Explaining Stocks Versus Provisions

In this lesson, you will learn about the following:

A few ways to define Stocks and Provisions
To list Stocks and Provisions in a sample military unit

The image presents a thought-provoking question by depicting a figurative person standing on a crossroad, surrounded by various icons representing stocks and provisions. The question Stocks? Provisions? Both? encourages the viewer to consider the appropriate balance or choice between these two concepts.

Defense and Security has specific definitions for the categorization of materials. They are called Stocks or Provisions.

The definition of a material in a military unit as Stocks or provisions has a significant impact on the subsequent processes of its planning, authorization, fulfillment, and replenishment. It is therefore important to correctly categorize them as Stocks and Provisions.

Stocks versus Provisions: Concept I

Concept I

DFPS has specific definitions that it uses to categorize materials. They are called ‘stocks’ or ‘provisions’.
One major criteria is the "category" of the material, such as the following:
i. Non-Consumable materials ii. Consumable materials iii. Spare Part items
A Stocks material is normally one of the following:
- High value, self-contained, accountable, maintained, defines capabilities on a generic level (as opposed to material specific), TOE (Table of Equipment).
- Some examples could be Assets (trucks, tanks, aircraft or ships) or complex ammunition like rockets.
A Provisions material is normally one of the following:
- Low value, consumed upon issue or materials that wear as they are used.
- Some examples could be spare parts, consumables, petroleum, oil, and lubricants (known as POL), or light ammunition (like bullets).

A rough-cut approach to categorize Stocks versus Provisions is by the category of the material:

Stocks are defined as materials, which represent non-consumable goods, assigned to a force through a stock storage location (SLOC) (stock element).
Provisions are the inventory of consumable goods that can be planned for replenishment using Material Resource Planning (MRP).

This approach is relatively easy to understand, and covers most of the cases, but it is not complete. A finer planning-oriented approach is necessary, as can be seen in the next figures.

Concept II

The image is divided into two sections, Stocks and Provisions. The Stocks section lists items such as non-consumable goods, end-consumer items, capability groups, individual planning, and virtual storage locations. The Provisions section lists items such as consumables, inventory for logistic centers, authorized materials or packages, bulk planning, and actual warehouses. The image provides a clear visual comparison and definition of these two concepts in the context of supply chain management.

A finer and more accurate definition is to combine the nature (category) of material and its role in a specific unit in order to differentiate between Stocks and Provisions.

FMPO = Flexible Material Planning Object will be explained in the Lesson "Stocks".

MRP = Material Resource Planning in ERP, IBP = Integrated Business Planning for Supply Optimization - a more versatile approach and cross Plants / MRP-Areas.

The image is divided into two sections, Stocks and Provisions. The Stocks section contains images of non-consumable goods such as weapon systems, military vehicles, and electronic equipment. The Provisions section contains images of consumable goods like food items, fuel containers, and maintenance supplies. This visual comparison illustrates the distinction between stocks and provisions in a supply chain context.

A Heavy Infantry company is an end-customer of a military supply chain. Its Table of Organization and Equipment (TOE), materials include APCs, Trucks, Rifles, military rugged laptops, communications and others; while Provisions will include POL, rations, spares, and paper.

The image shows a warehouse management system interface with two sections. The left section is labeled Stocks and displays icons for various items such as a truck, a forklift, laptops, and a rifle. The right section is labeled Provisions and displays icons for a supply bag, a laptop, and a server.

An electronic storage facility fulfills a dual role: it is a military unit as well as a logistics facility providing service to others. Its TOE materials are the enables of their activity: forklifts, trucks, computers running warehouse management software. It also consumes provisions like fuel for its trucks and spares for repairing the forklifts. However, its more important provisions is the equipment stored in order to be provided to others - servers, PCs, radios, and so forth. The difference between the PC in the stock element and the PC in the provisions element is not the material (it could be the same product number), but the ROLE of the inventory.

Processing of Stocks versus Provisions

Stocks

The number of accounted materials are defined at specific levels of the organizational structure (TOE) such as a battalion is authorized to have 3 mid-size trucks.
The ordering of these stocks is typically done by running an Authorized Actual Comparison (AAC) application, that is, proposing to request to supply the difference between the authorized and actual quantities.

Provisions

MRP parameters are defined at specific levels of the organizational structure such as a combat platoon should have a minimum of 1000 bullets.
In many cases, future requirements can be planned for, such as a training requiring a key of 200 bullets for participant; or a workshop which is planned to conduct 250 periodic visits of jeeps next month, each expected to require an air filter replacement.
Ordering is typically is done by executing an MRP run.