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DMO Reform

DMO Reform. Materiel Logistics eBusiness. The Business Case. Sustainment Total Volume: 64,949 Purchase Orders Total Value: $824,956,826 90% of orders are less $10,000 50% of orders issued to 20 suppliers (covering 60% of total value). What needed to be done?. Reduce the resource cost

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DMO Reform

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  1. DMO Reform Materiel Logistics eBusiness

  2. The Business Case • Sustainment • Total Volume: 64,949 Purchase Orders • Total Value: $824,956,826 • 90% of orders are less $10,000 • 50% of orders issued to 20 suppliers (covering 60% of total value)

  3. What needed to be done? • Reduce the resource cost • Competitive RFT can cost Defence $20,000 • Industry cost? • Improve time to market • All responses manually handled

  4. What is required?

  5. Automated Inventory Procurement Automated Inventory Procurement Receive (When and Where Goods arrive) Receive (When and Where Goods arrive) Plan (How to Buy) Requirement (What to Buy) Approach (When to Buy) Finalise (How to Buy) Plan (How to Buy) Requirement (What to Buy) Approach (When to Buy) Finalise (How to Buy) • District Inventory Settings (para 14) • IRP005 Strategic Demand Planning • IRP003 Advanced Supply Chain Management (para 7) • IRP013 Catalogue – Industry Update (para 11) • IRP015 Strategic Sourcing/Category Management (para 10) • - IRP024 Procurement Form consolidation • - IRP026 All Purchasing Officers in Teams • IRP006 All suppliers on two channels (Webview or Integrated) (para 9g(1)) • IRP018 All quotes loaded into MILIS electronically – Update of MILIS 210 record (para 9c) • IRP006 Utilisation of Digital Signatures for relevant delegations • IRP018 Creation of Purchase Order from selected quote – Linkage from quotes to Purchase Order (para 9g(3)) • IRP020 Foreign Currency Purchasing (para 9f) • IRP006 Digital Signatures ( • IRP008 Electronic reporting of contracts to Austender (para 8) • - IRP007 Creation of Advanced Shipping Notice and Receipt Task load for Joint Logistic Command Warehouse Management System (para 9b) • Electronic load of Invoices into MILIS for improved compliance with payment periods (para 2d) - IRP018 Quote validity period – provides Purchasing Officer with reminder of expiring quotes (para 9c) - IRP006 Form SG001—Supplier Acceptance Certificate available electronically in WebView with Digital Signature - IRP018 Quote validity period – provides Purchasing Officer with reminder of expiring quotes (para 9c) - IRP006 Form SG001—Supplier Acceptance Certificate available electronically in WebView with Digital Signature • IRP018 Global Purchasing Agreement/Forward Purchasing Agreement Module • IRP016 Land Systems Division Tech Reg Lean Activity - IRP002 Auto Approval – component of Advanced Inventory Management System upgrade (para 9g) IRP021 Load all documents into Objective - IRP018 Ellipse – Comparative statement of received quotes to achieve value for money (para 9c) IRP007 Ability for Suppliers to print Barcodes from WebView (para 9a) Complete - IRP018 Quote validity period – provides Purchasing Officer with reminder of expiring quotes (para 9c) - IRP006 Form SG001—Supplier Acceptance Certificate available electronically in WebView with Digital Signature Complete • IRP018 Creation of Purchase Order from selected quote – Linkage from quotes to Purchase Order (para 9g(3)) • IRP020 Foreign Currency Purchasing (para 9f) • IRP006 Digital Signatures ( • IRP008 Electronic reporting of contracts to Austender (para 8) • - IRP007 Creation of Advanced Shipping Notice and Receipt Task load for Joint Logistic Command Warehouse Management System (para 9b) • Electronic load of Invoices into MILIS for improved compliance with payment periods (para 