LONDON, August 6 /PRNewswire/ --

Readiness and platform availability play fundamental roles in current
military operations, particularly in Afghanistan and Iraq. Providing the
warfighter with the right equipment at the right time has become essential in
modern warfare. One increasingly popular solution is Performance Based
Logistics (known as Contracting for Availability in UK parlance), a long-term
sustainment strategy to optimise the readiness and performance objectives of
weapon systems while boosting performance and increasing military capability.

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In line with this trend, Frost & Sullivan, the Growth Partnership
Company, has formulated a comprehensive strategic analysis on PBL and its
role in today's Aerospace & Defence market. In a new white paper entitled
"Performance Based Logistics - A Global Trend in the Aerospace & Defence
Sector," Frost & Sullivan recognises PBL as a best practice sustainment
strategy and vital emerging trend in the global Aerospace & Defence market
which can benefit contractors, MoDs and end-users world-wide. Moreover, it
expects PBL to be steadily implemented in major defence programmes across the
globe.

Joining Frost & Sullivan in the strategic assessment of PBL is SAP
(http://www.sap.com/software/performance-based-logistics.epx), a world leader
in software development and innovative PBL solution provider offering
comprehensive contract management and product support as well as a network of
high-profile partners. In a jointly-developed Webcast, SAP's Defense and
Aerospace Director, Tobias Schneider-Pungs, notes that PBL solutions are the
cornerstone of both an integrated IT system and a future-orientated PBL
business model.

Current experiences in Afghanistan and Iraq effectively demonstrate the
practical efficiency and value of PBL. The CH-47 Chinook helicopter, heavily
used by US troops in Afghanistan, attests to the importance of
performance-based solutions in maintaining operational capability.
High-reliability and availability rates have been achieved on the battlefield
and cost reduction has satisfied policy-makers, especially when Urgent
Operational Requirements are placing stress on public spending.

Bruno Mucciolo, Aerospace & Defence Consultant with Frost & Sullivan,
says that "the basic value of PBL lies in the creation of industry dynamics
that incentivise the private sector to reduce costs and increase systems
availability. At the same time, by improving the performance of military
equipment, PBL significantly increases front-line support capability.
Moreover, reduced costs enable end-users to re-invest savings into defence
acquisition projects."

However, the implementation of PBL involves structural changes within
MoDs that would encourage flexible and collaborative efforts between the
public and private sectors, facilitate transparency in the PPP arena and,
most importantly, foster mutual understanding between all parties involved.
Once these are put into perspective, contractors, MoDs and end-users can all
reap considerable benefits from PBL.

Jon Newsome, PBL/Sustainment Solution Principal at SAP says that "to
successfully execute PBL contracts, contractors and MoDs must re-evaluate
both current processes and enabling technologies. The shift toward
level-of-service contracting puts additional requirements on technology to
provide integrated views of the extended supply chain, enable rapid decision
making and drive behavior that meets immediate operational demands and
supports strategic lifecycle sustainment. Customer focus is paramount, and
exceeding MoD operational availability and mission reliability targets is the
ultimate objective."

If you would like to receive a complimentary copy of our white paper
entitled: Performance Based Logistics - A Global Trend in the Aerospace &
Defence Sector, please contact Monika Kwiecinska, Corporate Communications,
at monika.kwiecinska@frost.com.

For further details on SAP PBL solutions and to access the Webcast,
please visit -SAP's dedicated website on PBL 
(http://www.sap.com/software/performance-based-logistics.epx).

Frost & Sullivan, the Growth Partnership Company, enables clients to
accelerate growth and achieve best in class positions in growth, innovation
and leadership. The company's Growth Partnership Service provides the CEO and
the CEO's Growth Team with disciplined research and best practice models to
drive the generation, evaluation, and implementation of powerful growth
strategies. Frost & Sullivan leverages over 45 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from more than 35 offices on six continents. To join our Growth
Partnership, please visit http://www.frost.com.

SAP is the world's leading provider of business software, offering
applications and services that enable companies of all sizes and in more than
25 industries to become best-run businesses. With more than 86,000 customers
in over 120 countries, the company is listed on several exchanges, including
the Frankfurt stock exchange and NYSE, under the symbol "SAP." For more
information, visit www.sap.com.

Contact:
    Monika Kwiecinska
    Corporate Communications
    T: +48-22-390-4127
    E: monika.kwiecinska@frost.com
    http://www.frost.com