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Life Cycle Logistics

New DoD Supply Chain Materiel Management Policy Issued

New DoD Supply Chain Materiel Management Policy Issued

Bill Kobren

A new DoD Instruction 4140.01 DoD Supply Chain Materiel Management Policy, was issued on December 14, 2011. Emphasizing that “DoD materiel management shall operate as a high-performing and agile supply chain responsive to customer requirements during peacetime and war while balancing risk and total cost”, it also mandates that “the DoD supply chain shall provide best-value materiel and services in support of rapid power projection and operational sustainment of U.S. forces as required by the National Military Strategy.”


Encourage all life cycle logisticians to take a look at and familiarize themselves with this new instruction. Just a few of the many highlights (followed by related/recommended DAU training) include:


·         “Potential disruptions within and outside the DoD supply chain shall be identified, monitored, and assessed in order to mitigate risk to supply chain operations. Life-cycle management controls shall be applied to guard against counterfeit materiel in the DoD supply chain” and “additionally, life-cycle management controls shall be developed, applied, and maintained to guard against counterfeit materiel in the DoD supply chain.”  (CLL 032 Preventing Counterfeit Parts from Entering the DoD Supply Chain)


·         “Energy efficient products or services shall have preference in all procurements, except those products or services procured for combat or combat-related missions.” (CLL 043 Green Logistics: Planning for Sustainability)


·         “The supply chain operational reference processes of plan, source, make and maintain, deliver, and return shall be used as a framework for developing, improving, and conducting materiel management activities throughout the DoD supply chain to satisfy customer support requirements developed collaboratively with the support providers.” (LOG 102 System Sustainment Management Fundamentals)


·          “Resourcing for all elements of the DoD supply chain shall be optimized through collaboration between support providers and customers. DoD investment shall be sufficient throughout the life cycle of new or existing weapons systems, equipment, and major end items to respond to warfighter needs.” (LOG 102 System Sustainment Management Fundamentals and LOG 235 Performance Based Logistics)


·         “Best-value materiel and services shall be provided to support rapid power projection and operational sustainment of U.S. forces as required by the National Military Strategy.” (CLL 001 Life Cycle Management & Sustainment Metrics)


·         A decision to use organic versus commercial sources should be part of developing an acquisition or sourcing strategy. This decision must be supported by a management analysis. The use of existing Government-owned inventory shall be maximized before seeking new commercial support on all performance-based logistics (PBL) arrangements and collaborating agreements. (CLL 015 Product Support Business Case Analysis and CLL 005 Developing a Life Cycle Sustainment Plan)


·         “All costs associated with materiel management, including acquiring, distributing, transporting, storing, maintaining, and disposing, shall be considered in making best value decisions throughout the DoD supply chain.” (CLL 015 Product Support Business Case Analysis)


·         “Supply chain risk management strategies shall be employed to identify, monitor, assess, and mitigate (reduce or eliminate) potential disruptions within the DoD supply chain (e.g., insufficient quality, unreliable suppliers, machine break-down, uncertain demand) and outside the supply chain (e.g., flooding, terrorism, labor strikes, natural disasters, large variability in demand).”  (LOG 206 Intermediate Systems Sustainment Management and CLM 017 Risk Management)


·         DoD Components’ materiel management systems shall be designed to facilitate DoD-wide asset visibility of materiel throughout the DoD supply chain. Materiel managers shall use automatic identification technology to maintain accountability and control, effectively manage costs, and implement the DoD policies cited in this Instruction.” (CLM 044 Radio Frequency Identification)


·         Unique item level traceability is required for all DoD serially managed items that are also sensitive or pilferable, all DoD serially managed Critical Safety Items (CSI), and all NWRM using a unique item identifier (UII) assigned to each individual item, e.g. a single instance of a stock-numbered item or a single assembly or subassembly. Unique item level traceability is also required for depot level reparables as well as any item that the DoD materiel manager decides requires unique item level traceability. (CLE 040 IUID Markings)


·         Modern materiel preservation, packaging, and marking techniques shall be used to provide all materiel within the DoD supply chain with the required level of protection and identification at the lowest possible cost. (CLL 013 DoD Packaging)


·         “Provide for an integrated, synchronized, end-to-end materiel distribution system to meet customer requirements for authorized information and materiel” (CLL 017 Introduction to Defense Distribution and CLL 055 Joint Deployment & Distribution Metrics Framework)