THE DEFENSE .SUPPLY CENTER, COLUMBUS Mr. James McClaugherty, Deputy Commander, DSCC “DSCC Today & Tommorow” Agenda  DSCC Today  Structure Of Inventory Control Point • DSCC Tomorrow Improving.

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Transcript THE DEFENSE .SUPPLY CENTER, COLUMBUS Mr. James McClaugherty, Deputy Commander, DSCC “DSCC Today & Tommorow” Agenda  DSCC Today  Structure Of Inventory Control Point • DSCC Tomorrow Improving.

THE
DEFENSE .SUPPLY CENTER, COLUMBUS
Mr. James McClaugherty,
Deputy Commander, DSCC
“DSCC Today & Tommorow”
Agenda

DSCC Today
 Structure Of Inventory Control Point
• DSCC Tomorrow
Improving Customer Relationships
Managing Supplier Relationships
Business System Modernization

Ongoing Organizational Realignment

Summary
DLA Today:
Balancing Of Two Tasks
Improved Support
Implement
To The War Fighter
Transformation
DSCC Today
Inventory Control Point (ICP)
Organization
Lead Center
Concept
LEAD CENTER:
LAND, MARITIME
& MISSILES
Defense Supply Center
Columbus, OH
LEAD CENTER:
TROOP SUPPORT
& GENERAL/INDUSTRIAL
SUPPLY
LEAD CENTER:
ENERGY
Defense Energy Support Center
Ft Belvoir, VA
Defense Supply Center
Philadelphia, PA
Defense Logistics Agency
LEAD CENTER:
AVIATION
Defense Supply Center
Richmond, VA
DLA Weapon System
NSN (Spare Parts) Workload
Maritime
Land
11%
12%
54%
35%
57%
31%
Aviation
28%
41%
31%
DSCC
DSCP
DSCR
Business Base
• 4.9 M Reqs Annually
• 1.6 M NSNs
• $2.3B Sales
• 22,000 Customers
• 4,700 Suppliers
FY02 Customer Profile
By Customer Orders
Army
(49.7%)
2,431,318
FMS
(4.3%)
210,436
Marines
By Sales ($)
FMS
Marines
(13.3%)
$308.7M
(2.6%)
$59.4M
(3.5%)
170,877
Coast Guard
Coast Guard
(0.5%)
$10.6M
Navy
(34.7%)
$804.6M
(0.6%)
27,772
Oth DoD
Air Force
(16.8%)
821,688
(0.8%)
37,442
Navy Civ Agencies
(23.5%)
1,149,303
Army
(23.7%)
$549.1M
Civ Agencies
(0.8%)
41,050
Total Dollar Value:
Total Requisitions:
01CustomerProfile:kdf:22Oct 01
(0.5%)
$11.4
$2.3B
4.9 M
Oth DoD
(0.7%)
$15.4
Air Force
(24.1%)
$558.5
Enduring Freedom / Iraq Freedom
Requisitions by Customer Priority Groups
Blue = Highest Priority
200
35.0
160
25.5
18.2
120
68.2
20.5
40.5
80
61.3
22.3
31.9
8.5
41.3
25.1
40
0
82.1
6.0
1.6
5 .2
5 .4
2 .1
5 .3
5 .3
2 .5
5 .0
5 .0
3 .3
5 .7
8 .0
2 .5
6 .8
10 .6
13.2
3 .4
5 .9
8.0
86.6
68.5
49.3
76.8
54.4
18.0
2
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1.1M Requisitions / $486.5M
Organizational Structure
Office of Counsel
Customer
Advocacy
Commodities
Readiness
& Bus. Ops
Land
Operations
Support
Aerospace
Commander
Deputy Cmdr
Corporate
Information
Maritime
(Q)
Internal
Review
Small
Business
Procurement
Comptroller
Maritime
(F)
Chief Of
Staff
Public
Affairs
Command
Support
Safety
Emergency
Services
CSOColumbus
EEO
Installation
Services
Readiness &
Business
Operations
Commodities
Active Devices
Unit
Land
Ground
Transport
Vehicles
Electrical Devices Combat
Engineering Spt
Unit
Readiness
Passive Devices
Weapon Sys
Unit
Support
Commodities
Tailored Support
Corporate
Unit
Unit
Aerospace
Maritime
Transports,
Bombers
& Helicopters
Surface
Combatant
Fighters
& Trainers
Subsurface
Small Craft
Readiness
Readiness
Tailored
Support Unit
Tailored
Support Unit
Weapon System Support
Doctrine / Organization
 Weapon System Vice Item Focused
 Five Weapon System Groups: Land,
Maritime (Q/F), Aerospace, Electronics
 14 Weapon System Support Managers (WSSMs)
One Face to the Maritime, Land & Missile Customer!
Commodities Group

