WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
1
DEFENSE LOGISTICS AGENCYAMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
DEFENSE LOGISTICS AGENCYAMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENTWARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
DLA Troop Support Clothing & Textiles
Col Jeanne [email protected]
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
2
• Who We Are
• How We Are Doing
• FY 11 Financial Analysis
• Final Thoughts
Agenda
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
4
DLA Troop Support Mission, Vision and Values
MissionWe accomplish the Defense Logistics Agency mission by
providing effective and efficient support to our warfighters and other customers with food, clothing, construction, and medical
solutions to achieve their global mission
VisionWarfighter-focused, globally responsive,
fiscally responsible supply chain leadership
Values• Warfighter needs guide us• Integrity defines us• Diversity strengthens us• Excellence inspires us
MissionWe accomplish the Defense Logistics Agency mission by
providing effective and efficient support to our warfighters and other customers with food, clothing, construction, and medical
solutions to achieve their global mission
VisionWarfighter-focused, globally responsive,
fiscally responsible supply chain leadership
Values• Warfighter needs guide us• Integrity defines us• Diversity strengthens us• Excellence inspires us
4
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
5
Clothing & Textiles Our Management Team
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
6
Clothing & Textiles contracting staff organized in Divisions by Product Group and Programs
• Organizational Clothing: Sharon Piecyk (215)737-8043
• Equipment & Tentage: Terri Scheetz (215)737-3274
• Special &Extremity Clothing: Kevin Peoples (215)737-5657
• Director: Col Jeanne Hardrath (215)[email protected]
• Deputy Director: Keith Ford (215)[email protected]
• Administrative Assistant:Irene Pirollo (215)[email protected]
• Small Business Office Mike McCall (215)[email protected]
Who To Contact
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
7
DLA TROOP SUPPORT SMALL BUSINESS OFFICE1 800-831-1110
Michael McCall -- 215 737-2321 [email protected]
Clothing & Textiles: Joann Gatica -- 215 737-5910
AbilityOne Acquisition Program SupportTyrone Lyles – 215 737-8484
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
8
The Big Picture
Clothing & TextilesCustomers / ItemsCustomers: 20,000Orders: 7.3M annually
average 600k monthly
Items: 48,000
Personnel / VendorsEmployees
(auth): *333 civilian+ 10 military
Suppliers:604
*includes 2 DLA Troop Support Europe & Africa positions
SalesBillions
$2.2 $2.0 $2.4 $2.5
FY11 Forecast$2.1B
$2.1
Billions
$1.5 $1.4 $1.5
Inventory
$1.6
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
9
Clothing & Textiles Sales
FY10$2.1BFY10
$2.1B$MillionsHistorical TrendFY10 Service Breakout
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
10
Small Business $914M
DLA Troop Support Share of the Business
FY10FY10
Other than Small Business $10.8B
Small Business $2.4B
Mandatory$609M
UNICOR $140M
FY11 thru DecFY11 thru Dec
Mandatory$75M
UNICOR $6M
AbilityOne$69M
NISH$337M NIB
$132M•JSLIST•Parka/Trousters•Cold Weather Shirts•Navy Working Uniform
•Army Combat Uniform (ACU)•Airman Battle Uniform (ABU) NISH
$51M NIB$18M•JSLIST
•Parka/Trousters•Cold Weather Shirts•Navy Working Uniform
•Army Combat Uniform (ACU)•Airman Battle Uniform (ABU)
AbilityOne Troop Support Contract Dollars: $469M
AbilityOne Troop Support Contract Dollars: $69M
AbilityOne$469M
Other than Small Business $711M
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
11
FY 10 C&T Share of Business
Small Business
Mandatory
$871M
$540M
$589M UNICOR
AbilityOne $450MNISH $326MNIB $124M
$139M
-
FY 2010 Most Active NISH Items:- JSLIST -- $121M- Fleece Jacket -- $46M- Mid Weight ECWCS Shirt -- $18M- Mid Weight Cold Weather Drawers -$14M- Wet Weather Poncho -- $12M - Microclimate Cooling Undershirt -- $11M - Wet Weather Parka -- $10M - Working Trousers -- $8M- Warehousing & Distribution -- $7M
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
12
DSCP C&T Industrial Base
• Small Business 45%• Mandatory Suppliers 34%
– NISH 23% of total– UNICOR 8% of total– NIB 3% of total
• Large Business 21%• FY 10 -- $540 Million Total Small Business Contract Dollars
-- HUBZone Small Business -- $155 million– Women-owned Small Business -- $64 million– Small Disadvantaged Business -- $82 million– Veteran-owned Small Business -- $112 million
• AbilityOne suppliers are a vital component of our domestic industrial base• In 2010, over 55% of clothing and textile contract dollars were awarded to
domestic small businesses • Many suppliers, including AbilityOne firms, met the rapidly escalating demand
during Operation Iraqi Freedom and Operation Enduring Freedom
NISH$326 million
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
13
Material AvailabilityClothing & Textiles
all Services
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
14
Unfilled OrdersClothing & Textiles
all Services
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
