In peace and war – A Conceptual Framework for the Governance of Buyer-Supplier Relationships in the Norwegian Armed Forces’ Logistics and Support Operations

Logistics preparedness has emerged as a pivotal focus area for the Norwegian Armed Forces. Due to a persistent gap between operational ambitions on the one hand and the military means and resources to achieve them on the other, logistics preparedness needs to involve more than just the defence sector’s own stockpiles and preparedness capacities. It needs to include processes and mechanisms that enable both military and civilian actors, including the private sector, to plan and train for an efficient, responsive, and coordinated mobilisation of resources whenever and wherever needed.

This report combines a systematic literature review with real-world examples from the defence sector. It asks: ‘How should the governance of buyer-supplier relationships between military organisations and commercial suppliers be adapted to various stages of the security crisis spectrum?’ Our study finds that peacetime logistics is characterised by rigid, contractual governance to meet cost priorities and compliance with procurement regulations. Conversely, crisis and war require flexible agreements and increased relational governance to manage critical needs and unpredictable demand.

To ensure logistics preparedness, the Norwegian Armed Forces must develop buyer-supplier relationships and suppliers’ capacities. Developing buyer-supplier relationships, through predictable agreements and conditions, information sharing, and joint exercising and training, is crucial in ensuring that both the Armed Forces and the suppliers can mobilise and coordinate efforts effectively. Using regulatory exemptions and adapting procurement procedures to meet preparedness needs is a critical prerequisite in this context. We provide three recommendations for strengthening the Armed Forces’ logistics preparedness in collaboration with suppliers:

1) developing a sourcing strategy that clarifies which preparedness resources to keep internally, which can be provided through preparedness legislation, and which must be secured through commercial agreements with suppliers

2) identifying and applying contractual and relational governance mechanisms that ensure sufficient resource availability and coordination between the Armed Forces and its suppliers, thereby creating a logistics system with the capacity and ability to function in crisis and war.

3) utilising exemptions from standard procurement regulations and adapting procurement procedures where necessary to sufficiently strengthen logistics preparedness.

These measures require anchoring at the strategic level within the defence sector. Such anchoring is a prerequisite for creating clear and predictable frameworks for those responsible for procurements and supplier agreements, as well as for suppliers and the industry that are to develop and deliver preparedness resources to the Armed Forces and the society at large