SDMI achieves record cut in customer wait time
DALLAS (USTCNS) --- When Charlie Nye talks about reductions in customer wait times, he likes to drive home the importance of stock positioning.
Nye, of the Defense Distribution Center, New Cumberland, Pa., says the key for an efficient and effective distribution system starts with having stock in the right place to begin the process. Proper stock positioning allows a distribution center to consolidate large volumes of freight to major customers. In addition, proper stock positioning provides the opportunity for scheduled synchronized deliveries and low-cost transportation.
The current Department of Defense distribution system is hampered by each military service and defense agency having its own paradigm and policies on where to place stock in the system, Nye told a meeting of the MTMC 2002 Training Symposium, in Dallas, on March 26.
"We are using the same distribution network in multiple ways," said Nye. "This causes inefficiencies and unnecessary customer wait time."
Participating in the Strategic Distribution Management Initiative, the military services have made progress in redistributing fast-moving material that was found to be misplaced in the system. So far, some 30,000 of the agency's stockage items have been redistributed, said Nye. Most of the items selected, he said, are in plentiful supply and frequent demand.
The redistribution has been a factor in a 15 percent reduction in customer wait time in 2001 global surface transportation movements to the commanders in chief geographic regions.
"We need to work like a corporation," said Nye. "We need to take the freight out of the air at a dollar a pound and move it to surface transportation where it only costs pennies a pound. Basically, it boils down to readiness."
Maj. John Schaeufele, deputy director, Distribution Analysis Center, Military Traffic Management Command, highlighted the increasing success of the initiative.
February data indicates a new record in cutting customer wait time, said Schaeufele. While the average time required for global surface shipments in 2000 took 49 days, in February the rate plunged to 39 days, a record 20 percent drop.
Many MTMC initiatives are assisting the reduced customer wait time, said Schaeufele. The initiatives include: Putting cargo on the first available ship sailing, preparing advance documentation, speeding one-time-only contract awards, and more direct bookings. Our initiative and enhancements contained in the Universal Services Contract are really paying off.
The Strategic Distribution Management Initiative represents "a new approach to all customers in the Department of Defense supply chain," said Maj. Pam Donovan, of Operations & Logistics Directorate, U.S. Transportation Command. "We seek speed, reliability, cost and visibility. Our vision is an integrated global defense distribution system. We are looking at the seams in the processes."
The initiative has separate elements within air distribution, surface distribution, stockage management and finance management.
Specific measures, said Donovan, include prepositioning stocks, using dedicated truck service and minimizing port handling. Reductions in customer wait times, between 1999 and 2001, include: Bosnia, 37 percent; Kuwait, 32 percent; and Saudi Arabia, 17 percent. More efficient transportation to the United Kingdom has resulted in a switch from airfreight to truck movement resulting in a 70 percent transportation cost savings.
"The Strategic Distribution Management Initiative is a way of business for all customers," said Donovan.
(FROM MILITARY TRAFFIC MANAGEMENT COMMAND PUBLIC AFFAIRS)
Nye, of the Defense Distribution Center, New Cumberland, Pa., says the key for an efficient and effective distribution system starts with having stock in the right place to begin the process. Proper stock positioning allows a distribution center to consolidate large volumes of freight to major customers. In addition, proper stock positioning provides the opportunity for scheduled synchronized deliveries and low-cost transportation.
The current Department of Defense distribution system is hampered by each military service and defense agency having its own paradigm and policies on where to place stock in the system, Nye told a meeting of the MTMC 2002 Training Symposium, in Dallas, on March 26.
"We are using the same distribution network in multiple ways," said Nye. "This causes inefficiencies and unnecessary customer wait time."
Participating in the Strategic Distribution Management Initiative, the military services have made progress in redistributing fast-moving material that was found to be misplaced in the system. So far, some 30,000 of the agency's stockage items have been redistributed, said Nye. Most of the items selected, he said, are in plentiful supply and frequent demand.
The redistribution has been a factor in a 15 percent reduction in customer wait time in 2001 global surface transportation movements to the commanders in chief geographic regions.
"We need to work like a corporation," said Nye. "We need to take the freight out of the air at a dollar a pound and move it to surface transportation where it only costs pennies a pound. Basically, it boils down to readiness."
Maj. John Schaeufele, deputy director, Distribution Analysis Center, Military Traffic Management Command, highlighted the increasing success of the initiative.
February data indicates a new record in cutting customer wait time, said Schaeufele. While the average time required for global surface shipments in 2000 took 49 days, in February the rate plunged to 39 days, a record 20 percent drop.
Many MTMC initiatives are assisting the reduced customer wait time, said Schaeufele. The initiatives include: Putting cargo on the first available ship sailing, preparing advance documentation, speeding one-time-only contract awards, and more direct bookings. Our initiative and enhancements contained in the Universal Services Contract are really paying off.
The Strategic Distribution Management Initiative represents "a new approach to all customers in the Department of Defense supply chain," said Maj. Pam Donovan, of Operations & Logistics Directorate, U.S. Transportation Command. "We seek speed, reliability, cost and visibility. Our vision is an integrated global defense distribution system. We are looking at the seams in the processes."
The initiative has separate elements within air distribution, surface distribution, stockage management and finance management.
Specific measures, said Donovan, include prepositioning stocks, using dedicated truck service and minimizing port handling. Reductions in customer wait times, between 1999 and 2001, include: Bosnia, 37 percent; Kuwait, 32 percent; and Saudi Arabia, 17 percent. More efficient transportation to the United Kingdom has resulted in a switch from airfreight to truck movement resulting in a 70 percent transportation cost savings.
"The Strategic Distribution Management Initiative is a way of business for all customers," said Donovan.
(FROM MILITARY TRAFFIC MANAGEMENT COMMAND PUBLIC AFFAIRS)
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