AFMC Command News

Streamlining efforts improve supply chain management

  • Published
  • By JoAnne Rumple
  • Air Force Materiel Command Public Affairs
WRIGHT-PATTERSON AIR FORCE BASE, Ohio --  Supply chain management: a boring subject?

Before deciding, consider that without repair parts tanks don't run, boats don't sail and planes don't fly ... and no one secures a country or wins a war.

Plans, training, tactics, dedication, readiness and heroism all have a place. But it's hard to be effective without the armor, weapons and communications equipment, an n axiom Air Force Materiel Command understands in depth.

The command -- which provides research, development, test, evaluation, acquisition, modernization and sustainment of aerospace weapon systems -- has been improving supply chain management, modeling successful processes for the entire Air Force.

Streamlining begun in 2004 is now bearing fruit, according to Lorna Estep, deputy director for supply in AFMC's Directorate of Logistics. AFMC has laid in a 10 percent reduction in its $2 billion supply chain budget, the amount the command expects to save between now and 2011. That's when related initiatives -- to streamline centralized asset management; deploy a new "information superhighway" for the supply chain; establish a single, Air Force-wide repair network; and stand up centralized, global "end-to-end" supply chain management -- should be fully operational.

"We have trend data showing that, over the last few years, we've done a better job of reducing MICAP (mission impaired: cause awaiting parts) rates," Ms. Estep said." Our purchasing and supply chain management commodity councils have reduced acquisition lead times through strategic contracts. For example, the communications and electronics commodity council reduced acquisition lead time from 81 days historically to 20 days actual under one strategic contract.

"We wanted to support Air Force Expeditionary Logistics for the 21st Century (eLog21) initiatives in a way that would work for everyone," she added, "so we took a two-pronged approach."

First, AFMC took a strategic view, analyzing the market and forming strategic partnerships with major suppliers and the warfighter. Ms. Estep said that these partnerships allow the government to establish performance-based agreements with suppliers, to improve engineering and reliability of parts. They also enable joint initiatives to improve the overall supply chain.

"Then we started streamlining processes, an activity which never really stops, and implementing new information technology that gives us better data and connectivity with our suppliers and customers," said Ms. Estep.

She added that to ensure new processes will actually work, everyone connected with the process at all AFMC bases is receiving "immersion education" to learn about best practices from industry so they can start applying those to Air Force supply chain management.

"We want to make sure AFMC will meet Air Force eLog21 goals: not just the 10 percent reduction in cost but also the 20 percent improvement in reliability across the board for readiness and a 34 percent improvement in supply rates," Ms. Estep said.

Together, these initiatives are changing the face of supply chain management.

"While many of these changes impact the supply chain at our air logistics centers," Ms. Estep said, "they also impact every base, wing, group and squadron across the Air Force."

AFMC is working with other major commands, as well as the Defense Logistics Agency, all of whom are making related changes.

"In the process, AFMC is actually easing the burden formerly borne by other major commands," said Ms. Estep. "We're assuming responsibility for financial management of the entire logistics pipeline for the Air Force, as well as taking on all supply chain management through AFMC's new Global Logistics Support Center. The command will now provide an 'enterprise-wide perspective in these areas, helping senior officials prioritize requirements and source assets."

These initiatives should make life easier for the warfighter, she added.

"Now, maintainers no longer have to decide which command or air logistics center they're supposed to call for which part on which aircraft," Ms. Estep said. "Instead they'll have something like a 1-800 phone number to call for whatever they need."

The Logistics Directorate is also pursuing other improvements.

"We're looking into issues related to diminishing manufacturing sources for aging aircraft, the impact of the Berry amendment on acquisition and production of aircraft and the possibility of improving U.S. production capacity for some of the materials covered by that amendment," Ms. Estep said.

AFMC's goal for all of these initiatives?

"We tend to talk about supply chain management as a commercial process," Ms. Estep said. "However, we need to remember we're working on behalf of the warfighter. Our readiness posture is very dependent on our ability to supply parts to flight-line maintenance activities--so they can generate sorties. That's the real output we want to see: assurance that those parts are available to help the Air Force meet its mission."