1. Projecting Global Logistics:
Transforming the UK’s Defence Supply Chain
20th Annual National Logistics Conference
Sparks, Nevada
2 March 2004
SLIDE 1
Colonel David Martin CBE
Director
DLO Logistics Operations Centre
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

2. Current MoD Organisation
CDS/PUS
2nd PUS
VCDS
DCDS(P)
DCDS(C)
DCDS(EC)
PJHQ
CAS
AMP
CINC
STRIKE
2SL
FLEET
CNS
CGS AG
LAND
HQNI
SLIDE 2
CDP
CDL
DPA
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

3. The DLO Communications Air DLO HQ Land Sea Supply Chain
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

4. To sustain UK military capability, current and future
The DLO Mission
To sustain UK military capability, current and future
SLIDE 4
Achieving success in the tasks we undertake
Being ready to respond to the tasks that might arise
Building for the future
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

5. What Is Logistics in The DLO?
Mid-life Update
Stores
Catering
Aircraft
Ships/Submarines
Equipment Disposal
Repair
Army Equipment
Fuel
Information Services and Support
Naval Bases
SLIDE 5
Post
Storage Depots
Munitions
Distribution
Movements and Transportation
Medical Supplies
Clothing
From the Factory to the Fort
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

6. DLO Facts Annual spend over US$17bn - 25% of Defence operating costs.
30000 people (75% civilian).
20% of MOD civilians work in DLO.
6 Defence Agencies.
US$41bn assets.
Over 80 locations.
SLIDE 6
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

7. What we used to do ... Procurement MoD(Centre) Executive
Specify
Procure
MoD(Centre)
Procurement
Executive
Support
Operate
Dispose
Separate Services
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

8. What we do now ... DLO MoD(Centre) DPA DLO DLO/Front Line Front Line
Specify
Procure
MoD(Centre)
DLO
DPA
Support
Operate
Dispose
DLO
DLO/Front Line
Front Line
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

9. What we want to do ... MoD(Centre) DLO DLO Front Line DLO DPA Specify
Procure
DLO
MoD(Centre)
DLO
DPA
Support
Operate
Dispose
DLO
DLO
Front Line
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics
DLO

10. Why? Because the smarter we do our business in the DLO, the smaller the deployed ‘logistic footprint’
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

11. Strategy Route Map Organisational improvements Process improvements
Performance management
Working with industry
… to deliver predictability
From overall assessment of the shape of the business and its processes, developed 4 key areas for strategy route map – tackle the issues of manpower and assets
1. First is to tackle process synergies highlighted on previous slide – main priority
DMRS2 and DRS 3 jointly; consider DM/DSDA merger; consider MSA;
Within framework of Smart Distribution
2. 2 strands to this. Use BPE to examine business support functions across HLB (2 AND 3 layers)
Secondly, look at overall structure – Agencies and Directorates. Wide range of options – reduce overheads. Not the immediate priority.
Key area. Lots of outsourcing etc, but somewhat piecemeal; lacks some coherence (tpt / 3663)
Favour partnering rather than straight outsourcing – flexible, profit sharing, lower costs. But need a lot more info. Need help
Key issue is strategic corel – supply gateway and intangible assets (know how, managing the customer interface). Tangible assets less clear – need to work on this
Need to do a lot more on this – focus to date on getting BUs operating. Some useful work but not by 3 areas. Better tie up between performance levels and costs
Some useful data and IT – ABC, but evolutionary
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

12. How are we going to bring about the necessary change and forge a coherent E2E supply chain?
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

13. .. by transforming Equipment Support
Intelligent Customer
Contracting for Capability
Intentions
Contracting for Availability
Opportunities
Spares Inclusive
Traditional
Provider
Decider
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

14. Heavy Equipment Transporter
PFI
Firstly, the HET PFI Project in which the well known Scammell CommanderTank Transporter is being replaced with the Heavy Equipment Transporter (HET) under a PFI contract.
The ISD was 2003 and a troop of 16 vehs was deployed on the Gulf war, its Full Service target date is for 92 x HET by Apr 04.
The contract will be for 20 years from this date.
Heavy Equipment Transporter
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

15. .. and by transforming the Defence Supply Chain
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

