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Thomas A. Reichert

Thomas A. Reichert. Materiel Management. Army Logistics University Room A-414 thomas.a.reichert@us.army.mil 804-765-4311. Defense Supply Chain Management.

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Thomas A. Reichert

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  1. Thomas A. Reichert Materiel Management Army Logistics University Room A-414 thomas.a.reichert@us.army.mil 804-765-4311

  2. Defense Supply Chain Management • “An integrated process that begins with planning the acquisition of customer-driven requirements for material and services and ends with the delivery of material to the operational customer, including the material returns segment of the process and the flow of required information in both directions among suppliers, logistics managers, and customers.”

  3. Defense Supply Chain Management Model PLAN SOURCE MAKE/REPAIR Materiel Requirements Determination DELIVER Materiel Management Repair / Maintenance Supply Chain Management Materiel Distribution Transportation Purchasing RETURN DELIVER RETURN SOURCE Materiel Returns/ Disposition Materiel Returns/ Disposition

  4. Source • Processes that Procure Goods and Services to Meet Planned or Actual Demand

  5. Defense Supply Chain Management Model PLAN SOURCE MAKE/REPAIR Materiel Requirements Determination DELIVER Materiel Management Repair / Maintenance Supply Chain Management Materiel Distribution Transportation Purchasing RETURN DELIVER RETURN SOURCE Materiel Returns/ Disposition Materiel Returns/ Disposition

  6. Materiel Management • Activities and Procedures • Replenish Inventory • Control and Maintain • Right Amount of Material • Proper Placement within Storage • Management of Warehouse Facility

  7. Materiel Management Receiving Management

  8. Definition • Physical Turnover of Materiel by Carrier • Receipt Posted to Stock Record or • Issued Directly to Customer

  9. Vendor Shipment Module VSM

  10. VSM • An Enterprise Wide Distribution & Transportation System that Improves Cargo Movement from DLA Vendors to Customers While Providing In-Transit Visibility (ITV) • Streamlines Movement: • Real Time & Accurate Addressing of Materiel • Web Based • Vendors Enter Weight and Cube Data • Integrates Shipments into Defense Transportation System • Air and Surface Movement to: • Consolidation and Containerization Points • Ports of Embarkation (POE) • Processes Advance TCMD to POEs

  11. FOB Destination MIL-STD 129P Compliant Shipping Label Printed at Vendor’s Location Due In Data to Ports and Trans-shipment Points Faster Delivery, Less Frustrated Cargo at CCP and Ports Reduced Returned Shipments for Incorrect Address Offers Data to Air Clearance Authority FOB Origin Samebenefits as Destination plus: Cost Reduction Using Government Negotiated Transportation Rates Automated Mode of Shipment Selection Provides Carrier’s Tracking Number in Advance of Pick-Up Automatic Freight Charge Calculation Carriers Paid Through Power-Track VSM

  12. Cross Docking

  13. Cross Docking • The direct flow of materiel through a warehouse facility from receipt to dispatch with no intermediate storage

  14. Theater Consolidation and Shipping Point (TCSP) • The TCSP serves as the primary conduit for sustainment entering theater • The TCSP rapidly consolidates/segregates shipments from multiple sources and prepares them for onward movement directly to the warfighter

  15. ITV & Operating System Feeds ITV & Operating System Feeds Document Number Visibility & Positive Asset Control TCSP Operations INBOUND OUTBOUND Crossdocking • Documentation In-Check • Internal Truck Routing • Unstuff Containers • Pallet Breakdown • Document Receipt • Segregate Freight • Shipment Types: • Pure Containers/ Pallets (Air & Surface) • Multi-Consignee Cont./ Pallets • Breakbulk (Air & Surface) • Frustrated/ Misdirected • Empty Containers/ Pallets • Shipment Origin: • Direct Vendor • Theater Retail SOS • Theater Returns • Consolidation by DoDAAC/ Route Plan • Stuff Containers • Build Pallets (Air & Surface) • Fabrication Capability: wooden/ fiberboard, crates, pallets, etc. • AMS Cards, RF Tags Applied • Transportation Documentation • HAZMAT Certification • Customs Documentation • Coordinate Outbound TransDestination: • CDC/ SSAs (sustainer push) • SSAs (local) • APOD • SPOD/ Commercial Port • Management Functions: • Operations • Documentation • Transportation • Containers • Assumptions: • Security is Separate • Theater MCT Collocated • Theater Trans Provided

