DEFENSE .SUPPLY CENTER, COLUMBUSTHE
Mr. James McClaugherty, Deputy Commander, DSCC
“DSCC Today & Tommorow” Agenda
DSCC Today Structure Of Inventory Control Point
• DSCC Tomorrow Improving Customer Relationships
Managing Supplier Relationships
Business System Modernization
Ongoing Organizational Realignment Summary
DLA Today: Balancing Of Two Tasks
Improved Support
To The War Fighter
Implement
Transformation
Inventory Control Point (ICP) Organization
DSCC Today
Defense Supply Center Columbus, OH
Defense Supply Center Richmond, VA
Defense Supply Center Philadelphia, PA
LEAD CENTER: LAND, MARITIME
& MISSILES
LEAD CENTER: TROOP SUPPORT
& GENERAL/INDUSTRIAL SUPPLY
LEAD CENTER: AVIATION
LEAD CENTER:ENERGY
Defense Logistics Agency
Lead Center Concept Defense Energy Support Center
Ft Belvoir, VA
57%
12%
31%
54%35%
11%
DLA Weapon System NSN (Spare Parts) Workload
31%
41%28%
Land Maritime
Aviation
DSCC DSCP DSCR
• 4.9 M Reqs Annually
• 1.6 M NSNs
• $2.3B Sales
• 22,000 Customers
• 4,700 Suppliers
Business Base
FY02 Customer Profile
FMS(4.3%)
210,436Marines
(3.5%)170,877
Coast Guard(0.6%)27,772
Army(49.7%)
2,431,318
Civ Agencies(0.8%)41,050
Oth DoD(0.8%)37,442
Navy(23.5%)
1,149,303
Air Force(16.8%)821,688
Coast Guard(0.5%)$10.6M
FMS(13.3%)$308.7M
Marines(2.6%)$59.4M
Navy(34.7%)$804.6M
Oth DoD(0.7%)$15.4
Air Force(24.1%)$558.5
Civ Agencies(0.5%)$11.4
Army(23.7%)$549.1M
By Sales ($)
Total Dollar Value: $2.3BTotal Requisitions: 4.9 M
01CustomerProfile:kdf:22Oct 01
By Customer Orders
8.018.0
49.3
82.168.5
54.4
86.676.8
13.2
25.1
40.5
31.941.3
68.2
61.3
8.5
18.2
20.5 22.3
35.0
25.5
5.4 5.3 5.0 8.0 10.65.2 5.3 5.0 5.7 6.8 5.91.6 2.1 2.53.3 2.5 3.4
6.0
0
40
80
120
160
200
Enduring Freedom / Iraq Freedom Requisitions by Customer Priority Groups
Blue = Highest Priority
1.1M Requisitions / $486.5M
CommanderDeputy Cmdr CommanderDeputy Cmdr
SmallBusiness
Readiness& Bus. Ops
Operations Support
CommoditiesCommodities Land Aerospace Maritime(F)
Maritime(F)
Procurement Comptroller
Chief OfStaff
Internal Review
Customer Advocacy
CommandSupport
CSO-Columbus
PublicAffairs
Safety EEO
Organizational Structure
Office of Counsel
Maritime(Q)
Maritime(Q)
CorporateInformation
Emergency Services
Installation Services
Readiness & Business Operations
Commodities Land Aerospace MaritimeActive Devices Unit
Electrical Devices Unit
Passive Devices Unit
Commodities Corporate Unit
Ground Transport Combat Vehicles Engineering Spt Readiness Weapon Sys Support
Tailored Support Unit
Transports, Bombers & Helicopters
Fighters & Trainers
Readiness
Tailored Support Unit
Surface Combatant
Subsurface Small Craft
Readiness
Tailored Support Unit
Weapon System Support Doctrine / Organization
Weapon System Vice Item Focused
Five Weapon System Groups: Land,
Maritime (Q/F), Aerospace, Electronics
14 Weapon System Support Managers (WSSMs)
One Face to the Maritime, Land & Missile Customer!
