DLA Supply Chain Update Defense Supply Center Richmond                   DSCR • Aviation Lead Center • DSCR • Aviation Lea...
<ul><li>Supplier Relationships – Year In Review </li></ul><ul><li>Transformation And Expansion </li></ul><ul><li>Supplier ...
Year In Review Supplier Team Scorecard DSCR  Data Only Overall Supplier Score Sep 04 Aug 04  Jul 04 Jun 04 May 04 Apr 04 M...
Year In Review Strategic Supplier Alliances Strategic Supplier Alliances Tactical Improvements <ul><li>Strategic Improveme...
DLA SMS On LTC FY04 Adds  34,181 NSNs FY05 Goal 23,010 NSNs (Tracked By Supply Chain) Aviation 11,548 Maritime   6,473 Lan...
<ul><li>Supplier Relationships – Year In Review </li></ul><ul><li>Transformation And Expansion </li></ul><ul><li>Supplier ...
Transformation And Expansion Business Systems Modernization The Vision Enhance DLA and Supplier interaction based on the s...
Transformation And Expansion Business Systems Modernization <ul><li>BSM Core Processes: </li></ul><ul><ul><li>Order Fulfil...
Inactive Aviation NSN-175K Jan05  Feb05  Mar05  Apr05  May05  Jun05  Jul05  Aug05  Sep05  Oct05  Nov05  Dec05 DSCP DSCR Ma...
Medical 3 Pharm Itms -29K  Jan06  Feb06  Mar06  Apr06  May06  Jun06  Jul06  Aug06  Sep06  Oct06 Aviation OEM NSN-142K C&E ...
<ul><li>Supplier Relationships – Year In Review </li></ul><ul><li>Transformation And Expansion </li></ul><ul><li>Supplier ...
Aviation Supply Chain Focus For FY05 Supply Chain Metrics Aviation Supply Chain Scorecard <ul><li>DLA Enterprise View By  ...
Aviation Supply Chain Aviation Supply Chain Scorecard Metrics – Looking Forward SSA Scorecard DLA Enterprise Supply Chain ...
Focus For FY05 Air Force Aviation Common Operating Picture $132M In FY04 EOY Funds Supply Availability FY04 Demand And  Ba...
Focus For FY05 Army Aviation Common Operating Picture <ul><li>Army Reset Due To Mission Effects of OIF/OEF </li></ul><ul><...
Focus For FY05 Navy Aviation Common Operating Picture <ul><li>Naval Aviation Demand Back To FY02 Levels </li></ul><ul><li>...
<ul><li>Assumptions : </li></ul><ul><li>Peak rotation Nov thru Jan </li></ul><ul><li>Demands decrease during transition  <...
<ul><li>Land BOs up by 13,068 lines or  </li></ul><ul><li>17.5% from Sep 03 </li></ul><ul><li>HMMWV is the driving force <...
Director CAPT Walt Melton Focus For FY05 Business Development <ul><li>DSCR Has Developed A PBL Engagement Strategy </li></...
<ul><li>Supplier Relationships – Year In Review </li></ul><ul><li>Transformation And Expansion </li></ul><ul><li>Supplier ...
Takeaways <ul><li>Strong Year For DLA/Industry Partner Teaming/Performance </li></ul><ul><ul><li>SSA Focus Areas…PLT, Deli...
