1 / 34

AAFA DSCP Update

AAFA DSCP Update. PRESENTED BY Dennis Dudek Director of Supplier Operations CLOTHING & TEXTILES March 2006. Why We Are Here …. Why We Need Your Support …. Thanks !. Agenda. The Year in Review Support to the Warfighter BSM Update Dollars and Sense Issues.

lucia
Download Presentation

AAFA DSCP Update

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. AAFA DSCP Update PRESENTED BY Dennis Dudek Director of Supplier Operations CLOTHING & TEXTILES March 2006

  2. Why We Are Here …

  3. Why We Need Your Support … Thanks !

  4. Agenda • The Year in Review • Support to the Warfighter • BSM Update • Dollars and Sense • Issues

  5. The Year in Review

  6. The DLA / DSCP Enterprise DLA (20,804 Civilians / 1267 Military) DSCP (2706 Civilians / 71 Military) FY 02 Sales/Services: $21.5B FY 03 Sales/Services: $25B FY 04 Sales/Services: $28B FY 05 Sales/Services: $31.3B FY 06 Projection: $34.3B FY 02 Sales/Services: $ 7.8B FY 03 Sales/Services: $10.4B FY 04 Sales/Services: $11.5B FY 05 Sales/Services: $12.7B FY 06 Projection: $12.3B • Land/Maritime/Missiles: $ 3.3B • Aviation: $ 3.6B • Troop Support: $12.9B • Energy $11.0B • Distribution: $ 2.5B • Other: $ 1.0B • C&T $2.5B • Medical $3.6B • Subsistence $3.9B • Construction & Equip. $2.7B Scope of Business Scope of Business • #50 Fortune 500 – Above Intel • 5.2 Million NSNs • 1411 Weapon Systems Supported • 48 States / 28 Countries • 26 Distribution Depots • #172 Fortune 500 – 2 Above Nike • 2.7 Million NSNs / LSNs • 1200 Weapon Systems Supported • 14 States / 11 Countries • 22 Distribution Depots with DSCP Stock

  7. DSCP - 4 Supply Chains SUBSISTENCE CLASS I CLOTHING & TEXTILE CLASS II FY05 $12.7B • Recruit Clothing • Readiness • Organizational Clothing & Individual Equipment • Food Service • Produce • Operational Rations $3.86B $2.54B CONSTRUCTION & EQUIPMENT CLASS IV / VII MEDICAL CLASS VIII • Facilities Maintenance • Equipment • Wood Products • Safety & Rescue Equipment • Pharmaceutical • Medical/Surgical • Readiness • Equipment $3.60B $2.71B

  8. FY05 – The C&T Big Picture INVENTORY: FY 01 - $1.2B FY 02 - $1.1B FY 03 - $1.0B FY 04 - $1.4B FY 05 - $1.4B FY05 - $1.5B SALES: FY 01 - $1.2B FY 02 - $1.5B FY 03 - $2.1B FY 04 - $2.6B FY 05 - $2.5B FY06 - $944M to date • MAGNITUDE: • 3,600,000 orders • per year • 31,000 different • items • -$2B spent • each year • - [ FY06 $1,049,000,000] PEOPLE: Customers – 14,000 Vendors – 220 Employees – 295

  9. C&T Cost Recovery Rates FY96 - FY06

  10. Month Only Cumulative Balance C&T – FY05/06 Budget Execution Demands/Sales Backorders Backorders @ Cost (9/30/04)… $831.8M End of FY05 Net Demands @ Cost.… $1,962.1M Net Sales @ Cost……… $2,222.1M Backorders @ Cost……… $571.7M C&T sold off some of their backorders Demands $213M less in first five months of FY06

  11. Supply Chain Management (SCM)Support to the Warfighter

  12. “The only thing harder than getting a new idea into the military mind is to get an old one out.” Source: B.H. Liddell Hart, Marine Corps Gazette, January 2003

  13. Logistics Challenge OEF / OIF Demand is Erratic Average Monthly Demand

  14. OEF / OIF Top Sales Items Clothing & TextilesThe BIG Picture

  15. " I wanted to thank you for DLA’s assistance in helping advance the ball so substantially. DLA has been a key element in what we’ve been able to accomplish, and the progress in recent months had been particularly noteworthy. Purchasing stocks through DLA channels has consistently provided us with high quality items that are delivered on time and to the desired location. " - LTG David Petraeus, April 22, 2005. . . Email to VADM Lippert, Director, DLA Support to MNSTC-I • Currently Working • ‘Chocolate Chip’ Desert Uniform • Initial Requirement: 280K sets Coats/Trousers • 255K set delivered • 50 other items • Boots, Helmets, Cold Weather Items,Tents, Gloves, Duffel Bags, Berets, ECWCS BeretsDelivered 255K ($2.4M)Flash removal – 25K/month Delivered 47K ($2.2M)Ponchos Totals to date: $175M ordered / $95M filled Winter Aviator Gloves 164K order; RFI Item; Delivered 4K ($153K) Delivered38K ($1.3M)Poncho Liners Delivered 242K ($16.8M)Boots, HW & Combat Delivered 80K Trousers, 88K Parkas($21.8M of ECWCS)