2d) • IRP006 All suppliers on two channels (Webview or Integrated) (para 9g(1)) • IRP018 All quotes loaded into MILIS electronically – Update of MILIS 210 record (para 9c) • IRP006 Utilisation of Digital Signatures for relevant delegations • IRP018 Creation of Purchase Order from selected quote – Linkage from quotes to Purchase Order (para 9g(3)) • IRP020 Foreign Currency Purchasing (para 9f) • IRP006 Digital Signatures ( • IRP008 Electronic reporting of contracts to Austender (para 8) • - IRP007 Creation of Advanced Shipping Notice and Receipt Task load for Joint Logistic Command Warehouse Management System (para 9b) • Electronic load of Invoices into MILIS for improved compliance with payment periods (para 2d) • IRP013 Catalogue – Industry Update (para 11) • IRP015 Strategic Sourcing/Category Management (para 10) • - IRP024 Procurement Form consolidation • - IRP026 All Purchasing Officers in Teams • District Inventory Settings (para 14) • IRP005 Strategic Demand Planning • IRP003 Advanced Supply Chain Management (para 7) • IRP006 All suppliers on two channels (Webview or Integrated) (para 9g(1)) • IRP018 All quotes loaded into MILIS electronically – Update of MILIS 210 record (para 9c) • IRP006 Utilisation of Digital Signatures for relevant delegations • IRP013 Catalogue – Industry Update (para 11) • IRP015 Strategic Sourcing/Category Management (para 10) • - IRP024 Procurement Form consolidation • - IRP026 All Purchasing Officers in Teams • District Inventory Settings (para 14) • IRP005 Strategic Demand Planning • IRP003 Advanced Supply Chain Management (para 7) In Progress In Progress Complete In Progress NotStarted - IRP002 Auto Approval – component of Advanced Inventory Management System upgrade (para 9g) • IRP018 Global Purchasing Agreement/Forward Purchasing Agreement Module • IRP016 Land Systems Division Tech Reg Lean Activity IRP021 Load all documents into Objective - IRP002 Auto Approval – component of Advanced Inventory Management System upgrade (para 9g) • IRP018 Global Purchasing Agreement/Forward Purchasing Agreement Module • IRP016 Land Systems Division Tech Reg Lean Activity - IRP018 Ellipse – Comparative statement of received quotes to achieve value for money (para 9c) IRP021 Load all documents into Objective - IRP018 Ellipse – Comparative statement of received quotes to achieve value for money (para 9c) IRP007 Ability for Suppliers to print Barcodes from WebView (para 9a) IRP007 Ability for Suppliers to print Barcodes from WebView (para 9a) Not Started Not Started IRP001 Streamlined Simple Procurement Process IRP001 Streamlined Simple Procurement Process IRP001 Streamlined Simple Procurement Process IRP025 – Master Supplier Register Remediation IRP025 – Master Supplier Register Remediation IRP025 – Master Supplier Register Remediation

  6. A first step

  7. One solution

  8. Current Supply Chain

  9. Pharmaceuticals Concept Demonstrator HealthSPO (Requisition Approval) Pharmaceuticals Catalogue 1. Requisition & Checkout Goods/Services 2. Approve 2. Shopping Cart B2B Integrated Suppliers Axis Cloud MILIS DESE B2B Trading Platform 3. PurchaseRequisition End User 4. Purchase Order 5. Purchase Order Current Process- Pharmaceuticals 3. Purchase Order 4. Purchase Order (SPO authorised) 1. Create Issue Requisition 10. Invoice 8. Invoice 7. Invoice 9. Invoice 5. Fill Order 8. Local Delivery Randwick Warehouse JLC ARWK Supplier 7. JLC Managed Via 3PL (eg TOLL) 6. Direct Delivery 6. Delivery to Warehouse

  10. What we ask from industry • Use the eBusiness option where available • What do we do to add costs to doing business? • What information provided in the Public Defence Capability Plan is most relevant for your organisation? • Feedback: asrd.inventoryreform@defence.gov.au • POC • Chris Horscroft and Wayne Threlfall

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