Defense Supply Center Philadelphia

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Defense Supply Center Philadelphia
Clothing Textiles Supply Chain
AAFA Mar 2007
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Background
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Clothing Textiles Supply Chain Mission
Provide Dress/Field Uniforms, Field Gear and
Personal Chemical Protective Items to the Armed
Forces in Peace and War
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Clothing Textiles Supply Chain
Sales FY 01 - 1.0B FY 02 - 1.3B FY 03 -
1.7B FY 04 - 2.2B FY 05 - 2.2B FY 06 - 1.9B

Customers / Items Customers 14,000
Orders 3,600,000 / year Items
31,000
The Big Picture
Obligations FY 01 - 1.1B FY 02 - 1.6B FY 03 -
2.8B FY 04 - 2.0B FY 05 - 2.0B FY 06 - 1.6B
PersonnelEmployees 302 civilian 8
Military 2 Europe 50
interns Suppliers 858
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CT Business
Complexities
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Customer Requirements

• Sales
• Type I 65
• 18K to 50K of individual orders daily
• 18K Shirts can equal 10K requisitions
• Demand based
• Type II 25
• Larger single customer orders
• 100K Helmets for RFI (phased delivery)
• 400K ACUs for National Guard (phased delivery)
• 50K BDUs for MNSTC-I (unforecasted ASAP)
• Customer Collaboration phased delivery or ASAP
• Type III 10
• New Item Introduction
• ACU / ABU / Task Force Uniform
• Customer Collaboration

Difficulty Sizes
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From Requirements to Vendors

• Requirements
• Customer Input
• TRADOC with CIIP inductions
• PMs with troop support
• Demand Past / Anticipated
• Trend analysis / seasonality
• Demand Planner Info
• Major customer, eg, NTC Great Lakes
• Vendors Expenditures
• Annual forecast for existing contracts
• Mid-year forecast update
• Monthly item execution reviews
• Demand / Inventory / Sales / Deliveries /
  Obligations
• Still causes production fluctuations

Know whereevery dollaris spent!
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Inventory Growth

• Customers changing items based on OIF needs
• Desert Storm Boot proved too soft for rocky
  Afghanistan terrain
• Body Armor has technology infusion every 18
  months
• ACUs need FR capabilities
• More expensive items
• ACU / Modular Sleep System / MOLLE / T-Shirts
• Forecasted Demands Overstated
• ACUs / Desert Boots / ECWCS

However, Affects new
Pre-War 1.2 Turns In-War 1.2 Turns
But Still
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CT Business
The Lean Process Improving Acquisition
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Air Force Lean Event

• DLA and AAFES are currently participating with
  the Air Force in a Lean Six Sigma Event for
  uniform introduction.
• Lean is a process of identifying
• What adds value to the product from a customers
  perspective
• Eliminating whatever is non-value added
• UASF recognized need to streamline process of
  introduction of new items
• Process Initial development by the USAF to
  receipt by the customer
• Four events were considered necessary
• Development (Air Force) Completed
• Requirements and Funding (Air Force) - Completed
• Acquisition Process (DLA) - Completed
• Acquisition Process (AAFES) Completed

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Air Force Lean Event

• Areas found to produce the greatest improvements
• Increased Thresholds for Acquisition Reviews
• Real-Time Acquisition Review Boards for New Item
  Introduction
• Eliminate Factors found to have limited effect on
  award decision
• Reduces preparation and review time
• Electronic submission of proposals with abstract
• Two Step Negotiation Process
• Any changes will be communicated to Industry
  prior to implementation
• DSCP / AAFES will pursue a future lean event with
  Industry to discuss production leadtimes,
  strategic distribution, incentives, etc.
• To be held in conjunction with NAUMD annual
  meeting in April 07

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CT Business
Recruit Training Centers - The Challenge and
Solution
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Bottom Line Up Front
Need to get back to 98 Material Availability By
Service

