Presentation on theme: "Aviation Supply and Demand Chain Overview"— Presentation transcript:
1Aviation Supply and Demand Chain Overview Richmond Chapter of APICSMonthly MeetingApril 17, 2008Col Ron Barto, USMCRDirector, BRAC Implementation & TransitionDefense Supply Center Richmond
2The DLA Enterprise as of 30 September 2007 FY02 Sales/Services: $21.5BFY03 Sales/Services: $25BFY04 Sales/Services: $28BFY05 Sales/Services: $31.8BFY06 Sales/Services: $35.5BFY07 Sales/Services: $34.8BScope of Business54,000 Requisitions/Day8,200 Contracts/Day#64 Fortune 500 – Above Walt Disney#3 in Top 50 Distribution Warehouses26 Distribution Depots5.2 Million Items – eight supply chains25M Annual Receipts and Issues1411 Weapon Systems Supported132.8M Barrels Fuel Sold$14.6B Annual Reutilizations/DisposalsLand/Maritime: $3.1BAviation: $3.4BTroop Support: $12.4BEnergy: $13.4BDistribution: $1.3BOther: $1.2B~95% of Services’ repair parts100% of Services’ subsistence, fuels, medical, clothing & textile, construction & barrier materielOnly left side completely updated with sales dataRight side – Only update for Fortune 500FY06 SalesL/M 3.2BAvn 3.3BT/S 11.6BEnregy 13.5BDist 1.5BOther 1.2BFMS 1.02BPeople20,805 Civilians519 Active Duty Military754 Reserve MilitaryLocated in 48 States/28 CountriesForeign Military SalesSales: $1.18BShipments: 535KSupporting 124 Nations
3Supply Chain Enterprise… 3Supply Chain Enterprise…Land & Maritime Supply ChainLead Center for Distribution26 Distribution Depots WorldwideWorldwide Reuse, Recycle& Disposal SolutionsDOD Manager for Printing &Duplicating, AutomatedInformation Products & ServiceDefense SupplyCenter ColumbusDefenseDistribution CenterDefense Reutilization& Marketing ServiceDefense LogisticsInformation ServiceCreation, Management &Dissemination of LogisticsInformationDefense SupplyCenter PhiladelphiaDefense SupplyCenter RichmondHeadquartersDefense Logistics AgencyDefense Energy Support Center Fort Belvoir7 OCONUS DepotsTroop Support Supply ChainAviation Supply ChainHeadquarters J-CodesDefense National Stockpile CenterDLA EuropeDLA CentralDLA Pacific…Part of the DOD Logistics Enterprise
4Contingency Support Teams Direct Support to the Warfighter DSCR DCST Deployments: DSCR personnel are deployed in the following locations:IRAQKUWAITAFGHANISTAN4
5The Aviation Enterprise as of 30 Sep 07 Aviation Supply Chain:FY07 Sales: $3.4BFY08 Projection: $3.4BScope of Business13,096 Requisitions/Day1534 PR Awards/Day1300 Weapon Systems SupportedLand/Maritime: $3.1BAviation: $3.4BTroop Support: $12.4BEnergy: $13.4BDistribution: $1.3BOther: $1.2BPeople2138 Civilians55 Active Duty Military27 Reserve MilitaryFY06 SalesL/M 3.2BAvn 3.3BT/S 11.6BEnergy 13.1BDist 1.5BOther 1.6BFMS 140MFY06 Requisitions/Day – 12,416FY06 PR Awards/DayForeign Military SalesSales: $337M
7Aviation Expertise In DLA Brig Gen Andrew E. BuschUSAFCommanderKim HuntleySESDeputy CommanderYvette BurkeSESAcquisition ExecutiveCol Gary Wiest, USMCDeputy CommanderOperationsEngine Components Air Frames Landing GearFlight Safety Equipment Propeller Systems7
8Aviation Supply Chain Product Lines D S C R D L A ’ s A V I A T I O N S U P P L Y C H A I NRichmondCommoditiesEnvironmentalProductsMapsIndustrial Plant EquipmentASCColumbusDetachmentASCPhiladelphiaDetachmentPackaged POLChemicalsElectrical HardwareInstruments /GagesEngine and AirframeRe-refined OilOzone Depleting Substance ReserveChemical Prime Vendor ProgramTopographic, hydrographic, aeronautical maps/charts, in both hard copy and digital format, for all DoD ActivitiesMore than 87,000 productsLathesMilling MachinesBoring MachinesGrinding MachinesRelocationNew ProcurementOverhaulPower Trans ComponentsGuided Missile ComponentsMisc Engine & ComponentsTorque ConvertersCommunication EquipmentThreaded and Non-Threaded FastenersIPV ProgramWe manage 840,000 items that support 1,300 Major Weapon Systems. Over 444,000 of the items are aviation parts – spares for engines that go on fighters, bombers, cargo aircraft and helos. As well as airframe/landing gear parts, flight safety equipment and propeller systems. We also manage a variety of other items, such as, bearing, chemicals, batteries, instruments/gages, re-refined oil, maps, and industrial plant equipment.FROM VNDIA:Denny Morris emphasized that Ozone Depleting Substances are critical asset based on their attorneys. No other installation has or can create that capabilityWho does Mapping report to? DDC CommanderWho are our primary maps distribution carriers? UPS, USPS, and FEDEXIPE is a fee for service contract8