  16. WINNER OF 2005 SUPPLY CHAIN EXCELLENCE OSD AWARD (announced Feb 06) Army Direct Ordering (ADO)Web-Based Logistics • CSA authorized a test of Internet ordering capability • DSCP solution: • Use an existing web-based program which currently supports 631,000 Guard/Reservists • Serves 360K Army National Guardsmen • ANG saving $10M / year • Test Case: 7 Units deployed in Iraq • Ran from Jun-Oct 2004 • Very Successful – all orders filled complete • 311 orders worth $36K • Expansion on-going • Afghanistan (16K soldiers), Horn of Africa(100 soldiers) & Iraq (90K soldiers); • 872 units ordering, 57,000 Orders shipped • Overall totals: 395,000 items / $6.0M • Next Step • Possible expansion to support OCIE Concept 3. Places Order Via Army Knowledge On-Line 1. Deployed Soldier Needs Item 2. Accesses Internet 6. Order Ships Via US Postal System To Individual Soldier 4. Order Received Stateside at DSCP site (KyLOC) 5. Items Picked; Patches / Insignia Sewn on Boots, Caps, Hats, Cold Weather Coats, BDU Coats / Trousers, Helmet Covers, and more…

  17. Business Systems Modernization Update BSM

  18. Clothing & TextilesCustomer Operations Clothing & Textiles Customer Operations Directorate Director Paul C. Diamonti, Mil 0-6 Deputy Director Gary Shute Recruit Customer Facing Division OCIE Customer Facing Division Other Customer Facing Division Item Planning Division Customer Support Division See DSCP Customer Operations Directorate Other C&T Customers Cell Army Recruit Cell Army CIF Cell Dress Clothing IPT Navy Recruit Cell Operating Forces Support Team USMC, Navy, USCG OCIE Cell Field Clothing IPT USMC Recruit Cell AF IEE Cell Other & FMS Support Team Organizational Clothing IPT AF Recruit Cell Installation Support Team Individual Equipment IPT USCG Recruit Cell Clothing Sales Stores Cell National Guard & Reserves Cell

  19. Clothing & TextilesSupplier Operations SMSG Clothing & Textiles Supplier Operations DirectorateDirector Dennis Dudek Deputy Director Sally DiDonato Dress Clothing Division Bill McClellahan Field Clothing Division Bob Panichelle Organizational Clothing Division Donna Pointkouski Individual Equipment Division Terri Scheetz ECWCS IST Florence Robinson Safety IST Dave Johns Footwear IST Tom Hutchinson Dress Uniforms IST Suzanne Kershaw Individual Equipment IST Mark Twardziak Gloves/Wet Weather IST Kevin Peoples Battledress IST Susanne McHale Outerwear IST Bob Spadaro Tentage & Shelters IST LouAnn Graham Accessories IST Harry Veneri Coverall/Special Purpose IST Cindy Small Dress Shirts/Headwea Cherly Reynoldsr Heraldics IST Tom Zassick Chemical IST Marie Brywka Non-NSN IST Chemical IST Marie Brywka Product Services Branch Product Services Branch Product Services Branch Product Services Branch Supplier Support Div

  20. Business System ModernizationBSM Release 1.1 – Battledress Uniform • Went live: 1 December 03 Release 2.1.1 Flags & Insignia • Went live: 1 Jan 05 Release 2.1.2 Chemical Suits • Went live: 1 Apr 05 Release 2.1.3 Tents • Went live: 1 Jul 05 Release 2.1.4 Accessories • Went Live: Nov 05 Release 2.1.5 Org Clothing • Went Live Mar 06 What’s Left? Jun 06 – Dress Clothing Aug 06 - Footwear Done!! Change Happens!

