11 May 2004

1. Transforming Logistics 11 May 2004

2. “Amateurs talk about strategy; Professionals talk about logistics.” former General R.H. Barrows Commandant, USMC

3. The Changing Game • Immediately Employable Force Option • Preemptive Capability • Net-Centric Warfare • Focused Joint Logistics

4. The End Game “On my signal …unleash hell….” Ubiquitous, cost-effective capability to project and sustain power.

5. Focused Logistics End-to-end communications Total asset visibility Information fusion Logistics decision superiority Rapid delivery of mission-ready forces Reduced inventory, smaller footprint, faster response Rapid distribution of tailored support packages Bottomline: Forces in theater — whether forward-stationed or deployed — deliver more capability, require less support JROC Approved

6. Near-Term Transformation Priorities • Accelerate Performance-Based Logistics • Develop a way ahead for Maintenance Excellence • Facilitate Distribution Process Owner success • Streamline material flows • Assess Customer Pay Opportunities • Coordinate Logistics Enterprise Integration • Implement meaningful and actionable metrics • Rationalize a corporate DoD Logistics vision into a coherent Transformation Roadmap

7. Future System Sustainment Ensure system is sustained at optimum level Real-TimeSystem Status (CBM+) Industry/Government Performance- Based Logistics Weapon System Manager Force Provider Partnerships Performance Agreement Performance Agreement Provide continuous, reliable, affordable support Acquisition Sustainment Disposal Visibility into cost/risk decisions across life cycle Providing operational availability; not parts.

8. Programs Contributing to GWOT* Common Ground Station HIMARS Javelin Delivering Capability NOW! Stryker * PBL programs exceeded expectation!

9. Weapon System Sustainment Roadmap Number of Partnerships(1998 & 2002) Number • MID 917 • DEPSECDEF Direction • SPG 06 • PM accountable for life cycle • JROC established sustainment requirements • Enabling Depot legislation • Revised Maintenance Policy • Industry Supply Chains • Reengineered Training • Joint Strike Fighter • Future Combat System • Advanced Amphibious Assault Vehicle • Today • Suppressed Readiness • Marginal reliability • Fractionated Accountability • $67B/year • Huge footprint • Warfighter-driven readiness • Ultra-reliability • Clear PM accountability • Minimal Footprint s • Financial Reform (PR05) • Single-line Accounting • Life Cycle Cost Management • Operational requirements synchronized with PBBS 2000 2005 2015

10. “An Epic Logistics Mess”* Never Again! * The Plain Dealer, 02/08/04, Cleveland Ohio

11. “We Should All Be Embarrassed. . . -- public and private sector, and especially those in uniform and those that work in the Office of the Secretary of Defense. “ Major General Harold Mashburn Commander USMC Logistics Command

12. Near-Term Distribution Improvements • Establish Deployment Distribution Ops Center —Complete • Integrate Billing, Funding and Budget Processes • Incorporate Direct Vendor Delivery Processes • Reengineer Supply and Transportation Priority System • Establish Time-Definite Delivery • Implement E2E Distribution Process Architecture • Establish Defense Transportation Coordination Initiative (DTCI) for CONUS shipments

13. Deployment/Distribution Operations Center-Forward (DDOC-FWD) Pilot Service Reps DPO National Partners Unity of Effort Joint Effects CDDOC-FWD Mission Statement: Confirms CENTCOM deployment and distribution priorities, validates / directs CFACC intra-theater airlift requirement support to components and CJTF’s, monitors / directs CFLCC intra-theater surface distribution support to components / CJTF’s, adjudicates identified CENTCOM distribution and intra-theater shortfalls, coordinates for additional USTRANSCOM support, provides TAV and ITV for inter and intra-theater forces and materiel, and directs conditions for effective theater retrograde. DDOC-FWD TACON TO COCOM - Air - Land - Sea - Sustainment The missing Theater link until now…

14. Streamlining Material Flow RFID • Support Warfighter requirements . . . • Directs use of active RFID across DoD Components for ITV • Directs immediate implementation of active RFID business rules • Streamline the Supply Chain . . . • Directs implementation of passive RFID within the DoD supply chain • States intent to be early adopter of the technology Implement passive RFID by January 2005.

