1. 1 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT DLA GFM/MCA Mr. Bill Shaffer 2 February 2010

2. 2 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 2 Introduction Legacy –DLA acted as an MCA for DLA contracts –Complied with all MCA requirements System Modernization Changes –New “Push” methodology eliminates the need for an MCA for DLA contracts –Control of inventory is performed within SAP DLA continues to support procedures within 4140.1-R where DLA is the source of supply

3. 3 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 3 3 GFM Process GFM Warehouse Depot or Vendor Managed Warehouse (Burlington) PR for End Item (NSN) received from Planning BOM details GFM required for End Item and GFM default plant Create Delivery Order/Purchase Order Sub-Contracting PO generated Blocked for Manual Review – adjust Plant and Storage location – if needed GFM Delivery request created GFM Delivery request sent to Warehouse/Depot GFM Delivery Requests consolidated and shipments scheduled Manual Review SAP Create Sub- contracting PR PO Sent to Vendor Due-in created for End-item Vendor Ships End Item to Customer Goods Receipt back-flushes Sub-contracting PO GFM consumed by End Item Shipment confirmation received - GFM identified as ‘issued to contractor’ Vendor Manugistics/ JDA Customer GFM shipped to Vendor Customer sends receipt Vendor Ships End item to DLA Depot 1. 1a. 2. 3. 4. 8. 5. 6. 7. 9. 10. 11. 12. 13. Create Sales Order 1b. DSS sends receipt 10a. Note – If no BOM is required – Sub-contracting PO created manually based on available stock

4. 4 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 4 DLA GFM Process-Alternative to MCA Internal DLA GFM processing makes use of Standard SAP functionality involving the Subcontracting Purchase Order (PO) process to control delivery of GFM –The GFM PR will identify GFM components by means of a Bill of Materials (BOM) –The PR will list the end item and required components along with the amount of component materiel required for each end item When the GFM PR is awarded the BOM/component allocations are carried forward to the Subcontracting PO

5. 5 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 5 DLA GFM Process-Alternative to MCA After contract award an internal transaction is used to trigger the Subcontracting PO to initiate the GFM issue process of the end item components to the contractor –There is no MILS/DLMS requisition in this process –A MILS/DLMS compliant Materiel Release Order (MRO) is generated for each component NSN to move the materiel to the contractor –The MRO has the DLA EBS DoDAAC in the document number and the contractor DoDAAC as the ship-to –There is no identifying contract number in the MRO

6. 6 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 6 DLA GFM Process-Alternative to MCA The shipping depot provides a confirmation of shipment back to EBS via a standard MILS/DLMS Materiel Release Confirmation (MRC) –When the confirmation is processed the shipped material moves from a release in-process status to a Material Provided to Vendor status –Materiel Provided to Vendor is a stock category under the storage site that shipped the materiel –It is a restricted stock category identified by vendor, but not by contract number Receipt of the end item will cause the components to be removed from Material Provided to Vendor on the basis of the components listed on the PO and the quantity of end items received

7. 7 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 7 DLA GFM Process-Alternative to MCA The DLA Subcontracting PO process assumes all DLA GFM requirements will be for items managed by DLA and issued from stock Other Service/Agency GFM requisitions received by DLA are still validated with the designated MCA prior to initiating order fulfillment action

8. 8 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 8 Reporting & Record Keeping Available SAP Reporting –BOMs by end item –PRs and POs by contract number (with linked BOM) –Deliveries against a PO –All stock provided to a vendor with end-items due (can be drilled to specific vendors) –Existing due-ins established by GFM POs