15
RTC Bag Fill RatesClothing & Textiles
Oct‐09
N D J F M A M J J A S Oct‐10
N D J F M
Army 99.9% 99.9% 100.0 99.9% 100.0 100.0 99.9% 99.9% 99.3% 99.3% 99.7% 99.4% 99.5% 98.9% 99.2% 99.6% 99.8% 99.7%Navy 85.6% 89.0% 96.0% 91.4% 91.0% 95.0% 79.6% 93.4% 94.1% 96.5% 98.5% 98.9% 97.8% 97.7% 97.4% 98.8% 99.7% 98.8%Marines 99.4% 99.7% 100.0 100.0 100.0 100.0 100.0 100.0 100.0 99.6% 99.5% 100.0 98.4% 98.8% 99.1% 99.4% 98.6% 98.4%Air Force 100.0 100.0 99.9% 99.3% 99.98 99.98 100.0 100.0 100.0 100.0 100.0 99.3% 100.0 100.0 100.0 99.6% 99.9% 100.0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
16
Recruit Training Center PerformanceClothing & Textiles
• 5,600 NSNs are required to support all bag items at RTCs
First Time Fill RateMarch 2011 04-10 Mar 11-17 Mar 18-24 Mar 25-31 Mar Monthly Avg
Ft Jackson 98% 99.8% 100% 97% 99.1%
Ft Benning 99.8% 100% 100% 100% 99.9%
Ft Leonard Wood 100% 99.9% 100% 100% 99.9%
Ft Sill 99.8% 100% 100% 100% 99.9%
Ft Knox 100% 100% 100% 100% 100%
MCRD San Diego 99.3% 95.2% 100% 100% 98.6%
MCRD Parris Island 95% 98.1% 100% 100% 98.2%
Lackland AFB 100% 100% 100% 100% 100%
Great Lakes 98.4% 99.9% 99.9% 97% 98.8%
Weekly Total 98.9% 99.2% 100% 99.3% 99.4%
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
17
FY10 C&T Investment by Division
• Expenditure history– FY05… $2.088B– FY06… $1.613B– FY07… $1.900B– FY08… $2.086B– FY09… $2.637B
• Plan adjustments– Based on actual sales– Customer collaborative
forecasts– New item introductions
Adjustments made thru the use of automated demand and supply tools
Item GroupFY10Plan
FY10Actual
Dress Clothing 190.4M 192.7M
Field Clothing 533.7M 680.6MChemical/Outer Extremities 682.9M 605.7M
Individual Equipment 700.8M 522.4M
Total $2.107B $2.002B
17
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
18
FY11 Investment Plan vs. Execution
Plan will be impacted by DoD Budget Decisions
Item GroupOct-Mar
PlanOct-Mar
Actual
Mid-Yr Apr-Sep
Plan
RevisedFY11 Plan
Dress Clothing 71.5M 69.2M 92.8M 162.0M
Field Clothing 213.9M 129.4M 263.6M 393.0MChemical/Outer Extremities 205.5M 102.5M 215.7M 318.2MIndividual Equipment 590.3M 234.0M 722.8M 956.8M
Total $1.081B $525.1M $1.295B $1.830B
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
19
• C&T Sales are down– FY10 sales were lower than FY09– FY11 sales to date are over $230M lower than FY10 at
the same time• Customer Demand is down• Inventory, however, has remained steady• C&T obligations will decrease commensurate
with the reduced requirements
FY 11 Execution
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
20
• Now is the time to plan for future DOD business• You need to expect a reduced DOD budget in
FY12 and the out years• Drawdown plans and any revisions for Iraq and
Afghanistan will have a further impact the budget
The only thing certain about future budgets is that they are uncertain
FY 12 Outlook
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
21
"Meeting real-world requirements. Doing right by our people. Reducing excess. Being more efficient. Squeezing costs. Setting priorities and sticking to them. Making tough choices. These are all things that we should do as a department and as a military regardless of the time and circumstance.“
Defense Secretary Robert M. GatesAt the Pentagon, Jan 6, 2011
Efficiency
Sources: http://www.defense.gov/home/features/2010/0810_effinit/ andhttp://www.defense.gov/dodcmsshare/biography/hires_051909092929_Robert%20Gates%20-%20061212-A-5590K-001.jpg
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
22
“Ultimately, as leaders in government and industry, we owe it to the men and women in our armed forces to do all we can to provide them with the very best support to complete their mission and return home safely.”
Ashton CarterUnder Secretary of Defense for Acquisition, Technology and LogisticsSep 14, 2010
Efficiency
Source: http://www.defense.gov/home/features/2010/0810_effinit/
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
23
"Warfighter support is our organization's primary focus, but along with that comes the need to deliver products and services efficiently and to reduce prices.“
Vice Admiral Alan S. ThompsonDirector, Defense Logistics AgencyAug 25, 2010
Efficiency
Source: http://www.army.mil/-news/2010/08/26/44228-agency-works-to-ensure-every-dollar-counts/index.html and http://www.dla.mil/Leaders/director.aspx
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
24
In our joint quest to support our warfighters effectively and efficiently we must focus on the following• Vendor Past Performance• Product Quality • Product Value• Supply Chain Efficiency
Last Thoughts
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
25
This event features speakers from OSD and the Military Services, informative breakout sessions, and exhibits from DLA’s headquarters, field activities and major suppliers. The theme of this year’s conference is “Sustaining Warfighter Support while Reducing Cost”
Where: Greater Columbus Convention CenterColumbus OH
When: 27-30 June 2011
For further information or to request exhibit space see the Web site athttp://www.ndia.org/meetings/1780/Pages/default.aspx
2011 DLA Industry Conference