Tire Industry Symposium 24 July 2012
TPI to TSI Tire Privatization Initiative (TPI) Tire Successor Initiative (TSI) Ground 14 Feb 07–13 Feb 12 22 Sep 11 Seamless Transition in Warfighter Support! Air 22 Jan 07–21 Jan 12 Excellent Performance!! Excellent Performance!! TPI was a great success… …The success continues under TSI!!
TSI Aircraft Tire Sales Total Aircraft Sales: $40.7 Mil Sales Data as of 7/18/2012
Total Ground Sales: $47.2 Mil TSI Ground Tire Sales Total Ground Sales: $47.2 Mil Sales Data as of 7/18/2012
The Challenge We Saw in Sep 2011 Combat operations in Iraq ended 31 Dec POTUS OEF withdraw NLT CY ’14 10 years robust spending on OND/OEF weapon systems Huge stockage of MRAP and other repair parts Short window for Industrial RECAP/RESET Decreasing budgets Needed to increase dialogue with our customers on the future
Total Spend By Tactical Vehicle Type 32% Decrease Actual Projected DLA Land and Maritime expects decreases across all tactical wheeled platforms!
*Source: American Forces Press Service DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DLA Land and Maritime “With country facing a financial crisis, the Defense Department must cut $489 billion over the next ten years." Secretary of Defense Leon Panetta 13 Jan 2012 to the El Paso, TX Chamber of Commerce *Source: American Forces Press Service WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
Guiding Principles Guiding Principles Enhance Warfighter Readiness Ensure Availability and Responsiveness Protect the Supply Chain Efficient Use of Taxpayer Dollars Guiding Principles Deliver Conforming Material Drive Down Material Costs Maximize Small Business Participation
Strategies to Achieve Material Savings Leverage Commercial Capabilities Leverage Economies of Scale Sole Source Cost Control Enhance Competition Use Commercial Price Lists Customer Direct LTCs for Commercial- Off-The Shelf (COTS) items Cost effective methodology of supporting Non-NSN items Long Term Contracting (LTC) First Destination Transportation & Packaging (FDT&PI) Quantity Price Breaks Strategic Supplier relationships Overhead Cost Analysis Forward Price Rate Agreements/ Recom- mendations Reverse Auctions Reverse Engineering Source Approval Request (SAR) processing Automation
Other Initiatives Performance Based Logistics (PBLs) Purchasing Raw/Semi-Finished Goods Shelf Life Management Remanufacturing Industry/Commodity Market Analysis
We can never be any better than the suppliers who support us. Summary Land & Maritime is committed to achieving material cost savings to support our Warfighters We can never be any better than the suppliers who support us. Thank you for all you do!
Questions?
DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT