Chapter 1 - Outline of the Study Results
1. Objectives
In the management environment which continuously changes in the global era of the 21st century, corporations must react to or cope with the environmental changes fast to survive and grow in such an environment. In the current management environment, it is required for the corporations to provide changes and new opportunities continuously. As a result, creative strategies are required to cope with the self-innovation within the corporations and the changing environment for survival. In particular, the corporations are in the competitive situation to create the competitive advantage by focusing on and reinforcing the core capacity. As shown above, each corporation in the age of limitless competition has the task of securing the competitive advantage through the self-innovation. Therefore, many corporations have recently shown their interest in such topics as the efficient way of utilizing the management resources within the corporations and the amounts of external labor and resources to be utilized.
Until now, each corporation has tried to acquire the competitive advantage by simply reducing the investment or labor cost or controlling the labor. However, due to the continuous increase of the labor cost and the economic depression, the corporations have had difficulty providing continuous growth and development. In the end, they have to execute the outsourcing process.
Therefore, in order to establish an advanced military supporting system for the accomplishment of the 'Military Reformation 2020', this study analyzes the operation state of the depot for each army to consider the efficiency through the organization of the depot and the specialization of the labor. Also, it focuses on the expansion of the range of utilization for private resources, in order to provide specific methods to improve the productivity and strengthen the competitiveness for the works at the depot. It promotes the military management based on the results by providing transparency, low costs, flexibility and quality services for the military budget and introducing the private management technique.
2. Methods of the Study
The military supporting works must be executed after considering all the outsourcing suppliers. First of all, it is necessary to establish a knowledge-based management system by analyzing the outsourcing suppliers and selecting the related methods according to the characteristics of each field. Such factors as professional consulting services, responsible institutions and private works are utilized for the specialization of the depot and the operation of the institutions by considering competitive principles, results and quality. It is necessary to execute the outsourcing process gradually and continuously step by step.
Therefore, the results of this study can be summarized as follows:
First of all, it is necessary to promote the outsourcing process for distribution as a task for military reformation. Such an outsourcing process for distribution must be executed with the objective of innovating the defense management system with low costs and high efficiency by expanding the outsourcing range for the supporting army. However, it is necessary to select and operate the military depot gradually as an "operating institution under the responsibility of the army". Also, it is necessary to take the private consignment process gradually in order to execute the privatization process at the end.
Secondly, it is necessary to consider the outsourcing methodology between the private sector and the army. It is necessary to consider the general matters for the successful promotion of the outsourcing process for distribution in regard to the outsourcing concepts and the current state of the private outsourcing process for distribution together with the related cases. Also, it is necessary to consider all the outsourcing methodologies which have been accumulated by the army and the points which have been made in the precedent studies.
Thirdly, it is necessary to draw the necessary categories for consideration as follows in order to promote the outsourcing process for the depot. Also, it is necessary to execute detailed consideration for such categories.
① Consideration of the items
② Consideration of the functions
③ Consideration of the regional views
④ Consideration of other important matters
Fourthly, it is necessary to expand and promote the outsourcing process for distribution step by step in regard to such factors as items, functions and regional views.
In terms of items, it is necessary to exclude the compulsory items for battles. Also, it is necessary to include such factors as general supplies, general equipment and repair components in the subjects for discussion. In terms of functions, it is necessary to execute the 1st-stage management process for receipts and disbursements(excluding the inspection for functions), the 2nd-stage inspection for functions in regard to storage management and warehouse safety, and the third-stage process for asset management (including repair and maintenance of the facilities), package, transportation, maintenance of lists and regulations, and projects for the improvement of the distribution process. Also, in terms of regional views, the 1st-stage investigation process must be executed for the capital area as well as Busan and Gyeongsangnam-do, while the 2nd-stage investigation process must be executed throughout the nation.
Fifthly, for the privatization process, it is necessary to receive investment materials for the military distribution facilities from the private sector. It is also necessary to establish a cooperative network with the private sector.
As a sample case, it is necessary to utilize the land of the " " depot, in order to construct a distribution center with the investment from the private sector. Such a distribution center will be jointly utilized by the army and the private sector. It is appropriate to consider the " " depot, the " " depot and the general distribution center located in the posterior region as the priority candidates.
In conclusion, it is necessary to consider the method of promoting the outsourcing process for the military depot step by step, which is expected to have a high level of efficiency in terms of the private distribution process. Also, by considering the method of handling the war basis, it is necessary to establish an advanced military supporting system for the accomplishment of the 'Military Reformation 2020'. This study has suggested such considerations.
Chapter 2- Limits and Future Tasks of the Study
After considering the fact that the short period of the study, the limitation of the data collection for the distribution amount of the depot and the distribution process are parts of the general military supply process and most are determined by the upper work process, it can be said that this study has the following limits.
Firstly, each military depot deals with the1st settlement of the depot.
- The supplying system of the unit under the army division is analyzed by regional groups.
Secondly, the outsourcing method is established by considering the general materials (2 types and 4 types) and the repair components (9 types).
- The analysis is executed based on the distribution amount data provided by each military depot.
Thirdly, the optimum location of the depot is selected by considering the distribution characteristics of the current depot.
- Such military strategic matters as the organizations and the missions of the army are not considered.
- It is necessary to follow the rule in regard to the current military supplying system for the arrangement of inventories.
Fourthly, the comparative analysis between the military distribution system and the private distribution system is executed as a case study, since the objective of the system operation is basically different.
- The diagnosis for the management of the depot is executed as a case analysis.
Fifthly, the current organization could reject the reduction of the organization as well as the staff reduction.
- The workplace stability of the public officers (military officers) needs to be legally secured.
- It is necessary to control the labor gradually.
Sixthly, the collection of data and information and the maintenance of security are limited.
As a result, I suggest the following matters in order to make a contribution to the advancement and modernization process for the military supplying industry by continuously supplementing and developing the contents of the study.
1. Providing the opportunity for the technical interchange of the depot in the third group
- The depot in the third group develops and shares the standardized outsourcing method for distribution.
2. Promotion of the sample project for the modernization of the depot (based on the outsourcing process)
- Developing the standard model for the modernization of the military depot
1st Stage: Establishment and execution of the basic outsourcing plans
① Establishment of the road map for the outsourcing process
② Security of the outsourcing management skills / Selection of the cost-effect analysis method and the outsourcing standard
③ Preparation of the systematic tool for the promotion of the outsourcing process: Establishment of laws in regard to the responsible institutions for operations
④ Market analysis for each function of the outsourcing process
⑤ Expansion and execution of the range of functions: development of policies, analytical evaluation / information generation of the decision-making process, work support etc.
2nd-Stage: Expansion of the outsourcing process & Continuous supplementation
① Fields with the shortage of the market capacity: operation of the responsible institutions
- bookkeeping, maintenance, hospital, instruction, printing etc.
② Execution of tasks by the competition between the private sector and the army: depots etc.
③ Execution of the organizational outsourcing process on the trial basis(depots etc.)
④ Promotion of the organizational outsourcing process: Ex.) The depot (owned by the army) is consigned to the private sector('10~'15).
⑤ Continuous reinforcement of the outsourcing process: operation of responsible institutions → private consignment → privatization