9DSCR/Aviation Supply and Demand Chain Profile DSCR Site FactsTotal Population 2255Avg Age YrsAvg Service Time 19.4 YrsAvg Education Level Two Years of CollegeAvg Grade GS-10.8Avg Salary $64,751Columbus,OhioMechanicsburgIndustrial MachineryRepair FacilityPhiladelphia, PennsylvaniaASC Detachments/SS&D SitesPhiladelphia Personnel:Columbus Personnel:Mechanicsburg Personnel:Warner Robins SS&D Personnel: 240Tinker SS&D Personnel:DSCR/Aviation Supply and Demand Chain Profile: Here is a look at the workforce profile for the Aviation Demand and Supply Chain.RichmondAviationSupply ChainDSCR Diversity FactsMale – 47% Female – 53%White – 55% African-American – 40%Other – 5%Veterans – 34.10%Oklahoma City SS&DWarner Robins SS&D
10General Physical Description of DSCR Over 600 AcresOver 7 Million Square Feet of Covered and Uncovered Storage AreaApproximately 120 Warehousing, Utility and Administrative Buildings
11History 3500 – 1500 BC - American Indian Trading Area 1619, One of the Earliest Settled Sites in U.S1887, James Bellwood was the Last Private Owner of the Property.He Turned it into a Model of Agriculture for VA, and Introduced Elk to the Farm.The Army Purchased the Property.One of oldest inhabited parcels of land in the US, linking back to the original Jamestown settlers.1619 Thomas Sheffield received 2,300 acres as a land grant from Queen of England. He and his settlers were part of the Jamestown settlement and came upriver to settle here Indian raiders killed Sheffield, his family, and 10 other settlers.Land was idle until 1634 when the region was organized into counties the land became part of Chesterfield Country. The Sheffield tract passed into the hands of Seth Ward, In 1797 Richard Gregory bought approximately 1,000 acres from Ward. Gregory and his family built a manor house on the property between 1797 and Gregory left the bulk of his estate to his son, who in turn passed it to Major Augustus Drewry and his wife, Lavinia, Gregory’s granddaughter. The land passed between Ward, Gregory and Drewry,.Drewry family owned the property during the Civil War. Confederate troops erected a fort, known as Drewry’s Bluff or Fort Darling, on the property to the east on the James River. The fort was used to defend Richmond from attacks by Union gunboats. In May 186i4, Confederate Gen. P.G.T. Beauregard made the manor house his headquarters. Confederate President Jefferson Davis met with Beauregard in the house on May 12 of that year to confer on a plan for halting the Union advance on Richmond.After the war, Drewry traded the farm to Capt James B. Jones, a fellow officer in the Confederate army, who had held man the guns at Fort Darling. Jones lived on the property until the mid=-1880s, but wasn’t able to make a go of farming after the war, since the land was worn out from constant tobacco and cotton farming. The war had also exacted a heavy toll on the area.IN 1887 the property was sold to James Bellwood, a Canadian agriculturist who was seeking a more temperate climate because of health concerns. Bellwood , and his three sons, transformed the 2,400 acre farm into a model of agriculture. He also imported a pair fo mated elk to the farm from his native home, which flourished and became known as the Bellwood Elk.Model of Agriculture – purchased for $18.50 an acre, value increased to $ at the time of Bellwood’s death. Agricultural awards from 1914 Panama-Pacific International Exposition held in San Francisco on display in bldg 34.Army purchased the land from Bellwood on June 6, The elk herd passed along with the property as part of a “gentleman’s agreement”. Descendents of that orginal elk herd remain on the property to this day and are cared for the the center’s employees. Clearing and grading of the land for construction began in August of that year, with the Richmond Quartermast Depot being activated in January, In its first two decades, the mission of the Richmond Quartermaster Deport was on the traditional logistics support to the US Army with an emphasis on Quartermaster items.
12History1942 -The installation was Activated as the Richmond General Depot1962 – Absorbed by the Defense Supply Agency1977 – Name Changed to Defense Logistics Agency1980s s Reorganization and Restructuring Throughout DLA and Another Name Change - Defense Supply Center RichmondBy March, supplies were rolling in and out of the depot. More than 8,450 employees worked on the installation during the peak years of World War II. On a single day, more than 850 rail cars were dispatched and received, providing supplies for the war effort. During the depot's first 30 months of operation, the tonnage shipped, if converted to a solid freight train, would stretch over 1,000 miles. Throughout World War II, the Korean conflict and Vietnam, the installation thrived with activity.The installation, its tenants and their missions, has transformed throughout its five decades of service to adapt to the needs of the nation’s military. The Richmond Quartermaster Depot was renamed the Richmond Armed Service Forces Depot in The U.S. Army Quartermaster Branch Depot was established on the site in 1949, followed by the U.S. Army General Supply Center in In 1962, DLA began overseeing operations and the installation became known as the Defense General Supply Center.In 1962, the Secretary of Defense consolidated the single-manager agencies operated by each of the service branches into the Defense Supply Agency. This resulted in an expanded mission for the depot, which included supply management of more than 30,000 general supply items for the military services and certain civilian agencies worldwide.In 1977, the Defense Supply Agency name changed to the Defense Logistics Agency. The installation name changed to the Defense General Supply Center to match its new logistical mission.Another major change occurred in 1986, when depot operations were separated from inventory control point functions and a separate command--the Defense Distribution Depot Richmond--was established on the site. In 1991, DGSC marked its 50th anniversary of service to the military. In 1996, the installation name changed from the Defense General Supply Center to the Defense Supply Center Richmond.Today, DSCR serves as the aviation supply and demand chain manager for the Defense Logistics Agency and serves within the DoD as the primary source of supply for more than 1.25 million repair parts and operating supply items. DSCR’s mission is to provide best value aviation weapon systems and environmental logistics support to America’s armed forces—on land, at sea and in the air.