16. What Is the Supply Chain grouping in The DLO?
Mid-life Update
Stores
Catering
Aircraft
Ships/Submarines
Equipment Disposal
Repair
Army Equipment
Fuel
Information Services and Support
Naval Bases
SLIDE 16
Post
Storage Depots
Munitions
Distribution
Movements and Transportation
Medical Supplies
Clothing
From the Factory to the Fort
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

17. What is hampering us in achieving our mission effectively?
Fragmented Supply Chain
Multiple owners of same processes
Partial Performance Measurement
Non-optimised supply chain
Long lead times
Low visibility
High stocks
Low technology
Low productivity
High levels of duplication across Services and more across industry as a whole
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

18. Joint Force Logistic Component (JF Log C) Concept Of Operations
UK BASE
COUPLING BRIDGE
ALSS
FMB
JTFHQ
XXX
SPOD
FRSA
FLS
DOB 2 SA
1. FORCES MOBILISE IN UK
2. MOVING INTO THEATRE INTO THE APOD/SPOD
3. CREATION OF A FRSA/RSG
4. CONTROLLED BY JFLOGC (ONE STAR)
5. ALSO IN RSG ARE RAF AIR LOGISTIC SUPPORT GROUP
6. JFHQ
7. AS FORCES MOVE FORWARD RSG SUPPORTS FSG
8. FSG SUPPORTS UP TO DIV AREA
9. DIV SUPPORT GROUPS
10. BDE SUPPORT GROUPS
11. SUPPORT BATTLEGROUPS.
APOD
THEATRE
DOB 1
TRC
Bde X
JFLogC X
Assy Area
LCC XX
BSG
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics 25 51 12

19. SINGLE SERVICE SUPPLY CHAINS
‘STEALTH’ LOGISTICS
SINGLE SERVICE SUPPLY CHAINS
DEFENCE
CONTRACTOR
MAIL
UNIT
MEDICAL
STORES
FOOD
INTERNATIONAL
COURIER
FUEL
MUNITIONS
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

20. DLO Logistic Operations Centre (DLOC)
To manage the flow along the Supply Chain i.e;
The ‘air bridge’
The ‘surface (ie sea) bridge’
To manage the receipt, consolidation and dispatch to theatre of UORs
Promote consignment tracking
Co-ordinate the output of DG Def SC’s HLB
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

21. MORE ‘INTELLIGENT’ LOGISTICS
PJHQ
PRIORITIES
IPTs
MAIL
CO-ORDINATION
DLO LOGISTIC
OPERATIONS
CENTRE
UNITS
DPA
We need to protect the unit from stealth logistics.
To achieve this we have established an organisation which reacts to Joint Force Commander and PJHQ priorities, co-ordinates and monitors the supply and acts as the focus for distribution decisions from within the DLO - IPTs, NPPO and the distribution agencies – from within DPA and industry, and with the Front Line Commanders who, in turn, will be liaising with the units and PJHQ. This is a lesson highlighted from GRANBY and Balkans operations.
DLOC was established at end of Jan for Op TELIC. Based in Andover North site co-located with DTMA. Assisted in development of FET and integration of the DOA. +UOR coord + ‘green gate’ for entry from contractors.
INDUSTRY
COMMODITIES
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

22. The Future Consignment Tracking enhancements
Invest in the ability to manage the Joint Deployed Inventory (the MJDI Project)
Rationalise the remainder of the logistic IS architecture
Improve Performance Measurement
Future Defence Supply Chain Initiative
Organisational change – Domain 2 Stars
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

23. Consignment Tracking Enhancements
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

24. Fully exploit the integration of RFID equipment
Active Fixed Interrogator
Mobile Reader 410R
Mobile Reader 410R
CLIN, 3003AA, $3,010.00
CLIN, 3003AD, $344.00, Battery Charger
CLIN, 3003AE, $44.00, AC Power Adapter
Savi Docking Station
CLIN, 3001DD, $1,786
SaviTags
CLIN, 3009AA, 2K, $122.00
CLIN, 3009AD, 8K, $ w/Locator
CLIN, 3009AE, 128K, $ w/Locator
CLIN, 3009BB, 128K, $ Gate Tag
CLIN, 3009BC, 128K, $ Gate & Locator
Active Fixed Interrogator
CLIN 3001AA, $1,480.00
CLIN 3001AC, $105.00, Mounting Kit
CLIN 3001AD, $168.00, Heavy Duty Mounting Kit
SaviTag 410 with Bracket
Docking Station
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

