Defense Logistics Agency (DLA)

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2 Defense Logistics Agency (DLA) Mission DLA is. We provide effective and efficient worldwide support to warfighters and our other customers Vision Warfighter-focused, globally responsive supply chain leadership Capability DLA manages nearly 5 million items in eight supply chains, supporting 1,600 weapons systems and involving 114,000 requisitions and 11,200 contract actions daily

3 DLA AIT Vision and Strategy Leverage Automatic Identification Technology in our logistics operations to better support the warfighter by reducing cost and improving service. Suppliers: Leverage Tagging Today Distribution: Improve Operations Customer: Improve Service Planning DLA Initiatives OSD Spirals Customer Focus Information Sharing Assessment Process Technology Architecture Benefits and Metrics Deployment Trial Procure Deliver Sustain

4 Why AIT for DLA and its Customers Improve Service Increase Velocity Perfect Order Fulfillment Reliability Reduce Cost Improve Confidence Reduce Excess Inventory Increased Efficiency Streamline Processes Availability and Responsiveness Predictable Supplier Performance Identify Bottlenecks Readiness Visible Stock Levels Improve Utilization Workforce Development Analyze Supply Chain Eliminate Waste

5 DLA Today Last year at RFID Live, DLA PMO reported: Alaska RFID Initiative (ARI): RFID-enhanced Western Distribution MRO Tagging For Select Customers Today at DLA AIT: DLA AIT Center of Excellence (COE) Intra Depot Transfer (IDT) Consolidation and Containerization Points (CCP) Passive RFID Receipt (PRR) Rollout MRO Tag All

6 Center of Excellence DLA Deployment Center of Excellence Information Sharing

7 CoE Phase I Fast Lane Receiving Streamline RFID-enabled receipt processing of procurements and expedite time-sensitive shipments. Intra Depot Transport Automatic notification of intradepot transporter pick-ups and improved routing / operations. CCP Passive real time location of all boxes in Outbound Seavan Staging area improve misshipments and visibility.

8 CoE Phase I prfid-enabled Receiving Fast Lane Receiving Streamline RFID-enabled receipt processing of procurements and expedite time-sensitive shipments. Intra Depot Transport Automatic notification of intradepot transporter pick-ups and improved routing / operations. CCP Passive real time location of all boxes in Outbound Seavan Staging area improve misshipments and visibility.

9 Why prfid Enabled Receiving (PRR)? DLA made changes to the Distribution Standard System (DSS) to leverage Advanced Shipment Notice (ASN) and prfid tags to decrease the number of manual inputs required during the receipt process. Goals Automate materiel routing to segregate compliant packages Streamline receipt process by utilizing DSS changes Identify easy to use equipment to improve workforce development Technological Challenges Handheld devices were bulky, complicated, expensive, and offered little improvement over barcode scanners Poor read rates required more time to scan new procurement packages Compliance Challenges Attempts were made to scan non-compliant (lack of ASN or prfid tag) packages using prfid enabled processes Uncertainty in compliance forced receipt processors to revert to traditional receipt processing Manual inputs required during the receipt process increased processing time and probability of processing errors. Reduced Lead Time = Reduced Materiel Investment

10 prfid-enabled versus Traditional Receipt 11.7% increase in Receipts per Hour* 62.0% decrease in Receipt Revisions 82.9% decrease in Receipt Cancellations If we applied these results across a depot that receipts 240,000 pieces of new procurement annually Productivity is increased by 13,200 receipts 1,100 receipt revisions are eliminated 830 cancellations are prevented Next Steps Expand PRR across DDC Distribution Depots *Based on 7 users pre-prr compared to [Oct 2009 through Jan 2010]

11 CoE Phase I Intra Depot Transfer Fast Lane Receiving Intra Depot Transport CCP Streamline RFID-enabled receipt processing of procurements and expedite time-sensitive shipments. Automatic notification of intradepot transporter pick-ups and improved routing / operations. Passive real time location of all boxes in Outbound Seavan Staging area improve misshipments and visibility.

12 Why Intra-Depot Transfer (IDT)? Goals Provide materiel visibility from offer to arrival at CCP Improve routing of IDT trucks Identify new technology to track and route materiel Process Challenges Lack of visibility forced transport drivers to pickup materiel in a round robin method, which resulted in poor utilization of available space on transporters and inefficiencies in transport time when materiel was not available at scheduled stops. Manual communication and input of drop-off times and locations made tracking packages cumbersome and inefficient. Materiel is moved from one warehouse to another within the depot. Intra depot transport vehicles move materiel as-needed by operations. With DDJC prfid tagging all outbound materiel, an opportunity existed to leverage AIT to improve this process. Visibility is limited from the time materiel is picked and offered from one warehouse, to the time it is stowed in or shipped from a destination warehouse.

13 Intra-Depot Transfer (IDT) Next Steps Results Visibility is provided from offer through shipped Solution to route transporters was not conclusive enough to change dispatching processes As product is staged, a more cost effective dock door solution reads staged product Next Steps Continued exploration will focus on utilizing improvements in visibility to: Identify process bottlenecks Reduce transportation time Prioritize targeted shipments

14 CoE Phase I Consolidation and Containerization Point Fast Lane Receiving Streamline RFID-enabled receipt processing of procurements and expedite time-sensitive shipments. Intra Depot Transport Automatic notification of intradepot transporter pick-ups and improved routing / operations. CCP Passive real time location of all boxes in Outbound Seavan Staging area improve misshipments and visibility.

15 Why Consolidation and Containerization Point (CCP) Surface Visibility? Goals Improve visibility of staged surface materiel Close open lines Find materiel quickly Process Challenges Shipments must align with flight and sailing schedules. Materiel missing a scheduled departure can be significantly delayed or incur expedited transportation costs. Mis-shipments or Open Lines create inaccurate inventory positions and frustrate customers. Finding materiel can take hours due to limited visibility to precise location of materiel in staging areas. At DDJC, all CCP materiel is prfid tagged; an opportunity exists to leverage AIT to improve CCP operations. The East side of the CCP handles materiel transported by air to downstream depots, while the West side is for surface shipping via ocean vessels. The volume and velocity of materiel flowing through the CCP makes planning and locating materiel difficult.

16 Consolidation and Containerization Point (CCP) Surface Visibility Next Steps Results Average location precision of Tag hierarchy (case tag to pallet tag aggregation) helps location accuracy Wireless STAR to enode offers increased flexibility in deployment prtls Applications prtls is potentially applicable to a variety of other use cases within the DoD supply chain, including: Asset Management Port Operations Yard Management Next Steps Complete analysis of the CCP capability Continue investigation into increasing location precision and tightening control of materiel movement and CCP processes

17 Summary Lessons Learned Leveraging military and commercial lessons learned, DLA will provide the next wave of AIT-enabled distribution capabilities Focused on benefits, improved service, and integrating military initiatives Leveraging Investments Current program will leverage and protect investments Transition and deploy capabilities Putting systems and procedures in place to maintain operational readiness Way Ahead DLA is a leading stakeholder in the execution of the OSD AIT Spirals DLA utilizes the Center of Excellence to evaluate new technologies and processes MRO tagging for collaborative military command activity By improving velocity and reliability, DLA will help make the defense supply chain a more effective weapon for use by the warfighter

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