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DoD Supply Chain Management: A Recommended Performance Measurement Scorecard

DoD Supply Chain Management: A Recommended Performance Measurement Scorecard. Larry S. Klapper, Research Fellow Logistics Management Institute 2000 Corporate Ridge McLean, VA. 22102 703 917-9800 April 27, 1999 SCOR in Aerospace and Defense Special Interest Group Session.

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DoD Supply Chain Management: A Recommended Performance Measurement Scorecard

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  1. DoD Supply Chain Management:A Recommended Performance Measurement Scorecard Larry S. Klapper, Research Fellow Logistics Management Institute 2000 Corporate Ridge McLean, VA. 22102 703 917-9800 April 27, 1999 SCOR in Aerospace and Defense Special Interest Group Session

  2. Presentation Agenda • Change Imperative • Today’s Principal Metrics • Study Scope and Approach • Balanced Scorecard Adaptation • Recommended Enterprise Level Performance Measures • Benchmarking

  3. Quadrennial Review / National Performance Review Commission on Roles and Missions Outsource Product Support Reengineer Logistics Processes Workforce Vision (912 Report) Defense Reform Initiatives Change Imperative Why measure supply chain performance? Improve Customer Support Reduce Supply Chain Costs!Increase $ for Modernization You get what you measure!

  4. Source Maintain Deliver Retail Activity Field Level Maintenance CONUS Unit OCONUS Unit Theater Distribution Consolidation Point CONUS Distribution Depots Military POE Military POD Retail Activity OCONUS Distribution Depot Maintenance Depot Vendor ICP Prepo Ships OCONUS Unit Prepo Sites Commercial POE Commercial POD Logistics Response Time (Wholesale) Inventory Reduction Goals Total Asset Visibility Today’s Principal Metrics They don’t measure total supply chain performance They are not linked so leaders can see important supply chain relationships

  5. Plan Supply Alignment FUNCTIONAL Level of Detail ENTERPRISE Maintenance Transportation Source Make Deliver PROCESS Source Make Deliver Source Deliver Deliver Source Make Develop Metrics for Full Supply Chain at the Enterprise Level • Used SCOR as principal commercial input Study Scope and Approach • LMI study for Deputy Under Secretary of Defense for Logistics • Develop enterprise level supply chain metrics • Develop functional and process level for supply functions only

  6. Balanced Scorecard Adaptation CUSTOMER READINESS / SUSTAINABILITY COST Internal Financial External Non-Financial Kaplan, Robert S. and David P. Norton. The Balanced Scorecard. Boston: Harvard Business School Press, 1996.

  7. Recommended Enterprise Level PerformanceMeasures

  8. Benchmarking • DoD has has committed to participate in SCC sponsored benchmarking • PMG (Pittiglio, Rabin, Todd & McGrath) manages effort • Naval Inventory Control Point (NAVICP) will pilot • LMI will assist NAVICP • Lessons learned can be applied to larger DoD effort.

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