NEW CUMBERLAND, Pa. –
A DOD-led effort to optimize warehouse management is saving the Marine Corps millions at Defense Logistics Agency Distribution Barstow, California. DLA employees teamed with the Defense Department, the Marine Corps at Marine Corps Logistics Base Barstow in California and a contracted agency on the project.
“Barstow now stands as a model for other services to replicate and for DLA to expand on for even greater savings and cost avoidance,” said Jim Liberko, a DLA employee leading the project for the deputy assistant secretary of defense for logistics.
The team strategically planned the warehouse utilization initiative for over a year, then aggressively started accomplishing key milestones in February to successfully transition Marine-owned material at Barstow. External customer moves were also prioritized as seven buildings were vacated and returned to the USMC and two new buildings were assumed by DLA Distribution.
Almost 2 million square feet of inventory was moved using re-warehousing and racking to clear the way for the Marines’ large rolling stock, valued at nearly $160 million. Moving the vehicles out of desert conditions and into covered storage will reduce corrosion, avoiding $44 - $65 million in maintenance costs and saving $26 - $32 million in contract costs and travel time. Adding in anticipated costs of $800,000 - $1 million for moving and transporting inventory creates an anticipated net benefit of $69-$96 million for USMC.
In addition to USMC savings, DLA gains operational efficiencies by centralizing its hazardous materials operation into a single building and collocating fast-moving inventory into the receiving operation. The agency will avoid over $3 million in costs to replicate storage buildings and relocate inventory and save $2-4 million in reduced contract costs. With an estimated $300 - $500,000 in costs to upgrade and move storage aids, DLA anticipates a $4 - $7 million net benefit.
The warehouse utilization effort at Barstow concluded in mid-July, illustrating the ability to create a true “win-win” when stakeholders communicate, partner and work toward a common objective.
“This has been an extremely positive and productive partnership where everyone is a team player and a lot of it is based on trust and agreements,” said DLA Distribution Barstow, California’s Acting Commander, Army Lt. Col. Christine Takats.
The original DOD warehouse utilization plan included three additional pilot sites — Anniston Army Depot, Tinker Air Force Base and Naval Base San Diego. MCLB has been the only pilot site to execute the plan, but the remaining sites may move forward if additional funding is secured.
For more information on the new technology used for these projects: DOD warehouse utilization project aims to increase use of storage space, save millions > Defense Logistics Agency > News Article View (dla.mil)