  21. Dollars, and Sense…

  22. Recruit Clothing PlanKey Drivers $M FY05 = $941.5M

  23. Individual Equipment and Clothing PlanKey Drivers $M Projected FY05 = $1146.6M

  24. ACU Award Breakout Total Base Year $321.5M Large Business $140.0M NISH 43.6% $39.7M UNICOR 11.6% Mandatory Sources 12.3% 28.8% $37.1M $92.7M Other Small 4.9% 7.5% SBD Hub Zone Wmn Owned NIB 4.4% 9.1% 6.6% $15.9M Small Business Large Business = 5 Firms Small Business = 11 Firms NISH = 1 Workshop NIB = 7 Workshops UNICOR = 5 Plants $88.8M 27.6%

  25. ISSUES

  26. Joint Meetings of Industry and DSCP ADDRESSING THE FIVE MAJOR AREAS: • Contract Length – Will maintain long-term contracts – will stress advanced notice and timely placement of orders • Solicitation Improvements – Will track buy times in FY06 and address specific industry concerns from a supply chain perspective (new mgmt position) • Min / Max – Will use correct base figure to calculate and will be more flexible depending on sub-industry particulars – not a ‘one shoe fits all’ approach – will also be able to adjust production lead-times based on material • Information Sharing – Will provide current vendors with a 12 month window at the beginning of the fiscal year (Oct) and a 6 month window at mid year (Apr) - based on demand figures – Advance notice the key, even for bad news • Technology Issues – Will continue to inform on latest changes – RFID, VIM-ASAP, BSM, etc.

  27. The Forecast • Comprehensive review of items • Every 6 months (start and mid-point of fiscal year) • Reviews past data / customer input • Establishes future projected demand • Prepares projected contract delivery schedules • Passed on to vendor community • Reviewed on a monthly basis • Compares actuals vs. projected • Demand / Delivery / Stock Levels / Sales • Makes adjustments based on the numbers • Projected deliveries are just that – projections • Our ‘Best Guess’ based on all of the data • As much customer input as we can obtain • Depends on: • Demand occurring as projected • Inventory hitting goals • Customer item changes (e.g., Army Combat Boot or ECWCS) • Projected Delivery Schedules: • OCT: Beginning of our fiscal year (12 month look) • APR: Mid Fiscal Year (6 month look) • Notices going out soon – with all necessary caveats USE IT AS A GUIDE PCO IS YOUR MAIN CONTACT Be Prepared - Change Happens!

  28. JWOD Program • DSCP is a Large User of JWOD Program • NIB and NISH production facilities • Always with the intent to broaden base of a product line • Demonstrated by use of the Pie Chart (next slide) • Dollars may go up and down, % should remain relatively constant • One Exception was the JSLIST program • Now undergoing review • The Committee holds ultimate responsibility for Regulation Compliance • Procedures now being analyzed • DSCP has asked for a re-check of certifications • BOTTOM LINE: • DSCP will continue to use JWOD • Tighter controls will be needed

  29. Share of Business Chem Suits Account for $264M $213.3M $464.0M $1130.3M $128.4M $665.4M $73.0M Final FY05

  30. Berry Amendment • DSCP is bound by the Berry Amendment • Had always been very stringent • As decided in Oct 05, the component needed to be of a general textile nature to be included • Allowed some relief for some items contributing to making end item • New Requirement (as backed by the AAFA) • Jan 06 – Section 833 of Authorization Act • Revised Berry to all materials and components • Much more definitive in what is covered • Feb 06 – Implementing guidance received • Vendors must confirm Berry compliance prior to orders • Will immediately affect many recently acceptable product lines • Examples: Steel Toes for Shoes/Boots; Gloves; Sneakers • Will need to pursue Relief • All of these will now require a DNAD exception • Basically a waiver request signed by an Under Secretary of Defense • Will require synopsis for “Sources Sought’ to prove need • May require investigation of positive responses • Will require the Services to provide written statement of need • ‘Assume’ this will not be a short timeline process • DSCP is pursing a 180 day window of exemption to allow sufficient time to evaluate the situation

  31. Major Uniform Changes • Army Utility Uniform • The ACU is still being rolled-out • Demand much less than anticipated • Army Dress Uniform • Changes still being developed • Timeline • Air Force Utility Uniform • The ABU is being readied for initial roll-out • Timeline • Navy Task Force Uniform • Developing the Roll Out Schedule • Timeline

  32. Other Issues • Unite Now • DLA was contacted to respond to allegations of ‘sweatshops’ prior to a scheduled news conference (Declined) • Always with a threat of involving Congress • We do investigate any specific allegations (never verified) • Informational • TENTNET • A new development for the tentage product line • Joint effort of Govt / Industry / Academia • VIM-ASAP • Need to continue to use – improves payment • BSM rqmts on ship dates may be forthcoming

  33. Timing is Everything !!

  34. BOTTOM LINE • DSCP Will Strive To Make Improvements As Noted • However, we are bound by regulatory limitations • Need the Help / Understanding of Industry • Working Together to Improve the System Focus on getting the Warfighter what they need, when they need it, wherever they need it

More Related