Different Strategy
Federal Supply Class vs. Weapon
System Face To Industry vs. Face To Customer
Multifunctional Teams Managing Federal Supply Classes (e.g. Connectors)
Commodities Group
DLA’s “M Sisters”
Business Systems Modernization (BSM)
Customer Relationship Management (CRM)
Supplier Relationship Management (SRM)
DSCC TOMMOROW
Customer Relationship Management
Our Reason For Being
Weapon Systems Support Management
Weapon Systems Supported
Total Land Weapon Systems 551
HEMTT M1 TANK AAV
M88A1 PLS
HET AVENGER
M9 ACE
WOLVERINE
Readiness Officer
Customer Planning Div.
Operational Force CellGroup – Army
Operational Force Cell Group – USMC
Industrial Cell Group – USMC
Land Other Cell
M9 ACE (A) SEE (A), ETC.
HMMWV (A/M) , ASV/HMT (A), STRYKER (A), FMTV (A)
HET (A), PLS (A), ROWPU(A/M), HEMTT (A), LVS (M), HTV (A/M)
M1 (A/M), M88 (A/M)
AAV (M), LAV (M), AAAV (M), ETC.
Patriot (A), TOW (A/M), ETC.
M198 (A/M), M109 (A), FAASV (A), M155 (A), S. ARMS(A/M)
Eng Spt Equip
TAC Veh I
Grd Cbt I
TAC Veh II
Grd Cbt II
Grd Cbt III
Field Arty
BFVS (A), M113 (A)
Air Def Missile
LAND CUSTOMER OPERATIONS PROPOSED ORGANIZATIONAL STRUCTURE
TBD
Customer Support Div.
Call Center
Customer Facing Div.
Industrial Cell Group – Army
CustomerAnalysts
Cell
Director Customer Ops
Readiness Officer
Customer Planning Div.
MARITIME CUSTOMER OPERATIONS PROPOSED ORGANIZATIONAL STRUCTURE
Customer Support Div.
Shipyard Cell
Carrier/Surface Cell
Submarine Cell
Trident Cell
Army/Navy FMS Cell
Other Navy Cell
02N (SWS)21N (NRP) 23N (TRID)
82N (ALRE) EXN (SSN 688) EZN (TICON) JAN (NIMITZ)
JDN (ARL BRKE) JGN (SEAWLF)
JUN (OSPY MHC) JXN (AVENG MHC)
YJN (SSN 774) YNN (ANTI TERR /
FORC PROTEC)
Maritime Sub IPT
MaritimeSurface IPT
ElectronicsIPT
Aerospace IPT
C & E IPT
CustomerAnalysts
Cell
Customer Facing Div.
Director Customer Ops
Call Center
Rel
atio
nsh
ip G
row
th
No Relationship
Source: LMI Research.
Partnering Relationship
Personal Relationship
Transactional Relationship
New Relationship
Multiple Levels of Customer Relationships
Now
Future
Supplier Relationship Management
588,421 Award Actions 99.7% Award Actions Under
$100,000 Competitive Solicitations
87.3% Of Dollars 87.5% Of Actions
DLA Recognized As Top Performing Major Defense Agency For FY2002
Workload Stats – FY02
DSCC Products Procured Most Active Past 12 Months
Values, Nonpowered (FSC4820) = $108.4 Mil Fittings & Specialties (FSC4730) = $98.8 Mil Misc. Power Transmission Equipment (FSC3040) = $88.1 Mil Switches = (FSC5930) $78.1 Mil Hose & Tubing, Flexible (FSC4720) = $71.0 Mil Vehicle Brake, Steer Axle, Wheel & Track Parts
(FSC2530) = $67.7 Mil Pipe & Tube = (FSC4710) $56.2 Mil Values, Powered (FSC4810) = $55.1 Mil Vehicle Furniture & Accessories (FSC2540) = $52.5 Mil
Note: Some Other Very Active Product Groups = Gun Parts, Hand Pumps, Gears, Connectors, Other Electronic Components
Rel
atio
nsh
ip G
row
th
No Relationship
Source: LMI Research.
