1. Tire Industry Symposium
24 July 2012

2. 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!!

3. TSI Aircraft Tire Sales Total Aircraft Sales: $40.7 Mil
Sales Data as of 7/18/2012

4. Total Ground Sales: $47.2 Mil
TSI Ground Tire Sales
Total Ground Sales: $47.2 Mil
Sales Data as of 7/18/2012

5. 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

6. Total Spend By Tactical Vehicle Type
32% Decrease
Actual
Projected
DLA Land and Maritime expects decreases across all tactical wheeled platforms!

7. *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

8. 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

9. 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

10. Other Initiatives Performance Based Logistics (PBLs)
Purchasing Raw/Semi-Finished Goods
Shelf Life Management
Remanufacturing
Industry/Commodity Market Analysis

11. 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!

12. Questions?

13. DEFENSE LOGISTICS AGENCY
AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT