Projecting Global Logistics: Transforming the UK’s Defence Supply Chain 20 th Annual National Logistics Conference Sparks, Nevada 2 March 2004 Colonel David Martin CBE Director DLO Logistics Operations Centre Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics
Current Mo. D Organisation CDS/PUS 2 nd PUS DCDS(P) PJHQ VCDS DCDS(EC) DCDS(C) CDP CNS CGS CAS DPA CINC FLEET CINC LAND CINC STRIKE 2 SL AG CDL AMP HQNI Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 2
The DLO Communications Air DLO HQ Land Sea Supply Chain Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics
The 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 Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics
What Is Logistics in The DLO? Mid-life Update Stores Equipment Disposal Catering Aircraft Ships/Submarines Repair Fuel Naval Bases Army Equipment Information Services and Support Post Storage Depots Distribution Munitions Movements and Transportation Medical Supplies Clothing From the Factory to the Fort Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 5
DLO Facts • Annual spend over US$17 bn - 25% of Defence operating costs. • 30000 people (75% civilian). • 20% of MOD civilians work in DLO. • 6 Defence Agencies. • US$41 bn assets. • Over 80 locations. Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 6
What we used to do. . . Specify Procurement Executive Mo. D(Centre) Support Operate Dispose Separate Services Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 7
What we do now. . . Specify Procure DLO Mo. D(Centre) Support DLO/Front Line DPA Operate Front Line Dispose DLO Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 8
What we want to do. . . Specify Procure DLO Mo. D(Centre) Support DLO DPA Operate Front Line Dispose DLO Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics DLO 9
Why? Because the smarter we do our business in the DLO, the smaller the deployed ‘logistic footprint’ Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 10
Strategy Route Map • Organisational improvements • Process improvements • Performance management • Working with industry … to deliver predictability Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 11
How are we going to bring about the necessary change and forge a coherent E 2 E supply chain? Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics
Intelligent Customer . . by transforming Equipment Support Contracting for Capability Contracting for Availability Spares Inclusive Traditional Provider certainty of delivery …. . Excelling in intelligent logistics 13 Decider Unity of purpose,
Heavy Equipment Transporter Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics
. . and by transforming the Defence Supply Chain Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 15
What Is the Supply Chain grouping in The DLO? Mid-life Update Stores Equipment Disposal Catering Aircraft Ships/Submarines Repair Fuel Naval Bases Army Equipment Information Services and Support Post Storage Depots Distribution Munitions Movements and Transportation Medical Supplies Clothing From the Factory to the Fort Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 16
What is hampering us in achieving our mission effectively? • 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 Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 17
Joint Force Logistic Component (JF Log C) Concept Of Operations UK BASE COUPLING BRIDGE ALSS FMB XXX JTFHQ FLS SPOD FRSA SA APOD THEATRE X DOB 2 TRC DOB 1 X Assy Area JFLog. C XX LCC BSG Bde
‘STEALTH’ LOGISTICS SINGLE SERVICE SUPPLY CHAINS DEFENCE CONTRACTOR FOOD MAIL UNIT INTERNATIONAL COURIER MEDICAL STORES FUEL MUNITIONS Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 19
DLO Logistic Operations 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 Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 20
MORE ‘INTELLIGENT’ LOGISTICS PJHQ PRIORITIES IPTs MAIL CO-ORDINATION UNITS DPA DLO LOGISTIC INDUSTRY OPERATIONS CENTRE COMMODITIES Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 21
The 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 Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 22
Consignment Tracking Enhancements Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics
Fully exploit the integration of RFID equipment Active Fixed Interrogator Savi. Tag 410 with Bracket Mobile Reader 410 R Docking Station Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 24
Invest in our Logistic Information Systems Invest in the ability to manage the Joint Deployed Inventory (the MJDI Project) Rationalise the remainder of the logistic IS architecture Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 25
Current Logistic IS Architecture INVENTORY WAREHOUSE TRANSIT UNIT 1 OASIS CRISP WITS RIDELS SCCS WTMS VITAL USAS/DUSAS BODMS VITAL GLOBAL SS 3 1. ‘Unit’ or ‘deployed inventory (DI) systems’ Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 26
Rationalised Logistic IS Architecture INVENTORY SEA AIR LAND WAREHOUSE TRANSIT WITS RIDELS TAV(-) SCCS WMS VITAL TAV(-) SS 3 WMS VITAL TAV(-) CRISP UNIT MJDI M MI T MJDI P 2 P and Enterprise Application Integration Hub Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 27
Improve Performance Measurement Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 28
Stockholder selects stores required Need for stores identified Unit request verified then processed What is wrong? Capability Loss Unit asks for stores Operations Ex/Trg Not NWE Routine Issue instruction output to stockholder Stores arrive at interim Capability local distribution node restored Unit node Stores leave the receipt Stores leave the interim distribution Stores arrive Stores stockholder node at unit issued Stores declared for movement Stockholder moves stores to distribution node What should we measure? IPT/ SC controls Depot/Stockholder Distributor Theatre Distributor FLCs Def SC Area of Influence Def SC Area of Interest Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 29
Future Defence Supply Chain Initiative (FDSCI) • Better VFM from Def SC storage & distribution • Savings aspirations of US$63. 5 M from 05/06 • Options include: • In House – Do Better - Smart Distribution – Do Differently - Trading Fund • Partnering with Industry • Outsourcing – 2 bids currently being evaluated Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 30
V 2. 0 28 Jan 04 CDL as Defence Logistic Process Owner VCDS and 2 ND CDL PUS Head Office Processes DLB 2* Defence Logistic / E 2 E Change Team Leader ACDS (Log Ops) FLEET ‘Demand Pull Doctrine’ DLO LAND Industry DLOC PJHQ JF Log C Maritime Component Land Component DPA ‘Demand Pull Doctrine’ STC Air Component DG Def SC CDL ensures. Unity of purpose, certainty of from the end-to-end logisticintelligent logistics the required effect is achieved delivery …. . Excelling in process Operational 31 Success
“The key to achieving a small logistic footprint is the integration of the Defence Supply Chains” That’s easy for you to say Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics 32
Projecting Global Logistics: Transforming the UK’s Defence Supply Chain 20 th Annual National Logistics Conference Sparks, Nevada 2 March 2004 Colonel David Martin CBE Director DLO Logistics Operations Centre Unity of purpose, certainty of delivery …. . Excelling in intelligent logistics
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