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DLA Supply Chain Update

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DLA Supply Chain Update

  1. 1. DLA Supply Chain Update Defense Supply Center Richmond                   DSCR • Aviation Lead Center • DSCR • Aviation Lead Center • DSCR • Aviation Lead Center • DSCR • Aviation Lead Center Senior Executive Partnership Round Table
  2. 2. <ul><li>Supplier Relationships – Year In Review </li></ul><ul><li>Transformation And Expansion </li></ul><ul><li>Supplier Relationships – Focus For FY05 </li></ul><ul><li>Takeaways </li></ul>Agenda
  3. 3. Year In Review Supplier Team Scorecard DSCR Data Only Overall Supplier Score Sep 04 Aug 04 Jul 04 Jun 04 May 04 Apr 04 Mar 04 Feb 04 Jan 04 Dec 03 Nov 03 Oct 03 Total ALT PLT Del Rate B/O > 180 Hi Freq SA Hi Freq LTC % Replen PRs > ALT PRs>180 Sep 03 Total ALT PLT Del Rate B/O > 180 Hi Freq SA Hi Freq LTC % Replen PRs > ALT PRs>180 Sep 04 <ul><li>Supplier Teams Have Positively Impacted DLA Performance </li></ul><ul><li>Partnering With Suppliers Is Key To Improvement </li></ul>(Sep 03 Data) Blue 1 Green 2 (Sep 04 Data) Blue 5 Green 6
  4. 4. Year In Review Strategic Supplier Alliances Strategic Supplier Alliances Tactical Improvements <ul><li>Strategic Improvements </li></ul><ul><li>Process Improvements </li></ul><ul><ul><li>Forecasting Accuracy </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Exchanging Critical Logistics </li></ul></ul><ul><ul><li>Information </li></ul></ul><ul><ul><li>Lead Time Reductions </li></ul></ul><ul><li>Lean Events </li></ul><ul><li>PBL Partnering </li></ul><ul><li>Other Strategic Opportunities </li></ul><ul><li>SSAs Are Maturing And Evolving </li></ul><ul><li>For Mature Relationship – Focus On Process Improvements </li></ul>5 0 18 ADV On Contract Red Yellow Green 10 2 1 20 Price Control 1 0 22 Quality (PQDRs) 1 5 0 1 4 0 23 ALT Reduction 9 On Time Delivery 3 19 Backorder Reductions 8 10 PLT Reductions 2 19 NSN Growth # Of DLA Suppliers (Sep) SSA Contract Metric 5 8 10 PLT Reductions 10 4 9 On Time Delivery
  5. 5. DLA SMS On LTC FY04 Adds 34,181 NSNs FY05 Goal 23,010 NSNs (Tracked By Supply Chain) Aviation 11,548 Maritime 6,473 Land 3,107 C&E 1,882 Year In Review Strategic Material Sourcing # NSNs (K) SMS Not On LTC 73.4 Days ALT 124.9 Days PLT FY04 26.5 Days 3.0 Days SMS On LTC <ul><li>Continued Focus On SMS NSNs </li></ul>
  6. 6. <ul><li>Supplier Relationships – Year In Review </li></ul><ul><li>Transformation And Expansion </li></ul><ul><li>Supplier Relationships – Focus For FY05 </li></ul><ul><li>Takeaways </li></ul>Agenda
  7. 7. Transformation And Expansion Business Systems Modernization The Vision Enhance DLA and Supplier interaction based on the specific needs of a relationship in order to allocate time and resource more efficiently to best support the warfighter. Customer Relationship Management <ul><li>Customer </li></ul><ul><li>Insight </li></ul><ul><li>Customer </li></ul><ul><li>Service </li></ul><ul><li>Emergent </li></ul><ul><li>Problem </li></ul><ul><li>Resolution </li></ul><ul><li>Returns </li></ul><ul><li>Management </li></ul>Business Systems Modernization Supplier Relationship Management <ul><li>Strategic </li></ul><ul><li>Materiel </li></ul><ul><li>Sourcing </li></ul><ul><li>Strategic </li></ul><ul><li>Supplier </li></ul><ul><li>Alliances </li></ul><ul><li>Supplier </li></ul><ul><li>Partnering </li></ul>
  8. 8. Transformation And Expansion Business Systems Modernization <ul><li>BSM Core Processes: </li></ul><ul><ul><li>Order Fulfillment </li></ul></ul><ul><ul><li>Planning </li></ul></ul><ul><ul><li>Financial Management </li></ul></ul><ul><ul><li>Procurement </li></ul></ul><ul><ul><li>Tech Quality </li></ul></ul>Supplier Relationship Management <ul><li>Strategic </li></ul><ul><li>Materiel </li></ul><ul><li>Sourcing </li></ul><ul><li>Strategic </li></ul><ul><li>Supplier </li></ul><ul><li>Alliances </li></ul><ul><li>Supplier </li></ul><ul><li>Partnering </li></ul><ul><li>Benefits To Suppliers </li></ul><ul><li>Reduce Costs </li></ul><ul><ul><li>Improve Forecasting </li></ul></ul><ul><ul><li>Reduce Inventories </li></ul></ul><ul><ul><li>Improve Utilization </li></ul></ul><ul><ul><li>Of Supplier Capacities </li></ul></ul><ul><li>Reduce Waste From Supply </li></ul><ul><li>Chain </li></ul><ul><ul><li>Greater Visibility Of Needs </li></ul></ul><ul><li>Data-Driven, Objective </li></ul><ul><li>Feedback On Actual </li></ul><ul><li>Performance </li></ul>
  9. 9. Inactive Aviation NSN-175K Jan05 Feb05 Mar05 Apr05 May05 Jun05 Jul05 Aug05 Sep05 Oct05 Nov05 Dec05 DSCP DSCR Maritime Non Pow Valves NSN-75K Maritime Detachmt NSN-171K Maritime Detachmt NSN-240K Aviation Comm/ NSN-228K Land Detachmt NSN-14K Airframes & Engines NSN-140K Maritime NSN-196K Aviation/ SSA ISTs NSN-240K Land NSN-145K C&T Flag/Insig NSN 3K C&T Accssrs NSN 2K C&T Tents NSN-1K Aviation Detachmt NSN-190K DSCC Maritime (Elctrncs) NSN-287K C&T Chem Sts NSN-1K Rollout through December 2005 Transformation And Expansion BSM Impact On SSA Suppliers = Rollout Increment Impacting SSA Suppliers Maritime NSN-196K Aviation/ SSA ISTs NSN-240K Land NSN-145K Maritime Detachmt NSN-240K Aviation Detachmt NSN-190K Land Detachmt NSN-14K Maritime Detachmt NSN-171K Aviation Comm/ NSN-228K
  10. 10. Medical 3 Pharm Itms -29K Jan06 Feb06 Mar06 Apr06 May06 Jun06 Jul06 Aug06 Sep06 Oct06 Aviation OEM NSN-142K C&E NSN-93K C&T Drs Cloth NSN-6 K Subs PV FSE NSN-19K Def WS Detachmt NSN-68K Maritme (Elctrncs) NSN-204K Deferred NSN-163K Maritme (Elctrncs) NSN-306K Deferred Detachmt NSN-81K Med 2 Trad/Asbl NSN-67K Medical 4 Med/Surg Itms-235K Medical 1 ECAT Itms 1.8M C&T Footwear NSN-5.6K C&T OCIE NSN- 6K C&E NSN133K C&E NSN-77K C&E NSN-67K Aviation Deferred NSN-55K Rollout from January 2006 – September 2006 Transformation And Expansion BSM Impact On SSA Suppliers DSCP DSCR DSCC = Rollout Increment Impacting SSA Suppliers Aviation OEM NSN-142K Deferred NSN-163K
  11. 11. <ul><li>Supplier Relationships – Year In Review </li></ul><ul><li>Transformation And Expansion </li></ul><ul><li>Supplier Relationships – Focus For FY05 </li></ul><ul><li>Takeaways </li></ul>Agenda
  12. 12. Aviation Supply Chain Focus For FY05 Supply Chain Metrics Aviation Supply Chain Scorecard <ul><li>DLA Enterprise View By </li></ul><ul><li>Supply Chain </li></ul><ul><li>Replaces DSCR Supplier Team </li></ul><ul><li>Scorecard </li></ul><ul><li>Some Metrics Will Change </li></ul><ul><li>Scores May Be Impacted </li></ul><ul><li>Initially </li></ul><ul><li>Goals To Be Established </li></ul>Target For Supply Chain Scorecard Implementation: 2 nd Qtr 05 DSCC DSCR DSCP
  13. 13. Aviation Supply Chain Aviation Supply Chain Scorecard Metrics – Looking Forward SSA Scorecard DLA Enterprise Supply Chain Scorecard Joint Supplier Scorecard <ul><li>Building Metrics For Broader View </li></ul><ul><li>Comprehensive Look At DoD Support </li></ul>DSCC DSCR DSCP Army Navy Air Force
  14. 14. Focus For FY05 Air Force Aviation Common Operating Picture $132M In FY04 EOY Funds Supply Availability FY04 Demand And Backorder Lines (K) Projected FY05 <ul><li>Expect FY05 Demand Level Slightly Lower </li></ul><ul><li>Some Potential For Consumable Funding Reductions </li></ul><ul><li>FY05 Goal To Recover The SA & BO Improvements by 2Q FY05 </li></ul>
  15. 15. Focus For FY05 Army Aviation Common Operating Picture <ul><li>Army Reset Due To Mission Effects of OIF/OEF </li></ul><ul><li>FY 05 Projection - Accelerated Reset Inductions With Demand At 3 rd Qtr FY 04 Levels </li></ul><ul><li>Bottom Line – Continue Reset BO Reduction Glide Slope And Prep For OIF 2 Reset Support </li></ul>DLA OIF 2 Orders Supply Availability FY04 Demand And Backorder Lines (K) Projected FY05 OIF Reset 1 OIF Reset 2 142,669 Reset Surge* *Impact To DLA And Suppliers In Increased Demands August – September
  16. 16. Focus For FY05 Navy Aviation Common Operating Picture <ul><li>Naval Aviation Demand Back To FY02 Levels </li></ul><ul><li>Cost-Wise Readiness Is Focus </li></ul><ul><li>Marine Corps Aviation Reset Starts 3 rd Qtr FY05 </li></ul><ul><li>Bottom Line: Business Trends Will Continue Into FY05 </li></ul>Supply Availability FY04 Demand And Backorder Lines (K) Projected FY05 Supply Availability Increasing Demand Levels To –5% Total Backorders Declining
  17. 17. <ul><li>Assumptions : </li></ul><ul><li>Peak rotation Nov thru Jan </li></ul><ul><li>Demands decrease during transition </li></ul><ul><li>period </li></ul><ul><li>Demands pickup following Transfer </li></ul><ul><li>of Authority (TOA) between units </li></ul><ul><li>Mar-Apr units commence ASL ramp-up </li></ul><ul><li>FORSCOM G-4 states same demand </li></ul><ul><li>pattern for FY05 </li></ul><ul><li>Supplier impact </li></ul><ul><li>Continued high demand through FY05 </li></ul><ul><li>Anticipating/watching industrial base </li></ul><ul><li>issues </li></ul><ul><li>Increasing collaboration </li></ul>PEAK ROTATION DSCC Warfighters Requirements Analysis Process (WRAP) The Whole Army Is In Motion Gen Kern (AMC CG)
  18. 18. <ul><li>Land BOs up by 13,068 lines or </li></ul><ul><li>17.5% from Sep 03 </li></ul><ul><li>HMMWV is the driving force </li></ul><ul><li>Overall BOs increased due to heavy </li></ul><ul><li>AF demands </li></ul><ul><li>Maritime BOs are up 5,085 lines or </li></ul><ul><li>6.3% from Sep 03 </li></ul><ul><li>Sep 04 demands decreased by 12% </li></ul><ul><li>from Aug 04 </li></ul><ul><li>FSG 53 (Hardware and Abrasives) </li></ul><ul><li>drove increase   </li></ul>DSCC Hardware Supply Chains Supply Avail, Demand, & BOs
  19. 19. Director CAPT Walt Melton Focus For FY05 Business Development <ul><li>DSCR Has Developed A PBL Engagement Strategy </li></ul><ul><li>Identifying All Potential Opportunities For Growth </li></ul><ul><li>Business Development Office </li></ul><ul><li>Seeks Business With Military Service or Vendor </li></ul><ul><li>Establishes Interface </li></ul><ul><li>Negotiates and Coordinates PBA </li></ul><ul><li>Follows Up On PBA Performance Evaluation </li></ul>Customer Operations HQ DLA Supply Centers Finance Legal IT/Systems Supplier Operations
  20. 20. <ul><li>Supplier Relationships – Year In Review </li></ul><ul><li>Transformation And Expansion </li></ul><ul><li>Supplier Relationships – Focus For FY05 </li></ul><ul><li>Takeaways </li></ul>Agenda
  21. 21. Takeaways <ul><li>Strong Year For DLA/Industry Partner Teaming/Performance </li></ul><ul><ul><li>SSA Focus Areas…PLT, Delivery </li></ul></ul><ul><li>DLA Transformation Moving To Full Speed </li></ul><ul><ul><li>Transition To Supply Chains </li></ul></ul><ul><ul><li>OEM Business Begins Moving On To BSM - February 2005 </li></ul></ul><ul><li>DLA Enterprise Supply Chain Scorecards - May 2005 </li></ul><ul><ul><li>Common Set Of Metrics </li></ul></ul><ul><li>Need Close Collaboration On Service Business/Ops Trends </li></ul><ul><li>DLA Business Development Function Fully Operational </li></ul>

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