• Current Situation
• Emergency buys / Expedited shipments
• Size Changes / Weekly Shipments
• Future Strategy
• Establishment of a VVM (Virtual Vendor Manager)
  expanding existing functionality under VPV
  (Virtual Prime Vendor)
• Initial Operational Capability Increased
  Visibility of Business Flow
• Full Operational Capability Demand Planning at
  Customer Site
• GOAL Fill Clothing Bag Items 99 MA
• Adjust Safety Levels based upon demand type
• Commercial Items Socks and T-shirts
• Normal Variability Boots and Pants
• Unusual Variability All Weather Coats and
  Shirts (S/S and L/S)

Warfighter Support Stewardship to the Nation
Growth and Development of our People Leadership
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The Recruit BAG

• Each Service Recruit Bag is different
• MALE GENERIC PER MALE
  TRAINING
• SERVICE ITEMS RECRUIT PERIOD
  (weeks)
• USA 41 1271.00 9
• USAF 38 1297.00 6
• USMC 40 1247.00 13
• USN 33 1009.00 8
• USCG 29 998.00 9
• The Service BAG is changed at the beginning of
  every fiscal year
• Items are added / deleted / re-priced
• Approved by Service Chiefs
• A total of 205,000 recruits were processed in
  FY06 (169k male, 36k female)
• Requiring 7,790,000 individual items to be issued

8400 NSNs
Warfighter Support Stewardship to the Nation
Growth and Development of our People Leadership
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History of Support

• DSCP CT has a track record of support to RTCs
• Performance since 2004 has been consistent (see
  example below)
• Slip in end of FY06 / Beginning of FY 07 caused
  great concern

Army
2005 Army
FY 04 MA 99 FY 05 MA 99 FY 06 MA
99 (thru Jun) FY 06 MA 97.5 (Jul to
Sep) FY 07 MA 96 (Oct to Dec)
2006 Army
Warfighter Support Stewardship to the Nation
Growth and Development of our People Leadership
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RTC Bag Items StatusTracking 120 Days Out
ARMY RTC Bag Items
THE 120 DAY SUSTAINABILITY LOOK Represents the
wholesale level of the universe of individual
items at each Recruit Training Center for the
next 120 days
5 Mar 07
26 Feb 07
Marine RTC Bag Items
26 Feb 07
5 Mar 07
USAF RTC Bag Items
Green Over 90 Days Amber 30 90 Days Red
Under 30 Days Black NIS
26 Feb 07
5 Mar 07
Stockage Levels
Number of NSNs (Individual Sized Items)
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Virtual Prime Vendor (VPV)

• VPV is a logistics management system
• In operation since 1998 - excellent track record
• Establishing a new VVM Manager at each Recruit
  Center
• To provide logistical boots on ground support

Travis VPV
Use chart
Chart Represents 35.5 Months Of Operation
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3
1
7
8
1
5
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RTC/CIIP
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1 MC San Diego 2 MC Parris Island 3 NTC Great
Lakes 4 Lackland AFB 5 Ft. Jackson 6 Ft.
Sill 7 Ft. Len Wood 8 Ft. Knox 9 Ft. Benning
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VPV Site
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• Lion Vallen All Army
• Travis NIB AF MC
• Peckham NISH Navy

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CT Business
Briefing to Congressional Staffers
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Meeting with Congressional Staffers

• Meeting with Congressional Representatives
• Occurred on 12 Feb 07 (9 congressional staffers
  present)
• Purpose
• To provide background on Clothing Textile
  Supply Chain
• To provide funding projections for balance of FY
  07
• To provide update on new programs
• New Uniforms (Army, AF, Navy)
• New Troop Support to U.S. troops in Iraq
• Using ADO (Army Direct Ordering)
• Meeting was successful
• Meaningful dialogue on many issues
• e.g., Fire Retardant requirements in uniforms
  used in Iraq
• e.g., Knock-off uniform sales
• e.g., Uniform support to the Iraqi forces
• Bottom Line Good idea that needs to be done on
  a regular basis

