Modernization of the Distribution Network

Strategic Overview

Logistics is no longer a back-end function; it is a front-line enabler of military success. The ongoing conflict in Ukraine has underscored the critical role of logistics in modern warfare, where the ability to move, store, and deliver material at speed will be a decisive factor in conflict outcomes.^[1] The supply chain is increasingly contested as the United States faces strategic competition with China and Russia. This includes cyberattacks on infrastructure, such as the 2021 Colonial Pipeline ransomware attack, which disrupted fuel distribution across the Eastern United States and highlighted vulnerabilities in critical infrastructure.^[2]

DLA sits at the center of this challenge. Its mission extends beyond storing parts. It provides a logistics foundation that allows the Joint Force to respond when needed, in any environment. As codified in DoD Directive 5105.22, the Defense Logistics Agency is tasked with providing logistics support across the Joint Force and Combatant Commands, defining its role as an operational enabler rather than just an administrative function.^[3] However, fulfilling that role today requires more than what the directive envisioned. The operational environment has become faster, more contested, and increasingly digital. DLA Distribution can no longer rely on old systems designed for predictable problems. The mission has shifted. Logistics must now operate under pressure, across domains, and with interconnected systems capable of absorbing disruption and maintaining tempo. This paper focuses on how DLA Distribution is modernizing to meet those demands.

Introduction: Translating Military Readiness into Commercial Resilience

DLA is often compared to Amazon.^[4] At a glance, the comparison holds. Both operate vast distribution networks and leverage automation and data to manage inventory at scale. But the missions diverge sharply. Amazon is designed to move finished consumer goods to predictable locations under stable conditions, where demand is forecasted, infrastructure is intact, and delivery timelines are measured in hours or days. DLA’s portfolio is far more complex. It includes food, fuel, medical supplies, repair parts, and construction material – often delivered into contested or degraded environments. It operates across domains, supports joint and coalition forces, and must execute under the friction of real-world operations. Where Amazon maximizes efficiency, DLA maximizes readiness. Its distribution network is not built for convenience; it is built for conflict.

DLA Distribution’s decision to modernize was not driven by trends or convenience. It was a calculated response to an evolving threat environment. The global logistics landscape is becoming more complex, less predictable, and increasingly contested. From cyber threats to infrastructure vulnerabilities, the ability to move and sustain materiel under pressure has become a critical warfighting function. DLA’s modernization campaign is designed to meet that challenge head-on.

While this paper focuses on DLA Distribution’s internal modernization, many of the approaches developed under pressure have broader application, especially for civilian logistics leaders navigating today’s volatile environment. DLA’s logistics model is built for military readiness, not market profit, which leads to different priorities than what is typically seen in the civilian sector. While most commercial supply chains are optimized for cost, speed, and predictability, DLA must operate through uncertainty, degraded conditions, and operational complexity. This contrast is not a critique, it is a different design for a different mission. But in today’s increasingly unstable global environment, there are meaningful insights that civilian logistics leaders can draw from the way DLA plans and operates.

Civilian logistics planners can learn from DLA’s posture toward disruption. DLA positions inventory based on mission urgency and operational risk – not just geography or warehouse cost. It maintains latent surge capacity using cold-site warehouses, modular infrastructure, and trained teams that can activate quickly. Critically, it also prepares for degraded operations, with systems and processes that continue under cyberattack, data loss, or infrastructure failure. While these practices may seem inefficient during steady-state operations, they offer decisive advantages when the unexpected occurs – a lesson many companies learned during the COVID-19 pandemic and recent global shipping disruptions.

This paper outlines how DLA Distribution is transforming its workforce, infrastructure, and technology to ensure it can support the Joint Force in both routine operations and contested environments. By focusing on speed, visibility, and data-driven decision-making, DLA is building a logistics enterprise capable of surviving and thriving under stress. The civilian sector may optimize for simplicity – but DLA achieves operational resilience through a deliberately complex logistics system. That principle, tested under fire, is both the foundation of DLA’s modernization effort and a strategic insight for any organization preparing for the unpredictable.

Campaigning and Framework

Campaigning is the mechanism through which logistics become actions: aligning resources, operations, and investments toward strategic outcomes. For DLA Distribution, modernization is how logistics becomes campaign capable. As outlined in the 2022 National Defense Strategy (NDS) and the Joint Strategic Planning System (JSPS), campaigning is the continuous alignment of operations, activities, and investments to advance national objectives.^[5] Modernization is how DLA Distribution aligns its logistics mission with that broader campaign framework – not just for today’s demands, but to prepare for tomorrow’s fight.

DLA Distribution’s approach to modernization is rooted in building resilience through well-structured systems. It aligns with the agency-wide initiative “DLA Transforms – A Call to Action” and supports the Department of Defense’s global campaigning architecture.^[6] This effort is not theoretical or paused for convenience. The modernization effort was designed to unfold in stride, maintaining full mission tempo while adapting to the future fight. DLA did not wait for a break in the action. It modernized through motion, proving that resilient logistics emerge not despite complexity, but because of it.

The campaign framework is organized around four mutually reinforcing functions that guide modernization across DLA Distribution:

1. Setting the Conditions: establishing the right culture, posture, and standards to enable innovation and change.
2. Systems Management: integrating enterprise-level tools and platforms that improve visibility, coordination, and control.
3. Data-Driven Management: using analytics, production oversight, and standardized processes to drive performance and anticipate demand.
4. Warehouse Operations: applying advanced technologies to enhance throughput, reduce manual labor, and improve flexibility on the floor.

These functions are interdependent, working together to create a logistics system that adapts under pressure without compromising output. Whether through 5G infrastructure, wearables, production management, or network optimization, every effort is nested within this framework to ensure the enterprise can evolve in stride with mission requirements. 

Modernization allows DLA Distribution to position logistics as an active enabler of global campaigning. The agency is building a distribution network that supports the Joint Force with speed, transparency, and resilience – on day one, and every day after.

Managing with Data: A Data-Driven Approach to Logistics

In any enterprise, complexity without clarity leads to chaos. For DLA Distribution, data provides that clarity. It allows decision-makers to see what is happening, what is needed, and what is coming next.^[7] Managing with data is about turning complexity into insight and insight into action. As the agency modernizes, data acumen has become a core competency at every level of the organization. From the floor to the enterprise, leaders are expected to interpret real-time insights, adjust workflows, and anticipate demand before gaps appear.

This shift is not theoretical. In 2017, DLA forward-positioned over 40 million dollars in Class I and Class IV material based on projected need. That material was never used.^[8] While the overbuying carried a financial cost, the larger issue was the lack of precision forecasting. The result was misalignment that ultimately pushed waste and inefficiency back onto the customer.^[9] Today, with tools such as Qlik and the Labor Management Module, DLA tracks performance in real time, visualizes operational trends, and applies predictive analytics to prevent that kind of mismatch. Data is no longer a lagging indicator. It is a decision-making tool that shapes how Distribution allocates resources, manages labor, and postures inventory.

But data alone is not enough. The value lies in how we frame it and the speed at which we act on it. Logistics generates massive volumes of information, but commanders do not need more dashboards. They need clarity. That clarity comes from curating the right data with the right operational context to drive decisions that influence the fight. Whether identifying a break in the supply chain, forecasting a Class IX shortage, or adjusting posture for a surge, the goal is the same – operational foresight, not after-action reporting.

In a contested logistics environment, speed of thought matters as much as speed of movement. Data enables responsiveness when it matters most. It allows logisticians to stay ahead of friction rather than respond to it. Transparency, auditability, and the ability to act on information at speed are essential in an environment where timing can define success. Data, when curated and operationalized, becomes a weapon system in its own right.

Automation and Advanced Equipment: Driving Efficiency

Speed and precision in logistics do not happen by accident – they are engineered. As operational demands grow and human capacity reaches its limits, automation bridges the gap. The true value of automation lies not just in speed, but in giving commanders more ways to sustain the fight. It transforms warehouse operations from labor-intensive to intelligent, enabling DLA to move faster, smarter, and more resiliently.

Technologies like Automated Guided Vehicles (AGVs), Automated Storage and Retrieval Systems (ASRS), and voice-activated workflows are already in use across DLA Distribution to streamline operations and optimize space. When paired with Very Narrow Aisle (VNA) racking, ASRS dramatically increases storage density – a critical advantage in high-demand environments where physical expansion is not feasible.

These capabilities hedge our bets in both directions. If an adversary disrupts our mechanical systems, trained personnel can take over with minimal downtime. If the disruption constrains our manpower – whether through denied access, contested environments, or labor shortages – automation preserves throughput. We are deliberately building complexity into our system because structured complexity creates resilience. These systems make complex situations less complex by giving commanders multiple paths to sustainment.

Private-sector examples like Amazon highlight the power of automation at scale. The company operates more than 750,000 mobile robots and robotic arms across its fulfillment network. ^[10] This investment has reduced order fulfillment costs by 25% and significantly increased throughput.^[11] But these gains are built for predictable environments and consumer expectations. Amazon’s systems are optimized for speed, not survivability. DLA operates under different conditions – where infrastructure may be degraded, access may be denied, and the mission cannot pause. Our automation must be more than efficient; it must be resilient. While Amazon builds for convenience, we engineer for contested logistics. The goal is not just to move faster, but to ensure continuity under pressure – delivering speed in peacetime and survivability in crisis.