25. Logistic Information Systems
Invest in our
Logistic Information Systems
Invest in the ability to manage the Joint Deployed Inventory (the MJDI Project) Rationalise the remainder of the logistic IS architecture

26. Current Logistic IS Architecture
INVENTORY
WAREHOUSE
TRANSIT
UNIT1
SCCS
CRISP
SS3
WITS
WTMS
VITAL
BODMS
RIDELS
USAS/DUSAS
OASIS
GLOBAL
This is the problem which DSMS was intended to overcome.
Each of these pillars supports a Supply Chain which is very different from its neighbour and each has a group of people responsible for its performance - jealously guarded.
They all come together at the Coupling Bridge - and much like passengers awaiting a train - they do not know whether there is room for them or what sort of seat they’ll get.
If each of these pipelines worked efficiently then it wouldn’t be too much of a problem - but they don’t…...
1. ‘Unit’ or ‘deployed inventory (DI) systems’
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

27. Rationalised Logistic IS Architecture
INVENTORY
WAREHOUSE
TRANSIT
UNIT
M M I T
RIDELS
TAV(-)
CRISP
WITS
MJDI
SEA
SCCS
AIR
VITAL TAV(-)
WMS
MJDI
Whilst the implementation of DSMS, the rationalisation of our third line warehousing systems and the implementation of ITV would have addressed many of the key operational requirements highlighted earlier, the £65Om WLC of DSMS was considered unaffordable within the DLO Change Programme and when ITV was submitted for funding, Defence as a whole considered the £90m WLC unaffordable.
SS3
VITAL TAV(-)
LAND
WMS
MJDI
P2P and Enterprise Application Integration Hub
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

28. Improve Performance Measurement
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

29. TFD DPT MHT What should we measure? Def SC Def SC Area of Influence
Stockholder selects stores required
TFD
MHT
DPT
Capability Loss
What is wrong?
Need for stores identified
Unit asks for stores
Unit request verified then processed
Stockholder moves stores to distribution node
Stores declared for movement
Stores leave the stockholder
Stores arrive at interim distribution node
Stores leave the interim distribution node
Stores arrive at local distribution node
Unit receipt
Stores issued
Capability restored
Issue instruction output to stockholder
Stores arrive at unit
What should we measure?
Operations
Ex/Trg
IPT/ SC controls
Depot/Stockholder
Distributor
Theatre
Not NWE
IPT/ SC controls
Routine
Depot/Stockholder
Distributor
FLCs
Def SC
The D SC Ops initiatives are broken down between these 4 areas, all of which have the theme of Smart Distribution.
The first 2 are the province of the combined IFTIG / Defence Rail Group.
Quick Wins and Miscellaneous appear in SC Ops (Pol).
Note that it is only in the case of Defence Rail that benefits can include direct savings.
As a reminder, Smart Distribution seeks to make the performance of the supply chain faster, better, cheaper, although it is acknowledged that the emphasis of the initiatives is on HLB savings.
Def SC Area of Influence
Def SC Area of Interest
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

30. Future Defence Supply Chain Initiative (FDSCI)
Better VFM from Def SC storage & distribution
Savings aspirations of US$63.5M from 05/06
Options include:
In House
Do Better - Smart Distribution
Do Differently - Trading Fund
Partnering with Industry
Outsourcing – 2 bids currently being evaluated
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

31. CDL as Defence Logistic Process Owner
V Jan 04
CDL as Defence Logistic Process Owner
CDL
VCDS and 2ND PUS
Head Office Processes
DLB
2* Defence Logistic / E2E Change Team Leader
ACDS (Log Ops)
FLEET
Maritime Component
Industry
‘Demand Pull Doctrine’
DLO
LAND
Land Component
DLOC
PJHQ
JF Log C
DPA
STC
Air Component
‘Demand Pull Doctrine’
DG Def SC
Operational
Success
CDL ensures the required effect is achieved from the end-to-end logistic process
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

32. That’s easy for you to say
“The key to achieving a small logistic footprint is the integration of the Defence Supply Chains”
That’s easy for you to say [
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics

33. Projecting Global Logistics:
Transforming the UK’s Defence Supply Chain
20th Annual National Logistics Conference
Sparks, Nevada
2 March 2004
SLIDE 33
Colonel David Martin CBE
Director
DLO Logistics Operations Centre
Unity of purpose, certainty of delivery ….. Excelling in intelligent logistics