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DLA Distribution Suspended Stock Initiatives Supply PRC

DLA Distribution Suspended Stock Initiatives Supply PRC. June 2011. Stock Readiness/Un-issuable Materiel (CC J/K/L). Stock Readiness Program is in place to ensure materiel is ready for issue to fulfill customer orders accurately and rapidly. Un-issuable Materiel. Refocus. DLA Distribution.

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DLA Distribution Suspended Stock Initiatives Supply PRC

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  1. DLA Distribution Suspended Stock Initiatives Supply PRC June 2011

  2. Stock Readiness/Un-issuable Materiel (CC J/K/L) Stock Readiness Program is in place to ensure materiel is ready for issue to fulfill customer orders accurately and rapidly. Un-issuable Materiel Refocus DLA Distribution DLA Supply Chain Service Supply Chain • Memo to CDRs - Importance of SR Program • Staffing Levels with dedicated SR FTEs • Handbook for SR Coordinators • Monthly reporting requirements • Communications with SR teams Background: Large amount of stock that can not be issued due to discrepancies identified by DLA Distribution. Opportunity: Partnership between DLA/Service Supply Chains to gain disposition ( DRMO, PPP&M, etc.) and reduce causes that require stock to be suspended. Benefits: Place materiel back into issuable condition, fill backorders, reduce storage footprint and related handling costs, prevent re-procurement, & increase order effectiveness. Battle with Suspended Stock • $1.7 B of J,K,L condition in stock • Work open backlog of SDRs w/Disposition • Temporary work force at DDSP • DLA Supply Center Tiger Teams at DDSP/DDJC Net decline of $300M since Aug 2010 J,K,L Dollar Value as of March 2011 Cleared $31M of Stock Joint Approach to Resolution • DLA Enterprise-wide CPI for ‘L’ Stock • DLA Distribution IPTs with Services – Obtain disposition and identify root cause Reduce Suspended Stock

  3. Suspended Stock - Services The Challenge: $1.48B of Service Owned Materiel in CC J,K,L as of April 2011. Objective: Develop joint IPT with Services to address stemming the flow of materiel requiring suspension, obtaining disposition on Open SDRs/SQCRs and closing at DLA Distribution Center. Endstate: • Reduction in new SDRs/SQCRs. Use root cause analysis to prevent future suspended stock – Stop the inflow • Obtain Disposition on open Service SDRs/SQCRs • DLA Distribution Center working disposition within DoD required timelines. Importance of Root Cause Analysis for Prevention

  4. Suspended Stock - Services AF/DLA Distribution Kickoff Army/DLA Distribution Kickoff Navy/DLA Distribution Kickoff USMC/DLA Distribution Kickoff On-going 12-18 months Key Accomplishments/Events • Kickoff meetings held & Raw Data sent for Service Analysis • Currently in start up phase: identify right players, define the project objective and analyze. • Expect the project will be on-going over next 12-18 months • Air Force: April 11, May 31 • Army: April 20, May 4 & 18, June 1, 15 • Navy: May 11, June 15 • USMC: May 25 with next meeting in early July Key Issues/Concerns After First Meetings • SDR/SQCR lines of communication - Use of DoD WebSDR/Email/Faxing • Use of proper codes and well written comments – Two Way – Original SDR & Disposition • Interim Responses on SDRs • Multiple touch points within ICPs • Unauthorized Materiel Returns • Materiel marked for disposal sent to Distribution Center vice DRMO • Distribution Centers taking to long to work disposition provided by ICP Apr 11, 2011 Apr 20, 2011 May 11, 2011 May 25, 2011 Dec 2012

  5. Project Teams Service/DLA Distribution Suspended Stock Joint Effort DLA Distribution Members Christian Lubic (J4 BA) Terry Seibert (J4 Stock Readiness) Dennis Amrhein (J4 Stock Readiness) Troy Brown (J4 Stock Readiness) Gregory Pigg (J4 Stock Readiness) Joe Manta (J4 Receiving) Rodney Owens (J4 Receiving) J3 OPS Reps depending on Service/Depot Vickie Edgar (DLA HQ) Service Members Teams vary but all have HQ representation and field level reps….. NAVSUP – Ramon Marin Army Materiel Command – Stacey Holden Marine Corp Logcom – MSGT Walker AFMC HQ – Linda Miles Service Supply Chain DLA Distribution 5

  6. DLA CPI L • DLA CPI L is focusing on Condition code ‘L’ Litigation materiel – New Procurement • Root cause analysis shows packaging, labeling and contract nonconformance - WPM • Tiger Teams resolved over $31.5M since last summer. • Study will commence on 1 or 2 forward presence personnel at SDPs • SCR for interim SDR responses between DLA Distribution and DLA Supply Chain • Breakout session at the DLA Suppliers conference to educate customers on why materiel goes into Litigation. 6

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