defense logistics agency
Download
Skip this Video
Download Presentation
DEFENSE LOGISTICS AGENCY

Loading in 2 Seconds...

play fullscreen
1 / 28

DEFENSE LOGISTICS AGENCY - PowerPoint PPT Presentation


  • 124 Views
  • Uploaded on

DEFENSE LOGISTICS AGENCY. VADM Keith Lippert, SC, USN Director, Defense Logistics Agency. Discussion Framework. DLA Top Five Priorities DLA Business What We Were What We Are Today What We Are Going To Be … DLA Transformation Summary. Top Five Priorities. Support to the Warfighter

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'DEFENSE LOGISTICS AGENCY' - taliesin


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
defense logistics agency

DEFENSE LOGISTICS AGENCY

VADM Keith Lippert, SC, USN

Director, Defense Logistics Agency

discussion framework
Discussion Framework
  • DLA Top Five Priorities
  • DLA Business
  • What We Were
  • What We Are Today
  • What We Are Going To Be …
    • DLA Transformation
  • Summary
top five priorities
Top Five Priorities
  • Support to the Warfighter
  • Agency Transformation
    • Business Systems Modernization
  • Corporate Climate
  • “New Normal”
  • DPO Partnership
discussion framework1
Discussion Framework
  • DLA Top Five Priorities
  • DLA Business
  • What We Were
  • What We Are Today
  • What We Are Going To Be …
    • DLA Transformation
  • Summary
the dla enterprise
The DLA Enterprise

Scope of Business

FY 02 Sales/Services: $21.5B

FY 03 Sales/Services: $25B

FY 04 Projection: $28.9B

  • 45,000 Requisitions/Day
  • 8,200 Contracts/Day
  • #55 Fortune 500 – Above Northrop Grumman
  • #2 in Top 50 Distribution Warehouses
  • 23 Distribution Depots
  • 4.6 Million NSNs
  • 24.7M Annual Receipts and Issues
  • 1411 Weapon Systems Supported
  • 147.7M Net Barrels Fuel Sold (FY 03)
  • $12.5B Annual Reutilizations/Disposals
  • Land/Maritime/Missiles: $ 2.7B
  • Aviation: $ 3.3B
  • Troop Support: $10.2B
  • Energy: $ 5.2B
  • Distribution: $ 2.2B
  • Other: $ 1.4B

Foreign Military Sales

  • Sales: $719M
  • Shipments: 580K
  • Supporting 124 Nations

People

  • 21,468 Civilians
  • 525 Active Duty Military
  • 636 Reserve Military
  • Located in 48 States/28 Countries
dla transition leaner more productive
DLA Transition… …Leaner…More Productive

From ‘01-’04, Sales and Services

grew by 70%...

Billions of Dollars

Of Sales/Services

…while personnel levels fell to their lowest since 1963 …12% below DPG

Civilian & Military Personnel

(# In Thousands)

how we did it
How We Did It
  • More stable financing (no hold tables)
    • Reduced volatility in workload
  • Better collaboration with customers and suppliers
    • Improved forecasting and delivery
  • More long-term contracts with suppliers
  • Increased reliance on more highly automated strategic distribution centers
  • Shorter administrative lead times through process improvements
    • Shifting from manual to automated buying procedures
  • A-76 process for non-inherently governmental positions
    • MEO or contractor levels of support
supply availability hardware items
Supply AvailabilityHardware Items

Navy SA of 90.1% - highest in over 20 years.

Percent

Net Demands (M)

Operation Iraqi Freedom

DLA Total

DOD Supply Availability Goal: 85%

DLA Navy

backorders hardware total
Backorders – HardwareTotal

Navy Backorders at record lows

Thousands

Operation Iraqi Freedom

Lowest In DLA History

linking dla backorders to critical parts missing in aircraft
Linking DLA Backorders to Critical Parts Missing in Aircraft

Total DLA Navy Backorders Relationship to Critical Parts Missing in Naval Aircraft

Total Navy Backorders for DLA Parts

Mission Critical Parts Missing per Naval Aircraft

Data Source for Holes in Aircraft: Center for Naval Analysis (CNA) – POC Mr. Craig Goodwyn

* A critical part is defined as a part causing a NMC or PMC aircraft

cost recovery rates over time
Cost Recovery Rates Over Time

(Operating Costs as a Percentage of Total Sales)

CRR %

Lowest Cost Recovery Rate in DLA History

Percent

Savings Returned to Warfighter

returning dollars to the warfighters
Returning Dollars To The Warfighters

Returning Dollars to the Warfighters

FY 04-09 Net Savings - $1.8B

($M)

Competitive Sourcing Business Systems Modernization

Customer Relationship Management Shift to Commercial Practices

Near-Term Investment…Long-Term Savings

discussion framework2
Discussion Framework
  • DLA Top Five Priorities
  • DLA Business
  • What We Were
  • What We Are Today
  • What We Are Going To Be …
    • DLA Transformation
  • Summary
dla what we were
DLA ...What We Were
  • Large Wholesaler
    • Internally Focused Metrics
    • Little Customer Interface
    • Poor Reputation
  • Antiquated IT Systems and Business Processes
    • Slow, 1960’s vintage batch processing
    • Business practices dictated by systems
  • Large Inventories … "Just-In-Case"
    • Overlap with commercial sector
      • Food, Clothing and Medical Inventories
  • Too Costly
what we were customer assessment
What We Were…Customer Assessment

Summer 2001: 3 and 4 Star Flag Conference

Customer Feedback:

"DLA takes too long to provide material and DLA costs too much"

What we did ….

  • Improve supply availability … Reduce wait time …
  • Drive down backorders - Improve Readiness
  • Reduce costs - Contingency Support
  • Strategic and Business Plan Developed
  • Enterprise System Modernization - Changed Culture

ACTION

TRANSFORMATION

discussion framework3
Discussion Framework
  • DLA Top Five Priorities
  • DLA Business
  • What We Were
  • What We Are Today
  • What We Are Going To Be …
    • DLA Transformation
  • Summary
what we are today focused on customer
What We Are Today…Focused on Customer
  • Combatant Command Liaison Officers:
    • Inside Joint Staff J4, EUCOM, PACOM, CENTCOM, TRANSCOM, SOUTHCOM/STRATCOM, JFCOM & NORTHCOM
      • Provide Planning, Contingency, and Single POC for DLA Logistics Support
  • DLA Contingency Support Teams
    • Deploy with Force as Requested by Combatant Commanders
      • Provides On Site DLA Logistics, Asset Visibility Support
    • Bosnia, Kosovo, Croatia, Kuwait, Iraq, and Uzbekistan Today
  • Customer Engagement Strategy
    • National Account/Customer Account Managers, Customer Service Reps (CSR)
      • CSR is single POC for DLA Logistics at 71 Major Service Locations Globally
    • Performance Based Agreements with Each of the Four Services
      • Establish Customer-focused Performance Metrics
      • Set Agenda for Logistics Initiatives
      • Establish a Partnership Council for Continuous Interaction
focused on customer dla europe pacific
Focused on Customer:DLA Europe - Pacific
  • DLA Overseas Commands Supporting EUCOM and PACOM
    • Standing Up DLA Southwest Asia Next Year
  • Single Focal Point for all Combatant Commander\'s Support Issues
  • Customer Support and Lead Center Representation
  • Lead for Theater Contingency and Exercise Planning
  • Commands DLA Contingency Support Teams
  • Provides Director with a Single Touch Point for all DLA Support Issues in Theater
what we are today moving towards transformation
What We Are Today…Moving Towards Transformation
  • Refined Goals and Metrics
  • Instituted Robust Performance Reviews
  • Focused on Backorder and Cost Reductions
  • Streamlined Procurement Processes
  • Fully supported by DOD leadership
    • Requirements Fully Funded
  • Deployment and Distribution Operations Center (DDOC)
centcom ddoc cddoc
CENTCOM DDOC(CDDOC)
  • Collaboration
    • Customers and lift-providers share information and explore solutions to theater logistics problems
  • Visibility & Synchronization of Cargo and Passengers
    • Experimented with ITV/TAV to improve visibility
  • Forecasting
    • Enabling CFLCC and CJTF-7 to synchronize war-fighter support
  • Internet/Portal Technology
    • Central repository for theater distribution information
  • Process Improvements
    • Theater Retrograde, Task Force Express
  • Metrics to be refined
  • Process changes to be incorporated into Joint and Service Doctrine
  • DDOC being considered for support in other theaters
discussion framework4
Discussion Framework
  • DLA Top Five Priorities
  • DLA Business
  • What We Were
  • What We Are Today
  • What We Are Going To Be …
    • DLA Transformation
  • Summary
dla tomorrow transformation strategy
DLA Tomorrow…Transformation Strategy
  • 10 Major Transformational Initiatives
  • $1 Billion+ Investment Committed
  • $1.8 Billion Net Savings Committed for Return To the Services
  • Agency’s Core Business Model
      • Support to Services – driven by future requirements
      • Suppliers – manager and integrator
      • Supply Chains – effective, efficient and seamless Partner
  • End-to-end internal overhaul
  • Collaborating with Services, Agencies and Combatant Commanders
slide25

Returning $1.8 Billion to the Services

The Transformation Roadmap

Business Systems Modernization

Plus

A-76

&

BRAC 2005

National Inventory Management Strategy

Dynamic Materiel Positioning

Forward Positioning

Customer Relationship Mgmt

Executive Agent: fuels-subsistence

Supplier Relationship Mgmt

Work Force Transformation

Integrated Data Environment

Fuels Automated System

1998

2009

12

slide26

Sales $.3B to $3B

Users 390 to 1260

Line Items 170 k to 250k

= System Functionality

= Users and Materiel

= Full Operating Capability

BSM Schedule

BSM Schedule

FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3

Release

Two

Release

One

FOC

BPR

Design, Build, Test

Release 1.2

C&T,

Legacy Procurement Solution (Retire PD2)

BW 1.2

Release 1.1

-

Subsistence

(Retire Legacy System) BDUs

Business Warehouse BW 1.1

Release 2.0

-

Core

Phased Roll-out Line Items & Personnel

Release 2.x

- Enhanced

IOT&E

discussion framework5
Discussion Framework
  • DLA Top Five Priorities
  • DLA Business
  • What We Were
  • What We Are Today
  • What We Are Going To Be …
    • DLA Transformation
  • Summary
summary
Summary
  • Critical Combat Enabler … Light and Agile
  • Focused on Improved warfighter support and reduced costs
    • 32.8% reduction in backorders and improved readiness (since Oct 01)
    • 51% decrease in cost recovery rates
    • $1.8B back to services FY 04-09
  • Strong Support to OIF
  • CDDOC Improving Flow of Supplies and Personnel
  • Record Setting Support with Demand at Historic Highs
  • DOD Leader In Enterprise System Transformation

Tomorrow’s vision … smaller, more efficient, leveraged with best business practices

ad