15. Enterprise Integration Logistics Balanced ScorecardSynchronized to DoD BSC Warfighting Perspective Warfighting Perspective Warfighting Perspective Provide optimum responsive logistics Provide optimum responsive logistics Provide optimum responsive logistics support to the joint warfighter to ensure: support to the joint warfighter to ensure: support to the joint warfighter to ensure: An immediately employable force option An immediately employable force option An immediately employable force option • • • A rapidly deployable capability A rapidly deployable capability A rapidly deployable capability • • • A sustainable total force A sustainable total force A sustainable total force • • • Innovation & Learning Perspective Innovation & Learning Perspective Innovation & Learning Perspective Logistics Process Perspective Logistics Process Perspective Logistics Process Perspective Ensure a capable workforce responsible Ensure a capable workforce responsible Ensure a capable workforce responsible Provide effective logistics chain Provide effective logistics chain Provide effective logistics chain Vision Vision for meeting the warfighter logistics for meeting the warfighter logistics for meeting the warfighter logistics performance and capacity while reducing performance and capacity while reducing performance and capacity while reducing and and support requirements to include: support requirements to include: support requirements to include: the logistics footprint to include: the logistics footprint to include: the logistics footprint to include: Strategy Strategy Introduction of leading edge advanced Introduction of leading edge advanced Introduction of leading edge advanced • • • concepts concepts concepts R&M, Leveraging Global Industry, IT R&M, Leveraging Global Industry, IT R&M, Leveraging Global Industry, IT • • • Organization adaptability Organization adaptability Organization adaptability • • • Improvements, and Commercial Improvements, and Commercial Improvements, and Commercial Workforce shaping Workforce shaping Workforce shaping • • • Advances Advances Advances Resource Planning Perspective Ensure affordable logistics support through resources and choices that enable effective joint warfighter capability to include: Accurately forecast and identify logistics • requirements Enterprise Architecture Identify and understand the risks associated • Portfolio Management with logistics resource allocation DUSD(L&MR) DUSD(L&MR) DUSD(L&MR) DUSD (L&MR) Guidance & Oversight/Integration DUSD (L&MR) Guidance & Oversight/Integration Memo Memo Memo Achieve FLE Achieve FLE Achieve FLE • • • Streamlined Systems Streamlined Systems Streamlined Systems • • • Efficient Systems Efficient Systems Efficient Systems • • • Integrated Knowledge Integrated Knowledge Integrated Knowledge • • • Component Component Component Base Base Base July 2002 Execution Plans Execution Plans Execution Plans July 2002 Execution Execution Execution Interoperable Interoperable Interoperable • • • Systems Systems Systems FLE FLE And And And Milestones Milestones Milestones • • • Modernization Modernization Modernization Schedules/Brown Out Schedules/Brown Out Schedules/Brown Out • • • Critical System/ Critical System/ Critical System/ • • • Database Information Database Information Database Information Component Component (IT meta data) (IT meta data) (IT meta data) Evaluate Logistics AISs Evaluate Logistics AISs Evaluate Logistics AISs • • • Strategies Strategies and Databases and Databases and Databases January 2003 January 2003 January 2003 Management Approach Management Approach • • Identify Systems to be: Identify Systems to be: Identify Systems to be: • • • CIO Interface CIO Interface • • Eliminated Eliminated Eliminated Ø Ø Ø Evaluation Criteria Evaluation Criteria • • Sustained Sustained Sustained Process Methodology Process Methodology • • Ø Ø Ø Metrics Metrics • • Integrated Integrated Integrated Ø Ø Ø Leading DoD Enterprise Integration POM Considerations POM Considerations • • Streamlined Portfolio Management August 2002 August 2002 Achieving Information Fusion

16. Logistics Transformation Roadmap Mass-Based Just-in-Time Sense and Respond FSB • More is better • Mountains of stuff measured in days of supply • Uses massive inventory to hedge against uncertainty in demand and supply • Mass begets mass and slows everything down • Precision is better • Reduce Inventory to a minimum and keep moving • Use precise demand prediction and optimization to reduce uncertainty • Works great, except when it doesn’t • Agile is better • Dynamically positioned Inventory throughout • Use transportation flexibility and robust IT to handle uncertainty • Supports adaptive operations Prime Metric: Days of supply Prime Metric: Flow Time Prime Metric: Effects Accelerating Net-Centric Operations

17. Let’s Give Our Sons & Daughters What They Deserve! Logistics Transformation 04pm34-17