DSCC: Today

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DSCC Today Tomorrow
Welcome
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THE
DEFENSE .SUPPLY CENTER, COLUMBUS
Mr. James McClaugherty, Deputy Commander, DSCC
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DSCC Today Tommorow Agenda

• DSCC Today
• Structure Of Inventory Control Point
• DSCC Tomorrow
• Improving Customer Relationships
• Managing Supplier Relationships
• Business System Modernization
• Ongoing Organizational Realignment
• Summary

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DLA Today Balancing Of Two Tasks

• Improved Support
• To The War Fighter

• Implement
• Transformation

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Inventory Control Point (ICP) Organization
DSCC Today
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LEAD CENTER ENERGY
LEAD CENTER TROOP SUPPORT
GENERAL/INDUSTRIAL SUPPLY
Lead Center Concept
Defense Energy Support Center Ft Belvoir, VA
Defense Supply Center Philadelphia, PA
LEAD CENTER LAND, MARITIME MISSILES
Defense Logistics Agency
LEAD CENTER AVIATION
Defense Supply Center Columbus, OH
Defense Supply Center Richmond, VA
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DLA Weapon System NSN (Spare Parts) Workload
Maritime
Land
Aviation
DSCC
DSCP
DSCR
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Business Base

• 4.9 M Reqs Annually
• 1.6 M NSNs
• 2.3B Sales
• 22,000 Customers
• 4,700 Suppliers

DSCC
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FY02 Customer Profile
By Sales ()
By Customer Orders
FMS (13.3) 308.7M
Marines (2.6) 59.4M
Army (49.7) 2,431,318
Navy (34.7) 804.6M
FMS (4.3) 210,436
Marines (3.5) 170,877
Coast Guard (0.5) 10.6M
Coast Guard (0.6) 27,772
Army (23.7) 549.1M
Oth DoD (0.8) 37,442
Oth DoD (0.7) 15.4
Air Force (16.8) 821,688
Navy (23.5) 1,149,303
Civ Agencies (0.8) 41,050
Civ Agencies (0.5) 11.4
Air Force (24.1) 558.5
Total Dollar Value 2.3B Total Requisitions
4.9 M
01CustomerProfilekdf22Oct 01
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Enduring Freedom / Iraq Freedom Requisitions
by Customer Priority Groups
Blue Highest Priority
1.1M Requisitions / 486.5M
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Organizational Commitment
To Readiness
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Organizational Structure
Internal Review
Commander Deputy Cmdr
Office of Counsel
Small Business
Customer Advocacy
Corporate Information
Procurement
Comptroller
Commodities
Maritime (F)
Maritime (Q)
Land
Aerospace
Chief Of Staff
Emergency Services
CSO- Columbus
Installation Services
Safety
EEO
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Readiness Business Operations
Commodities
Land
Aerospace
Maritime
Active Devices Unit Electrical Devices
Unit Passive Devices Unit Commodities
Corporate Unit
Ground Transport Combat Vehicles
Engineering Spt Readiness Weapon Sys
Support Tailored Support Unit
Transports, Bombers Helicopters Fighters
Trainers Readiness Tailored Support Unit
Surface Combatant Subsurface Small
Craft Readiness Tailored Support Unit
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Weapon System Support Doctrine / Organization

• Weapon System Vice Item Focused
• Five Weapon System Groups Land,
• Maritime (Q/F), Aerospace, Electronics
• 14 Weapon System Support Managers (WSSMs)

One Face to the Maritime, Land Missile
Customer!
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Commodities Group

• Different Strategy
• Federal Supply Class vs. Weapon System
• Face To Industry vs. Face To
• Customer
• Multifunctional Teams Managing Federal Supply
  Classes (e.g. Connectors)

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DLAs M Sisters
DSCC TOMMOROW

• Business Systems Modernization (BSM)
• Customer Relationship Management (CRM)
• Supplier Relationship Management (SRM)

