Defense Logistics: Integrated and Efficient Earl Boyanton Office of the Deputy Under Secretary of Defense (Logistics & Materiel Readiness) 4 March 2004

DOD Logistics - Forces at Work Combatant Commanders Integrated Priority List Joint Lessons Learned Ongoing Operations Quadrennial Defense Review Project and sustain the force with minimal footprint Implement performance-based logistics Achieve industry performance standards External Influences Congressional Oversight GAO Inspector General DoD Logistics $90B+/year Over 1 million people 16-day customer wait time Over 600 disparate systems Related DoD Initiatives Public Perceptions Financial Reform Business Improvement Council Defense Business Board Freedom is Free Conflict is quick Government should be accountable We initiated the FLE to focus energy and resources on our most pressing logistics needs. Recent operations emphasize the need for rapid power projection and for appropriate tools to manage the flow of forces and sustainment. The Quadrennial Defense Review documents our national need to: Projected power rapidly with minimal footprint Improve readiness through performance-based logistics Achieve industry standards for customer responsiveness. Simultaneously, the Department launched several initiatives, such as the Financial Management Enterprise Architecture, to improve business operation with direct implications on logistics operations. Finally, the Services were pursuing several logistics improvement efforts. All these efforts are directed at improving our $88B+ per year logistics business, but the net impact wasn’t clear. The FLE is our program to harness the innovation within the Department to transform logistics in the near future. Our immediate focus is on: Transforming weapon system support Implementing end-to-end warfighter support processes Integrating our diverse logistics enterprise to provide the warfighters with the support they need and deserve. In Air Force language, the FLE will enable: More Bombs on target Via more rapid power projection At significantly less cost, in terms of dollars and human recourses! As you all know first hand, we need this capability NOW – not 20 years from NOW – because the threat is NOW, the forces are deployed NOW, and our pilots and airmen are counting on us NOW! Service Initiatives (over 500) Product support Footprint reduction Customer wait time WE NEED TO FOCUS ENERGY!

Near Term Priorities Implement meaningful and actionable metrics – Balanced Score Card Coordinate Logistics Enterprise Integration Improve Distribution Process – End to End Warfighter Support Accelerate Performance Based Logistics Streamline Material Flows Assess Customer Pay Opportunities Rationalize Civil Reserve Air Fleet and Organic Airlift Capacity vs Supply Chain Architectures if / when “Peacetime Op Tempos” Return

Objective: Improve Distribution Process (OPR:Transportation Policy) Establish Deployment Distribution Ops center—Complete Integrate Billing, Funding and Budget Processes Incorporate Direct Vendor Delivery Processes Re-engineer Supply and Transportation Priority System Establish Time Definite Delivery Standards Implement E2E Distribution Process Architecture Establish Defense Transportation Coordination Initiative (DTCI) for CONUS shipments- On Going FY 04

Objective: Streamline Material Flows (OPR: Supply Chain Integration) Develop and promulgate DFAR Rule on RFID – September 04 Draft Rule- May 04 Develop program plan to consolidate regional material handling – Complete Identify Optimal Process Configuration Develop recommendations, alternatives and a pilot design