WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY

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WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPDEFENSE LOGISTICS AGENCYAMERICA’S COMBAT LOGISTICS SUPPORT AGENCYDLA Troop SupportClothing & TextilesSupply ChainWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT1

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPClothing & Textiles MissionProvide dress and fielduniforms, field gear,tentage, and personalchemical protective itemsto the Armed Forcesin peace and in war2

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPClothing & TextilesClass II Products & ServicesEcclesiastical ItemsBody ArmorFlight SuitsChem SuitsClass AUniformsGo-to-WarCamouflageTents3

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPClothing & TextilesCustomers / ItemsCustomers: 20,600Orders:5.9M annuallyaverage 489k monthlyItems:45,50043210SalesBillions 2.5 2.2 2.0 2.4 2.5FY05FY06FY07FY08FY09FY10 Forecast 2.454BThe Big PictureObligations43210 2.1FY05 1.6FY06 1.9FY07 2.1FY08Billions 2.6FY09Personnel / VendorsEmployees (auth):*374 civilian 10 militarySuppliers:595*includes 2 DSCP Europe positions4

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPClothing & Textiles SalesFY09Historical Trend 2.5BFY09 Service Breakout MillionsAirForce12% 3,0002.6B 2,5002.1B2.5B2.4B2.2B2.0B 2,000Army59%Navy9%MarineCorpsOther 8%12%1.6B 1,5001.2B 1.3B 1,000 500 0FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY095

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPClothing & TextilesStrategic ConditionsCurrent StateService spiral developmentstrategies senceEnsurescommunication andexecution fromService conceptsthru warehousingand distributionMitigationActionsEarlyinvolvementin product lifecycle to enhancea balancedprogram mgmtfocusWay AheadTimely funding processthat minimizes impacts onServices, DLA and ourindustry partners6

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPC&T Life Cycle ManagementHigh Level ViewRequirementsWarehousing& DistributionDevelopmentProcurementProduction7

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPClothing & Textiles A Unique Commodity Sized items– Combat boot 140 sizes– Men’s Army dress coat 65 sizes– Airman battle uniform 155 sizesDemand Planningcritical due to leadtimeand sizing issues Military unique– Most clothing on a specification– Service driven requirements– Simple garments to complex protective clothing (e.g., chem suits) Industrial base strategic supplier issues– Small Business driven– Socioeconomic obligations– Mandatory sources National Industry for the Blind (NIB),National Industry for the Severely Handicapped (NISH),Federal Prisons (UNICOR) Best value long term contracts– Over 95% of our contracts during peacetime8

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPNot Just End ItemsHookButtons&LoopTapesT ShirtFiberSpunyarnWeaverWovenFabricFinisheror printerEnd Item ersSnapsFlight SuitCoveralls9

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPHow to Do Business with C&T DSCP Web Site http://www.dscp.dla.mil– Points of Contacts– Product Lines C&T Web Site http://dscp.dla.mil/clothingandtextiles/index.asp DLA Internet Bid Board System (DIBBS)– https://www.dibbs.bsm.dla.mil/– Solicitations, Drawings, Specifications, and Standards listed– Can be downloaded Small Business Office Web Site– http://www.dscp.dla.mil/sbo/index.asp– General Guidance concerning how to do business with DSCP10

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPWho To Contact ? Clothing and Textiles contracting staff organizedin Divisions by Product Group and Programs– Dress Clothing (Dress Uniforms, Heraldics, Shirts, Headwear,Outerwear) Sharon Piecyk 215-737-8043– Field Clothing (Footwear, Accessories ,i.e. T-Shirts, Fitness Uniforms,Utility Clothing) Steve Merch 215-737-2401– Organizational Clothing (Cold Weather & Flight Clothing, Gloves,Chemical Protective Items) Kevin Peoples 215-737-5657– Equipment / Tentage (Body Armor, Equipment, Tents, Helmets, SafetyItems) Terri Scheetz 215-737-3274– Strategic Material Sourcing Group (3PLs, Industrial Base Planning) Donna Pointkouski 215-737-429011

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPC&T Industrial Base CapacityBerry Amendment and the Domestic IndustryBerry Amendment Restricts US DoD to domestic sources for C&T items In existence in some form since 1941 1994 permanent by Public Law 103-139 Readiness concerns– Goes down to low level components & processes– Waiver requires Domestic Non-Availability DeterminationEmployment Levels*Imports*Thousands of Employees301000Billions of Square Meter Equivalents (SMEs)9002580070020600155004001030020051000090 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07* Source: American Apparel & Footwear Association (AAFA) – April 2007Apparel90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07Textiles12

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPLogistics ChallengesOutfitting the Warfighter1. New ACUArmyCombatUniform 202. New ACHAdvanced Combat Helmet 1823. New IBAInterceptor Body Armor 1,038Total increase 1,7044. New MOLLEModular Load 4025. New JSLISTChem Protective Suit 456. New BootTan Desert Boot 1713

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPRTC Fill Rates8,717 Service People284,813 ItemsRTCLast WeekThis WeekFt Jackson99%95%Ft Benning100%100%Ft Leonard Wood100%89.4%100%100%100%100%100%100%Lackland AFB100%100%Great Lakes97.2%97%Ft SillFt KnoxMCRD Parris Island14

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPSupply Chain ManagementVirtual Prime Vendor - KYLOCUnit# of SvcMembersArmy National Guard360,000Air National Guard107,000Navy Reserve67,000Marine Reserves40,000Navy Seabees24,000Navy Coastal Warfare4,000Navy Amphibs3,000Naval Special WarfareCommand (SEALs)4,000Naval ELSF10,000Naval InstallationCommand10,000Army Direct OrderingArmy ReserveOver 130,000207,000Customersdon’t have to carryinventory!KYLOCKentucky Logistics Operation Center (KYLOC) Acts as DSCP’s subcontractorDSCP pushes stock to KYLOC warehouseCustomers order via web, email, phone, faxPatches and name tags are sewn onOrders are kitted & shipped direct to customerKYLOC electronically tied to DSCPFY09 sales exceeded 151M15

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPClothing & TextilesSupply Chain Management Sustaining theaterrequirements for personalclothing(FR ACUs, boots,underwear, socks) New items added (IPFUs,FR ACUs, A2CUs) Military PersonnelAppropriation (MPA)account added for billingclothing bag items(e.g., IPFUs, boots)16

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPUniform Transition First unique design Woodland and Desertpatterns Permethrin added Apr 07 Roll out complete Mandatory wear dateMay 08 Roll out to deployersbegan Jan 07 Recruit issue beganOct 07 AAFES support ongoing CNO approved Feb 06 Work and Service uniform All items on contract17

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPOrganizational Clothing & Individual EquipmentManagement ChallengeExamples20012007 Body Armor Helmets Uniforms Boots Fire ResistantClothing Eye WearTrend is toward a more complicated andexpensive Kit with a rapid improvement cycle18

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPWhat’s Coming Next ?Glove Enhancement InitiativeModular Boot System19

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPClothing & TextilesWhat We Want to Leave You With Collaboration with Servicesand industrial base Professional,dedicated workforce Aggressive supply chainexecutionFocused on providing the war fighters what they need,when they need it, wherever they need it20

– Men’s Army dress coat 65 sizes – Airman battle uniform 155 sizes Military unique – Most clothing on a specification – Service driven requirements – Simple garments to complex protective clothing (e.g., chem suits) Industrial base strategic supplier issues –