Colonel David Martin CBE Director DLO Logistics Operations Centre

1. Projecting Global Logistics: Transforming the UK’s Defence Supply Chain 20th Annual National Logistics Conference Sparks, Nevada 2 March 2004 Colonel David Martin CBE Director DLO Logistics Operations Centre Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

2. DCDS(P) DCDS(EC) DCDS(C) PJHQ CNS CGS CAS CINC LAND CINC STRIKE CINC FLEET AG AMP 2SL HQNI Current MoD Organisation CDS/PUS 2nd PUS VCDS CDP CDL DPA Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

3. The DLO Communications Air DLO HQ Land Sea Supply Chain Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

4. The DLO Mission To sustain UK military capability, current and future Achieving success in the tasks we undertake Being ready to respond to the tasks that might arise Building for the future Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

5. What Is Logistics in The DLO? Mid-life Update Stores Catering Aircraft Ships/Submarines Equipment Disposal Army Equipment Repair Fuel Information Services and Support Naval Bases Post Storage Depots Munitions Distribution Movements and Transportation Medical Supplies Clothing From the Factory to the Fort Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

6. DLO Facts • Annual spend over US$17bn - 25% of Defence operating costs. • 30000 people (75% civilian). • 20% of MOD civilians work in DLO. • 6 Defence Agencies. • US$41bn assets. • Over 80 locations. Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

7. What we used to do ... Specify Procure MoD(Centre) Procurement Executive Support Operate Dispose Separate Services Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

8. What we do now ... Specify Procure MoD(Centre) DLO DPA Support Operate Dispose DLO DLO/Front Line Front Line Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

9. What we want to do ... Specify Procure MoD(Centre) DLO DLO DPA Support Operate Dispose DLO DLO Front Line Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics DLO

10. Why? Because the smarter we do our business in the DLO, the smaller the deployed ‘logistic footprint’ Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

11. Strategy Route Map • Organisational improvements • Process improvements • Performance management • Working with industry … to deliver predictability Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

12. How are we going to bring about the necessary change and forge a coherent E2E supply chain? Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

13. .. by transforming Equipment Support Intelligent Customer Contracting for Capability Intentions Contracting for Availability Opportunities Spares Inclusive Traditional Provider Decider Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

14. PFI Heavy Equipment Transporter Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

15. .. and by transforming the Defence Supply Chain Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

16. What Is the Supply Chain grouping in The DLO? Mid-life Update Stores Catering Aircraft Ships/Submarines Equipment Disposal Army Equipment Repair Fuel Information Services and Support Naval Bases Post Storage Depots Munitions Distribution Movements and Transportation Medical Supplies Clothing From the Factory to the Fort Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

17. What is hampering us in achieving our mission effectively? • Fragmented Supply Chain • Multiple owners of same processes • Partial Performance Measurement • Non-optimised supply chain • Long lead times • Low visibility • High stocks • Low technology • Low productivity • High levels of duplication across Services and more across industry as a whole Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

18. XXX JTFHQ JTFHQ X X Bde JFLogC XX BSG LCC Joint Force Logistic Component (JF Log C) Concept Of Operations UK BASE COUPLING BRIDGE ALSS FMB SPOD FRSA FLS DOB 2 SA APOD THEATRE DOB1 TRC Assy Area Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

19. ‘STEALTH’ LOGISTICS SINGLE SERVICESUPPLY CHAINS DEFENCE CONTRACTOR MAIL UNIT MEDICAL STORES FOOD INTERNATIONAL COURIER FUEL MUNITIONS Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

20. DLO Logistic Operations Centre (DLOC) • To manage the flow along the Supply Chain i.e; • The ‘air bridge’ • The ‘surface (ie sea) bridge’ • To manage the receipt, consolidation and dispatch to theatre of UORs • Promote consignment tracking • Co-ordinate the output of DG Def SC’s HLB Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

21. CO-ORDINATION DLO LOGISTIC OPERATIONS CENTRE MORE ‘INTELLIGENT’ LOGISTICS PJHQ PRIORITIES IPTs MAIL UNITS DPA INDUSTRY COMMODITIES Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

22. The Future • Consignment Tracking enhancements • Invest in the ability to manage the Joint Deployed Inventory (the MJDI Project) • Rationalise the remainder of the logistic IS architecture • Improve Performance Measurement • Future Defence Supply Chain Initiative • Organisational change – Domain 2 Stars Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

23. Consignment TrackingEnhancements Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

24. Fully exploit the integration of RFID equipment Active Fixed Interrogator Mobile Reader 410R SaviTag 410 with Bracket Docking Station Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

25. Invest in our Logistic Information Systems Invest in the ability to manage the Joint Deployed Inventory (the MJDI Project)Rationalise the remainder of the logistic IS architecture

26. TRANSIT UNIT1 INVENTORY WAREHOUSE CRISP WITS RIDELS OASIS SCCS WTMS VITAL USAS/DUSAS SS3 BODMS VITAL GLOBAL Current Logistic IS Architecture 1. ‘Unit’ or ‘deployed inventory (DI) systems’ Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

27. Rationalised Logistic IS Architecture INVENTORY TRANSIT WAREHOUSE UNIT M M I T RIDELS TAV(-) CRISP WITS MJDI SEA SCCS AIR VITALTAV(-) WMS MJDI SS3 VITALTAV(-) LAND WMS MJDI P2P and Enterprise Application Integration Hub Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

28. Improve Performance Measurement Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

29. 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 Unit receipt Stockholder moves stores to distribution node Stores leave the interim distribution node What is wrong? Stores leave the stockholder Stores issued Capability Loss Unit asks for stores TFD MHT DPT Stockholder selects stores required Issue instruction output to stockholder Stores arrive at unit What should we measure? Operations IPT/ SC controls Ex/Trg Theatre Depot/Stockholder Distributor Not NWE IPT/ SC controls FLCs Routine Depot/Stockholder Distributor Def SC Def SC Area of Influence Def SC Area of Interest Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

30. Future Defence Supply Chain Initiative (FDSCI) • Better VFM from Def SC storage & distribution • Savings aspirations of US$63.5M from 05/06 • Options include: • In House • Do Better - Smart Distribution • Do Differently - Trading Fund • Partnering with Industry • Outsourcing – 2 bids currently being evaluated Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

31. V2.0 28 Jan 04 Maritime Component FLEET Industry Land Component LAND Air Component STC Operational Success CDL CDL as Defence Logistic Process Owner VCDS and 2ND PUS Head Office Processes DLB 2* Defence Logistic / E2E Change Team Leader ACDS (Log Ops) ‘Demand Pull Doctrine’ DLO DLOC PJHQ JF Log C DPA ‘Demand Pull Doctrine’ DG Def SC CDL ensures the required effect is achieved from the end-to-end logistic process Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

32. “The key to achieving a small logistic footprint is the integration of the Defence Supply Chains” That’s easy for you to say Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

33. Projecting Global Logistics: Transforming the UK’s Defence Supply Chain 20th Annual National Logistics Conference Sparks, Nevada 2 March 2004 Colonel David Martin CBE Director DLO Logistics Operations Centre Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics