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We get the picture. Yet, although mighty indeed, the U.S. Department of Defense s (DoD s) supply chain apparatus is facing a transformation on a scale never before attempted. Morales s invocation of Wal-Mart ($246.5 billion in annual sales) is appropriate. Besides shoelaces and toothbrushes, frying pans and motor oil, though, the DoD has to supply missile subassemblies, vehicle engines and transmissions, microcircuits, x-ray machines and magnetic resonance imaging (MRI) equipment, aircraft frames, heavy industrial machinery, and jet fuel, to name a few of the 4.6 million items stocked by the Defense Logistics Agency (DLA). Every SKU must be delivered on time no stock-outs, no rainchecks in whatever quantities the customer requires, wherever the customer happens to be in the world at any particular moment. That customer, as we all know, is what the military calls a warfighter. And he or she is liable to be anywhere, anytime these days. As Morales notes, the pace and modus operandi of warfighting have changed considerably even over the past decade. In 1991, in Desert Storm, General Norman Schwarzkopf wanted 60 days of supplies on hand before he would launch an assault with a quarter million troops. In Operation Iraqi Freedom (OIF), General Tommy Franks wanted just two weeks worth of supplies for 150,000 troops.
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Morales has spearheaded one of the biggest transformation programs ever launched at the DoD. It was called the Future Logistics Enterprise during its policy-planning phase and was renamed the Force-centric Logistics Enterprise (FLE) during the implementation phase. She describes the program as an integrated plan to transform logistics to a more flexible force to meet the requirements for agility and responsiveness. The characteristics of this vision for a modernized logistics capability are fivefold:
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Speed. General Tommy Franks s battle plan called for a lightning advance on Baghdad, for instance. Never before has an army advanced so far so fast: The army covered more than 300 miles in 22 days. Flexibility. When Turkey balked at supporting a second front from the north in Iraq, the United States advanced successfully, solely from the south, changing its strategy in a matter of hours. Precision weaponry. In the Gulf War, 8 percent of weapons used were precision-guided. In OIF, that figure was 66 percent.
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U.S. DEPARTMENT OF DEFENSE PROFILE: Making the Tail Smaller and the Tooth Stronger 171
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Increased reliance on unmanned aerial vehicles. These are useful for both surveillance and combat. Joint operations. Coordination of the different service components is essential for effectiveness in today s defense environment. In OIF, 78 percent of the sorties flown were in direct support of special operations forces.
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Of course, the Army, Navy, Air Force, and Marines are not fighting any battle alone. Because of the They are dependent on what s called the tail : the vast infrastructure that supplies scope and speed them, from product development of required to transform weaponry and machinery to transportation and other services sustaining them. As the military to a Morales says, Traditionally, defense logis- higher state of tics has been thought of as supply, transportation, maintenance, and supporting information readiness, systems and infrastructure. But actually, it s tomorrow s defense supply chain management, integrated weapon system support, and integrated, shared data supply chain will be (the knowledge environment), plus materiel very different from readiness. Since the scope is so broad, the concerns range from rightsizing the infra- yesterday s. structure to rightsizing the inventory and from transforming the overall logistics processes to demanding performance standards and accountability from a very young military force. Because of the scope and speed required to transform the military to a higher state of readiness, tomorrow s defense supply chain will be very different from yesterday s. To use the parlance of supply chain management, it will move from a push to a pull model of customer order fulfillment. One of the most critical of its characteristics is a Today, the tail that shift from vertical integration to a strategy supports the teeth of virtual value-chain management based on deep collaboration with customers, part- of the military is ners, and suppliers. drawing on best The tail that supports the teeth of the military is drawing on best practices practices from from private industry. It is creating greater private industry. partnerships with the private sector than ever
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