  16. Theater Consolidation and Shipping Point (TCSP) • The TCSP serves as the primary conduit for sustainment entering theater • The TCSP rapidly consolidates/segregates shipments from multiple sources and prepares them for onward movement directly to the warfighter • Shipments are processed within 24-72 hours, based on theater transportation schedule

  17. Materiel Management Inventory Management

  18. Definition • Storage and Movement of Materiel within Storage Facility • Ensure War-fighter “Bill of Rights” • “Right” Amount of Inventory

  19. BRAC

  20. National Inventory Management Strategy NIMS

  21. NIMS • DLA Managed Retail Assets • Tailored Approach to Meet Customer Requirements • Move DLA Point of Sale to Pier-side/Plane-side to Eliminate Need for Holding Retail Inventory

  22. NIMS • Better Inventory Visibility • Single Inventory Level • Eliminate Points of Resale • Capture More Accurate Consumption Rates • Better Financial Decisions • “Right Size” of DOD Inventory Levels

  23. JRIMM Joint Regional Inventory Material Management

  24. Objectives • Eliminate Duplicate Service and DLA Inventories • Establish Hub for Integrated Inventory Storage and local Delivery

  25. Objectives • Consolidation of HAZMAT Common Items and Collaborative Reutilization • Coordinated Shipment Management on Oahu • Enhancements for Transport of Retrograde off the Island

  26. Materiel Management Warehouse Management

  27. Proper Mix Space People MHE Practices/Processes Technology Metrics Meet or Exceed Service Requirements Customer Expectations Definition

  28. Warehouse Management System WMS

  29. WMS • Distribution Standard System (DSS) • Integrated with Enterprise Business System (EBS) • Inventory Control Point • ERP System • Architecture Supports Current Initiatives • Hub and Spoke Model

  30. Stock Positioning

  31. Distribution Transformation Inherited process Synchronized 2003 Customer Focused Strategy No central strategy • DOD Supply Chain…a historical accumulation • Hub and Spoke Strategy • Emphasize cost effective and scheduled replenishment of materiel to support local and global customers. 35

  32. Distribution Transformation Inherited process 2003 2009 No central strategy D D D Synchronized Increased Flexibility Synchronized Customer Focused Strategy Customer Focused Strategy • DOD Supply Chain…a historical accumulation • Hub and Spoke Strategy • Emphasize cost effective and scheduled replenishment of materiel to support local and global customers. • BRAC Law Implementation • Four SDP strategy; reduce infrastructure

  33. Developing the Architecture to Achieve Global Vision • Strategic Distribution Platform(SDP):Serves as primary source for material shipped worldwide and hub to replenish spokes (CONUS and OCONUS).   • CONUS Distribution Center (DC): Local industrial support with replenishment from hub (SDP). • OCONUS Distribution Depot: Regionally focused IAW DLA -COCOM assessments with replenishment from hub (SDP).

  34. OCONUS Japan Korea Guam Hawaii OCONUS Germany Italy Kuwait Puget Sound Hill Tobyhanna Columbus Susquehanna San Joaquin Richmond Norfolk Barstow Cherry Point Oklahoma City Anniston San Diego Warner Robins Red River Albany Jacksonville Strategic Distribution Platform BRAC SDP CONUS DC Distribution Center OCONUS Distribution Center BRAC Closure Corpus Christi Transform the Distribution Network

