Supply Chain Management - Army Logistics University
SEPTEMBER-OCTOBER 2002Supply ChainManagementPB 700-02-5 Headquarters, Department of the ArmyApproved for public release; distribution is unlimited.
PROFESSIONAL BULLETIN OF UNITED STATES ARMY LOGISTICS1News2DLA’s New Inventory Management Strategy—Major General Hawthorne L. Proctor and Captain Aaron J. Cook6Army Maintenance Transformation—Major General Mitchell H. Stevenson8Single Stock Fund Milestone 3—Donald E. Hartzell11Anticipatory Logistics: The Army’s Answer to Supply Chain Management—Major Joshua M. Lenzini14Ground Assault Convoy Techniques—Captain Michael D. Hofmeisterand Lieutenant Colonel Christine M. Gayagas18A Statement of Requirements: Ensuring the ‘Special’ in SpecialOperations—Major O. Shawn Cupp20Deploying Medical Units—Major Charles H. Strite, Jr.24Situational Awareness and FSB Battle Command—Lieutenant Colonel Jeffrey S. Wilson26MTMC Surface Shipments Sustain Troops in Afghanistan—Major David Cintron29Transforming Finance—Colonel Michael A. Shalakand Major Leo M. Impavido30Victory in the Division Rear Fight—Captain John F. Carson, Jr.34Commentary: The Objective Force and Logistics Force Protection—Colonel Steven A. Bourgeois37Technical Competence Versus Jack of All Trades—Colonel Korey V. Jackson40Determining Cargo-Handling Requirements—Major Gregory H. Graves43Packaging Military Equipment for Overseas Shipment—Steve Hanna44Commentary: Direct Support Plus in Korea—Major Timothy A. McKernan47Commentary: Sergeant’s Time Training in CSS Units—Lieutenant Colonel Robert A. SwensonArmy Logistician (ISSN 0004–2528) is a bimonthly professional bulletin published by theArmy Logistics Management College, 2401 Quarters Road, Fort Lee, Virginia 23801–1705.Periodicals postage is paid at Petersburg, VA 23804–9998, and at additional mailing offices.Mission: Army Logistician is the Department of the Army’s official professional bulletin onlogistics. Its mission is to publish timely, authoritative information on Army and Defenselogistics plans, programs, policies, operations, procedures, and doctrine for the benefit of alllogistics personnel. Its purpose is to provide a forum for the exchange of information andexpression of original, creative, innovative thought on logistics functions.Disclaimer: Articles express opinions of authors, not the Department of Defense or any ofits agencies, and do not change or supersede official Army publications. The masculinepronoun may refer to either gender.Submissions: Articles and information on all facets of logistics operations and functions aresolicited. Direct communication is authorized and should be addressed to: EDITOR ARMYLOGISTICIAN/ALMC/2401 QUARTERS RD/FT LEE VA 23801–1705. Phone numbers are:(804) 765–4761 or DSN 539–4761; Fax (804) 765–4463 or DSN 539–4463; emailalog@lee.army.mil. Reprints: Articles may be reprinted with credit to Army Logisticianand the author(s), except when copyright is indicated.Distribution: Units may obtain copies through the initial distribution system (DA Form 12series). Private domestic subscriptions are available at 21.00 per year by writing to theSuperintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250–7954, or by visitinghttp://bookstore.gpo.gov on the Web. For credit card orders, call (866) 512–1800. Subscribersshould submit address changes directly to Army Logistician (see address below). Army Logistician also has a home page on the World Wide Web at http://www.almc.army.mil/alog.Postmaster: Send address changes to: EDITOR ARMY LOGISTICIAN/ALMC/2401 QUARTERSRD/FT LEE VA 23801–1705.PB 700–02–5VOLUME 34, ISSUE 5SEPTEMBER-OCTOBER 2002BOARD OF DIRECTORSChairmanLieutenant General Billy K. SolomonCommander, Army Combined ArmsSupport CommandMembersThe Honorable Claude M. Bolton, Jr.Assistant Secretary of the ArmyAcquisition, Logistics, and TechnologyLieutenant General Charles S. Mahan, Jr.Deputy Chief of Staff, G4Department of the ArmyGeneral Paul J. KernCommander, Army Materiel CommandARMY LOGISTICSMANAGEMENT COLLEGEColonel Grady S. MillsCommandantBarbara G. MroczkowskiAssistant CommandantSTAFFJanice W. Heretick, EditorRobert D. Paulus, Associate EditorJanice L. Simmons, Assistant EditorApril K. Morgan, Assistant EditorJoyce W. Pawlowski, Design SpecialistDarlene A. Marker, Administrative AssistantCOVERDelivery of supplies to soldiers in the field is theculmination of a chain of management activitiesreaching back to factories and warehouses in theUnited States. The chain includes many intermediate actions, such as the movement of containersfrom an auxiliary crane ship to a landing craftutility shown on the cover. Articles beginning onpages 2, 8, and 11 examine some developmentsin the ongoing transformation of supply chainmanagement.This medium is approved for the official dissemination of material designed to keep individualswithin the Army knowledgeable of current andemerging developments within their areas ofexpertise for the purpose of enhancing their professional development.By Order of the Secretary of the Army:ERIC K. SHINSEKIGeneral, United States ArmyChief of StaffOfficial:JOEL B. HUDSONAdministrative Assistant to theSecretary of the Army0217506
ALOG NEWSLOGISTICIANS EXAMINESTATE OF TRANSFORMATIONThe Army’s leading logisticians gathered in Richmond, Virginia, in May for the 2002 Logistics Transformation Symposium and Exhibition sponsored by theAssociation of the United States Army. Meeting underthe theme, “Logistics: Leading the Change for the Army,”participants discussed how “to project and sustain theoperational force of the future . . . without compromising present support to the” warfighter.Among the speakers were General Paul J. Kern, commanding general, Army Materiel Command (AMC);Dianne K. Morales, Deputy Under Secretary of Defensefor Logistics and Materiel Readiness; Lieutenant General Roy E. Beauchamp, deputy commanding general,AMC; Lieutenant General Larry R. Jordan, deputy com-manding general and chief of staff, Army Training andDoctrine Command; Lieutenant General Billy K.Solomon, commanding general, Army Combined ArmsSupport Command; Major General Hawthorne L. Proctor, director of logistics operations (J3), Defense Logistics Agency; and the commanders of the combat servicesupport schools, Major General Robert T. Dail (Transportation), Major General Terry E. Juskowiak (Quartermaster), Major General Mitchell H. Stevenson (Ordnance), and Brigadier General Edgar E. Stanton III (Soldier Support Institute).Topics discussed included— The reorganization of AMC. The need to create an end-to-end, integrated logistics chain, featuring end-to-end weapon systems support, end-to-end combat support, and end-to-end information enterprise integration.(Continued on page 50)PENTAGON’S EXTERIOR RESTORATION COMPLETEWhen the final piece of limestone was placed on the Pentagon’s rebuilt outer facade on 11 June (inset), theexterior work was complete, masking any sign of the terrorist attack on 11 September 2001. At a press conference marking the event, Lee Evey, Pentagon Renovation Program Manager, said: “For 273 days, every singlenight, we’ve had spotlights on the outside of the building. In many instances, we had people working up on theside of that building in those spotlights. Tonight, the lights go off.The story outside the building isover. The story now moves to theinside of the building. That’swhere the challenge is. That’swhere our story will be told andthat’s where our success must beachieved.” This photo, taken at0500 on 26 June, shows the lightson inside the building with peoplealready working. The countdownclock in the foreground ticks awaythe seconds until 0938 on 11 September 2002, the 1-year anniversary of the attack. By that date,the E ring at the point of impact isexpected to be reoccupied andoperational.ARMY LOGISTICIANPROFESSIONAL BULLETIN OF UNITED STATES ARMY LOGISTICS1
DLA’s New InventoryManagement Strategyby Major General Hawthorne L. Proctorand Captain Aaron J. CookA Defense Logistics Agency initiative in partnershipwith the services will combine consumable inventoriesinto a single national inventory.For the Army, this will mean DLA ownershipof Army assets in forward stockage locations.The Defense Logistics Agency (DLA) isworking closely with the Headquarters, Department ofthe Army (DA), G4 and elements in the other armedservices to construct a new inventory management strategy that will revolutionize today’s military logistics. Thisnew strategy, called the National Inventory ManagementStrategy (NIMS), will comply with and enhance theSingle Stock Fund (SSF) initiative by eliminating redundant asset management operations and the costs associated with them.DLA and the Army have partnered to examine theapplication of this initiative to the Army under the titleof Consumable Supply Chain Management-Army(CSCM–A). The partnership’s goal is to reduce theamount of Army funding tied up in consumable inventories and enable Army procurement activities tospend