NEW CUMBERLAND, Pa. –
Defense Logistics Agency Vice Director Brad Bunn visited DLA Distribution Headquarters Jan. 24 and 25. Joined by DLA Headquarters’ leaders, Bunn’s visit marks the second to last in a series of DLA major subordinate command “deep dives.”
“As I visit the DLA MSC’s, I’m really interested in how we’re doing with core mission essential functions and financials. I want to ensure we’re ready for today’s business, but focused on the future,” Bunn said.
Bunn and his team asked for specifics on how they can help break down barriers and improve communication to ensure DLA customers, Congress and the Defense Department see DLA as a force multiplier.
Navy Rear Adm. Grafton D. Chase, DLA Distribution commander, opened the discussion, highlighting his team-focused commander’s intent to drive a high-performing, innovative culture. Network optimization, modernization, audit and a new warehouse management system are the four major priorities being implemented to meet the needs of the warfighter of the future.
Chase’s team explained how these efforts are on course to reduce DLA’s cost recovery rate by 10% by 2030. The multi-faceted approach includes leveraging technology, business process reviews and a request for DLA to advocate for policy changes and pursue alternative funding for inactive inventory and operations outside the continental United States.
Each priority is interdependent and supports the success of the other along the modernization journey. It involves optimizing the network by centralizing and modernizing storage and distribution for fast moving and dormant stock, while preserving warfighter readiness. The plan addresses the massive changes in workload, workforce, inventory and storage facilities over the past 25 years, while preparing for future productivity and cost reductions. With a nod to Navy Rear Adm. Joseph D. “Doug” Noble Jr., DLA Logistics Operations, for supporting the plan to optimize the OCONUS network, the team is now focused on rebalancing the CONUS network.
The DLA Distribution team detailed how the investments in network optimization will leverage infrastructure to build the foundation for modernization efforts, while also ensuring accuracy and reducing annual inventory costs through automation. A new warehouse execution system will be implemented within eight locations, serving as a primary interface between the new warehouse management system, wireless tablets, printers and voice technology.
“We have a great relationship with all levels of the agency — we’re working together to achieve what can be done to improve. At the end of the day, even from an agency standpoint, we’re at an inflection point,” Perry Knight, DLA Distribution deputy commander, said.
The strong relationship between DLA Distribution and DLA Information Operations, vital to modernization efforts, was applauded by Bunn. Building Wi-Fi and cellular upgrades for new wireless and mobile technology enables DLA Distribution workers to improve accuracy and productivity and empowers leaders to “see” inside warehouses to manage material and workload.
“It’s like buying a Ferrari but only having a dirt road to run it on. You need to invest in the infrastructure,” Eric Basile, DLA Information Operations, said.
The team also provided an update on another foundational key to improving the network — the approximately $220 million modernization project at the Eastern Distribution Center. Designed to simplify processes, increase productivity and reduce costs in the largest and most impactful facility in the network, the EDC modernization effort is about half-way through completion.
“The EDC didn’t have any backup controllers. We hired a company to look at all our infrastructure. Over time, the mechanization becomes more expensive to repair. We had to look at the life cycle,” Knight said.
Bunn and his leadership team toured the EDC to see the on-going modernization efforts. During the tour, the DLA team saw first-hand how the pick process will be fully automated with a goods to person system, voice-pick technology and American Disability Act compliant workstations, designed for comfort and efficiency.
“The new workstations will also enable package consolidation, saving DLA over $6 million every year and already reducing power consumption by 45%,” Tim Kosky, modernization project manager said.
Chase’s team outlined the agency-wide effort involved in implementing the new DLA WMS, the agency’s largest information technology modification in the past 20 years. The system is live at four DLA Distribution locations, and is slated to be implemented at all 24 distribution centers by 2025. Employees appreciate the look and feel of the modern system, including drop down windows that make it easier to learn the new system and complete transactions.
In addition to new automation and technologies, the modernization efforts to optimize the network will help DLA Distribution achieve an unmodified audit opinion by fiscal year 2026, demonstrating inventory accuracy at 99%. The “out of the box” functionality of WMS allows for inventory counts at the bin level, addressing audit concerns regarding gains and losses to specific owners.
During the visit, Bunn recognized several DLA Headquarters and DDSP employees with vice director coins. He was impressed with the ongoing modernization activities and proud of DLA Distribution’s willingness and ability to continue to support the warfighter and customers while modernization efforts take place simultaneously.
“Distribution is like the cardiovascular system of DOD, and it looks healthy. It was good to see the cutting edge, current state of the art equipment. It’s like plugging in and recharging the batteries … it does a lot for me personally,” Bunn said.
In conclusion, Chase thanked Bunn and his leadership team for their visit, pausing to emphasize his philosophy — one team.
“We need to set high standards to become that world class organization and become an employer of choice,” Chase said.