unity of purpose, certainty of delivery ….. excelling in intelligent logistics colonel david...

Unity of purpose, certainty of delivery ….. Excelling in intelligent logisticsUnity of purpose, certainty of delivery ….. Excelling in intelligent logistics

Colonel David Martin CBEDirector

DLO Logistics Operations Centre

Projecting Global Logistics: Transforming the UK’s Defence Supply Chain

20th Annual National Logistics ConferenceSparks, Nevada

2 March 2004


Current MoD OrganisationCurrent MoD OrganisationCDS/PUS

CDLCAS

AMP

CINCSTRIKE

2SL

CINCFLEET

CNS CGS

AG

CINCLAND

HQNI

PJHQ CDP

DCDS(P) DCDS(C)DCDS(EC)

2nd PUS VCDS

DPA


The DLO

Land

Communications

Supply Chain

Air

Sea

DLO HQ


The DLO MissionThe DLO Mission

To sustain UK military capability, current and future

Achieving success in the tasks we undertake

Being ready to respond to the tasks that might arise

Building for the future


What Is Logistics in The DLO?What Is Logistics in The DLO?

RepairRepair

CateringCateringStoresStores

Information Information Services and Services and

SupportSupport

Storage Storage DepotsDepots

DistributionDistribution

Mid-life Mid-life UpdateUpdate

Equipment Equipment DisposalDisposal

Naval Naval BasesBases

PostPost

MunitionsMunitions

Movements and Movements and TransportationTransportation ClothingClothing

AircraftAircraftShips/SubmarinesShips/Submarines

Army Army EquipmentEquipment

From the Factory to the FortFrom the Factory to the Fort

Medical Medical SuppliesSupplies

FuelFuel


DLO FactsDLO Facts

• Annual spend over US$17bn - 25% of Annual spend over US$17bn - 25% of Defence operating costs.Defence operating costs.

• 30000 people (75% civilian).30000 people (75% civilian).

• 20% of MOD civilians work in DLO.20% of MOD civilians work in DLO.

• 6 Defence Agencies.6 Defence Agencies.

• US$41bn assets.US$41bn assets.

• Over 80 locations.Over 80 locations.


Specify

Support

Procure

Operate Dispose

What we used to do ...What we used to do ...

Procurement Executive

Separate Services

MoD(Centre)


Specify

Support

Procure

Operate Dispose

What we do now ...What we do now ...

MoD(Centre)

DLOFront Line

DPA

DLO

DLO/Front Line


What we want to do ...What we want to do ...

Specify

Support

Procure

Operate Dispose

DPAMoD(Centre)

DLO DLOFront Line

DLO

DLODLO


Why? Because the smarter we Why? Because the smarter we do our business in the DLO, the do our business in the DLO, the smaller the deployed ‘logistic smaller the deployed ‘logistic

footprint’footprint’


Strategy Route Map

• Organisational improvements

• Process improvements

• Performance management

• Working with industry

… to deliver predictabilitypredictability


How are we going to bring How are we going to bring about the necessary change about the necessary change

and forge a coherent E2E and forge a coherent E2E supply chain?supply chain?


.. by transforming.. by transforming Equipment Support Equipment Support

Traditional

Contracting for

Availability

Spares Inclusive

Contracting for

Capability

Provider Decider

Intelligent Customer


Heavy Equipment Heavy Equipment TransporterTransporter


.. and by transforming the .. and by transforming the Defence Supply ChainDefence Supply Chain


What Is the What Is the Supply ChainSupply Chain grouping in grouping in The DLO?The DLO?

RepairRepair

CateringCateringStoresStores

Information Information Services and Services and

SupportSupport

Storage Storage DepotsDepots

DistributionDistribution

Mid-life Mid-life UpdateUpdate

Equipment Equipment DisposalDisposal

Naval Naval BasesBases

PostPost

MunitionsMunitions

Movements and Movements and TransportationTransportation ClothingClothing

AircraftAircraftShips/SubmarinesShips/Submarines

Army Army EquipmentEquipment

From the Factory to the FortFrom the Factory to the Fort

Medical Medical SuppliesSupplies

FuelFuel


What is hampering us in achieving our What is hampering us in achieving our mission mission effectivelyeffectively??

