Naval Inventory Control Point 1 Performance Based Logistics: A New Business Paradigm Ready. Resourceful. Responsive! Naval Inventory Control Point CAPT Steve Nagorzanski ILS Director, NAVICP 28 October 2002
Naval Inventory Control Point 2 Agenda PBL Background Acquisition Process Business Case Analysis Statutory Requirements Awarded PBLs PBLs on the Horizon Lessons Learned Take-Aways
Naval Inventory Control Point 3 PBL Background Concept: Single Supplier / Integrator (Commercial or Organic) Provide Fleet Improved Weapon System Support Through: C ost: Reduced Total Ownership O bsolescence Management R eliability Improvement/Tech Refreshment A vailability Improvements Comply with USC Title 10 CORE Statues: Partner with Government (e.g. Depots) Must pass Business Case Analysis (BCA): Sound Business Decision Merits Must Stand-up to Audit Reduced Total Cost to the Fleet
Naval Inventory Control Point 4 PBL Background A Necessary Transformation A Fundamental Change in the way NAVICP provides Weapons System Support!!! PhilosophyDrives PerspectiveICP Role Historically Today Inventory Based Performance Based Lowest Price Best Value Manage Supplies Manage Suppliers Results Focus Exclusively on Supply Availability More Infrastructure Higher Total Costs No Incentive to Improve Reliability or Quality Focus on Customer Service, Reliability and Readiness Less Infrastructure Lower Total Costs Increased Reliability Higher Quality Change Driven by: Fewer Resources, Acquisition Reform, & Technology Advances The Result... High Yield Logistics
Naval Inventory Control Point 5 PBL Background A Necessary Transformation Guaranteed Warehousing Obsolescence Availability Management Inventory Mgmt Transportation Reliability Improvement Engineer/Technical WarrantiesConfiguration Support Control Piece Part Support Roles Purpose Reduce Cost Lower Response Time Lighter Logistics Tail Increase Availability Buying Performance … Not Parts Cultivate Long Term Partnerships With Industry Leverage Commercial Supply Chain Solutions