Published on: June 9, 2025 / update from: June 9, 2025 - Author: Konrad Wolfenstein
Duplication of NATO support skills by private sector and dual-use logistics in logistics, supplies and transport-Image: Xpert.digital
From the demand to reality: sustainable scaling of the NATO support systems
Logistics transformation: How civilian capacities can achieve military goals
The drastic claim of NATO Secretary General Mark Rutte after doubling the ability to support support in logistics, supplies, transport and medical support presents the alliance before unprecedented challenges. This analysis examines how the private sector and dual-use logistics can contribute both at short notice and in the long term to achieve these ambitious goals, while scalability and sustainability are guaranteed.
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Current starting position and challenges
NATO faces the complex task of significantly expanding its logistical capacities, while at the same time efficiency and responsiveness must be improved. Germany plays a special role as a “logistical turntable”, through which NATO troops and their care must be laid in order to achieve the application rooms. This position not only requires national efforts, but also close coordination with civilian actors.
Bundeswehr logistics must be able to rely entirely on their civil and commercial back-up, whereby the support must be secured, reliably and into the logistical processes of the Bundeswehr. This dependence on civil partners illustrates the need for a strategic realignment of military logistics. Private military companies (PMCs) already offer extensive logistics solutions, including transport management, supply chain management and sales services to ensure smooth and efficient operation both at home and abroad.
Role of the private sector in military logistics
Outsourcing trends and capacity expansion
Privatization of military logistics has developed into a dominant trend in recent decades. The US military and other western armed forces have already implemented extensive outsourcing programs, whereby the civil support structure of the Army Materiel Command (AMC) includes around 37,700 military, civil and contractual, which affect all 50 US states and more than 150 countries. This development shows the enormous potential of private actors to expand capacity.
Private military service providers have proven to be indispensable for modern military operations because they provide specialized skills and technologies that the military itself may not have. The outsourcing of logistics functions enables the armed forces to concentrate on their core competencies, while at the same time increasing efficiency by specialized civilian providers. This division of labor is particularly relevant for the intended doubling of capacities, since it enables quick scaling without the corresponding expansion of the military personnel structure.
Specialized logistics service providers
Companies such as Crane Worldwide Logistics already offer comprehensive solutions for government and defense that are specially tailored to the complex requirements of the military. These service providers have the necessary certifications and the technical know-how to operate in difficult environments. Your global networks and established supply chains can act as a multiplier for military capacities.
DB Schenker, for example, offers dedicated supply chain solutions for the special requirements of aerospace and defense, with experts who are available around the clock and worldwide. Such integrated end-to-end solutions are designed to optimize each step of the supply chain from procurement to distribution. The combination of industry expertise and global range makes these companies ideal for the desired capacity expansion.
Dual-use goods and technologies as a key factor
Definition and strategic importance
Dual-use goods are products and technologies that can be used for both civil and military purposes. These goods include a wide range of articles, from progressive materials and machines to software and technology that can be used in various industries. Due to their potential military use, dual-use goods are subject to strict export controls and regulations.
The strategic importance of dual-use technologies for NATO lies in its ability to serve both commercial and military applications. This duality makes it possible to use civilian innovations and production capacities for military purposes, which is particularly important when it comes to the intended capacity doubling. However, NATO and dual-use regulations require an end-to-end-end chain traceability, restrictions on technology export and requirements for data security.
Regulatory challenges and compliance
The implementation of export controls and regulations is an important aspect of logistics, since you ensure that dual-use goods are only delivered to authorized recipients and are not used for unauthorized purposes. A central challenge is that the regulations and lists for dual-use goods have to be updated constantly in order to meet new technologies and threats. This regulatory complexity requires specialized compliance systems and can be supported by Product Lifecycle Management (PLM), which guarantees complete supply chain trucks and compliance in every phase of the product life cycle.
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Short -term approaches to expansion of capacity
Activation of existing civilian capacities
The short -term doubling of support skills can be achieved through the systematic activation and integration of existing civil logistics capacities. Germany already has a powerful civil transport industry that can be used as part of the Host Nation Support (HNS) to support NATO operations. The challenge lies in the effective coordination and integration of these capacities into the military planning and management processes.
Modern freight forwarders are already using data transmission to tablets and cell phones as well as GPS-based navigation. This existing infrastructure can be expanded through the integration of military information systems in order to enable seamless communication between civil and military actors. The possibility of letting civil and commercial transport vehicles “ride” in military columns offers military leadership, guard and security as well as military reporting.
Outsourcing strategies and contract models
The experiences of the US military show that the outsourcing of logistics functions can enable significant capacity extensions. The Ministry of Defense increasingly relies on expertise private companies in order to cope with complex logistical tasks and increase operational efficiency. Both the military and private manufacturers store services with the same main goal: reduction in costs with simultaneous capacity expansion.
Framework contracts such as the Federal Office for Equipment, Information Technology and Use of the Bundeswehr (BA-ARTBW) have already awarded for the operation of rest and gathering rooms can serve as a model for a broader implementation. These contract structures enable quick activation of additional capacities without lengthy procurement processes.
Flexibility through modular approaches
Modern logistics systems such as “LivePick” by TGW Logistics demonstrate how modular approaches can enable quick scaling. The high-modular system consists of a source and a target area that act independently of one another and are divided into individual modules. All modules can be easily expanded - according to individual needs and without interrupting the ongoing operation. It only takes six to twelve months from signing the contract to the go-live.
Long -term strategic planning and sustainable development
Public-private partnerships as the cornerstone
The long-term sustainability of the capacity expansion requires structured public-private partnerships (PPP) that go beyond short-term contractual relationships. International experiences show that PPPs work particularly well in investing and operating management of logistics platforms. PPP refers to agreements between the public and private sector in which services that are under the responsibility of the public sector are provided by the private sector.
Successful PPP models from Asia offer valuable findings for NATO implementation. In Vietnam, for example, there is a special institutional framework for PPP with dedicated PPP units on two levels: the steering committee at the state level and a PPP board in ministries or provinces to facilitate the development and implementation of specific PPP projects. Thailand follows a cost-optimized approach in which the DRY port operator should be the one who offers the lowest total costs for exporters and importers in the country, while at the same time a certain minimum service level is met.
Technology integration and digitization
The integration of advanced technologies is crucial for the long -term efficiency and scalability of logistical support skills. The Defense Logistics Agency (DLA) of the USA already manages the end-to-end defense chain-from raw materials to the end user disposition-for the five military services, 11 fighting commands, other federal, state and local authorities as well as partner and allied nations. This comprehensive coordination requires highly developed digital systems and data integration.
The evaluation of the capacities of the transport industry and their use-friendly use should be supported by integration into Enterprise Resource Planning (ERP) systems. BWI GmbH should check whether the inclusion of civil and commercial capacity in the ERP system is possible, even if this must be extensively checked. This integration would enable seamless planning and coordination between military and civil logistics capacities.
Construction of redundant and resilient structures
Long -term planning must also take into account the development of redundant and resilient logistics structures that can withstand geopolitical changes and security policy challenges. The experiences with Covid-19 have shown that even the safest supply chains can have weak points. Lief chain managers have to deal with increasing complexity and develop strategies in order to scale up or down quickly if demand increases.
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Scalability and crisis resilience
Adaptive capacity models
The ability to rapid scaling is crucial for coping with unforeseen crises or military escalations. Modern logistics service providers have already proven that they can react flexibly to changing requirements. An experienced logistics service provider can quickly adapt to market changes and cope with seasonal fluctuations, which is particularly advantageous for organizations, which are often faced with difficult to predict.
The implementation of Vendor Managed Inventory (VMI) systems can help improve the flexibility and responsiveness of the supply chain. By consolidating the suppliers and their review for speed and reliability, organizations can optimize their supply chains and at the same time increase scalability. Real-time data via production and shipment transparency enable proactive reactions to gaps or potential disorders in the supply chain.
Risk management and continuity planning
Ensuring the continuity of logistical support, even under extreme conditions, requires comprehensive risk management strategies. PMCs help to reduce logistical risks through proactive planning, effective management and emergency strategies. This risk assessment is particularly important in unstable security sites, where the likelihood of negative consequences increases.
Examples from Iraq show that the risk of refusing to serve logistics grows with increasing instability of the situation. Since the refusal of service leads to a decline in effectiveness, logistics must be provided by the armed forces in unstable regions. Logistics can be outsourced where the security situation is stable, for example in the home country or on the way to the area of application.
International coordination and standardization
The scalability of NATO logistics requires increased international coordination and standardization of procedures and systems. The experiences of various NATO member states with the privatization of military logistics services show both potential and challenges. The reorganization of the Military Logistics Systems of NATO member countries comprised strengthening and modernization efforts against new threats that came up after the Cold War.
While many NATO members, in particular the Turkish armed forces, continue to work with the private sector to strengthen the country's defense industry, the idea of obtaining services from external sources has gained importance in recent years due to changes in public procurement legislation. These developments show the potential for a coordinated NATO-wide strategy for the integration of private logistics capacities.
Dual-use technologies as the key to resilient NATO defense structures
The doubling of NATO support skills in logistics, replenishment and transport is an ambitious goal that can only be achieved through a strategic combination of private sector expertise and military planning. The analysis shows that both short -term and long -term solutions are available that enable sustainable and scalable capacity expansion.
In the short term, existing civil logistics capacities should be systematically activated and integrated by structured outsourcing programs. The implementation of modular systems and flexible contract models can enable a quick reaction to changing requirements. In the long term, the sustainable development of support skills requires the establishment of strategic public-private partnerships, the digitization and integration of the supply chains as well as the structure of resilient and redundant structures.
The special role of dual-use goods and technologies offers considerable potential for synergies between civil and military logistics, but also requires careful compliance strategies and regulatory attention. The successful implementation of this strategy will be decisive for NATO to strengthen its defense skills in accordance with the current security policy challenges.
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Advice - planning - implementation
Markus Becker
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Chairman SME Connect Defense Working Group
Advice - planning - implementation
Konrad Wolfenstein
I would be happy to serve as your personal advisor.
contact me under Wolfenstein ∂ Xpert.digital
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Your dual -use logistics expert
Dual -use logistics expert - Image: Xpert.digital
