Millog - A successful Strategic Partnership with the Finnish Army and Navy
Millog is a strategic partner of the Finnish Defense Forces and provides defense materiel life cycle support to the Finnish Army and Navy in all readiness conditions. Millog's assignments include maintenance and materiel services for platforms and systems related to non-armored and armored vehicles, weapon systems, electronic systems as well as modifications and installations.
In the beginning of 21st century the Finnish Defense Forces (FDF) began to plan together with defense industry a more cost-efficient way to plan and execute life cycle support services for Army platforms and systems. Simultaneously aim was to ensure material sustainability in home country in all readiness levels. After this co-creative planning phase, Millog was established in 2006 as a consortium of several Finnish defense industry partners with Patria being the majority owner. Patria also transferred its know-how on working closely with Finnish Air Force, know-how that has been gained during decades of cooperation.
Millog entered into a strategic partnership agreement with FDF in June 2008 and responsibility of Army’s depot level maintenance were transferred to Millog in the beginning of 2009. This meant maintenance and repair of Army wheeled and tracked vehicles, weapon systems and electronic systems, as well as related modifications and installations. To carry out operations, corresponding workshops, facilities, tools, test equipment, documentation needed for maintenance and personnel were also transferred from FDF to Millog.
As from January 2015, Millog’s tasks within the strategic partnership were expanded. Services of Army garrison level workshops as well as maintenance of Finnish Navy vessels and systems were transferred under Millog’s responsibility. Related staff, Army garrison workshops, two warehouses, Navy maintenance centers and a central warehouse of the Navy were also transferred to Millog. FDF remained responsible for user level maintenance.
Today Millog co-operates very closely with the Finnish Army and Navy, successfully providing services relating to life cycle support planning and services of defense materiel, logistics and spare part sourcing. Millog supports FDF to build crises time readiness on a daily basis as well as provides industry neutral advisory and technical support to FDF-run procurement programs.
The strategic partnership between the Finnish Defense Forces and Millog Oy is long term, and the strategic partnership agreements are valid until further notice.
According to FDF, Logistics Command the strategic partnership with Millog Oy has proven to be a robust co-operation format and have shown very good results:
- Increased volume and shortened lead times
- Improved cost structure consciousness
- Improved logistics models and processes
- Optimum spare part readiness
- Transparency in operations and clear client to contractor model
This view is supported by third-party analysis showing that Millog’s actual costs since 2009 have been significantly lower compared to the corresponding costs prognosed by FDF if the partnership would not have been entered.
The strategic partnership between FDF and Millog is long term, and partners are committed to develop life cycle support services cooperation. This is supported by the strategic partnership agreement that is valid until further notice.