Different Strategy

Federal Supply Class vs. Weapon
System
 Face To Industry vs. Face To
Customer
Multifunctional
Teams Managing Federal
Supply Classes (e.g. Connectors)
DSCC TOMMOROW
DLA’s “M Sisters”
Business Systems Modernization
(BSM)
Customer Relationship Management
(CRM)
Supplier Relationship Management
(SRM)
Customer Relationship
Management
Our Reason For Being
Weapon Systems Support Management
Weapon Systems Supported
HEMTT
M9 ACE
WOLVERINE
M1 TANK
M88A1
HET
AAV
PLS
AVENGER
Total Land Weapon Systems 551
LAND CUSTOMER OPERATIONS
PROPOSED ORGANIZATIONAL STRUCTURE
Director Customer Ops
Customer Facing Div.
Operational Force Cell
Group – Army
Operational Force Cell
Group – USMC
Industrial Cell
Group – Army
Industrial Cell
Group – USMC
Land Other Cell
Readiness
Officer
Customer Planning Div.
Eng Spt Equip
M9 ACE (A) SEE (A), ETC.
TAC Veh I
HMMWV (A/M) , ASV/HMT (A),
STRYKER (A), FMTV (A)
TAC Veh II
HET (A), PLS (A), ROWPU(A/M),
HEMTT (A), LVS (M), HTV (A/M)
Grd Cbt I
BFVS (A), M113 (A)
Grd Cbt II
M1 (A/M), M88 (A/M)
Grd Cbt III
AAV (M), LAV (M), AAAV (M),
ETC.
Field Arty
M198 (A/M), M109 (A), FAASV (A),
M155 (A), S. ARMS(A/M)
Air Def Missile
Patriot (A), TOW (A/M), ETC.
Customer
Support Div.
Call
Center
TBD
Customer
Analysts
Cell
MARITIME CUSTOMER OPERATIONS
PROPOSED ORGANIZATIONAL STRUCTURE
Director Customer Ops
Customer Facing Div.
Shipyard Cell
Customer Planning Div.
Readiness Officer
Call Center
Electronics
IPT
Carrier/Surface Cell
Submarine Cell
Trident Cell
Army/Navy FMS Cell
Other Navy Cell
Customer Support
Div.
02N (SWS)
21N (NRP)
23N (TRID)
82N (ALRE)
EXN (SSN 688)
EZN (TICON)
JAN (NIMITZ)
JDN (ARL BRKE)
JGN (SEAWLF)
JUN (OSPY MHC)
JXN (AVENG MHC)
YJN (SSN 774)
YNN (ANTI TERR /
FORC PROTEC)
Maritime
Sub IPT
Maritime
Surface IPT
Customer
Analysts
Cell
Aerospace
IPT
C&E
IPT
Multiple Levels of
Customer Relationships
Partnering Relationship
Relationship Growth
Future
Personal Relationship
Transactional
Relationship
New
Relationship
No Relationship
Source: LMI Research.
Now
Supplier Relationship
Management
Workload Stats – FY02

