Defense Department Seeking Transportation Partnership-Use of Coordinator expected to increase effectiveness, efficiency
DoDs current freight movement system is decentralized and less than optimal. Defense officials believe partnering with a world-class transportation provider will increase shipment visibility, allowing for load consolidation, more use of cost efficient inter-modal solutions and improved reliability for most types of freight shipments. Certain categories of material like munitions would not be included in the partnership arrangement.
Establishing partnership with a transportation management services provider mirrors a growing trend in industry where companies are turning to professional providers to increase efficiency across their supply chain. A study by Northeastern University in Boston found 78% of North American companies now use 3PL services.
Coordinating management of DoD freight shipments in the U.S. makes good business sense. said project manager Colonel Mike Hirka. Current industry best practices clearly show this is best achieved by partnering with a world-class services provider. Doing so will allow us to reduce cycle times, increase asset visibility and ultimately, improve customer confidence.
DoD has established a project office near Scott Air Force Base in Illinois to pursue the effort. Known within the Department as the Defense Transportation Coordination Initiative (DTCI), the effort involves considerable collaboration. Experts in areas of contracting, logistics operations and information technology are working to prepare a Performance Work Statement and draft solicitation for presentation to members of industry late this year.
Current planning calls for a phased implementation of DTCI with initial contract award expected in October 2006. Full implementation of the Initiative is expected by late 2009.
Additional information about the Defense Transportation Coordination Initiative is available online at http://dtci.transcom.mil
Follow Us On:
