First Destination Transportation & Packaging Initiative (FDTPI)

1. First Destination Transportation & Packaging Initiative (FDTPI) Alicia Jones/ Kelly Watts 5-6 August 2014

2. FDTPI Overview • FDTPI centralizes inbound transportation responsibility within DLA and established commercial packaging requirement for DLA Suppliers. • This initiative will also allow DLA to leverage its scale to significantly reduce supply chain costs while delivering the same material to Warfighter.

3. FDTPI Overview First-Destination Transportation (FDT) First-Destination Packaging (FDP) • DLA will manage inbound transportation movements and leverage DLA scale to improve transportation rates • Provide visibility of transportation costs • Consolidate shipments under transportation coordinator • FOB Origin I/A at Destination (unless I/A Origin required by the material) • Reduce packaging costs • Provide visibility of packaging costs • Make ASTM-D3951 commercial packaging DLA’s standard • Use MIL-STD 2073 only as necessary • Focused on Class IX,IV and VII Supplies

4. First Destination Packaging (FDP) • First Destination Packaging Program (FDP) • Change DLA’s packaging standard to commercial packaging in accordance with (American Society for Testing and Materials (ASTM) D3951-10) ASTM-D3951 to achieve packaging cost reductions. • Commercial packaging is the current requirement for most Customer Direct (CD) Shipments. • MIL-STD-2073 will continue to be used on material that is excluded from ASTM - D3951 based on predetermined factors.

5. First Destination Packaging (FDP) • ASTM-D 3951 – Commercial Packaging Standard • Permits vendors to apply commercial packaging • Sufficient to preserve the material for 1 year • Package smaller items together, when appropriate and as determined by DLA packaging specialists • Requirement included in purchase requests looks similar to the following: • PKGING DATA - SHALL BE PACKAGED STANDARD COMMERCIAL IN ACCORDANCE WITH ASTM D3951

6. First Destination Packaging (FDP) Summary • Items included in FDP, suppliers should: • Package items in accordance with ASTM D3951, commercial packaging; and • Adjust unit price to reflect the change from military packaging to commercial

7. First Destination Transportation (FDT)

8. First Destination Transportation (FDT) Supplier FDT Process (High Level)

9. Vendor Shipment Module (VSM) Suppliers Ship Using DLA’s Vendor Shipment Module (VSM) FDT Helps Suppliers Focus on Core Business and Removes Geographic Barriers Basics Suppliers will need to register to use VSM. Go to https://vsm.distribution.dla.mil Training is available online and VSM staff can answer questions as well. (email delivery@dla.mil or call 1-800-456-5507) For FDT procurements, do not include the cost of shipping material to the government in your quote – the government will ship the material. When ready to ship, suppliers request a pick-up in VSM. Pick-ups are generally made within 48 business hours of the request by commercial carrier. Suppliers schedule pickup through VSM Most shipments will be eligible with very few exceptions. Make sure to review the transportation instructions on the award documents.

10. FDT - Exclusions

11. DEFENSE LOGISTICS AGENCY America’s combat Logistics support Agency First Destination Transportation (FDT) • How does FDT benefit suppliers?

12. DEFENSE LOGISTICS AGENCY America’s combat Logistics support Agency First Destination Transportation (FDT) • How does FDT benefit suppliers? (cont.)

13. FDTPI References • FDTPI Public Website • http://www.dla.mil/fdtpi • Vendor Shipment Module (VSM) • https://vsm.distribution.dla.mil • DLA FDTPI Webinar (YouTube) • http://www.youtube.com/watch?v=QG7La9zf-9s • For More Information Contact • fdtpi@dla.mil

14. DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT