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Sqn Ldr Mark Marshall Email: Mark.Marshall@laro.MOD.uk

SCOR in the UK MOD. Sqn Ldr Mark Marshall Email: Mark.Marshall@laro.MOD.uk. Major Charles Whattoff Email: Charles.Whattoff@laro.MOD.uk. The Integrated Team. Business & Academic. Mission "To deliver high quality policy, logistic analysis and

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Sqn Ldr Mark Marshall Email: Mark.Marshall@laro.MOD.uk

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  1. SCOR in the UK MOD Sqn Ldr Mark Marshall Email: Mark.Marshall@laro.MOD.uk Major Charles Whattoff Email: Charles.Whattoff@laro.MOD.uk

  2. The Integrated Team Business & Academic Mission "To deliver high quality policy, logistic analysis and      consultancy to the Defence community,         in order to maintain and enhance operational capability“ Vision "To be the acknowledged Defence centre of expertise in inventory planning, logistic modelling, analysis and research" IT & Analytical LARO Operational Logistics

  3. Total = 288 AD LARO Col Deputy AD/ Policy Business Support Data & Systems Logistic Research Logistic Engineering Logistic Modelling Logistic Data Analysis Project & Quality Management Programme Manager Sea Programme Manager Air Programme Manager Land 9 Feb 05

  4. Higher HQs DPA IPTs FLCs Policy Analysis Research LARO BUs Agencies Modelling & Simulation Data Management DLO IPTs HOSs & Others LARO Functions Support Each Other As Well As External Customers Note. Policy and related services - not policy & its execution.

  5. THE SCOR JOURNEY

  6. The UK Armed Forces Navy 36,000 Army 103,000 RAF 49,000 DEFENCE VISION Strengthening international peace and security. Defending the United Kingdom and its interests.

  7. Transforming Defence Logistics

  8. The DLO • Personnel: 28,000 • Budget: £9Bn • Inventory: £10Bn+

  9. DELIVERY LAYER Nuclear Waterfront Maritime Platforms Combat Support Rotary Wing Maritime Eqpts DCSA Commodity Manoeuvre Strike 1 Gp 2&3 Gp Munitions

  10. ENABLING LAYER Secretariat Supply Chain Support Logistics Services Logistics Information Tech Services Infrastructure Personnel Finance Restructuring Strategy DLTP Log Ops Procurement

  11. Main Depot Military POD Military POE Theatre Distribution Consolidation Point DRDC QM Theatre Storage Area Commercial POD Industry Commercial POE Front Line Unit Mapping the Supply Chain If every node achieves a target of 95% throughput then the chance of a successful delivery from the Depot to the QM is: 95% * 95% * 95% * 95% * 95% * 95% * 95% 69.8%

  12. DPT MHT TFD 17-Step Model Customer Wait Time

  13. Stockholder selects stores required Stores arrive at interim distribution node Need for stores identified Stores declared for movement Stores arrive at local distribution node Capability restored Unit request verified then processed Issue instruction output to stockholder Unit receipt Stockholder moves stores to distribution node Stores leave the interim distribution node What is wrong? Stores leave the stockholder Stores arrive at unit Stores issued Capability Loss Unit asks for stores TFD MHT DPT Def SC Area of Influence Customer Wait Time Theatre IPT/ SC controls Depot/Stockholder Distributor Operations FLC Routine CDL Area of Interest

  14. S1.3 S1.5 S1.4 S1.1 S1.2 Authorize Payment Schedule Product Delivery Verify Product Receive Product Transfer Product DPT D1.7 D1.6 D1.5 D1.4 D1.2 Select Carriers & Rate Shipments Plan & Build Loads Receive, Enter & Validate Order Route Shipments Consolidate Orders MHT TFD D1.10 D1.12 D1.13 D1.11 D1.8 Load Vehicle Generate Ship Docs, Verify Credit & Ship Product Receive & Verify Product at Customer Site Invoice D1.9 Install Product Receive Product at Warehouse From SOURCE or MAKE Pick Product D1.3 D1.1 Reserve Inventory & Determine Delivery Date Process Inquiry & Quote

