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News | Feb. 16, 2023

DLA, TRANSCOM leaders outline logistics modernization efforts at defense industry forum

By Nancy Benecki Defense Logistics Agency

Modernization and supply chain management were some of the topics discussed during a panel focusing on the Defense Logistics Agency and U.S. Transportation Command at the National Defense Industrial Association’s 37th Annual Logistics Forum held Feb. 8-9 in Orlando, Florida.

DLA Vice Director Brad Bunn and Army Lt. Gen. John Sullivan, deputy commander of TRANSCOM, led the panel with Guy Beougher, a vice president at Cypress International, serving as the moderator.

DLA is “very much in the mix when it comes to building a sustaining, integrated deterrence model that leverages all those elements of not only national military power, but also whole of government and industry, working with allies and partners,” Bunn said to a room of about 150 government and industry attendees.

TRANSCOM and DLA work together daily to provide sustainment globally, Sullivan said. He spoke about the command’s support to Europe and its important relationships with commercial transportation providers.

Bunn gave an overview of DLA’s vast reach and the diverse work of its supply chains. The agency had $48 billion in obligations last year, and it relies heavily on industry partners to provide materials.

“We can’t do it without you, without industry,” he said.

DLA and TRANSCOM are continuing to work on adopting the recent National Defense Authorization Act, which designates TRANSCOM as the single manager responsible for bulk fuel management and delivery, Bunn and Sullivan said. Current efforts include identifying support that may need to be adjusted as the world’s political landscape changes and identifying plans to distribute fuel in contested environments.

Modernization is a priority for DLA, Bunn added, and includes modernizing warehouse management and automating large distribution platforms using the agency’s data management strategy, he said.

“DLA is a clearinghouse for loads and loads of logistics data. We're sitting on a mountain of data,” he said. “We're trying to figure out how best to leverage that to support the warfighter and to reduce flash-to-bang when we need to make important decisions about how we allocate resources.”

DLA needs to stay agile and fast and can do that by modernizing its business systems, Bunn said. As an agency that makes 10,000 awards per day, 94% of those awards are automated, Bunn said. Through automation, solicitations can be issued, bids can be received, and the assessment, evaluation and awarding of contracts can be completed in a matter of hours or days, he said.

Supply-chain risk management is something DLA has managed for years but is always changing, he added.

“When we think about supply-chain risk management, it's different and depends on the supply chain. There are different vulnerabilities, different risks, different challenges that we have to manage,” Bunn said. “What's newer about it is the absolute critical need to illuminate our supply chains. In many ways, we're built to face that prime supplier. Now we need to get a little deeper and understand the lower tiers of the supplier base, so that we can be more predictive in assessing that risk, managing it and mitigating it.”

The shrinking defense industrial base is a challenge for the entire Defense Department, he added.

“Like the rest of the federal government, like the rest of DOD, we have seen a shrinking of the industrial base over the past several years to the tune of 30 or 40%,” he said. “Where there are 9,000 suppliers now, that is down from 12,00-14,000 suppliers just a few years ago.”

The theme for this year’s conference was “Logistics: Key to Integrated Deterrence.” Assistant Secretary of Defense for Sustainment Christopher Lowman was the keynote speaker. The conference offered senior leaders, defense officials, acquisition partners, and logistics and financial experts a chance to network and share ideas to support the nation’s warfighters.