Defense Supply Chain Operations: Analytical Architectures for Enterprise Transformation

Defense Supply Chain Operations: Analytical Architectures for Enterprise Transformation

Greg H. Parlier (North Carolina State University, USA & G. H. Parlier Consulting, USA)
DOI: 10.4018/978-1-7998-5357-2.ch034
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Abstract

This chapter explains the origination, evolution, emerging results, and potential long-term impacts of one particularly daunting enterprise transformation effort within the US Department of Defense. It offers a unique case study for a multi-disciplinary endeavor referred to as the project to Transform US Army Supply Chains (TASC Project). The TASC project pursued comprehensive and creative applications using a variety of Operations Research methods, advanced analytics, and management innovation to improve tactical, operational, and strategic decision making for the military's global sustainment enterprise. This chapter may be of interest to those confronting supply chain and other complex enterprise transformation challenges: national security officials; aerospace, defense, and industrial professionals; university graduate students and professors of engineering systems, operations research, and management. The strategy described herein offers potential solutions broadly applicable to other public institutions and government bureaucracies as well.
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Background And Context

During late Summer 2002, the Commanding Generals for US Army Aviation and Missile Command (AMCOM) and Army Materiel Command (AMC) initiated an ambitious effort to improve logistics operations in order to better relate resource investment levels to current readiness and future capabilities. Several factors influenced their decision at that time. The GAO “hi-risk list” for federal agencies had cited the Army and Defense Department for poor supply management since 1990. Although budgets were beginning to slowly increase in the aftermath of the post-Cold War drawdown, rapidly growing backorders for parts and nearly a billion dollars of unfunded requirements for aviation spares were causing increasing concern. Nonetheless, their impact on readiness was not at all clear. While aggregate fleet-wide aviation readiness had been slowly declining, expensive weapons systems across the Army were inexplicably being declared non-operational due to lack of relatively cheap parts.

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