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

2. 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!

3. 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

4. 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

5. 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