Warehouse Modernization: Efficiency and resilience through innovation

NEW CUMBERLAND, Pa.  –  

Defense Logistics Agency Distribution is progressing on a comprehensive modernization program that increases efficiency, accuracy and responsiveness in its storage and delivery missions.

“Our modernization efforts are key to the future of DLA Distribution,” said Navy Rear Adm. Michael York, DLA Distribution commander. “Through the Warehouse Management System, we will achieve better audit readiness. Modernized information technology will enable us to create the environment we need to be successful, and our network optimization will ensure the right material is in the right place to get to the warfighter as rapidly and effectively as possible.”

For decades, DLA Distribution relied on a reactive “break-fix” approach to maintaining its digital infrastructure and automation systems, many of which were inherited from the military services during Base Realignment and Closure initiatives. Now, the agency is proactively investing in technologies and strategic network optimization to create a more agile and resilient logistics system.

Optimizing the Network for a Contested Future

A cornerstone of the modernization effort is network optimization. Recent global events, including the COVID-19 pandemic, the U.S. military withdrawal from Afghanistan and the conflict in Ukraine, have exposed vulnerabilities in global supply chains and highlighted the need for a more adaptable and robust distribution network. DLA Distribution is responding with a 2030 network vision that prioritizes efficiency and responsiveness.

“This vision involves strategically repositioning inventory across the DLA Distribution network,” York said. “Inactive materiel will be consolidated at DLA Distribution San Joaquin, California, while active materiel will be positioned at DLA Distribution Susquehanna, Pennsylvania, maximizing the benefits of modernization investments at these locations.”

Overseas locations will focus on crossdocking and readiness drivers, streamlining the flow of critical supplies. The consolidation of hazardous materials and general-purpose inventory at DLA Distribution San Joaquin will further enhance efficiency and reduce costs.

“This network optimization is not only about efficiency; it’s also about preparing for a future with contested logistics,” York said. “With a global presence and billions of dollars of inventory supporting thousands of weapons systems, DLA Distribution must be ready to operate in challenging environments.”

To enhance resilience and readiness, DLA Distribution is also exploring the Cold Site Concept, a strategy that establishes a network of smaller, geographically dispersed storage locations to mitigate risks associated with potential disruptions to primary distribution centers or strategic lift capabilities.

Transforming Business Processes with the Warehouse Management System

A key element of the modernization program is implementing a new Warehouse Management System, a modern, off-the-shelf system that replaces the Distribution Standard System. WMS aligns DLA Distribution with industry best practices, facilitates cloud computing and seamlessly integrates with DLA’s Enterprise Business System.

“As of April, we will have implemented WMS at 19 sites, with five more to go across DLA Distribution,” York said.

Upon implementation, DLA Distribution’s WMS team provides three weeks of dedicated support, then analyzes data and collects user feedback and best practices to apply to future WMS fielding.

“We want each of our sites to return to normal levels of output as soon as possible after implementation because each of our sites provides invaluable support to the warfighter,” York added.

DLA Distribution also uses the data and feedback to implement retrofits, which are done as needed to improve or add capabilities that weren’t part of the original programming. Retrofits lead to more efficient processing and provide a solution for an audit finding in the offload and receiving area. They’re executed as mini-implementations with employees being trained on new capabilities before going live. The retrofit team includes experts from human resources, network process management and information operations who are onsite for two weeks to coach employees and repair defects encountered during initial use.

Modernizing Equipment and Infrastructure

DLA Distribution is also investing heavily in modernizing its equipment and infrastructure. An upgrade at the Eastern Distribution Center at DLA Distribution Susquehanna is transforming the traditional storage and distribution center to a state-of-the-art fulfillment facility, York said. The effort includes integrating robotic arms for small parcel handling, replacing outdated towline systems with automated guided vehicles, and adopting a “goods-to-person” approach that minimizes manual handling and improves accuracy.

Beyond the EDC, DLA Distribution is implementing advanced technologies, including:

Embracing Wireless and Mobile Technologies

Mobile technology is already enhancing productivity throughout DLA Distribution sites. Tablets and mobile printers deployed across the network have helped improve inven-tory management and stock readiness. Voice-enabled workflow technology has also demonstrated productivity gains in picking operations.

Research and Development

DLA Distribution is engaged in research and development to explore how emerging technologies might further transform operations. These initiatives include:

Modernization initiatives are strategic cornerstones of DLA’s broader mission, York said, adding that DLA Distribution aims to be more responsive and agile in today’s complex global landscape. Implementing modern systems like WMS and investing in automation streamlines operations, reinforces financial responsibility and improves auditability while supporting data-driven decision-making, especially in tomorrow’s contested environments.