  35. Stock Positioning Strategy • Strategic Distribution Platforms (SDPs) • Primary source for majority of materiel shipped worldwide • Hubs that replenish Spokes (DLA Materiel) • CONUS Distribution Centers (DCs) • Local industrial support • Stock replenishment from hubs • OCONUS Distribution Depots • Regionally focused IAW DLA COCOM assessments • Stock replenishment from hubs Vendor Replenishment World Wide Distribution SDP Replenish FDPs, OCONUS Sites Enterprise Business Rules CONUS Spoke Criteria - requires 2 or more wholesale demands in the last 12 months * OCONUS Stock Criteria - requires 4 or more wholesale demands the last 12 months * * Demands must be spread over 2 separate months DC OCONUS Sites EMQ

  36. Economic Movement Quantity (EMQ) • DDC partnering efforts with HQ DLA, Army and Rand Corp • New model for Planning Forward Stock at OCONUS sites • Minimizes total distribution costs • Considers stock levels, replenishment frequencies, safety • stock levels • Trade off transportation costs, inventory holding cost and • materiel handling cost • Adjusts the range and depth of materiel recommended for • forward positioning • - Safety Stock potential Moving Forward with New Strategies

  37. OCONUS Stock Positioning Germersheim 48,420 Yokosuka 63,168 Sigonella 10,947 Pearl Harbor 36,663 Korea 24,229 Kuwait 84,851 Guam 10,754

  38. OCONUS Stock Positioning • Barge • Over Ocean • Rail • Truck Germersheim 48,420 Yokosuka 63,168 Sigonella 10,947 Pearl Harbor 36,663 Korea 24,229 Kuwait 84,851 Guam 10,754

  39. ONE TEAM ONE VISION ONE MISSION DDED 26th UNCLASSIFIED/FOUO

  40. Warfighter SupportDeployable Distribution Expeditionary Depot • Management Functions: • Operations • Documentation • Transportation • Containers • Assumptions: • Security is Separate • Theater MCT Available • Theater Trans Provided Functions • DSS • Copied to a deployable server • Deployable DSS uses four functional areas • Transship • Packing • Hazardous packing • Transportation • Satellite feed for ITV • Test & Proven May 07 Limited User Evaluation Osan, Korea INBOUND OUTBOUND • Documentation In-Check • Internal Truck Routing • Unstuff Containers • Pallet Breakdown • Document Receipt • Segregate Freight • Shipment Types: • Pure Containers/ Pallets (Air & Surface) • Multi-Consignee Cont./ Pallets • Breakbulk (Air & Surface) • Frustrated/ Misdirected • Shipment Origin: • DLA Direct • Theater Retail SOS • Theater Returns • Consolidation by DoDAAC/ Route Plan • Stuff Containers • Build Pallets (Air & Surface) • Limited Fabrication Capability: fiberboard, pallets, etc. • AMS Cards, RF Tags Applied • Transportation Documentation • HAZMAT Certification • Coordinate Outbound TransDestination: • CDC/ SSAs (contract trans) • APOD • SPOD/ Commercial Port Crossdocking • Doctrinal Integration • DDXX Capability being Integrated into USTRANSCOM's Joint Task Force-Port Opening (JTF-PO) Capability • DDXX Force Structure to be Worked with Army for Non-permissive Theater Environments (CASCOM/QM School) • "JTF-PO & NoMaDD are Full Partners": Gen Schwartz, JTF-PO IPR, 29 Jun 07 Capabilities/Resources CONUS/Disaster Relief Planning/Exercises • Quick Deliver Sep 06 • Golden Guardian CA Nov 06 • Limited User Evaluation Korea May 07 • Hurricane Season 07 • Bright Star 07/08 • ACTD JMUA Okinawa 4th Qtr 08 • Assessment team deploys in 24 hrs • Main body deploys in 96 hrs • Life support package: Sustains for 7 Days • 75 Personnel: includes civilians, Active & Reserve Military • Materiel Handling Equipment • Deployable Communications Package • Operates one hub 24/7 • Processes materiel to support 200Kpeople per day (meals, water, ice,tarps, etc.) • Processes approximately 130 trucks per day Developing OCONUS Support Capability

  41. Flexible Warehouse Design

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