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Defense logistics agency issue - KMI Media Group

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Some items, like flu vaccines, have a limited<br />

shelf life and must reach every base and<br />

ship annually within a strict time window.<br />

Others, such as CT scanners, need to go into<br />

buildings before all the walls are in place, as<br />

these may prevent installation.<br />

One cost-saving strategy being pursued<br />

involves lining up supplies of generic drugs as<br />

replacements to name brands as soon as this<br />

becomes possible, Buchwald said. Another is<br />

the development of an integrated operating<br />

room, which is intended to save both time<br />

and money in setting up such facilities.<br />

Larry Stepp is vice president of national<br />

accounts for the government division of<br />

Chesterbrook, Pa.-based AmerisourceBergen,<br />

a prime pharmacy vendor for DLA Troop<br />

Support. The company offers a 24-hour turnaround<br />

on any product that it carries, with<br />

the contract measuring performance by delivery<br />

against what’s ordered over a specified<br />

period. Those service levels are 98 percent<br />

or higher, leading to greater supply chain<br />

efficiency, Stepp said.<br />

One of the changes that he sees on the<br />

horizon is the greater use of electronic ordering.<br />

Another involves track-and-trace bar<br />

code initiatives that will support supply chain<br />

data and integrity. Pharmaceuticals and medical<br />

supplies also have pedigree requirements,<br />

mandating that additional information be in<br />

the bar code.<br />

“That’s all the way down to lot numbers<br />

and things like that. That’s what I think the<br />

future is. The manufacturers will begin to<br />

provide more of that data in their bar codes<br />

on the actual products,” Stepp said.<br />

more than construction<br />

equipment<br />

DLA Troop Support’s Construction and<br />

Equipment Directorate handles perhaps the<br />

largest and most diverse array of goods of any<br />

of the directorates. The list includes lighting,<br />

metals, lumber, firefighting equipment,<br />

materials handling and special operations<br />

equipment.<br />

“We do some lighting type items. We<br />

do heavy equipment,” summarized Tony<br />

D’Ambrosio, deputy director of construction<br />

and equipment at DLA Troop Support. “We<br />

have a full range of items. They range from<br />

light bulbs to bulldozers.”<br />

Commodity items are handled via a justin-time<br />

delivery system. For others, a category<br />

that includes heavy equipment, that’s<br />

not really possible. In all cases, procurement<br />

is handled via contracts that have been set up,<br />

30 | MLF 6.5<br />

with customers ordering items against those<br />

contracts.<br />

SAIC of McLean, Va., is one vendor<br />

responding to those customer orders. It does<br />

so under an integrated prime vendor program,<br />

as well as a maintenance, repair and<br />

operations tailored <strong>logistics</strong> support program.<br />

John Ptakowski is division manager for<br />

SAIC’s prime vendor program, which he said<br />

handles over 36,000 unique stock numbers.<br />

These are used to fill over 99,000 bins at three<br />

fleet readiness centers, where technicians<br />

repair and refurbish helicopters and other<br />

assets.<br />

“The requirement that we have as a contractor<br />

is to keep those bins filled so that the<br />

mechanics do not stop their job for a lack of<br />

supply parts,” he said.<br />

The bin fill rate is currently over 99 percent,<br />

several points higher than called for in<br />

the contract.<br />

As for the tailored <strong>logistics</strong> support program,<br />

some 250,000 individual line items<br />

go through it a year, said Christian Frye,<br />

prime vendor maintenance repair and operations<br />

division manager. SAIC can handle this<br />

thanks to its procurement professionals, an<br />

IT backend that can handle the load, a nimble<br />

response to what can be a rapidly changing<br />

situation, and enhanced customer facing<br />

technology.<br />

“We provide a web interface to the individual<br />

customer so they can come to use<br />

with their individual requirements as they<br />

are needed. Some things are planned because<br />

they’re going to do some expansion. Many<br />

things are not planned; that’s where things<br />

can break down without the right level of<br />

support,” Frye said.<br />

Another equipment supplier is ADS of<br />

Virginia Beach, Va. Jack Pellicci, DLA sales<br />

manager, said the company leverages its buying<br />

power and implements commercial practices<br />

to generate savings. These are then<br />

passed along to the government, something<br />

that Pellicci is happy to see.<br />

“We’re very, very proud to provide these<br />

services and cost savings to the government<br />

to ensure that our warfighters are getting<br />

the latest and greatest equipment that they<br />

need,” he said.<br />

the cLothes on their Back<br />

The final DLA Troop Support supply<br />

chain involves clothing and textiles. This covers<br />

everything from utility uniforms, helmets,<br />

body armor and boots to dress uniforms,<br />

backpacks, tents and sleeping bags, said Gary<br />

Colello, director of customer operations for<br />

the Clothing and Textiles Directorate.<br />

Unlike the other supply chains, this one<br />

cannot use just-in-time delivery system and<br />

must stockpile items in depots, in part due<br />

to the Berry Amendment. That requires that<br />

all of the clothing and textiles products be<br />

domestically sourced. At the same time, they<br />

have to be made to detailed and restrictive<br />

military specifications. As a result, there is<br />

a small industrial base to support the warfighter,<br />

with only one wool manufacturer in<br />

the U.S., for instance. There are only four<br />

companies that produce the fabric used in<br />

camouflage uniforms.<br />

Dealing with this situation mandates that<br />

the demand be closely monitored, which<br />

is done by tracking the number of incoming<br />

recruits. There’s also an online ordering<br />

system that picks up the demand signal from<br />

those already in the military.<br />

This information then is constantly communicated<br />

to the vendors, who may have only<br />

one customer for the products, Colello said.<br />

“They need to plan in advance. You can work<br />

your way all the way back through the supply<br />

chain to ensure there’s enough coming<br />

through but not too much.”<br />

Some clothing and textile items change<br />

very slowly. Others have been undergoing<br />

a rapid evolution, with such being the case<br />

for body armor. One supplier of such gear is<br />

BAE Systems, which in March was awarded<br />

a four-year contract to produce tactical vests<br />

equipped with soft body armor. These are produced<br />

at the company’s Jessup, Pa., facility.<br />

In discussing future directions in this<br />

type of technology, Eric Gavelda, program<br />

director for warfighter protection at BAE<br />

Systems, noted that there is an open solicitation<br />

out for an advanced combat helmet. The<br />

spec includes a weight reduction, with the<br />

aim of shaving as much as 10 percent weight<br />

off when compared to past helmets. That<br />

sort of advance is now typical of what DLA<br />

Troop Support attempts to do in modernizing<br />

through sustainment.<br />

As Gavelda said, “It almost always focuses<br />

on those two items: weight reduction or<br />

increased capability.” O<br />

For more information, contact Editor-in-Chief<br />

Jeff McKaughan at jeffm@kmimediagroup.com<br />

or search our online archives for related stories<br />

at www.mlf-kmi.com.<br />

www.MLF-kmi.com

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