Coordination is the management of dependencies between activities. Given that supply chains represent the functional integration of many interdependent activities associated with the flow of goods, coordination theory offers a framework for understanding and designing supply chains. Supply chains are separated into two distinct substructures: physical (dealing with the flow and storage of goods) and information (dealing with information associated with those goods). Optimization that alters the storage and movement of information and incorporates the impact of information technology leads to a distinct set of node connections and configurations for each substructure. Our analysis uses transaction cost economics to contrast the differences between structures infused with information technology and traditional supply chains.

Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Performance Based Logistics is an acquisition reform that is intended to improve weapon systems logistics by reducing cost, improving reliability, and reducing footprint. It is an extension of a broad process of rationalizing, and in many cases outsourcing government services. As with other examples of governmental service outsourcing measurement issues arise, in the gap between governmental objectives and service measurement, and in the contrast between clear profitcentered vendor metrics, and more complex mission-oriented governmental metrics. Beyond this however, PBL presents new challenges to the relationship between governmental agencies and their service vendors. In many cases, weapons systems logistical support involves levels of operational risk that are more difficult to measure and more difficult to value than other government services. We discuss the implications of operational risk and other measurement issues on PBL implementation. SUBJECT TERMS AbstractPerformance Based Logistics is an acquisition reform that is intended to improve weapon systems logistics by reducing cost, improving reliability, and reducing footprint.It is an extension of a broad process of rationalizing, and in many cases outsourcing government services. As with other examples of governmental service outsourcing measurement issues arise, in the gap between governmental objectives and service measurement, and in the contrast between clear profit-centered vendor metrics, and more complex mission-oriented governmental metrics. Beyond this however, PBL presents new challenges to the relationship between governmental agencies and their service vendors. In many cases, weapons systems logistical support involves levels of operational risk that are more difficult to measure and more difficult to value than other government services. We discuss the implications of operational risk and other measurement issues on PBL implementation.

While the physical paths that goods traverse are being simplified, the capture, storage, processing and dissemination of information associated with logistics has become considerably more complex. Logistics researchers need to better understand the behavioral and managerial issues created by information technology implementation. The paper suggests that structuration theory, a research approach derived from sociology that has become well established in the study of information systems, can contribute to that understanding. This paper introduces logistics researchers to structuration theory as a useful theoretical framework that can help understand the relationship between technologies, the people who interpret them, and the patterns of use that stem from that interpretation. IntroductionThe evolution of advanced information technologies (AITs) is having a fundamental impact on the physical and information flows that characterize logistics activities. Although the physical paths goods traverse are being simplified due, in part, to outsourcing (Sarkar et al., 1998;Lewis and Talalayevsky, 2000), the ability of AITs to capture, process, store, and disseminate large amounts of supply chain information has significantly increased the complexity of organizational members' and suppliers' tasks, and made more dynamic the systems within which they work.Following DeSanctis and Poole (1994), we define AITs as the tools, techniques, and knowledge (e.g. collaborative customer management and supply chain management (SCM) systems, groupware such as e-mail and intranets, and decision support systems) that promote participation in organizational and inter-organizational activities by a wide range of organizational members and stakeholders. These AITs can make real-time information available to members at all levels in the organization, to suppliers, and to customers. If this information and knowledge is used wisely, organizations can build customized relationships with their suppliers and customers, leading to a significant strategic advantage over competitors.Effectively adopting and implementing AITs to strategically manage supply chain information, communication, and relationships is not only a

In 2003, the Department of Defense (DoD) spent over $118B in purchasing services. In fact, in each of the last ten years, DOD has spent more dollars on services than on supplies, equipment and goods, which includes weapon systems and other military items. As DOD's services acquisition volume continues to increase in scope and dollars, the agency must provide greater attention to such issues as proper acquisition planning, adequate requirements definition, establishment of appropriate contracts, and proper contractor oversight. The unique characteristics of services and the increasing importance of services acquisition offer a significant opportunity for conducting research in the management of the service supply chain in DOD.

Performance Based Logistics (PBL) is an acquisition reform that is intended to improve weapon systems logistics by reducing cost, improving reliability, and reducing footprint. PBL is an extension of a broad process of rationalizing and, in many cases, outsourcing government services. As with other examples of governmental service outsourcing, measurement issues arise in the gap between governmental objectives and service measurement, and in the contrast between clear profit-centered vendor metrics, and more complex mission-oriented governmental metrics. Beyond this, however, PBL presents new challenges to the relationship between governmental agencies and their service vendors. In many cases, weapons systems logistical support involves levels of operational risk that are more difficult to measure and more difficult to value than other government services. We discuss the implications of operational risk and other measurement issues on PBL implementation.