Defense Logistics Agency Named Executive Agent for DoD Supply Chains

December 21, 2004

FORT BELVOIR, Va.—The Defense Logistics Agency has been designated the Executive Agent for several critical supply chains within the U.S. Department of Defense.

The supply chains include bulk petroleum, medical materiel and subsistence (food or food related supplies to include bottled water) used by all of the military services. The EA designation to DLA for clothing and textiles and construction materiel is in the staffing process and should be signed by Deputy Secretary of Defense Paul Wolfowitz in the next several months.

With this designation, DoD recognizes the commercial business practice of establishing supply chain managers as the key element to effective delivery of products and services to its customers. In this case, these customers range across a spectrum of activity and geography, from peace-time operations to warfare, in the continental United States and abroad.

DLA has designated specific field activities to fully execute their directed EA responsibilities: bulk petroleum by the Defense Energy Support Center; medical, subsistence, clothing/textiles and construction by the Defense Supply Center Philadelphia. The commanders of these organizations, acting as supply chain managers, are responsible for identifying customer requirements and managing the industrial base to insure product availability, as well as inventory management, storage, distribution, delivery and disposal of the items that fall under their responsibility.

Commanders are also responsible for funding these activities.

DLA supply chain managers have entered into strategic partnerships with service providers in the industrial base, transportation industry, U.S. Transportation Command and others to fulfill EA duties. Additionally, partnerships with military customers are essential in determining the time-phased demand plans to meet operational requirements.

Aggressive planning with both customers and suppliers has allowed DLA to invest in inventories letting logistics managers support mission requirements throughout the world. These partnerships must be punctuated, according to DLA, with service-level agreements specifically delineating performance objectives for each critical part of the supply chain. These objectives reflect routine operations as well as surge requirements for support of Operation Enduring Freedom in Afghanistan and Operation Iraqi Freedom.

To adopt the commercial business model of supply chain management, DLA reorganized into customer and supplier teams, implemented an enterprise resource plan, concentrating on enterprise process management and process improvements, and established supply chain metrics for internal performance and financial accountability.

The designation of U.S. Transportation Command as the Distribution Process Owner allows DLA and TRANSCOM to more effectively collaborate in their respective roles of supply chain manager and distribution service provider.

DLA provides supply support and technical and logistics services to the U.S. military services and several federal civilian agencies.

This article is based upon a news release written by Claudia Knott, DLA's component acquisition executive and deputy director of DLA's Logistics Operations Directorate.