CORPORATE BOARD TOP TENDefense Supply Center Philadelphia

Class II

Clothing & TextilesUpdate to the AAFA

Dennis Dudek,Director, Supplier Operations

CORPORATE BOARD TOP TEN

The Big Picture

Customers / ItemsCustomers: 14,000 Orders: 3,600,000 / year Items: 31,000

SalesFY 01 - $1.2BFY 02 - $1.5BFY 03 - $2.1BFY 04 - $2.6BFY 05 - $2.5BFY 06 - $2.2B

ObligationsFY 01 - $1.1BFY 02 - $1.6BFY 03 - $2.8BFY 04 - $2.0BFY 05 - $2.0BFY 06 - $1.6B

Personnel

Employees: 302 civilian + 2 Military

Suppliers: 858

CORPORATE BOARD TOP TEN

Small

Large

UNICOR

NIB

NISH

Share of BusinessIn Millions of Dollars

736.5

419.8

46.4

72.3

141.1

Total $1416 thru August

FY 06 thru August

CORPORATE BOARD TOP TEN

Footwear IST Tom Hutchinson X5823

Tom Darcy X3068

Battledress ISTSusanne McHale X5608

Brian Connolly X2063Evan Eisenburg X5637

Christine Hertkorn X7018

Accessories ISTHarry Veneri X3153James Callan X5999Scott Kromis X2461

Safety ISTRaymond Jacquette X3166

Michelle Duffy X8090Dan Price X8101

Individual Equipment ISTMark Twardziak X5677John Dempsey X0320

Tentage & Shelters ISTLouAnn Graham X7948

Maria Sesso-Punza X0558Joann Zirilli X0563

Heraldics IST Tom Zassick X3214

Tanya Bailey-Lockley X7221Cynthia Esposito X5662

Field Clothing Division

Bob Panichelle X2401

Clothing & Textiles Supplier Operations DirectorateDennis Dudek 215-737-3001

Sally DiDonato X2400

Dress Uniforms ISTSuzanne Kershaw X3049

Anthony D’Avella X3193

Outerwear ISTVictoria Ryan X3018Michele Moore X2450

Dress Shirts & Headwear ISTCheryl Reynolds X7830

Jeff Jaworski X8611

Organizational Clothing Division

Donna Pointkouski X4290

Individual Equipment Division

Terri Scheetz X3274

Dress Clothing Division

Bill McClenahan X9225

Coveralls/Special Purpose IST

Cindy Small X3055Jackie Pelullo X3286

Gloves/Wet Weather IST

Kevin Peoples X5657Marianne Campbell X3089

ChemicalIST Marie Brywka X3195

Kishayra Lambert X3234Pat Martin X3980

ECWCS IST Florence Robinson X3056

Arnetta Hobbs X2044

CORPORATE BOARD TOP TENNet Sales Item

1 $41.7M JSLIST Coat/Trouser2 $17.1M Insert, Small Arms Protective3 $12.3M Body Armor, Outer4 $9.3M Tent, GP Complete, Green5 $7.7M Boots, Combat6 $6.9M Kit, FSBE7 $5.9M Parka, Cold Weather8 $4.6M Helmet, Ground Troop9 $4.0M Poncho, Wet Weather

10 $3.5M Trousers, Cold Weather11 $2.7M Boots, Hot Weather12 $2.4M Coat, Desert Camo13 $2.3M Coat, ACU14 $2.3M Coveralls, Flyers15 $2.0M Shoe, Running16 $2.0M Trousers, ACU17 $2.2M Trousers, Desert Camo18 $2.0M Undershirt, Ext CW

OEF / OIFTop Sales Items FY06

CORPORATE BOARD TOP TENSupply Chain Management

Virtual Prime Vendor - KYLOC

The Kentucky Logistics Operation Center (KYLOC) Acts as DSCP’s subcontractor DSCP pushes stock to KYLOC warehouse Customers order via web, email, phone, fax Patches and name tags are sewn on Orders are kitted /shipped direct to customer KYLOC electronically tied to DSCP

KYLOC

Sales exceeded $70M last yearSales exceeded $70M last year

Customers don’t have to carry inventory!

