THE DEFENSE SUPPLY CENTER COLUMBUS Mr James Mc

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THE DEFENSE. SUPPLY CENTER, COLUMBUS Mr. James Mc. Claugherty, Deputy Commander, DSCC

THE DEFENSE. SUPPLY CENTER, COLUMBUS Mr. James Mc. Claugherty, Deputy Commander, DSCC

“DSCC Today & Tommorow” Agenda n DSCC Today Ø Structure Of Inventory Control Point

“DSCC Today & Tommorow” Agenda n DSCC Today Ø Structure Of Inventory Control Point • DSCC Tomorrow ØImproving Customer Relationships ØManaging Supplier Relationships ØBusiness System Modernization n Ongoing Organizational Realignment n Summary

DLA Today: Balancing Of Two Tasks üImproved Support üImplement To The War Fighter Transformation

DLA Today: Balancing Of Two Tasks üImproved Support üImplement To The War Fighter Transformation

DSCC Today Inventory Control Point (ICP) Organization

DSCC Today Inventory Control Point (ICP) Organization

Lead Center Concept LEAD CENTER: LAND, MARITIME & MISSILES Defense Supply Center Columbus, OH

Lead Center Concept LEAD CENTER: LAND, MARITIME & MISSILES Defense Supply Center Columbus, OH LEAD CENTER: TROOP SUPPORT & GENERAL/INDUSTRIAL SUPPLY LEAD CENTER: ENERGY Defense Energy Support Center Ft Belvoir, VA Defense Supply Center Philadelphia, PA Defense Logistics Agency LEAD CENTER: AVIATION Defense Supply Center Richmond, VA

DLA Weapon System NSN (Spare Parts) Workload Maritime Land Aviation DSCC DSCP DSCR

DLA Weapon System NSN (Spare Parts) Workload Maritime Land Aviation DSCC DSCP DSCR

Business Base • 4. 9 M Reqs Annually • 1. 6 M NSNs •

Business Base • 4. 9 M Reqs Annually • 1. 6 M NSNs • $2. 3 B Sales • 22, 000 Customers • 4, 700 Suppliers

FY 02 Customer Profile By Customer Orders Army (49. 7%) 2, 431, 318 FMS

FY 02 Customer Profile By Customer Orders Army (49. 7%) 2, 431, 318 FMS (4. 3%) 210, 436 Marines (13. 3%) $308. 7 M (2. 6%) $59. 4 M Coast Guard (0. 5%) $10. 6 M (0. 8%) 37, 442 Navy Civ Agencies (23. 5%) 1, 149, 303 Marines Coast Guard Oth Do. D (16. 8%) 821, 688 FMS (3. 5%) 170, 877 (0. 6%) 27, 772 Air Force By Sales ($) (0. 8%) 41, 050 (34. 7%) $804. 6 M Army (23. 7%) $549. 1 M Civ Agencies Total Dollar Value: Total Requisitions: 01 Customer. Profile: kdf: 22 Oct 01 Navy (0. 5%) $11. 4 $2. 3 B 4. 9 M Oth Do. D (0. 7%) $15. 4 Air Force (24. 1%) $558. 5

Enduring Freedom / Iraq Freedom Requisitions by Customer Priority Groups Blue = Highest Priority

Enduring Freedom / Iraq Freedom Requisitions by Customer Priority Groups Blue = Highest Priority 1. 1 M Requisitions / $486. 5 M

Organizational Structure Office of Counsel Customer Advocacy Commodities Readiness & Bus. Ops Land Operations

Organizational Structure Office of Counsel Customer Advocacy Commodities Readiness & Bus. Ops Land Operations Support Aerospace Commander Deputy Cmdr Corporate Information Maritime (Q) Internal Review Small Business Procurement Comptroller Maritime (F) Chief Of Staff Public Affairs Command Support Safety Emergency Services CSOColumbus EEO Installation Services

Readiness & Business Operations Commodities Active Devices Unit Land Ground Transport Vehicles Electrical Devices

Readiness & Business Operations Commodities Active Devices Unit Land Ground Transport Vehicles Electrical Devices Combat Engineering Spt Unit Readiness Passive Devices Weapon Sys Unit Support Commodities Tailored Support Corporate Unit Aerospace Maritime Transports, Bombers & Helicopters Surface Combatant Fighters & Trainers Subsurface Small Craft Readiness Tailored Support Unit

Weapon System Support Doctrine / Organization n Weapon System Vice Item Focused n Five

Weapon System Support Doctrine / Organization n Weapon System Vice Item Focused n Five Weapon System Groups: Land, Maritime (Q/F), Aerospace, Electronics n 14 Weapon System Support Managers (WSSMs) One Face to the Maritime, Land & Missile Customer!