  15. Main Depot Military POD Military POE D S Theatre Distribution D Consolidation Point S D S S D M D M S D S S M DRDC D QM D S D Theatre Storage Area S D S D Commercial POD Industry Commercial POE S Front Line Unit Mapping the Supply Chain

  16. Channels of Supply – Support Options Spares ownership MOD / Contractor MOD Contractor Contractor UK distribution MOD MOD Contractor Contractor Overseas distribution MOD MOD MOD Contractor Traditional Spares Inclusive Contracting for Availability Contracting for Capability

  17. Supply Chain Management Raw Industry Materials Decide Inventory Planning (Plan) IPT Source Make Deliver Provide DPA Plan Plan Plan Source Make Deliver Decide Plan Supply Chain In Service Support Source Make Deliver Provide DLO Plan Plan Plan Source Make Deliver Decide Plan Supply Chain Provide (Enable) Capability Customer (DECs / FLCs)

  18. Service Level determines supply decisions What stock level is required ? Where should stock be placed to optimise resources? Inventory How much space is needed? What is the optimum allocation of resources? Service level Traffic What maintenance schedule is compatible? Service level ? Order management Should we Push or Pull? How often should orders be placed? How fast is Order processing? Service Level is determined by independent supply decisions. Active stock? Cost to Hold? Storage Space? Inventory Transport Availability? Traffic Funding Availability? Latest date required? Order Management Order Quantities? Demand Priority?

  19. Military Capability Final Output Available, Fit for Purpose Platforms Non-Platform Materiel Other non-logistic inputs IntermediateOutputs Logistic Services Platform Attributes Maintenance Materiel PerformanceAttributes Platform Capability Platform Reliability Platform Numbers Delivery Reliability Responsive-ness Flexibility Cost Assets Platform Attributes Supply Chain Attributes

  20. Responsiveness Customer wait time (external effectiveness) Readiness Operational availability (external effectiveness) • Metric not in SCOR framework End to End performance Reliability Quality Order Fulfilment (Internal effectiveness) Flexibility Logistics capacity (internal effectiveness) Cost Total logistics expense (internal efficiency) Asset Asset utilisation (internal efficiency) Measured in full Partly Measured Future Focus

  21. Reliability The performance of the supply chain in delivering: the correct product, to the correct place, at the correct time, in the correct condition and packaging, in the correct quantity, with the correct documentation, to the correct customer. No. of demands receipted RDD On-time Early Late Failed Late Early On Time Failed No. Days

  22. No. of demands receipted Responsiveness The velocity at which a supply chain provides products to a customer. Target Fast Slow Failed Fast Slow Failed No. Days

  23. Blades Authorised Deployed Unit Repairables Boeing (D1) Repairables Surplus R4 Consumables Only Main Base Repairables 4th Line Repairables Consumables Only (S1, D1, SR2, DR2) All items Surplus R4 Main Depot Consumables (P2, P4, P5, S1, D1, Unit Repairables SR2, DR2) Repairables DARA Deployment Areas (P5, D1, DR1, SR2) (S1, DR2) IPT (P1, P2, P4, P5, S1, D1, SR2, DR2, EP, ES, EM, ED, ER)

  24. Deployed Overseas UK Base (D2) Depot (D2) (S1, D2) £633,056 £76,778 Main Base Overseas Base £965 ,296 (S1, S2) (D2) £28,491 DSDA/DTMA Scheduled Route (S1, D1) £286,571 DSDA/DTMA Transport (S2, D2) DSDA/DTMA Scheduled Route (DARA) (S1, D1) £3,077,086 Industry (D1) IPT HQ (P1, P2, P3, P4, P5) DARA (D2)

  25. FLEXIBILITY EFFECTIVENESS TRANSFORMATIONAL OBJECTIVES EFFICIENCY

  26. And now, time for questions

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