Defense Logistics Agency Clothing and Textile Supply Chain Update

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Defense Logistics Agency Clothing and Textile
Supply Chain Update

• March 16, 2007
• Defense Logistics Agency

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Agenda

• Overview of Clothing and Textiles (CT) Supply
  Chain
• Make up of the Industrial Base
• Investment Plan for FY 07
• Recent Outreach Efforts
• Virtual Vendor Management
• ACU Update

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Clothing Textiles Supply Chain
Sales FY 01 - 1.0B FY 02 - 1.3B FY 03 -
1.7B FY 04 - 2.2B FY 05 - 2.2B FY 06 - 1.9B

Customers / Items Customers 14,000
Orders 3,600,000 / year Items
31,000
The Big Picture
Obligations FY 01 - 1.1B FY 02 - 1.6B FY 03 -
2.8B FY 04 - 2.0B FY 05 - 2.0B FY 06 - 1.6B
PersonnelEmployees 302 civilian 8
Military 2 Europe 50
interns Suppliers 858
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Clothing TextilesA Unique Commodity
Large 386.69M
UNICOR 93.3M

• Sized items
• Example, Combat Boot 133 sizes
• Mens Army Dress Coat 65 sizes
• Airman Battle Uniform 155 sizes
• Military unique
• Most clothing on a specification
• Service driven requirements
• Simple garments to complex protective clothing
  (Chem Suits)
• Industrial Base Strategic Supplier Issues
• Small Business driven
• Mandatory Sources
• National Industry for the Blind (NIB)
• National Industry for the Severely Handicapped
  (NISH)
• Federal Prisons (UNICOR)
• Socioeconomic Obligations (Hub Zones, 8(a),
  Set-Asides)
• Best Value Long Term Contracts
• During peacetime, over 95 of our contracts are
  long term / best value contracts

NIB 51.9M
NISH 143.7M
Small Business 1011.24M
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CT Investment Plan FY07By Major Grouping

• Expenditure History
• FY 05 2.088B
• FY 06 1.613B
• FY 07 1.70 B (planned)
• Anticipated that expenditures will level at
  1.4B-1.5B over the next 5 years
• Plan adjustments
• Based on actual sales
• Customer collaborative forecasts
• New item introductions

Adjustments made thru the use of automated demand
and supply tools
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CT Investment Plan FY 07By Minor Grouping

• Dress Uniforms
• Shirts Headwear 29.0M
• Outerwear 76.5M
• Dress Uniforms 59.9M
• Field Uniforms
• Accessories 126.1M
• Camo uniforms 239.6M
• Footwear 127.2M

• Individual Equipment
• Heraldics 9.4M
• Equipment Items 305.9M
• Safety Items 127.9M
• Tentage 138.4M
• Organizational Clothing
• Chemical Protective 189.8M
• Cold Weather Gear 117.6M
• Gloves 69.7M
• Special Purpose 104.6M

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Recent Outreach Efforts

• Meeting with Member Military Liaison Assistants
  12 February 2007
• Working Group partnering with American Apparel
  Footwear Association (AAFA)
• Recurring Meeting approximately every 60 days.
• Objectives of the effort
• An assessment of specific CT industry skill sets
  in jeopardy
• The impact of those diminishing skills sets on
  the readiness
• Once assessments complete, a timeline and a path
  forward for preserving domestic production
  capability
• Summit with Industry and the Services to discuss
  requirements will convene in the next 60 days.

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Continuing the Dialogue

• Potential topics include
• Timeliness of contract awards delivery orders
• Protection against uncontrollable cost increase
  in multiyear contract
• IDIQ Min-Max ranges
• Providing forecasts to Industry
• Source Sampling and Shade Evaluation
• Use of Supply Chain Manager
• Review System for Better and Prompt Payment
  Options
• Continued support of domestic manufacturing laws

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Virtual Prime Vendor (VPV)

• VPV is a logistics management system
• In operation since 1998 - excellent track record
• Establishing a new Virtual Vendor Manager (VVM)
  
• at each Recruit
  Center

Travis VPV
Use chart
DLA continues to manage contracts with CT
Industrial Base
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3
1
7
8
1
5
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RTC/CIIP
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1 MC San Diego 2 MC Parris Island 3 NTC Great
Lakes 4 Lackland AFB 5 Ft. Jackson 6 Ft.
Sill 7 Ft. Len Wood 8 Ft. Knox 9 Ft. Benning
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VPV Site
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• Lion Vallen All Army
• Travis NIB AF MC
• Peckham NISH Navy

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VPV Objective Linking Supply and Demand
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