Commodities Group n Different Strategy Ø Federal Supply Class vs. Weapon System Ø Face

Commodities Group n Different Strategy Ø Federal Supply Class vs. Weapon System Ø Face To Industry vs. Face To Customer h. Multifunctional Teams Managing Federal Supply Classes (e. g. Connectors)

DSCC TOMMOROW DLA’s “M Sisters” Business Systems Modernization (BSM) Customer Relationship Management (CRM) Supplier

DSCC TOMMOROW DLA’s “M Sisters” Business Systems Modernization (BSM) Customer Relationship Management (CRM) Supplier Relationship Management (SRM)

Customer Relationship Management

Customer Relationship Management

Our Reason For Being Weapon Systems Support Management

Our Reason For Being Weapon Systems Support Management

Weapon Systems Supported HEMTT M 9 ACE WOLVERINE M 1 TANK M 88 A

Weapon Systems Supported HEMTT M 9 ACE WOLVERINE M 1 TANK M 88 A 1 HET AAV PLS AVENGER Total Land Weapon Systems 551

LAND CUSTOMER OPERATIONS PROPOSED ORGANIZATIONAL STRUCTURE Director Customer Ops Customer Facing Div. Operational Force

LAND CUSTOMER OPERATIONS PROPOSED ORGANIZATIONAL STRUCTURE Director Customer Ops Customer Facing Div. Operational Force Cell Group – Army Operational Force Cell Group – USMC Industrial Cell Group – Army Industrial Cell Group – USMC Land Other Cell Readiness Officer Customer Planning Div. Eng Spt Equip M 9 ACE (A) SEE (A), ETC. TAC Veh I HMMWV (A/M) , ASV/HMT (A), STRYKER (A), FMTV (A) TAC Veh II HET (A), PLS (A), ROWPU(A/M), HEMTT (A), LVS (M), HTV (A/M) Grd Cbt I BFVS (A), M 113 (A) Grd Cbt II M 1 (A/M), M 88 (A/M) Grd Cbt III AAV (M), LAV (M), AAAV (M), ETC. Field Arty M 198 (A/M), M 109 (A), FAASV (A), M 155 (A), S. ARMS(A/M) Air Def Missile Patriot (A), TOW (A/M), ETC. Customer Support Div. Call Center TBD Customer Analysts Cell

MARITIME CUSTOMER OPERATIONS PROPOSED ORGANIZATIONAL STRUCTURE Director Customer Ops Customer Facing Div. Shipyard Cell

MARITIME CUSTOMER OPERATIONS PROPOSED ORGANIZATIONAL STRUCTURE Director Customer Ops Customer Facing Div. Shipyard Cell Customer Planning Div. Readiness Officer Electronics IPT Carrier/Surface Cell Submarine Cell Trident Cell Army/Navy FMS Cell Other Navy Cell Customer Support Div. 02 N (SWS) 21 N (NRP) 23 N (TRID) 82 N (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 Maritime Surface IPT Call Center Customer Analysts Cell Aerospace IPT C&E IPT

Multiple Levels of Customer Relationships Partnering Relationship Growth Future Personal Relationship Transactional Relationship New

Multiple Levels of Customer Relationships Partnering Relationship Growth Future Personal Relationship Transactional Relationship New Relationship No Relationship Source: LMI Research. Now

Supplier Relationship Management

Supplier Relationship Management

Workload Stats – FY 02 588, 421 Award Actions n 99. 7% Award Actions

Workload Stats – FY 02 588, 421 Award Actions n 99. 7% Award Actions Under $100, 000 n Competitive Solicitations h 87. 3% Of Dollars h 87. 5% Of Actions n v DLA Recognized As Top Performing Major Defense Agency For FY 2002

DSCC Products Procured Most Active Past 12 Months Values, Nonpowered (FSC 4820) = $108.

DSCC Products Procured Most Active Past 12 Months Values, Nonpowered (FSC 4820) = $108. 4 Mil n Fittings & Specialties (FSC 4730) = $98. 8 Mil n Misc. Power Transmission Equipment (FSC 3040) = $88. 1 Mil n Switches = (FSC 5930) $78. 1 Mil n Hose & Tubing, Flexible (FSC 4720) = $71. 0 Mil n Vehicle Brake, Steer Axle, Wheel & Track Parts (FSC 2530) = $67. 7 Mil n Pipe & Tube = (FSC 4710) $56. 2 Mil n Values, Powered (FSC 4810) = $55. 1 Mil n Vehicle Furniture & Accessories (FSC 2540) = $52. 5 Mil n Note: Some Other Very Active Product Groups = Gun Parts, Hand Pumps, Gears, Connectors, Other Electronic Components

Multiple Levels of Supplier Relationships Partnering Relationship Growth Future Personal Relationship Transactional Relationship New

Multiple Levels of Supplier Relationships Partnering Relationship Growth Future Personal Relationship Transactional Relationship New Relationship No Relationship Source: LMI Research. Now

Business Vision — ”A Value Added Broker of Suppliers for Materials and Services” From

Business Vision — ”A Value Added Broker of Suppliers for Materials and Services” From Reliance on inventories Management of parts Managing processes Maintain a Balance in Socioeconomic Programs To Reliance on Industry Management of Relationships Integrating supply chains 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 Utilize Commercial Sector Experts

Targets of Opportunity Strategic Materiel Sourcing Strategic Supplier Alliance Items representing largest business drivers

Targets of Opportunity Strategic Materiel Sourcing Strategic Supplier Alliance Items representing largest business drivers -- Demand/spend -- Readiness factors -- BSM concept demo Vendors representing largest business base -- Large annual sales -- Multiple customer support requirements -- Strategic partnering

Strategic Materiel Sourcing DLA’s Item Grouping Tool DEMAND/SPEND 2% of items with 80% of

Strategic Materiel Sourcing DLA’s Item Grouping Tool DEMAND/SPEND 2% of items with 80% of sales 551, 000 Core Items 310 K Core READINESS FACTORS Surge & sustainment items, Not Mission Capable drivers and Weapon System Identifier Code & critical items with high Production Lead Time Strategic Materiel Sourcing Groups Items for Placement on Contract Standard Long Term Contracts Corporate Contract Prime Vendor Virtual Prime Vendor Strategic Supplier Alliances

Automated Award Actions Manual 11, 680 (22%) Automated 42, 489 (78%) Apr 03

Automated Award Actions Manual 11, 680 (22%) Automated 42, 489 (78%) Apr 03

Business System Modernization (BSM)

Business System Modernization (BSM)

“BSM = Helping Us To Better Manage Our Business” C U Integrate d Custome

“BSM = Helping Us To Better Manage Our Business” C U Integrate d Custome r Teams Aviation S T Integrated Supplier Teams S Manu Land SAP O M S Maritime This Is New Stuff For Us P P I E DPACS Troop/Gen U L Maritime E R Aviation Troop/Gen We Know How To Buy !! R S

DSCC Organizational Realignment

DSCC Organizational Realignment

Standard Organization Structure Supply Chain C U S T O M E R Customer

Standard Organization Structure Supply Chain C U S T O M E R Customer Operations Customer Facing Readiness and ICT Support Supplier Operations Supplier Facing Supply Support Supplier Relationship Management S U P P L I E R

Roll Out Plan Summer 2004 Spring 2004 2003 We are here 100% Systems Capability

Roll Out Plan Summer 2004 Spring 2004 2003 We are here 100% Systems Capability Design , Build, Test Release 2 Implement Release 1 2002 2001 -02 Summer/ Winter 2001 Phased Roll-Out Release 2 Planning Release 1 Testing and Training Design/Build FOC Requirements/Blueprint IOC Requirements/Blueprint SC 025 6/17/02 Spring 2001 January 2001 FOC Jan 2006

Summary n Today: Weapon System & Federal Supply Class Focus n Case For Change

Summary n Today: Weapon System & Federal Supply Class Focus n Case For Change – Single Up Organizational Alignment Across Enterprise n n Tomorrow: Comprehensive Supply Chain Management n Collaborative Partnering With Key/Major Suppliers and Customers n n Improved Support To War Fighter!!