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DLA Receipting Way Ahead

Defense Logistics Agency. DLA Receipting Way Ahead. Briefing for: 9 April 08 Supply PRC Mr. Don Virostko. DLA Receipting Way Ahead. OVERVIEW Background/IPT Membership Findings and Causes Way Ahead. Background.

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DLA Receipting Way Ahead

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  1. Defense Logistics Agency DLA Receipting Way Ahead Briefingfor: 9 April 08 Supply PRC Mr. Don Virostko

  2. DLA Receipting Way Ahead • OVERVIEW • Background/IPT Membership • Findings and Causes • Way Ahead

  3. Background Prompt Pay Act mandates government receipt/acceptance (may occur at origin or destination) as prerequisite for DoD paying vendors for goods and/or services Financial risk to DLA: Lack of timely destination acceptance/receipt acknowledgment results in late payment and interest penalties Financial Management Regulation requires that receipt be acknowledged prior to billing customer Financial risk to DLA: Lack of timely receipt acknowledgement on shipments accepted at origin delays customer billing for reimbursement on vendor-filled requirements. OSD mandates and Services acknowledge Wide Area Work Flow (WAWF) as future authoritative source for invoice, acceptance and/or documentation to make payment DLA concerns: Capability not fully integrated within Service applications pending full deployment under ERP/modernization – variations in implementation by Services, DLA contracts must specify WAWF reporting, requires coordination with ship-to to assure destination acceptor will be available. Based on perceived gaps in DLA DVD customer receipt interfaces the TEB tasked J8, then J-31, to analyze receipt-related processes and recommend short and long term way ahead We have a business need to fix this now!

  4. Membership • IPT Membership • J-31/J-33/J-35/J-36/J-37/J-43/J-62/J-74/J-88 • DDC • DFAS • DLMSO • DORRA • DSCC • DSCP • DSCR

  5. IPT Findings Customer Direct (CD) Shipments (Jul-Sep 07) Totals = $1.6B, 2.1M transactions CD shipments wo/customer response < 21% of total shipments and 33% of $’s* Value wo/customer response = $536M (only one qtr could exceed $2B for a year) Interest Payments for FY07 appr. $7M ($2M for “no receipts”)** Data drilldown enables identification of low response rate customers and supply chain *(data source DSS-BOO30 and DORRA SAP extract – Jul-Sep 07); DAASC validates shipments wo/MRA. Have identified transmission anomalies —under investigation **(data source DFAS) Causes Lack of compliance with DoD MRA policy/procedures and system inadequacies Absence of standard MRA policy/procedures for non-standard ordering (TVR) IPV (fill the bin) receipt requirement not stipulated Some MRA’s not posted, hung in OF159 IDOC Data warrants evaluation of EBS edits and customer construction of MRA transactions

  6. Way Ahead Governance Develop and staff, via DLMSO, DoD level applicable procedures Explore feasibility of incorporating Services receipt/acceptance reporting tools in PBA annexes Incorporate proposed metrics into PBA where applicable Next step Services have material receipt acknowledgements scheduled for upcoming PACs Continuously work to identify internal/external customers Jointly work to resolve internal/external issues

  7. Receipting Way Ahead QUESTIONS???

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