• Fragmented Supply Chain– Multiple owners of same processes– Partial Performance Measurement

• Non-optimised supply chain– Long lead times– Low visibility– High stocks– Low technology– Low productivity– High levels of duplication across Services and more across

industry as a whole


Joint Force Logistic Component (JF Log C) Concept Of Operations UK BASE

THEATRE

BdeBde

XX

FMBFMB

ALSS

TRCTRC

FRSA

SASA

JFLogCJFLogC

XX

LCCLCCXXXX BSGBSG

DOB 2DOB 2

APODAPOD

SPODSPOD

COUPLING BRIDGE

FLSFLS

JTFHQJTFHQ

XXXXXX

JTFHQJTFHQ

DOBDOB 11

Assy AreaAssy Area


‘‘STEALTH’ LOGISTICSSTEALTH’ LOGISTICS

UNIT

SINGLE SERVICESUPPLY CHAINS

MAIL

FUEL

MUNITIONS

INTERNATIONALCOURIER

FOOD

DEFENCECONTRACTOR

MEDICAL

STORES


DLO Logistic Operations DLO Logistic Operations Centre (DLOC)Centre (DLOC)

• To manage the flow along the Supply Chain i.e;– The ‘air bridge’– The ‘surface (ie sea) bridge’

• To manage the receipt, consolidation and dispatch to theatre of UORs

• Promote consignment tracking• Co-ordinate the output of DG Def

SC’s HLB


IPTs

MAIL

DPA

INDUSTRY

COMMODITIES

UNITS

CO-ORDINATION

DLO LOGISTIC

OPERATIONSCENTRE

PRIORITIES

PJHQMORE ‘INTELLIGENT’ LOGISTICSMORE ‘INTELLIGENT’ LOGISTICS


The FutureThe Future• Consignment Tracking enhancements

• Invest in the ability to manage the Joint

Deployed Inventory (the MJDI Project)

• Rationalise the remainder of the logistic IS

architecture

• Improve Performance Measurement

• Future Defence Supply Chain Initiative

• Organisational change – Domain 2 Stars


Consignment TrackingConsignment TrackingEnhancementsEnhancements


Fully exploit the integration Fully exploit the integration of RFID equipmentof RFID equipment

Mobile Reader 410RActive Fixed Interrogator

SaviTag 410 with Bracket Docking Station

Invest in the ability to manage the Joint Deployed Inventory (the MJDI Project)

Rationalise the remainder of the logistic IS architecture

Invest in our Logistic Information Systems


Current Logistic IS ArchitectureCurrent Logistic IS Architecture

INVENTORY WAREHOUSETRANSIT UNIT1

SCCS

CRISP

SS3

WITS

WTMS VITAL

BODMS VITAL

RIDELS

USAS/DUSAS

OASIS

GLOBAL

1. ‘Unit’ or ‘deployed inventory (DI) systems’


Rationalised Logistic IS Rationalised Logistic IS ArchitectureArchitecture

INVENTORY WAREHOUSE TRANSIT UNIT

SCCS

CRISP

SS3

WITS

WMSVITALTAV(-)

WMS

RIDELSTAV(-)

MJDI

MJDI

MJDI

SEA

AIR

LAND VITALTAV(-)

P2P and Enterprise Application Integration Hub

M M I

T

M M I

T


Improve Performance Improve Performance MeasurementMeasurement


Capability Loss

What is wrong?

Need for stores identified

Unit asks for stores

Unit request verified then processed

Stockholder moves stores to distribution

node

Stores declared for movement

Stores leave the stockholder

Stores arrive at interim

distribution nodeStores leave the

interim distribution node

Stores arrive at local distribution

node Unit receipt

Stores issued

Capability restored

IPT/ SC controls

TheatreDepot/Stockholder DistributorNot NWEEx/TrgOperations

IPT/ SC controls

FLCsDepot/Stockholder DistributorRoutine

Def SC

Def SC Area of Influence

Def SC Area of Interest

What should we measure?What should we measure?

Issue instruction output to

stockholder

Stockholder selects stores required

Stores arrive at unit


Future Defence Supply Chain Future Defence Supply Chain Initiative (FDSCI)Initiative (FDSCI)

• Better VFM from Def SC storage & distribution

• Savings aspirations of US$63.5M from 05/06

• Options include:• In House

– Do Better - Smart Distribution– Do Differently - Trading Fund

• Partnering with Industry• Outsourcing – 2 bids currently being evaluated


CDL as Defence Logistic Process OwnerCDL as Defence Logistic Process Owner

Maritime Component

Land Component

Air Component

DLO

DPA

Industry

DLB

DG Def SC

V2.0 28 Jan 04

FLEET

LAND

STC

OperationalSuccess

CDL

ACDS (Log Ops)

DLOC PJHQ

‘Demand Pull Doctrine’

‘Demand Pull Doctrine’

JF Log C

CDL ensures the required effect is achieved from the end-to-end logistic process

VCDS and 2ND PUS

2* Defence Logistic / E2E Change Team Leader

Head Office Processes


“The key to achieving a small logistic footprint is the integration of the Defence Supply

Chains”

That’s easy for you to say


Colonel David Martin CBEDirector

DLO Logistics Operations Centre

Projecting Global Logistics: Transforming the UK’s Defence Supply Chain

20th Annual National Logistics ConferenceSparks, Nevada

2 March 2004

unity of purpose, certainty of delivery ….. excelling in intelligent logistics colonel david...

Documents

defence supply chainwhat

supply chain i

coherent e2e supply

life da ipts

dpa hosted ipts

fortmedical suppliesfuelwhat

bn assets

mod civilians work