588,421 Award Actions
 99.7% Award Actions Under
$100,000
 Competitive Solicitations
87.3% Of Dollars
87.5% Of Actions
 DLA Recognized As Top Performing
Major Defense Agency For FY2002
DSCC Products Procured
Most Active Past 12 Months
 Values, Nonpowered (FSC4820) = $108.4 Mil
 Fittings & Specialties (FSC4730) = $98.8 Mil
 Misc. Power Transmission Equipment (FSC3040) = $88.1 Mil
 Switches = (FSC5930) $78.1 Mil
 Hose & Tubing, Flexible (FSC4720) = $71.0 Mil
 Vehicle Brake, Steer Axle, Wheel & Track Parts
(FSC2530) = $67.7 Mil
 Pipe & Tube = (FSC4710) $56.2 Mil
 Values, Powered (FSC4810) = $55.1 Mil
 Vehicle Furniture & Accessories (FSC2540) = $52.5 Mil
Note: Some Other Very Active Product Groups = Gun Parts,
Hand Pumps, Gears, Connectors, Other Electronic Components
Multiple Levels of
Supplier Relationships
Partnering Relationship
Relationship Growth
Future
Personal Relationship
Transactional
Relationship
New
Relationship
No Relationship
Source: LMI Research.
Now
Business Vision — ”A Value Added Broker of
Suppliers for Materials and Services”
From
To
Reliance on inventories
Management of parts
Managing processes
Maintain
a Balance
in Socioeconomic
Programs
Reliance on Industry
Management of
Relationships
Integrating supply
chains
 Buy commercial
supply chains where
they exist
 Build virtual chains
where the pieces exist
 Retool acquisitions
consistent with the
vendor base
 Integrate organic chain
when it must be used
Utilize
Commercial
Sector
Experts
Targets of Opportunity
Strategic Materiel Sourcing Strategic Supplier Alliance
Items
representing
largest
business
drivers
-- Demand/spend
-- Readiness factors
-- BSM concept demo
Vendors
representing
largest
business base
-- Large annual sales
-- Multiple customer support requirements
-- Strategic partnering
Strategic Materiel Sourcing
DLA’s Item Grouping Tool
DEMAND/SPEND
2% of items with 80% of sales
551,000
Core
Items
310K
Core
READINESS FACTORS
Surge & sustainment items, Not
Mission Capable drivers and
Weapon System Identifier Code &
critical items with high Production
Lead Time
Strategic Materiel Sourcing Groups Items for Placement on Contract
Standard
Long Term
Contracts
Corporate
Contract
Prime Vendor
Virtual Prime
Vendor
Strategic
Supplier Alliances
Automated Award Actions
Manual
11,680
(22%)
Automated
42,489
(78%)
Apr 03
60000
50000
40000
30000
20000
10000
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Number of Awards
70000
# of Awards (Automated + Manual)
Business System Modernization
(BSM)
“BSM = Helping Us To Better Manage Our Business”
C
U
Integrate
d
Custome
r
Teams
Integrated
Supplier
Teams
Aviation
Aviation
S
T
S
Manu
M
Land
SAP
Maritime
I
E
DPACS
Troop/Gen
P
L
Maritime
E
R
P
Land
O
U
Troop/Gen
S
R
S
This Is New Stuff For Us
We Know How To Buy !!
DSCC Organizational
Realignment
Standard Organization Structure
Supply Chain
C
U
S
T
O
M
E
R
Customer Operations
Customer
Facing
Readiness
and ICT
Support
Supplier Operations
Supplier
Facing
Supply
Support
Supplier
Relationship
Management
S
U
P
P
L
I
E
R
Roll Out Plan
Summer 2004
Phased Roll-Out
Spring 2004
2003
We are here
Design , Build, Test Release 2
Implement Release 1
2002
2002
2001-02
Summer/
Winter 2001
100% Systems Capability
Release 2 Planning
Release 1 Testing and Training
Design/Build
FOC Requirements/Blueprint
IOC Requirements/Blueprint
SC 025 6/17/02
Spring 2001
January 2001
FOC
Jan 2006
Summary

Today:

Weapon System & Federal Supply Class Focus
 Case For Change – Single Up Organizational
Alignment Across Enterprise

Tomorrow:

Comprehensive Supply Chain Management
 Collaborative Partnering With Key/Major Suppliers
and Customers

Improved Support To War Fighter!!