money on repair parts and specific mission requirements. With the successful implementation ofNIMS and CSCM–A, the Army will gain increased flexibility and expand its opportunities for stock positioningin peacetime and on the battlefield.DLA and other agencies have worked for several yearsto create a supply system that will realize the benefits ofa single point of management, from the point of acquisition to the point of consumption. The linear concept ofthe Army SSF—using a single fund to manage moneythrough the entire chain of execution—created the template for NIMS and CSCM–A to follow.National Inventory Management StrategyNIMS is DLA’s strategy for extending supply chain2management of consumable items beyond the wholesale level in order to provide products and services tothe point of consumption. This new inventory management approach will combine the consumable inventories of DLA (the wholesale level) and the armed services (the retail level) into a single national inventorythat can be managed in a more integrated manner (seechart at right). In coordination with the services, DLAwill manage this national inventory to increase the efficiency, productivity, and effectiveness of the entire consumable supply chain.NIMS will result in DLA owning and having accountability for the national inventory for consumableitems, from procurement to the supply support activity.This single owner-manager concept will improve supply efficiencies by reducing inventories, improving theresponsiveness of logistics support, and providing complete visibility of the supply chain.NIMS and Improved ResponsivenessDLA’s oversight of a national inventory will enableit to manage a commodity from the point of acquisitionto the point of consumption for all of the armed services. Reducing the number of layers of inventorymanagement will improve demand forecasts and stockefficiency.NIMS will provide a larger total inventory for theDefense community, which will improve cross-levelingof supplies and better meet demands across the services.The consolidation of consumable inventories under anational manager will improve the effectiveness of totalSEPTEMBER-OCTOBER 2002
Tailored Logistics Solutions: Stockage levels Critical items Infrastructure agreementsEnd UserEnd UserOld WayNIMS Way! NIMS will combine separate DLA and service inventories into one national inventory owned and managed by DLA from the point of procurement to the point of consumption.asset visibility for all of the services. It will provide theflexibility to customize logistics requirements, therebyachieving tailored support for every type of customerand unit. Stock positioning initiatives also will benefitfrom this improved visibility, which will increasedistribution efficiencies.Changes at the Unit LevelOne of DLA’s primary objectives is to make the transition to a national inventory as transparent as possible tothe customer so the customer sees minimal changes tolegacy systems. A number of information technologyoptions are being reviewed and considered. As thesenew management strategies transform the current supply system, the end users of the management informationsystems will see very little change.The most significant change end users will see afterNIMS implementation is improved efficiency. A considerable benefit of NIMS will be the single point ofaccess it provides for system users and warfighters inplace of the multilayered management of the currentsupply system. Having DLA function as the nationalmanager will allow the services to focus more onwarfighting than on submitting requests and inquiries totoday’s fragmented materiel support system.ARMY LOGISTICIANNIMS Status and TimelineToday, DLA has successfully accomplished a nationalinventory approach for energy, medical, and subsistencecommodities and continues to make progress with clothing and textiles. Class IX (repair parts) is the next step,and by far the most challenging, because of the diversity of items and multitude of suppliers involved. Thechart on page 4 depicts the phases of NIMS implementation and the timeline for these phases to be completedduring fiscal years 2002 and 2003.The Navy is testing the NIMS concept successfullyat Defense Depot Yokosuka, Japan, where DLA has assumed the ownership of intermediate stocks for 11,000items previously owned by the Navy. Another test program is underway at Naval Air Station Sigonella, Italy.Based on the results so far, the Navy and the other services are pursuing new initiatives to reduce service working capital funds.The Marine Corps has designated Marine Corps BaseCamp Lejeune, North Carolina, as its NIMS test site.Approval of the test site was granted after a series ofbriefings to the Marine Corps Logistics Advocacy Boardat Headquarters, Marine Corps; the commander of Marine Forces Atlantic; and the commanding general ofthe II Marine Expeditionary Force. The IntermediatePROFESSIONAL BULLETIN OF UNITED STATES ARMY LOGISTICS3
