any of these three integration methods such as
30. Cdr KA Suara,Op.cit.

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Electronic Data Interchange (EDI), Application Programming Interface (API) Suite
and Integration through non-EDI format files.31

15. The Electronic Data Interchange or EDI is a method of exchanging strictly

formatted digital messages between computers. This system uses an agreed private
communication channel strictly formatted which translates in-house documents
into standard formats between computers virtually. Typical EDI software consists
of a translation, mapping and integration with communication softwares. 32 With
EDI the business documents such as invoices and cheques are sent electronically
from one organization to another. In fact EDI is a drive towards paperless
document transfer or transactions.33 As such, the EDI software package needs to be
installed in all computers with a dedicated server for communication amongst
platforms.
16. Application Programming Interface suite API-based integration connects
two systems by interpreting and translating data between two systems via their
APIs. They are open for integration suggestions and allow customers to develop
their own APIs to connect to their system. Due to its unpopular nature, it is often
difficult to integrate unlike the EDI. 34 While integration through non-EDI format
files as opposed to direct connection, file-based integration allows data to be
passed between different databases or operating systems in a file such as
Extensible Markup Language (XML), Java Script object notation Syntax (JSON),

31 . Logistics Management Systems: How Warehouse, Transportation, and Distribution Software Work. https://www.altexsoft.com/blog/business/logistics-
management-systems-how-warehouse-transportation-and-distribution-software-work/ assessed on 21 Mar 21.

32 What is EDI: Understanding the Main Document Exchange Technology .https://www.altexsoft.com/blog/business/what-is-edi-understanding-the-main-

document-exchange-technology/assessed on 21 Mar 21.

33 . IOSR Journal of Business and Management, Op.cit, P. 22.

34 . Logistics Management Systems: Op. Cit.

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flat file, Comma Separated values (CSV) etc. Based on expert opinions EDI is
considered the best method for integrating ILMS, due to its simplicity and
availability.35 There is therefore the need for NHQ to consider the use of EDI
application tool to integrate ILMS at LLD and HQ LOC.

WAY FORWARD

17. The relevance of IT to logistics operations cannot be overemphasized.

Accordingly, the NN could make improvement in her IT programme which could
strengthen her administrative functions and a proper inventory management
system. Application software such as the EDI could be adopted by the NN for
integration of its platform administrative functions which includes procurement,
acquisitions and inventory management modules. These functions would be
automated in a central database thereby eliminating the problems of data
processing. This would further save the NN, the burden of updating its inventory
data to all units and enable the depots responsible for the functions perform their
duties more efficiently, ultimately the ability of the NN to maintain efficient
Logistics operations through IT would be enhanced. Also to be considered is
training of personnel on application of ILMS.

18. Training of logistics personnel on handling of the ILMS is vital to sustaining

the supply chain and logistics management. This can be achieved through third
Party EDI companies. The company could train personnel on the system on Train
the Trainer bases on software and technical management of the ILMS. It is
therefore necessary for NHQ to consider training of personnel on ILMS. The

35 . Id.

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training will not only address the issue of continuity in training, it will also
enhance maintenance and efficiency of the ILMS.

CONCLUSION

19.

RECOMMENDATIONS

10

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