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What We Told Them

• DSCP Background
• 14,000 customers ordering 3.6M times per year
• Spending 1.7B to buy over 31,000 types of items
• Doing all of this with only 310 personnel
• Commodity Uniqueness
• Sized items
• Army Combat Boot 133 sizes
• Mens Army Dress Coat 65 sizes
• Airman Battle Uniform 155 sizes
• Military unique
• Most clothing on a specification
• Service driven requirements
• Simple garments to complex protective clothing
• Mix of Businesses
• See chart

FY 06 PIE
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CT Investment Plan FY 07By Major Grouping

• Expenditure History
• FY 05 2.088B
• FY 06 1.613B
• FY 07 1.70B (planned)
• Plan adjustments
• Based on actual sales
• Customer collaborative forecasts
• New items introductions

Adjustments made thru the use of automated demand
and supply tools
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CT Investment Plan FY 07By Minor Grouping

• Dress Uniforms
• Shirts Headwear 29.0M
• Outerwear 76.5M
• Dress Uniforms 59.9M
• Field Uniforms
• Accessories 126.1M
• Camo uniforms 239.6M
• Footwear 127.2M

• Individual Equipment
• Heraldics 9.4M
• Equipment Items 305.9M
• Safety Items 127.9M
• Tentage 138.4M
• Organizational Clothing
• Chemical Protective 189.8M
• Cold Weather Gear 117.6M
• Gloves 69.7M
• Special Purpose 104.6M

Adjustments made thru the use of automated demand
and supply tools
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New Programs And Issues
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Army Fire Retardant Uniforms

• ONS-1 Requirement Sep 06
• Satisfied by combination of all available FR
  garments
• Mix of Flight Suits (AF / Navy / Army) and Army
  Tanker Suits
• Army started development efforts for FR Ground
  Troops
• Tested new fabrics in different types of blends
• ONS-2 Requirement Feb 07
• Originally requested use of A2CU (Army Aircrew
  Combat Uniform)
• At that time, FR ACU was not yet developed
• Army decision Since that time a FR ACU was
  developed
• Best solution now would be to include FR ACU in
  solution set
• DLA decision Satisfy FR ACU thru existing
  contracts
• Modify several existing contracts to the new FR
  ACU
• These would be quantity neutral no vendor gets
  more work
• Allows less ACUs to be produced (rebalances
  inventory)
• Creates new market for ACU producer base

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Uniform Transition
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Issues in New Uniform Introduction

• USMC STATUS Stable MCCUU
• The most stable program (started in 2003)
• Currently working on incorporating Permethrin
  into fabric (bug repellant)
• USA STATUS Excess stock due to lower than
  expected demand ACU
• Rolled out in 2005 - Sales have been sluggish
• 16 commercial contracts awarded based on large
  anticipated sales
• All vendors have had production cuts to slow down
  inventory growth
• Latest action Vendors received option contracts
  in late Jan / early Feb
• Will allow for production into Jul 07 (6 month
  window)
• New re-compete will better align supply with
  demand and result in fewer number of contract
  awards
• Award scheduled for Jul 07 - First delivery will
  be due Dec 07
• FR ACU will help vendor base with new product
  line

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Issues in New Uniform Introduction

• USAF STATUS Building stock as per plan ABU
• In the process of rolling out in 2007
• 4 commercial vendors and NIB / NISH (JWOD)
• Current difficulties in trouser production
  causing delays
• Initial small issues in Jan 07
• First deploying troops issued in Feb 07
• AF Leadership sponsoring Lean Six Sigma event
  to streamline the process
• Chaired by 2-star chief of logistics DSCP
  participates
• Includes a Two-Step Procedure to let vendors
  know their competitive status early
• USN STATUS Being initiated NWU
• Navy Task Force Uniform (TFU) will change the
  entire uniform
• Includes all working and dress uniforms (will
  result in less total pieces)
• Work Uniform (NWU) will be first
• Deliveries start by end of 2007 issue to begin
  spring 2008
• Dress uniforms will follow (fabric being bought
  now)

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Clothing Textiles Supply ChainADO
1650 units
45M To date
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Conclusion