Defense logistics agency issue - KMI Media Group

prepare to reposition forces out. There’s a physical space operation
in addition to the academic aspect of keeping records and the
integrity of our supply system; all are critical to know what we
equipment we have and whose books it’s on. DLA acts as a partner
to provide disposition instructions: what goes on with that gear,
how it gets handed off to DLA, and where we put it so we can then
do the proper thing to accommodate the last portion of disposition.
I mentioned two important parts. One is record-keeping and
the other is the actual handling and transfer of equipment that the
unit no longer needs. DLA partners with the units to help them
unburden themselves of the unnecessary gear so they can transfer
important things back to the states. That has a huge impact on that
reverse logistics pipeline. By taking out excess, we take out items
that aren’t authorized or aren’t needed back at home station when
that unit redeploys. So I think we play a key role. Just to reiterate,
we absolutely do that from a seat at the table, in concert with the
units that are redeploying.
Q: Let’s talk about inventory: Excess inventory is excess cost, both
in storage and in the acquisition of it. Can you go into detail about
demand planning and forecasting?
A: We have three major supply centers: our DLA Land and Maritime
Organization in Columbus, the DLA Aviation Organization in Richmond,
and our DLA Troop Support Organization in Philadelphia.
Those are our three supply centers and they face the customer.
Clearly, that’s the interface to answer the challenging question
of what is your demand, what is your requirement. Those organizations,
as a part of BRAC 2005, put DLA employees inside the planning
processes within the services. Prior to 2005, some of those
people belonged to the services. They were Army, Navy, Air Force
and Marine Corps employees. As we extended DLA into the retail
world, those employees became DLA employees. Some of this has
only occurred in the last five or 10 years, but it gives us a huge ability
to understand service requirements. So those planners, buyers if
you will, are forward positioned with the services.
Let’s use the example of a depot maintenance activity in the
Army: DLA planners are embedded in that depot activity. When the
depot gets its annual workload funded by the services’ maintenance
budgets, those depot maintenance dollars are planned and programmed
against a requirement to produce a planned number of
vehicles or items of equipment through that depot process. What
a great place for our interface to take place. As the service plans
their maintenance and production workload, DLA is planning the
sustainment with them. Our supply centers have the customer facing
responsibility to get the requirement just right, and then, once
they have it right, put those items on acquisition and requisition
processing.
Let’s say a weapons system is being repaired at one of the
Army maintenance depots. As that depot’s plan for the fiscal year
is produced, we put those requisitions into process simultaneously.
So when that material appears in the depot line for repair, the
sustainment repair parts are right there with it. I could describe
a similar process for the Navy shipyards: As a ship comes in for a
repair cycle, the repair cycle might be longer—perhaps three years
for a ship—but our process is the same. As that ship is identified,
the planning begins immediately for arguably about 50 percent of
what that ship’s going to need. As the time draws closer and the
programming becomes available, that 50 percent goes to more like
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80 or 90 percent. So by the time the ship goes into dry dock, the
material is in place in the depot system. It may be one of our major
distribution depots, or it may be forward positioned actually inside
the Navy shipyard.
There’s an effectiveness criteria and an algorithm we use for
whether we forward position it right there or if we have the delivery
capability based on our historical demand to be able to hold it and
not do the point of sale until it’s actually needed. That gives the
services great flexibility with their working capital, to let the defense
working capital hold that material until we get that point of sale.
Great efficiency and flexibility for the services, and quite frankly, it’s
efficient. If the service bought the material, there would always be a
tendency to buy an insurance level, to have it just in case. This takes
away the “just in case I need it, or might need it, or potentially could
need it,” and lets DLA assume responsibility. When the demand
hits, we’ve got an obligation for customer support to provide that
material on time, so that nothing in the production cycle gets interrupted.
We do that on DLA’s dime.
Q: Planning for major military operations always include the
logistics arm, but what of DLA’s role in unplanned events—for
example, the Japanese tsunami, Katrina, the earthquake in Haiti.
What’s DLA’s role in meeting the logistics obligations when the
military responds to those things?
A: You know, in military parlance, we call what you describe the
range of military activities from major combat operations to the
humanitarian assistance or the disaster relief that you describe.
Honestly, that humanitarian assistance and disaster relief is far
more likely to occur. The last three or four years has proven it. DLA
has to be prepared for that. We leverage DLA’s data and data analysis
to position certain items forward—blankets, cots, some food and
bottled water—in anticipation of that most likely scenario, particularly
in the overseas environment.
Should the Defense Department be called upon, DLA’s role is
much like it would be in major combat. We would have a sustainment
role, providing the food and the bottled water that are critical
to life support. If you take it to the next level, victims would require
shelter. DLA would be there to provide tents and cots and blankets.
This does not mean DLA provides all of the food. If the Defense
Department does not have the lead, the World Food Program and
other non-governmental organizations are the first responders.
However, when we have crisis situations like Tomadochi, or as
you mentioned Katrina, where we have rapidly deteriorating or
destroyed infrastructure, non-governmental organizations may not
have the capability to do the distribution process. That’s a situation
where the Defense Department can be effective. One of the services
would probably go in with the military gear and the troop strength,
and DLA would provide support through one of our field activities.
While DLA is unlikely to provide direct support to one of the
non-governmental organizations, it has provided support to FEMA.
If the infrastructure and the distribution processes allowed us to
position material, FEMA or another DHS organization might do
the last tactical mile, if you will, and put the supplies in the hands
of those that need it the most.
Q: What is DLA’s customer service mantra? How do you measure
and improve on customer service, and how do you measure your
status?
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