pilot site. DLA and Air Force discussions indicate that an air logisticscenter may be the leadingcandidate. The Air Force hasnumerous supply initiativesongoing at this time but has acknowledgedthatNIMSmayprovide additional benefits.The Army has selected FortCarson, Colorado, as a pilot site tobegin testing by 30 September.CSCM–A, the Army component ofNIMS, has undergone intensive planning and coordination among DAheadquarters, the Army MaterielCommand (AMC), and DLA. Aftera successful pilot of CSCM–A at FortCarson, NIMS will be phased inacross the Army, transforming thecurrent supply system into a streamlined structure that better supports thefuture warfighter.CSCM–ACSCM–A is a joint Army-DLAinitiative to evaluate and implementDLA ownership of assets in Armyforward stockage locations. TheCSCM –A initiative affects supplyclass II (personal demand items),packaged class III (petroleum, oils,and lubricants), class IV (constructionand barrier materials), and class IXconsumables. It will allow businessto be conducted directly between theArmy customer and DLA, therebyminimizing Department of Defensecosts.! NIMS will be implemented in these phases during fiscal years (FYs)The CSCM–A initiative envisions2002 and 2003.DLA fully implementing supply chainmanagement responsibility for those DLA items in installation, corps, and theater Standard Army Retail SupSupply Support Activity at Camp Lejeune stocks apply System (SARSS)–1 accounts, AMC Installation Supproximately 4,000 line items worth over 10 million. Amemorandum of agreement between DLA and the Maply System (AMCISS) accounts, and non-Army-manrine Corps currently is being staffed for signature, andaged items (NAMI) in all nondeployable, nondivisionalrepresentatives are being identified to form the DLA/operations and maintenance retention stocks. This willMarine Corps NIMS Joint Working Group. DLA isachieve the goal of ownership of supplies as far forwardworking closely with the Marine Corps to identify andas possible under one agency—DLA. After Milestonedevelop information technology to support the NIMS3 of the SSF [which basically extends the SSF to diviconcept that can be integrated into the Marine Corpssion authorized stockage list inventories], DLA will aslogistics enterprise. The Marine Corps plans to implesume ownership and management of those DLA itemsment NIMS testing by 1 October.stocked at the Army division level.The Air Force is working to finalize the selection of aCSCM–A is a logical extension of the Army SSF ini-4SEPTEMBER-OCTOBER 2002
tiative because it reduces the number of owners of consumable supplies before those supplies reach the finalconsumer. The SSF will create a seamless logistics andfinancial process with nationally owned and managedinventory at worldwide stock locations and fully integrated accounting procedures. CSCM–A will help tomeet the goals of the SSF and NIMS by giving DLAownership of NAMI stocks. DLA will continue to manage these low-cost, high-volume consumable items,which made up 78 percent of total Army demands infiscal year 2000, in a more integrated manner.DLA’s supply chain management of NAMI stockswill eliminate multiple handling of supplies and dollars,creating a direct line of management of the items fromprocurement to the final sale to the unit that will consume them. By transferring total management of NAMIsupplies to DLA, the Army potentially could avoidnonrecoverable costs such as commodity business unit(CBU) operations, installation handling, transportationredistribution, and information technology costs.The elimination of redundant systems will save moneyand increase efficiency by creating a more reliable andeffective supply system that meets the financial goals ofthe SSF. As NIMS and CSCM–A transform supply functions, customers will have centralized access to NAMIinformation through DLA.Savings From NIMS and CSCM–AA business case analysis, completed by DynamicsResearch Corporation (DRC) in February 2001, examined the effects of streamlining the