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MTMC moves forward to revamp defense moves

ALEXANDRIA, Va. (USTCNS) --- The Military Traffic Management Command is moving ahead to change substantially the way the nation's service members’ move.

MTMC has presented to the U.S. Transportation Command a comprehensive plan that will significantly revamp defense moves beginning October 2004. The plan was briefed Sept. 16 to a General Officers' Steering Committee and Sept. 18 to the semi-annual personal property Military/Industry Symposium.

Currently, the Department of Defense spends over $1.7 billion annually on personal property moves managed by MTMC. With the inclusion of commercial based services and quality of life additions, the new program is estimated to increase direct cost 13 percent. However, planned efficiencies in the new program will reduce both storage and claims costs.

"At last," said Col. Silvia Anderson, Deputy Chief of Staff for Passenger & Personal Property. "We're moving forward. Our 'Families First' plan incorporates years of pilot test efforts and moving experience.

"We greatly appreciate the support of the industry associations and the military services in developing this plan.

"We have developed the basis of a program that ensures members and their family can look forward to a quality move by a quality transportation provider. The most significant change for the members is their empowerment to determine who is a quality carrier. The traffic distribution method is based 70 percent on customer satisfaction and 30 percent on cost which squarely places the focus on the needs of Service members first."

To help ensure the success of the new program, Service members will be evaluating the transportation services they receive. They will be asked to complete a customer survey to assist in rating transportation providers. Surveys will be completed via the Web or by telephone and only require a few minutes to complete.

The Department of Defense generates an average of 612,000 personal property moves a year. The existing program, now 30-years old, has generated many customer quality control complaints and is fraught with inefficiency.

The new program, said Anderson, offers positive features for all sectors of the program.

Through better member-mover communications, the program will foster a reduction in temporary storage by increasing the number of door-to-door deliveries, said Anderson.

"A program feature called Spread Dates provides windows for both pickup and delivery versus a guaranteed, or rigid, delivery date," said Anderson. "This will enable both members and transportation providers more flexibility to ensure the direct delivery when housing has not been arranged in advance."

There is an added benefit to reducing moves that require temporary storage, said Dinah Locklear, Chief, Personal Property Re-engineering Division.

"The greatest benefit of this is a reduction in damage caused by multiple handling of the personal property shipment," said Locklear.

In fact, correcting the frustrations surrounding loss and damage claims in the current program was the loudest refrain heard from members in earlier surveys. The new program envisions a streamlined claim process (much of it Web-enabled), direct settlement with the transportation provider and full value replacement up to a maximum of $50,000.

Another program feature, the Web counseling module, will expand information about the moving process to military customers.

The business focus of the plan is on the commercial firms who move the personal property, said Locklear. Transportation providers must demonstrate they are financially viable, have experience and maintain required performance bonds and cargo/liability insurance.

In return for high standards, commercial firms will be paid at a more competitive level. The MTMC program calls for adopting discounts off the commercial tariff which provides the rate base used by the moving industry.

The new program was developed in a rapid series of MTMC-moving industry meetings beginning June 19. Many sessions were hosted by Logistics Management Institute, of McLean, Va.

Representatives from a trio of trade associations participated in the meetings including: the American Moving & Storage Association, Household Good Freight Forwarders of America, Inc., and Military Mobility Coalition.

The seven-week, fast-track effort was centered on the work of five smaller business-process working groups. These groups focused on rates, payments, claims, quality control and information systems.

The working groups reengineered processes based on the guidance from a recent U.S. Transportation Command report that reviewed MTMC's personal property program and a quartet of pilot programs designed to improve it. The report cited the need for improvements in acquisition process, information systems technology, and liability/claims process.

"The whole idea was to leverage the lessons learned from the pilots and best practices," said Anderson.

Office of Public Affairs - transcom-pa@mail.mil
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