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Modern warfare is heavily reliant on logistics.
In ancient times, armies could rely on foraging, raiding, or capturing supplies from their enemies. Modern warfare, however, requires vast quantities of ammunition and materials, measured in tons. After a battle, much of the equipment and supplies are often destroyed. Technological advancements have only increased the complexity and cost of warfare, with naval and air battles consuming enormous amounts of resources. Today, warfare is a contest of national power and logistics.
During World War II, the United States used its industrial might to produce war materials on a massive scale, leading to the shutdown of many civilian factories as they were repurposed for the war effort. This situation contributed to the economic impact of the war.
The current conflict in the Far East is a local war, not a full-scale global conflict. Unlike World War II, the U.S. Congress is unwilling to fully mobilize the nation's resources for this conflict. As a result, it has been deemed more practical to delegate logistical responsibilities to a few large companies, a decision endorsed by President Johnson and Congress.
Providing war supplies is a lucrative business. Even just supplying daily necessities could amount to billions of dollars, with substantial profits to be made.
Hardy recognized the significance of this opportunity and quickly took action. He sent a telegram to the U.S., instructing Andy to establish a special department dedicated to this business and to send a more specialized team to oversee it.
The Hardy supermarket chain was well-positioned to play a key role in this effort. With thousands of suppliers, the chain could place orders directly, streamlining the procurement process.
In Japan, a similar model was employed. The team there was tasked with categorizing the materials needed by the U.S. military, then coordinating with appropriate factories to fulfill the orders. The logistics department handled inspection and acceptance, ensuring that products met the required standards before being transported to the battlefield.
The current situation meant that any company able to secure a contract could profit handsomely, and the seven major consortia were eager to stake their claim in this lucrative market.
**The Imperial Hotel Conference Room**
A meeting was convened among the heads of the seven consortia. This meeting included both those based in Japan and representatives from China who were influential within the consortia.
The discussion focused on the U.S. military's daily supply needs, which included a wide range of categories: 11 main categories, 263 sub-categories, and over 20,000 items. Hardy outlined the agenda:
"Today's meeting is about how to allocate these materials and how to sell them to the U.S. military."
The attendees were attentive, knowing that Hardy likely had a detailed plan.
Hardy continued: "There are multiple companies producing similar materials. For example, both the Hardy Group and the Clark Group, as well as Aike Confectionery of the Mellon Consortium, produce chocolate."
"For automobiles, there are many suppliers in the U.S. and Japan. How should we allocate these?"
"For items like meat, clothing, and medicine, we need to determine the distribution."
The attendees knew that securing these orders would be profitable. Hardy had the authority to decide the distribution of these opportunities.
"The second point is how to sell these materials," Hardy explained. "The U.S. military logistics supplier is designated as the Hardy Group. I propose two options: First, you can sell your products to the Hardy Group as suppliers, similar to a supermarket chain model, and we will handle the distribution to the U.S. military."
There was some hesitation. This approach meant that Hardy would control the profit margin, and they would only act as suppliers.
"The alternative," Hardy said, "is to jointly form a company where all produced materials are sold together to the U.S. military, with profits distributed according to shareholdings."
This proposal generated interest. Many attendees agreed that the latter option was more appealing.
Hardy had a strategic interest in this arrangement. "Establishing a joint company would involve transferring some of the Hardy Group's interests. Therefore, I hope to acquire something of equivalent value in return."
"What does Mr. Hardy want?" someone asked.
"I'm interested in buying shares in companies I find promising. I have already acquired some shares in the stock market, but I'd like to acquire more from you," Hardy replied.
"Which shares are you interested in?" another attendee asked.
"IBM, the Telegraph and Telephone Company, and Motorola," Hardy specified.
Hardy understood that these companies were incubating future tech giants like Microsoft, Intel, and Apple. While these technology firms were not yet dominant, investing in them early could yield significant returns in the future.
The meeting concluded with an agreement to consider Hardy's offer. Subsequent discussions with their respective boards and partners resulted in several consortia agreeing to sell shares to Hardy.
Hardy acquired 5% of IBM shares, 3.7% of Telegraph and Telephone Company shares, and 7% of Motorola shares at market prices. These acquisitions positioned him as a major shareholder in these companies, ensuring influence and avoiding future misunderstandings.
The next steps involved finalizing supply details and production lists, covering categories such as:
- **Automobiles:** Trucks, passenger vehicles, command cars, engineering vehicles, motorcycles, tractors, outdoor dining cars.
- **Office Supplies:** Typewriters, pens, paper.
- **Medical Supplies:** First aid drugs, surgical tools, infusion equipment, battlefield stretchers, ropes.
- **Bedding and Clothing:** Various clothes, including summer and winter apparel, blankets, sleeping bags, camping equipment.
- **Communications:** Telephones, telephone lines, walkie-talkies.
- **Tools:** Shovels, pliers, barbed wire.
- **Living Essentials:** Toothpaste, toothbrushes, soap, toilet paper, sanitary napkins.
- **Miscellaneous:** Cigarettes, lighters, coffee, tea, cola, snacks.
Hardy emphasized the importance of improving the quality of supplies for the U.S. military. He proposed a menu of fresh foods, made in dining cars, to replace the standard ration boxes. This included a variety of meals designed to boost morale and maintain soldiers' well-being.
The meeting lasted several days, with companies receiving allocations for production. Hardy was not responsible for the minutiae but played a crucial role in coordinating the efforts.
The Japanese government and businesses were thrilled with the influx of orders from the U.S. military. Factories expanded production, hired more workers, and automotive companies like Toyota and Honda received numerous orders. The media reported positively on the economic benefits, and Japan saw increased employment and production.
Meanwhile, news of the conflict reached East Asia. A Global Times reporter interviewed General MacArthur, who displayed remarkable confidence:
"I plan to land in Incheon to cut off the enemy and then encircle them with the Eighth Army to secure a decisive victory," MacArthur declared.
When asked if this plan might be risky, MacArthur responded dismissively, asserting the superiority of the U.S. military and its capabilities.
The reporter inquired whether the interview could be made public, concerned about revealing military plans. MacArthur waved off the concern, expressing confidence in the success of the U.S. military's strategy.
Finally, the reporter asked when the war would end. MacArthur confidently predicted that the conflict would be resolved before Christmas, with U.S. soldiers returning home to celebrate the holiday.
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