supply operationsmanagement of all remaining NAMI for which DLA isthe national manager. DRC determined that DLA NAMIownership would not require significant cost adjustmentsor cause disruptions to existing source-supply-customeractivities. DRC therefore recommended transferringownership of those NAMI for which DLA already is thenational manager from the Army to DLA. To put thistransfer into perspective, the fiscal year 2000 value ofall Army supply classes (Army-managed items andNAMI) was estimated at 15.82 billion, of which NAMIconstituted 1.6 billion, or about 10 percent.Initial estimates indicate that this transfer will resultin savings to the Army in a number of areas. In additionto the CBU cost avoidance already mentioned, the number of electronic transactions could be reduced by 45percent; this reduction would result from DLA’s centralized system processes and would save approximately 400,000. Eliminating obsolete NAMI inventory wouldsave approximately 1.9 million, and new NAMI storage operation efficiencies would save 31 million.DLA’s assumption of ownership for these NAMIstocks will not occur without some costs. InformationARMY LOGISTICIANtechnology for new interface development and financial support costs will be approximately 2 million overthe 5 years after DLA assumes ownership of NAMIstocks.In all, transferring NAMI stocks to DLA could saveover 37 million within 5 years. As the new supplychain reaches maturity, savings could reach 10 millionper year. Other economies are anticipated from the consolidation of NAMI storage locations. Reductions andefficiencies gained in distribution are estimated at morethan 30 million over time but were not included in thebusiness case analysis.NIMS and CSCM–A are two initiatives that DLA andthe Army are working on closely to transform the current supply system into a more efficient system that meetsevery need of the warfighter as quickly and as cost effectively as possible. The future warfighter will not havetime to wait for supplies to move through the supplysystem of today. Our goal i
Army Logistician (ISSN 0004–2528) is a bimonthly professional bulletin published by the Army Logistics Management College, 2401 Quarters Road, Fort Lee, Virginia 23801–1705. Periodicals postage is paid at Petersburg, VA 23804–9998, and at additional mailing offices. Mission: Army Logistician is the Department of the Army’s official professional bulletin on
The B.Sc. Logistics and Supply Chain Management is a business degree with a major specialisation in Logistics and Supply Chain Management. During the programme students develop an ability to apply supply chain management and business processes and functions to actual Logistics and Supply Chain Management scenarios. They immerse
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The Army Strategic Logistics Plan (ASLP) is the Army Logistics community's strategy to achieve the DCSLOG's Logistics Vision—the Revolution in Military Logistics (RML). The ASLP will achieve the goals of that vision by transforming Army logistics from a system based predominately on redundancy of mass, to one
Qlik for supply chain: forecasting and planning 6 Qlik for supply chain: sourcing and supplier performance 8 Qlik for supply chain: production insights 10 Qlik for supply chain: warehousing and distribution 12 Qlik for supply chain: transportation, storage and logistics 14 Qlik for supply chain: fleet management 16
Supply chain management 1.1.2.1. Supply chain processes: the integrated supply chain point of view To describe supply chains from a process point of view, we refer to the supply chain operations reference (SCOR) model. SCOR is a cross-industry standard for supply chain management and has been developed and endorsed by the supply-chain council .
companies. In this case, supply chain management mainly focuses on cooperation between the supply chain actors. 1.1.2. Supply chain management 1.1.2.1. Supply chain processes: the integrated supply chain point of view To describe supply chains from a process point of view, we refer to the supply chain operations reference (SCOR) model.
The Army Strategic Logistics Plan (ASLP) is the Army Logistics community's strategy to achieve the DCSLOG's Logistics Vision—the Revolution in Military Logistics (RML). The ASLP will achieve the goals of that vision by transforming Army logistics from a system based predominately on redundancy of mass, to one
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