Partnering Relationship
Personal Relationship
Transactional Relationship
New Relationship
Multiple Levels of Supplier Relationships
Now
Future
Business Vision Business Vision — ”A Value Added Broker of — ”A Value Added Broker of Suppliers for Materials and Services”Suppliers for Materials and Services”
Business Vision Business Vision — ”A Value Added Broker of — ”A Value Added Broker of Suppliers for Materials and Services”Suppliers for Materials and Services”
Buy commercial supply chains where they exist
Build virtual chains where the pieces exist
Retool acquisitions consistent with the vendor base
Integrate organic chain when it must be used
From ToReliance on inventoriesReliance on inventories Reliance on IndustryReliance on IndustryManagement of partsManagement of parts Management of Management of
Relationships Relationships Managing processesManaging processes Integrating supplyIntegrating supply
chainschainsMaintain a Balance
in Socioeconomic
Programs
Maintain a Balance
in Socioeconomic
Programs Utilize
CommercialSector Experts
UtilizeCommercial
Sector Experts
Targets of OpportunityTargets of Opportunity
Strategic Materiel Sourcing Strategic Supplier Alliance
Items representing
largest business drivers
Vendors representing
largest business base
-- Demand/spend-- Readiness factors-- BSM concept demo
-- Large annual sales-- Multiple customer support requirements-- Strategic partnering
Strategic Materiel Sourcing DLA’s Item Grouping Tool
StandardLong Term Contracts
CorporateContract
Prime VendorVirtual Prime
Vendor
Strategic Supplier Alliances
310KCore
Strategic Materiel Sourcing Groups Items for Placement on ContractStrategic Materiel Sourcing Groups Items for Placement on Contract
551,000 Core Items
DEMAND/SPEND2% of items with 80% of sales
READINESS FACTORSSurge & sustainment items, Not
Mission Capable drivers and Weapon System Identifier Code & critical items with high Production
Lead Time
0
10000
20000
30000
40000
50000
60000
70000
Oct-0
0
Dec-0
0
Feb-0
1
Apr-01
Jun-0
1
Aug-01
Oct-0
1
Dec-0
1
Feb-0
2
Apr-02
Jun-0
2
Aug-02
Oct-0
2
Dec-0
2
Feb-0
3
Apr-03
Nu
mb
er o
f A
war
ds
# of Awards (Automated + Manual)
Manual11,680(22%)
Automated42,489(78%)
Apr 03
Automated Award Actions
Business System Modernization (BSM)
S
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P
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P
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S
C
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T
O
M
E
R
S
C
U
S
T
O
M
E
R
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Aviation
Land
Maritime
IntegratedCustomerTeams
IntegratedSupplier Teams
We Know How To Buy !!
SAP
Manu
DPACS
This Is New Stuff For Us
“BSM = Helping Us To Better Manage Our Business”
Aviation
Land
Maritime
Troop/Gen Troop/Gen
DSCC Organizational Realignment
DSCC Organizational Realignment
Standard Organization Structure
Customer Operations
Customer Facing
Readiness and ICT Support
Supplier Facing
Supply Support
Supplier Relationship Management
Supplier Operations
Supply Chain
CUSTOMER
SUPPLIER
IOC Requirements/Blueprint
FOC Requirements/Blueprint
Design/Build
Release 1 Testing and Training
Release 2 Planning
Roll Out Plan
January 2001
Spring 2001
2001-02
Implement Release 1
SC 025 6/17/02
We are here We are hereDesign , Build, Test Release 2
100% Systems Capability
2002
Phased Roll-Out
FOCJan 2006
FOCJan 2006
2003
Spring 2004
2002
Summer/Winter 2001
Summer 2004
Summary
Today: Weapon System & Federal Supply Class Focus Case For Change – Single Up Organizational Alignment Across Enterprise
Tomorrow: Comprehensive Supply Chain Management Collaborative Partnering With Key/Major Suppliers
and Customers
Improved Support To War Fighter!!