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NDTA speech: E-mail, Web revolutionizes business operations says MTMC commander

ANCHORAGE, Alaska (USTCNS) --- In the last year, Maj. Gen. Kenneth L. Privratsky figures he has traveled a quarter million miles by airplane - chalking up most of the mileage visiting the 24 ports operated by the Military Traffic Management Command.

But, while very valuable, that is not how the MTMC Commander runs his command.

It is e-mail.

In the 18 months he has been at MTMC, Privratsky has sent in excess of 12,800 e-mail - and that number rises daily.

"I do not know how I can run an organization today without e-mail and Web technology."

Privratsky provided his insights March 9 to a luncheon meeting of the Polar Bear Chapter, of the National Defense Transportation Association, in Anchorage, Alaska.

"You can run a business anywhere in the world with Web technology," said Privratsky. "It collapses boundaries and facilitates doing things we never did before."

In the transportation sector, he suggested the future will benefit those who can offer an "entire system." This solution would include intermodal transportation linked by Web technology and supported by e-mail.

"As boundaries come down due to technology," said Privratsky, "people will look more and more at a total solution."

Businesses today must embrace the technology, he said, or they will be uncompetitive in future years.

MTMC Today

Changes are taking place in MTMC's current structure - and more are planned, said Privratsky.

"MTMC has changed significantly," said Privratsky.

Because of improved efficiencies, at the end of the last fiscal year Sept. 30. MTMC has been operating at 300 employees below authorized strength.

Savings from budget costs in the last fiscal year are over 5 percent, or $57 million, of the command's billion dollar annual budget. This fiscal year the savings are projected at 2.5 percent. The savings were achieved via "organizational efficiencies and cost management."

"I'm very much organized at looking at efficiency, effectiveness and taking care of people," said Privratsky.

Future organization changes will be directed at the MTMC Headquarters, in Alexandria, Va., and the MTMC Deployment Support Command, in Fort Eustis, Va.

Reorganizations of the command's operations and information management sectors by Sept. 30, 2002 will trim more positions but streamline process, he said.
MTMC Future

Privratsky outlined several areas where reinvention initiatives were under way or being considered.

"We are looking for increased opportunities to get out of processes."

Direct Booking: A test is underway to allow customers to book ocean carrier shipments directly on a shipping company's web page.

"We want to get out of the middle," said Privratsky. "This links shippers with carriers."

Initial tests with a Defense Logistics Agency outlet in Philadelphia took 15 minutes. Currently, MTMC takes 24 hours to perform the same function.

"MTMC must get out-of-the-way," said Privratsky.

Third-Party Logistics: A test will take place soon in Georgia, Alabama and Florida to determine if a third-party logistics provider can do an efficient job managing freight transportation for Department of Defense installations.

"If it works well, we'll expand it," said Privratsky.

Container Management: MTMC is considering contracting to a private
vendor the management of the Department of Defense's 10,000 containers.

"We have 10,000 containers and 3,000 are broken," said Privratsky. "Very few are in the right place. We want to see if industry does it better that we do."

Personal Property Moves: Big changes are possible by 2003 when the military services will have additional funds available for service member moves, said Privratsky.

"All agree on where to go," he said.

Big goals include a toll-free number for service members and full-replacement value of lost or damaged goods, said Privratsky.

"We want to get away from low-cost programs and move to best value."

Polar Bear Club

The audience of Polar Bear club members responded positively to Privratsky - who considers Anchorage his hometown.

"He gave us a very good overview," said Charles Madison, Alaska manager, Alaska Cargo Transport, Inc., Anchorage. "There is no question the Web is where we're going," said Madison. "The smaller companies are the ones that can be hurt."

Club member Michael Kean, transportation director, Anchorage Economic Development Corporation, is scheduled to give next month's luncheon talk.

"I'd like to do half as good as he did today," said Kean. "He hit a lot of points I intended to make to make us more effective. If you look at the Northern Hemisphere, Anchorage is a logical place to do business. The military can piggyback on the commercial structure that is already here." (FROM MILITARY TRAFFIC MANAGEMENT COMMAND PUBLIC AFFAIRS).

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