Format of presentation is some background on our efforts, an overview of the core and root cause problems, a short discussion of the problems, recommended actions, questions and comments, and next steps. Please hold questions until end of the presentation.
Industry Trade Associations Committee of Six Update The American Apparel and Footwear Association (AAFA) The National Textile Association (NTA) The Parachute Industry Association (PIA) Clemson University APBI Meeting 5/10/07
Military view of Clothing and Textiles (C&T) as commodity products.
Root cause problems :
Lack of enterprise-wide full communication and collaboration.
Procurement funding gaps.
Procurement practices that cause SC gaps and prevent contractors from planning.
Business processes and systems that cause SC gaps.
Baseline Supply Chain Throughput Fiber becomes slacks in ~29 weeks Start fiber production Bought by ~41 weeks
Baseline Supply Chain Throughput If acceptable slacks are available from end-item manufacturers because of SC-wide forecasting and launching at acceptable risk, a retailer only has to wait the order & transport time. This defines commodity products.
Baseline Supply Chain Throughput Since (1) military products are unique from fiber forward, (2) there are no secondary markets for military unique products, (3) commodity buying practices minimize prices, and (4) military funding, buying actions, and technology changes are not reliable, the risk is too high for industry to pre-position non-commodity end-items or components for the military.
Baseline Supply Chain Throughput Bought by ~41 weeks Thus, the commodity approach forces the military to stock sufficient inventories to meet peacetime and surge demand for the longest possible SC-wide throughput time or live with stock outs. This approach is very costly to everyone and these large inventories block the transition to new technologies. There is a better way!
At the DoD executive and managerial levels change fundamental policies and procedures to eliminate SC gaps.
Create a single DoD-wide SC manager to optimize SC-wide funding and product flow:
for each major C&T SC
by coordinating R&D and sustainment procurement needs within the military
and by providing a single, primary point for communications and collaboration between the military and industry.
Proposed Action Visual Technical Managerial Executive Military Services & DLA: Industrial Base: Raw Materials Components End Items 2. DoD-wide Supply Chain Managers Maintain Product Flow Full Collaboration NPD & Sustainment Buying Modern Technical Data Management 1. At the executive & managerial levels change the policies and procedures and eliminate the issues that cause SC Gaps. Questions?