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Customer Relationship Management
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Our Reason For Being
Weapon Systems Support Management
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Weapon Systems Supported
AAV
HEMTT
M1 TANK
PLS
M88A1
M9 ACE
WOLVERINE
HET
AVENGER
Total Land Weapon Systems 551
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LAND CUSTOMER OPERATIONS PROPOSED ORGANIZATIONAL
STRUCTURE
Director Customer Ops
Readiness Officer
Customer Support Div.
Customer Planning Div.
Customer Facing Div.
Operational Force Cell Group Army
M9 ACE (A) SEE (A), ETC.
Eng Spt Equip
Call Center
HMMWV (A/M) , ASV/HMT (A), STRYKER (A), FMTV (A)
TAC Veh I
Operational Force Cell Group USMC
TAC Veh II
HET (A), PLS (A), ROWPU(A/M), HEMTT (A), LVS (M),
HTV (A/M)
TBD
Customer Analysts Cell
Industrial Cell Group Army
Grd Cbt I
BFVS (A), M113 (A)
M1 (A/M), M88 (A/M)
Grd Cbt II
Industrial Cell Group USMC
AAV (M), LAV (M), AAAV (M), ETC.
Grd Cbt III
Land Other Cell
Field Arty
M198 (A/M), M109 (A), FAASV (A), M155 (A), S.
ARMS(A/M)
Air Def Missile
Patriot (A), TOW (A/M), ETC.
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MARITIME CUSTOMER OPERATIONS PROPOSED
ORGANIZATIONAL STRUCTURE
Director Customer Ops
Customer Planning Div.
Customer Support Div.
Customer Facing Div.
Readiness Officer
Call Center
Maritime Sub IPT
Maritime Surface IPT
Electronics IPT
Shipyard Cell
Carrier/Surface Cell
02N (SWS) 21N (NRP) 23N (TRID) 82N (ALRE)
EXN (SSN 688) EZN (TICON) JAN (NIMITZ) JDN (ARL
BRKE) JGN (SEAWLF) JUN (OSPY MHC) JXN (AVENG
MHC) YJN (SSN 774) YNN (ANTI TERR / FORC PROTEC)
Customer Analysts Cell
Aerospace IPT
C E IPT
Submarine Cell
Trident Cell
Army/Navy FMS Cell
Other Navy Cell
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Multiple Levels of Customer Relationships
Partnering Relationship
Relationship Growth
Future
Personal Relationship
Transactional Relationship
Now
New Relationship
No Relationship
Source LMI Research.
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Supplier Relationship Management
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Workload Stats FY02

• 588,421 Award Actions
• 99.7 Award Actions Under 100,000
• Competitive Solicitations
• 87.3 Of Dollars
• 87.5 Of Actions
• DLA Recognized As Top Performing Major Defense
  Agency For FY2002

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DSCC Products Procured Most Active Past 12
Months

• Values, Nonpowered (FSC4820) 108.4 Mil
• Fittings Specialties (FSC4730) 98.8 Mil
• Misc. Power Transmission Equipment (FSC3040)
  88.1 Mil
• Switches (FSC5930) 78.1 Mil
• Hose Tubing, Flexible (FSC4720) 71.0 Mil
• Vehicle Brake, Steer Axle, Wheel Track Parts
• (FSC2530) 67.7 Mil
• Pipe Tube (FSC4710) 56.2 Mil
• Values, Powered (FSC4810) 55.1 Mil
• Vehicle Furniture Accessories (FSC2540)
  52.5 Mil

Note Some Other Very Active Product Groups
Gun Parts, Hand Pumps, Gears, Connectors, Other
Electronic Components
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Multiple Levels of Supplier Relationships
Partnering Relationship
Relationship Growth
Future
Personal Relationship
Transactional Relationship
Now
New Relationship
No Relationship
Source LMI Research.
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Business Vision A Value Added Broker of
Suppliers for Materials and Services
From
To
Maintain a Balance in SocioeconomicPrograms

• Buy commercial supply chains where they exist
• Build virtual chains where the pieces exist
• Retool acquisitions consistent with the vendor
  base
• Integrate organic chain when it must be used

Utilize Commercial Sector Experts
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Targets of Opportunity
Strategic Materiel Sourcing
Strategic Supplier Alliance
Items representing largest business drivers
Vendors representing largest business base
-- Demand/spend -- Readiness factors -- BSM
concept demo
-- Large annual sales -- Multiple customer
support requirements -- Strategic partnering
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Strategic Materiel Sourcing DLAs Item Grouping
Tool
DEMAND/SPEND 2 of items with 80 of sales
551,000 Core Items
READINESS FACTORS Surge sustainment items, Not
Mission Capable drivers and Weapon System
Identifier Code critical items with high
Production Lead Time
310K Core
Strategic Materiel Sourcing Groups Items for
Placement on Contract
Standard Long Term Contracts
Corporate Contract
Prime Vendor Virtual Prime Vendor
Strategic Supplier Alliances
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Automated Award Actions
Apr 03
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Business System Modernization (BSM)
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BSM Helping Us To Better Manage Our Business
Integrated Customer Teams
Integrated Supplier Teams

S U P P L I E R S
C U S T O M E R S
Aviation
Aviation
Land
Land
Maritime
Maritime
Troop/Gen
Troop/Gen
This Is New Stuff For Us
We Know How To Buy !!
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DSCC Organizational Realignment
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Standard Organization Structure
Supply Chain
S U P P L I E R
Customer Operations
Supplier Operations
C U S T O M E R
Supply Support
Customer Facing
Readiness and ICT Support
Supplier Facing
Supplier Relationship Management
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Roll Out Plan
FOC Jan 2006
Summer 2004
Phased Roll-Out
100 Systems Capability
We are here
Spring 2004
2003
Design , Build, Test Release 2
Implement Release 1
2002
Release 2 Planning
2002
2001-02
Release 1 Testing and Training
Summer/Winter 2001
Design/Build
FOC Requirements/Blueprint
Spring 2001
IOC Requirements/Blueprint
January 2001
SC 025 6/17/02
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Summary

• Today
• Weapon System Federal Supply Class Focus
• Case For Change Single Up Organizational
• Alignment Across Enterprise
• Tomorrow
• Comprehensive Supply Chain Management
• Collaborative Partnering With Key/Major
  Suppliers and Customers
• Improved Support To War Fighter!!