DLA Troop Support Medical

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1 DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY DLA Troop Support Medical MAJ Randall Sweeney, USA Chief Pharmacist November 18, 2015

2 Agenda Customers Organization Strategic Mission Financial Indicators Programs Relationships Becoming a Supplier / Business Expansion Customer Pharmacy Operations Center Challenges & Opportunities 2

3 3

4 Medical Supply Chain Organization Supply Chain Integrator COL Alex Zotomayor, MS, USA, Director Geneva Polini, Deputy Director DMLSS Office Customer Operations Directorate Donald Buchwald, Director EA Program Office Supplier Operations Directorate Roger Dixon, Director Operational Division Forward Cell (Fort Detrick, MD) Institutional Division Collective Division CPOC Pharmaceutical Prime Vendor Division Medical/Surgical Prime Vendor Division Electronic Catalog Division Capital Equipment Division Hospital Supply Division Pharmaceutical Manufacturer/Distributor Division Medical/Surgical Manufacturer/Distributor Division SMSG Division National Contracts IST Supply Support Division 4

5 Institutional Deliver the right solution on time, every time Our Dual Focus Operational Every Day Every Crisis Ready on day one Varied missions & requirements Resupply & sustainment Control commercial/industrial materiel Situational awareness Health care economics The business of health care The cost of medical materiel Reliable next day support Business intelligence Vision: To provide an integrated and responsive system of choice for delivering consistent, quality medical materiel support for health care providers to perform their patient care mission

6 Medical Business FY 2015 DHA Home Delivery $2.4B Army $1.6B FY15 actual $6.3B Air Force $968.6M Navy $863M Other $420M Marine Corps $49M Pharm PV $4.688 FY16 Forecast $5.7B Med/Surg PV $594M Capital Equipment $356M Traditional Med/Surg $147M Traditional Pharm $234M ECAT $186M Hospital $110M 6

7 Our Programs Ecommerce Pharmaceutical Prime Vendor Global National Prime Vendor DHA Home Delivery Program Medical-Surgical Prime Vendor Generation V Electronic Catalog (ECAT) niche medical markets Traditional Depot Seasonal influenza Direct Vendor Delivery Capital Equipment Contingency Corporate exigency contracts Vendor managed inventory 7

8 Pharmaceutical Prime Vendors National Prime Vendor 8

9 Medical/Surgical Prime Vendors 9

10 Features Deliver the right solution on time, every time WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP Electronic Catalog (ECAT) Program Multiple Catalog Ordering, Online comparison shopping, Customer product and vendor selection, Direct customer delivery Benefits Customer Stable pricing, B2B Interface, Ecommerce solution, Robust Search Engines Supplier One focal point for contract administration, 15-day payment post receipt/invoice, paperless, electronic published catalog pricing, available to all Federal Agencies, No vendor fee WARFIGHTER FIRST SUPPORT - PEOPLE ENHANCEMENT & CULTURE - STRATEGIC STEWARDSHIP ENGAGEMENT EXCELLENCE - FINANCIAL STEWARDSHIP WORKFORCE - PROCESS DEVELOPMENT EXCELLENCE 10 10

11 Medical Supply Optimization Strategies Peace Time Surge Sustainment Prime vendor Depot Direct Vendor Delivery Electronic Data Interface Service stock Vendor managed inventory (Service owned) PV surge Warstopper funding key enabler Warstopper Funded Contingency contracts Corporate exigency contracts Vendor managed inventory (DLA owned) PV war reserve materiel Industrial base maintenance ctrs New acquisition Desert Storm Experience 92% New Acquisition Purchase Access not Stock Today 69% Contingency Contracts 8% Depot Stock 24% New Acquisition Opportunity For Improvement 7% Depot Stock 11

12 Strategic Relationships ASD (Health Affairs) and Defense Health Agency Defense Medical Logistics Standard Support (DMLSS) Program Management Office Department of Veterans Affairs (VA) DoD Pharmacy and Medical Logistics Consultants Other Federal Agencies; FDA, DEA, USPHS, CDC Industry Partners; Manufacturers/suppliers and wholesalers 12

13 Becoming a Supplier/ Business Expansion What we need Access to FDA approved products Timely communication How we need it Product availability through Ecommerce programs Government pricing vehicle Auditable process 13

14 Customer Pharmacy Operations Center (CPOC) Mission: Customer Service. Facilitate & enable access to industry Roles Identify sources Clarify needs and alternatives Determine availability of TAA compliant sources and recommending Non-availability Determination when compliant sources are not available. Find hard to find drugs. Promote sources that provide the best value...national Contracts, generics, etc. 14

15 Customer Pharmacy Operations Center CPOC: Small Team Global Impact Established in 2011 DLA s response and pharmacists vision to improve customer support for all DLA customers; internal and external Team: 5 military pharmacists, 2 civ pharmacists, 1 civ analyst Goals and Objectives Put the customer first Facilitate Pharmaceutical and Med/Surg Prime Vendor support Enable sourcing optimization efficiencies Modify procurement behavior Mitigate impact of drug and vaccine shortages Leverage business Intelligence tools and purchase data/analysis Support Medical Readiness and contingency response Build partnerships with other federal agencies and industry 15

16 Challenges and Opportunities Specialty Pharmacy / Limited Distribution Items Drug Supply Chain Security Act (DSCSA) Track and Trace Ecommerce expansion Joint National Contracts expansion 16

17 Customer Pharmacy Operations Center DLA-Troop Support Philadelphia, PA 17

18 DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY

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