FORT BELVOIR, Va. –
Great partnerships don't just happen. They take a strong commitment on both sides to establish an atmosphere of collaboration and cooperation necessary for a productive engagement, the Defense Logistics Agency’s director said in his keynote address during the National Defense Industrial Association’s 39th Annual Logistics Forum in Orlando, Florida, Feb. 11.
“We look forward to every opportunity, including this one, to collaborate and engage in discussions that will ensure we are maximizing readiness for our nation’s warfighters,” Army Lt. Gen. Mark Simerly said. “I believe we all must act on the same sense of urgency about transforming to meet the needs of our nation in today’s volatile operating environment. The need for urgency and clarity applies to the entire defense ecosystem, including our commercial partners.”
The theme for this year’s forum is “Innovating Defense Logistics: From the Industrial Base to the Front Lines.” The forum provides an opportunity for industry leaders, defense officials, senior acquisition experts, coalition partners, and logistics and financial leaders to discuss and gain valuable insights on warfighter support.
Simerly described DLA’s Campaign of Learning and “Warfighter Talk” series that recently featured retired Air Force Gen. Paul Selva, who offered a sobering assessment of adversaries’ war strategies.
“He described how China has been studying our networks, processes and supply chains for decades and that if competition ever turns to conflict, we will be in a fight we haven’t seen in any of our lifetimes,” Simerly said.
The director highlighted the important role the military plays in the security and prosperity of the United States and the world’s stability, adding that America must maintain its military dominance. He reminded the audience of DLA’s commitment as the nation’s Logistics Combat Support Agency to provide logistics solutions that keep the Armed Forces in the fight and winning.
Simerly said the agency’s strategic plan is a call to action for DLA to transform. The plan’s goals include improving integration with the joint force, allies, partners and industry as the agency uses data acumen to better anticipate warfighters’ requirements. Increased use of technology will make DLA as resilient as it is efficient. In addition, the agency intends to apply supply chain strategies that are smarter, faster, better connected and better protected.
Small business support
In 2024, DLA obligated about $52 billion for the services, making it a record year.
“A very significant portion of that obligation is fulfilled by small businesses,” Simerly said. “The more than 8,000 suppliers we work with are a critical component of what we do, and 80% of them are small businesses.”
The number of small vendors working with DLA has declined by over 20% and in some sectors, even more.
“We're pleased that over the last two years, the rate of reduction has slowed to about the 1-2% range, down from an annual high of 5-7% losses in our supplier base,” he said. “As an agency, we have been working diligently to regain some of our old suppliers and to add some new suppliers across all of our commodities.”
Simerly said DLA continues working to increase its suppliers while reducing barriers to entry and creating opportunities for vendors to have a greater, persistent role in the industrial base.
He noted that 21 textile plants in the United States closed last year, causing significant impacts on the agency’s clothing and textiles supply chain.
“They’re closing because of a variety of factors, the most critical being pressure from offshore sources of supply,” he said. “We must find ways to reverse that trend and to strengthen our own resilience in these different sectors. We must be able to measure where we're making gains and where we're taking losses, so we can evaluate the risk and prioritize investments with precision.”
4’S - Sensor, Shooter, Sustainer, Supplier
Simerly described expanding the services’ current sensor-to-shooter-to-sustainer concept, which ensures munitions and supplies are available when needed. He proposed adding “supplier” to ensure supply chains are resourced and connected.
“It enhances the speed of decision-making and action by integrating advanced technologies and real-time data. It allows for large-scale operations involving multiple branches and international partners, ensuring a coordinated and unified approach,” he added. “It also improves demand forecasting and provides actionable information to industry.”
The director said the new concept expands the scope of military operations by incorporating land, air, sea, cyber and space domains into a cohesive strategy.
“It promotes synergy among different units and services, fostering collaboration and interoperability while creating a more efficient, lethal and adaptable military force capable of meeting the challenges of future conflicts,” he said.