NATO Discovers a Classic Strategic Sourcing Dilemma

Art of Supply · Nov 3, 2022 · 19m

NATO was formed in 1949, in the aftermath of World War II, to ensure peace in Europe. Under article 5 of the treaty, an attack on one member nation is considered an attack on all - and therefore a military response is required. Since 2006, NATO countries have committed to spend a minimum of 2 percent of their GDP on the military - a promise most have not upheld.

Now there is a proposal to standardize military equipment across countries. The hope is that this will make battlefield coordination easier and simpler. In practice, however, it would lead to far more negative consequences - cancelled…