13Transformation & Growth… Changing Warfighting & Strategic EnvironmentAdaptable & AgileLinking Supply & DemandTODAY2008 – Post BRAC & Beyond2007 – Joint Regional Inventory Material Management2007 – National Inventory Management Strategy – Base Realignment & Closure (BRAC)2003 – Distribution Process Owner Created2002 – Business Systems Modernization Deployed1997 – Prime Vendor Implemented1992 – Distribution Command Consolidation Completed1990 – Supply Chain Consolidation1988 – GSA Transfers Strategic Stockpile1977 – DSA renamed Defense Logistics Agency1962 – Defense Supply Agency Begins Operations1961 – LTG McNamara Appointed Head of New Common Supply AgencyManagingSuppliersManagingSuppliesStrengthening Supply Chain Excellence13
14We Are Transforming to … Single Touch Point to Warfighters & SuppliersEBSCRMSRMCustomerSupplierDSCPDSCCDSCRServiceDoDAACWeapon System14
15Demand and Supply Chain Organization Model Customer OperationsSupplier OperationsStrategicMaterialSourcing GroupCustomer SupportSupplier SupportCRM Cells/Support TeamsItem Planning TeamsIntegrated Supply TeamsKeep focus on accountability for obtaining customers’ requirementsKeep focus on accountability for planning customers’ requirementsIn most cases, single face to the customer (OF, customer DP) regardless of what the customer is buyingItem-level planning for the items managed by the Supply ChainShared services (e.g., Finance) for Customer Operations unitsSupply planning, procurement, and tech/quality for items managed by the Supply ChainStrategic sourcing for items managed by the Supply ChainShared services (e.g., Finance, T/Q for Supplier Operations unitsCustomer Operations - accountable for understanding the needs of customers and providing customer service.CRM Cell/Support Team – CRM Cells perform customer touch, order fulfillment, and customer based demand planning. Support Teams provide commodity-specific support to certain customers who consume products from multiple Supply Chains. (Job examples: CAS, Demand Planner, Planning Data Maintainer)Integrated Planning Team (IPT) – perform item based demand planning. (Job examples: Demand Planner, Planning Data Maintainer)Customer Support – accountable for support to customer operations teams as required, and Finance functions. (Job examples: Business Analyst, Financial Customer Liaison, Planning Data Maintainer)Supplier Operations - accountable for meeting customer expectations by performing inventory planning, performing procurement activities, and effectively managing suppliers.Integrated Supply Team (IST) – performs supply planning, procurement and Tech/Quality functions. (Job examples: Supply Planner, Product Specialist, Acquisition Specialist)Strategic Material Sourcing Group – performs supplier relationship management for suppliers working under strategic supplier alliances, major corporate suppliers or a group of suppliers representing a defined major industrial, service or product segment, and analysis and definition of strategic long term contracts. (Job examples: Strategic Sourcing Specialist, Supplier Relationship Manager, Acquisition Specialist, Industrial Specialist)Supplier Support - accountable for support to supplier operations teams as required, as well as shared Tech/Quality and Finance functions. (Job examples: Business Analyst, Resolution Specialist, Acquisition Specialist, Product Specialist)Direction of IPTs planning this Supply Chain’s items at other locationsItem Planning TeamsDetachmentsIntegrated Supply TeamsDirection of ISTs managing this Supply Chain’s items at other locations15
