Defense Logistics Agency Update

1
DLA MANDATE

• Provide Value Added Service to Our Customers
• Ensure Defense Readiness

2
A Glimpse of the Future Joint Vision 2010

• Changing World
• More Joint / Multinational Operations
• Information Technological Advances Will
  Revolutionize Warfare
• No Near Term Potential Adversaries
  State-To-State Relations are Norm
• Operational Environment Will Range From
  Peacekeeping Disaster
• Relief to Major Regional Contingencies
  
• Changing Nature of War A Revolution in Military
  Affairs
• Asymmetrical Force on Non-Linear Battlefield
  Fought in Multiple
• Locations Positional Advantage
• Decisive Speed Tempo All Weather Day Night
• Information Superiority Near Real-Time
• Dominant Maneuver Across the Range of Military
  Operations
• Mobility Agility
• Precision Engagement Responsive Accurate
  From Extended Ranges
• Changing Nature of Logistics A Revolution in
  Military Logistics
• Focused Logistics Precise Application of
  Logistics
• Rapid Integrated Response Distribution
• Total Asset Intransit Visibility Information
  Fusion

FUTURE WARFARE
3
Transforming DoD Logistics
JV2010 Full Spectrum Dominance
Modern Warfighting Capability
Revolution in Military Affairs
Precision Engagement
Full Dimensional Protection
Focused Logistics
Dominant Maneuver
Modernization
Funding
Technology
Industry
Infrastructure Reductions
Research Development
Acquisition Reform
Revolution in Business Affairs
4
Environment
1
Downsizing in DoD and industry Changing global
markets Fewer resources more competition Governm
ent Re-Invention Acquisition Reform New technology
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5
Reengineering
TO DO BUSINESS IN OUR INDUSTRIES IN THE WAY
THEY DO BUSINESS
Dont pave over cowpaths, but tear up the road
and start over. Michael Hammer, Reengineering
the Corporation
6
Objectives
Enhance Military Readiness While Reducing
Peacetime Investment

• Buy Commercial Products
• Adopt Proven Best Commercial
• Business Practices
• Applying Emerging Technologies

7
DLA Business Approach
ENABLES CUSTOMERS AND LOGISTICS MANAGERS
TO CONDUCT BUSINESS IN THE ELECTRONIC MARKETSPACE
ENVIRONMENT

• Integrates all our new, successful Business
  Processes in a
• closed loop EC / EDI system
• Addresses peace and war readiness
• Adds value lower prices, faster LRT, choice
  and product info

Underpinnings Taps into worldwide
inventories Leverages prices through long term
flexible business arrangements Provides delivery
with various levels of service Creates Interfaces
with the user via Internet
8
Reengineering Industry Relationships
New Business Relationships -- Long Term
Partnerships -- Dual Use Technology -- Shared
Production
Market-Oriented Supply Risk Management Pro-Active
Approach
FROM
TO
9
Reengineering Automation

• Understanding the Changing Business
• Relationships, Strategies, Systems
• Fully Integrate Business Applications
• Take FULL Advantage of Evolving Technologies

10
Adopting Commercial Best Practices
Re-engineered Practices

• Commercial Off the Shelf
• Performance Specs
• Supply Chain Management
• Business Alliances
• Credit Cards / Debit Cards
• Electronically Enabled Business Processes
• Automated Info Technology
• Internet technology
• Client Server architecture
• Electronic Funds Transfer

11
Business Strategy ...Tools We Are Using
Business Strategy

• Shift to Commercial Practices
• Prime Vendor
• Virtual Prime Vendor
• Supply Chain Management
• Direct Vendor Delivery
• Electronic Mall
• Re-engineering
• Inventory Control Points
• Distribution Depots
• Disposal
• Best Value Sourcing
• A-76 Competition
• Depots
• DRMOs

Benchmarking
Leveraging Private Sector Capabilities
Reengineering
Best-value Sourcing
Competition
12
Definition

• An integrated Supply Chain is a connected series
  of organizations, resources and activities
  involved in the creation and delivery of value,
  in the form of both finished products and
  services to end customers.

• Maximize value added for each link (activity or
  organization)
• Maximize value of aggregate performance
• Every supply chain will have a unique solution
  for maximum overall value