Des Newman, Chairman

Kenneth W. Sullivan, Vice-Chairman

Jamie Damsker, Secretary

August 14, 2008

DoD Supply Network Management Committee

2008 Proposed Goals

DoD Supply Network Management Committee

2008 Proposed Goals

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DoD Supply Network Management

Charter:

To promote the development of a more robust Defense Industrial Base and Supply Chain Network Process in order to increase the strength and diversity of the Defense Manufacturing Enterprise in support of the Warfighter.

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DoD Supply Network Management

Goal #1 - Complete supplier survey

Status

• Draft survey on NDIA website

• Committee will provide comments

• “Roll out” planned for October 2008

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DoD Supply Network Management

Goal #2 - Develop list/database of DoD Supply Chain “Best Practices”

Status

• Research indicates limited published material and best reference is found in Supply Chain Integration Report (IMTI, Inc., NACFAM, UAH).

• The committee suggest that pursuing best practices at this time would be inappropriate given the changes taking place between current and future complex supply networks. `

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DoD Supply Network ManagementGoal #3 - Development of a DoD Roadmap of Future

State Supply Network Concept

Status

• Identify options and criteria for project to develop the “Supply Network of Tomorrow”

– B3 Die: Dennis Thompson

– AMCOM: Kenneth Sullivan

– MRAP: Jamie Damsker

– Global Collaboration: Eric Mittelstadt

• Steve Melnyk: Develop criteria for projects for committee to evaluate

• October: Down select projects

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DoD Supply Network Management

The honorable gentleman from Canada defers the remainder of

his time to the distinguished gentleman from Michigan State

REMEMBER!

•Today’s supply chain is a result of actions taken in the past.

•Tomorrow’s supply chain will be the result of actions that we take today.

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Today and Tomorrow’s Supply Chains

• Today’s Supply Chain– Strategically Decoupled, Price-Driven– Relatively simple– Unidimension– Focused

•Driven by– Supply chain risks– Supply chain disruptions– Timely delivery

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Today and Tomorrow’s Supply Chains

• Tomorrow’s Supply Chain– Strategically Coupled, Value-Drive– More complex– A Supply network– Driven by:

•Performance alignment

•Product design

•Supply network design

•Environmental performance

•Power/influence

– Global– Highly adaptive– Ultimately based on VALUE

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Keys to Success

•Diversity of Outcomes– Efficiency is no longer enough– Additional Outcomes

•Responsive/flexible

•Resilient

•Secure

•Sustainable

• Innovative

– Note•Not all outcomes can be achieved at the same time

• Infrastructure, metrics, practices vary by which outcome you pick!

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Keys to Success - 2

• Fit– Supply chain has to fit with its environment

• Industry

•Geographic/Cultural

•Economic Development

– Time horizon•Project/finite life– Critical resource - people

•Evergreen– Critical resource - systems

– Critical drivers•Demand/Supply/Customer/Technology

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Keys to Success - 3

•Understanding the nature of innovation– Product– Process– Service– Supply Chain

• Innovation Spectrum– Incremental innovation– Radical innovation

• Impact of metrics– On innovation

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Other Issues

•Supply chain design– Integrated vs Modular

•Modular reduced cost; enhanced responsiveness

• Integrated visibility; control

– The challenge of the “time-delayed disruption”•Mattel Toys – November 2007

•Culture– Taught, collective problem-solving– A force of stability in a world of change– Multiple levels– Affects the ability of the system to “see” alternatives

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Challenges Before Us

• Identifying the critical, current outcomes needed by Defense.•Efficiency supply chain management systems are not appropriate when dealing with the responsive supply chain.•What works for Lean does not work for Radical Innovation!• To properly measure the desired outcomes, you need to develop and implement the right metrics.•Need to measure the impact of supply chain design on performance?

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