Dod Supply Chain

The Department of Defense (DoD) sustainment supply chain community has increased performance and harvested significant efficiencies through process improvement activities and the rationalization of common activities. However, the majority of strides have been made within functions and processes. The authors build a case that opportunities remain for improvement through end-to-end supply chain integration — spanning all DoD organizations and its suppliers — of processes jointly affecting total supply chain costs and performance. They define supply chain integration, provide illustrative evidence of DoD supply chain integration shortfalls, and describe why such shortfalls exist. They then provide a framework for an integrated DoD supply chain, associated recommendations for DoD supply chain policy, and a framework for developing management practices that drive people to take actions that lead to supply chain integration. In the course of the project, the Office of the Secretary of Defense adopted many of the policy recommendations put forth in this volume; these changes are described in this report. Building on all of this, the authors turn to potential opportunities to further improve DoD supply chain efficiency and performance, several of which DoD supply chain organizations have already begun pursuing as mentioned in the report. These opportunities also provide further indication that there is room to improve supply chain integration.

Improved Understanding of Supply Chain Interactions Is Needed

* Improved systems thinking by the Department of Defense (DoD) supply chain workforce is needed to imbue all aspects of supply chain design, interaction, and management with an integration emphasis.

* A framework for the DoD supply chain can provide a common understanding of the overall design, the roles of each function and process, and dependencies.

Gaps in Supply Chain Integration Have Been Rooted in DoD Policy

* These gaps have arisen from an...