16Aviation Supply & Demand Chain Forward Presence Scott AFB,IL (1)Ogden,UT (4)NAVICP, (1)Philly, PAMechanicsburg, PA (68)Langley AFB,Oceana, Norfolk,(1 ea) VANorth Island (4),LeMoore (1),San Diego (1),CAAlternate Duty Locations of assigned DSCR/ASC employees are:Redstone Arsenal, AL-4, Ft. Rucker, AL-1North Island, CA – 4, LeMoore, CA – 1,San Diego, CA – 1Jacksonville, FL – 3Warner Robins, GA-7Scott AFB, IL-1Cherry Point, NC – 3Tinker AFB, OK-9Philly NAVICP – PA – 1Langley AFB, VA-1, Norfolk, VA – 1, Oceana, VA – 1Corpus Christi AD (CCAD), TX – 2Ogden, UT-4Wiesbaden, Germany-1Mechanicsburg, PA (68)Total -45 forward presence+ 68 IPE-Mechanicsburg, PATotal 113 (As of July 06, 2007)---at alternate duty locations(11 states and 2 countries)All GS now, but will be adding WG once we add the BRAC locations beginning in October 2007Redstone Arsenal (4) & Fort Rucker, AL (1)Tinker AFB, OK, (9)Cherry Pt.,NC (3)Warner Robins,GA (7)Wiesbaden, Germany (1)Jacksonville,FL (3)CCAD, TX (2)
17Overview of the BRAC 2005 Supply and Storage Decisions Fully Implemented By Fiscal Year 2011Supply Storage &DistributionConsolidation ofWholesale and IndustrialRetail Supply SupportDepot Level ReparableDLR ProcurementManagementConsolidationBy Supply ChainCommodity PrivatizationDisestablishes theWholesale ICP FunctionsFor Tires, POL/Chemicals& Cylinders/GasesAsset Transfers &Inventory ManagementOfConsumable ItemsConsumable ItemTransferTHIS IS ANOTHER REPRESENTATION OF THE SLIDE THAT BG BUSCH PRESENTED ON THE BRAC 2005 SUPPLY AND STORAGE DECISIONS.SAVINGS – DLR/CIT ($1.6B) SSD ($1.3B) PRIVATIZATION ($1.7B) OVER 20 YEARSDECISION 51 - SUPPLY, STORAGE, AND DISTRIBUTION MANAGEMENT IS THE CONSOLIDATION OF WHOLESALE AND INDUSTRIAL RETAIL SUPPLY SUPPORT. ASC SITES ARE:ROBINS AFB – STOOD UP 14 OCT 07TINKER AFB – ESTIMATED FEB 2008HILL AFB – EST APRIL 2008CORPUS CHRISTI ARMY DEPOT – TBDJACKSONVILLE FRC (Fleet Readiness Center) SENORTH ISLAND FRC SWCHERRY POINT FRC ENAVY FRC WILL FOLLOW A PHASED APPROACH BEGINNING OCT 2008 FOR PHASE I AND OCT 09 FOR PHASE II.DECISION 43 - PRIVATIZTION CONTRACTS FOR PACKAGED PETOLEUM PRODUCTS AND TIRES HAVE BEEN AWARDEDCHEMICAL, PETROLEUM, OILS, LUBRICANTS (AWARDED TO SAIC (SCIENCE APPLICATION INTERNATIONAL CORP) ON 2 MAY 07) – 5400 NSNsGASES & CYLINDERS (AWARDED TO HAAS ON 30 APR 07) – OVER 700 NSNsA THIRD CONTRACT WAS AWARDED BY DSCC FOR THE PRIVATIZATION OF TIRES – (29 DEC 06 TO MICHELIN AIRCRAFT TIRE CO.)DECISION 35 – COMBINATION OF CONSUMABLE ITEM TRANSFER AND THE TRANSFER OF “NEW” DLRS TO DLA.PLEASE NOTE THAT FOR CIT NSN MANAGEMENT WILL TRANSFER TO DLA. HOWEVER FOR DLRS, NSN MANAGEMENT WILL BE RETAINED BY THE SERVICES.CIT – THE TRANSFER OF ASSETS AND INVENTORY MANAGEMENT OF CONSUMABLE ITEMS. TOTAL ENTERPRISE GAINS ARE:NAVY (JUNE 2007) – 7684 NSNsAIR FORCE (JULY AND AUGUST 2007) – 6032 NSNsARMY – TRANSFERS WILL TAKE PLACE BETWEEN JUL 08 AND APRIL TOTAL NSN GAIN TBD.SERVICE EXCLUDED ITEMS ARE NUCLEAR, SUBSAFE, SPECIAL PROGRAM AND DESIGN UNSTABLE.DLRS – THE REMAINDER OF THIS PRESENTATION WILL COVER THE DLR IMPLEMENTATION/EXECUTION.Moving Forward to Transform DoD
18Naval Inventory Control Point BRAC Impacts To DLA Aviation SupportNaval Inventory Control PointDLROgden ALCSS&D/DLRCherry PointNADEPSS&DNorth IslandNADEPSS&DOklahoma City ALCSS&D/DLRArmy Aviation &Missile CommandDLRJacksonvilleNADEPSS&DCorpus ChristiArmy DepotSS&DWarner Robins ALCSS&D/DLR18
19DSCR … Aviation Center of Excellence Diverse & Specialized Workforce Critical & Unique MissionsAn Integral Part of DoD. . . Focused on the WarFighter!