Unit # of Svc Members

Army National Guard 360,000

Air National Guard 107,000

Navy Reserve 80,000

Marine Reserves 40,000

Navy Seabees 24,000

Navy Coastal Warfare` 4,000

Navy Amphibs 3,000

Naval Special Warfare Command (Seals)

4.000

Naval ELSF 10,000

Naval Installation Command 10,000

Army Reserve (175K) 1st Qtr FY07

CORPORATE BOARD TOP TENArmy Direct Ordering (ADO)

Web-Based Logistics

• DSCP solution:

• Use an existing web-based program which currently supports 631,000 Guard/Reservists

Serves 360K Army National Guardsmen

ANG saving $10M / year

•Test Case: 7 Units deployed in Iraq

– Ran from Jun-Oct 2004

– Very Successful – all orders filled complete

• 311 orders worth $36K

• Expansion on-going

– Afghanistan (16K soldiers), Horn of Africa(100 soldiers) & Iraq (90K soldiers);

– 1,600 units ordering, 350K Orders shipped

– Overall totals: 2.5M items / $32M

• Next Step

– Expansion to support Army Balkans units

Boots, Caps, Hats, Cold Weather Coats,ACU Coats / Trousers, Helmet Covers, and more…

CSA authorized a test of Internet ordering capability

CORPORATE BOARD TOP TENArmy Direct Ordering:

Cumulative Dollars Ordered

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Jun-05

Jul-05

Aug-05

Sep-05

Oct-05

Nov-05

Dec-05

Jan-06

Feb-06

Mar-06

Apr-06

May-06

Jun-06

Jul-06

Aug-06

Sep-06

$32.1M

CORPORATE BOARD TOP TEN

CORPORATE BOARD TOP TENDepot Misdirected Shipments

• Contract calls for specific quantity of material be shipped to both Container Consolidation Points (CCPs), New Cumberland (DDSP) & San Joaquin (DDJC)

• Vendors apparently are getting confused and are reversing their shipments, e.g., DDSP getting 60 rather than 100 while DDJC receives 100 instead of 60

• Vendors from all DLA Supply Centers are involved in this scenario and it appears to be occurring with some degree of frequency.

• DLA-HQ is actively working to implement corrective action and is discussing options with the Defense Distribution Command (DDC) and elements of the various DLA Supply Centers

Careful attention to contract delivery terms

CORPORATE BOARD TOP TEN

Release 1.0 (Aug 2002)Included sampling of most of DLA businessC&T was NOT included due to distribution methods

Release 1.1 – Battledress Uniform (and Subsistence)Went live: 1 December 03For C&T, 700 NSNs, $220M

Release 2.1.1 Flags & InsigniaWent live: 1 Jan 05

Release 2.1.2 Chemical SuitsWent live: 1 Apr 05

Release 2.1.3 TentsWent live: 1 Jul 05

Release 2.1.4 AccessoriesWent live: 1 Nov 05

Release 2.2 OCIEWent live: 1 Mar 06

Release 2.2.1 Dress Clothing & FootwearWent live: 1 Aug 06

Business System Modernization

We are “All In !”

CORPORATE BOARD TOP TEN

All current contracts and unawarded shipment plans will be aggregated so that vendors can view the demand per PGC

Demand thru VIM

HatKeyword SearchThe user can enter general or specific key words to narrow the list of PGCs to select

hat, sun, hot weather woodland camouflage pattern, cotton, poplin water repellent type iii

01891

DescriptionPGC

The user can select from the total list of PGCs that are selected using the key word search

800

Demand Quantities for Months from This Month

FY 05

FY 06

Oct

1,000

800

Nov

1,000

800

Dec

1,000

400

Jan

1,200

800

Feb

1,500,

800

Mar

1,500

800

Apr

1,500

1000

May

1,500

1000

Jun

1,500

1000

Jul

1,500

The data in this table is extracted for the selected PGC

1000

Aug

1,500

1000

Sep

1,500

CORPORATE BOARD TOP TENRadio Frequency Identification Data

VIM-ASAP to WAWF Processes

Print and burn carton RFID label

Move carton thru portal

Print and burn RFID pallet label

or Use pre-burned Tags

Attach carton label & RFID tag

orScan bar code on RFID tags

There are many ways that can be used to capture the carton and pallet RFID data

Manual entry of RFID data is not recommended

Transmit Data to VIM-ASAP

or Use pre-burned Tags

252.211-7006 RADIO FREQUENCY IDENTIFICATION (NOV 2005)

CORPORATE BOARD TOP TENWorking with RFID Vendors

to Support Your Desired Process

The following vendors have verified through our testing process to certify that they are capable of capturing RFID data and transmitting it to VIM-ASAP. Each can support a variety of processes for capturing required RFID data.

• Avery-Dennison-PSA• Mid-South Marking Systems • MilPac Technology • Odyssey RFID, LLC • Paxar • Quest Service Labs

Current certified companies, points of contract, and phone numbers can be found at http://info.ct-dscp.com/rfidsuppliers.htm

VIM-ASAP RFID Menu

NEW Menu Function: Select contracts that contain RFID clause before transmitting data

CORPORATE BOARD TOP TENThe Numbers

31 OCT 31 DEC YEAR

30 SEP

OBLIGATIONS $309M $644M $1.613B

SALES $184M $500M $1.973B

31 OCT 31 JAN YEAR

30 SEP

OBLIGATIONS $290M $601 $1.7B

SALES $62M(THRU 9 Oct)

CORPORATE BOARD TOP TENAs Jim Morrison once said,

“This is the End”

Questions ???