Critically, these platforms are fully integrated with the Warehouse Management System (WMS), which provides real-time visibility into inventory, material movement, and storage status. This synchronization reduces error rates, improves auditability, and ensures inventory can be located, moved, and accounted for without delay. In degraded or denied environments where manual reconciliation is not feasible, this digital visibility becomes essential.

Automation is not a replacement for people, it is a strategic overlay that ensures operations continue despite disruption. ^[12] In environments where infrastructure is strained and demand is unpredictable, these systems allow DLA Distribution to sustain operational tempo without pausing the mission.

Warehouse Management System (WMS) and Warehouse Execution System (WES)

Coordination is the heartbeat of logistics, and in DLA Distribution, that heartbeat is digital. The Warehouse Management System (WMS) and Warehouse Execution System (WES) serve as the command and control layer for warehouse operations. WMS governs inventory: what we have, where it is, and how it moves. WES controls execution: which tasks happen, when, and in what sequence. Together, they transform fragmented, manual processes into synchronized operations. These systems give warehouse operators the ability to act in real time and commanders the confidence to plan boldly, even in contested or degraded environments.

WMS serves as the digital backbone of DLA Distribution.^[13] It manages material workflows, provides real-time visibility into inventory, and synchronizes operations across all Distribution Centers. Integrated with platforms like ASRS and AGVs, WMS ensures that every transaction, whether storage, movement, or issue, is recorded, auditable, and recoverable. In conflict scenarios where manual reconciliation is not feasible, this digital traceability becomes critical. WMS also enables interoperability with the Services, allowing shared data access that accelerates resupply decisions and provides transparency across the logistics enterprise.

While WMS governs inventory logic, WES commands the floor. It choreographs task execution, dynamically balances workloads, and synchronizes people and machines. Robotic arms, conveyor belts, and human operators are all connected through a unified system. When the mission surges or friction emerges, WES responds instantly to maintain momentum without requiring manual intervention.

WMS and WES do more than streamline operations – they absorb disruption. They are the digital infrastructure that allows DLA to scale under pressure, recover quickly, and deliver with precision in complex environments. Like automation, these systems introduce complexity by design – because complexity, when engineered properly, is what creates resilience.

Strategic Positioning for Operational Advantage

The true strength of military logistics lies in how the network is positioned to support operations. DLA Distribution is reshaping its network to create operational advantage through deliberate infrastructure upgrades, scalable surge capabilities, and targeted stock placement. Each initiative supports a unified strategy designed to position logistics as a decisive advantage in contested environments. The following sections explore how DLA is turning distribution into a warfighting enabler.

a. Optimizing the Network: Infrastructure and Global Logistics

DLA Distribution’s modernization strategy extends beyond automation and inventory – it includes reshaping the global logistics network to better support the Joint Force. A major component of this effort is the deliberate rebalancing of stock across the Continental United States (CONUS) and Outside the Continental United States (OCONUS) sites. Inactive materiel has been consolidated at locations like DLA Distribution San Joaquin, while high-demand inventory is positioned closer to points of need, such as at Susquehanna. This reduces excess movement, increases velocity, and supports DoD’s Warehouse Utilization goals.

Critically, DLA does not move material on its own. Strategic lift into theater is executed by U.S. Transportation Command (USTRANSCOM), while onward movement within theater relies on Common User Logistics Transportation (CULT), managed by geographic Combatant Commands and supported by the Military Services. DLA must remain synchronized with these partners to ensure seamless transitions from storage to movement, particularly under surge conditions. Cold site warehouses (referred to contingency warehousing in the civilian sector) – smaller, low-profile locations – add a layer of resilience, enabling DLA to maintain global reach while mitigating infrastructure risk. Meanwhile, infrastructure upgrades at major sites – including 5G connectivity, Internet of Things (IoT) integration, and full wireless coverage, are being implemented without disrupting operations. Modernization is occurring in parallel with daily mission requirements, proving that DLA can evolve its infrastructure without pausing its operational tempo.

b. Surging Capacity in Conflict

Modern warfare moves fast – sustainment must move faster. The ability to surge is not a luxury, it is a requirement. DLA Distribution’s modernization efforts are designed to support more than routine operations – they are structured to enable surge during conflict. In a high-end fight, the ability to rapidly scale distribution operations can become a decisive factor in sustaining the Joint Force. Modernized facilities, automated systems, and a trained, data-aware workforce form a layered ecosystem that allows DLA to flex and adapt in response to operational demand.

Forward-positioned material, real-time inventory visibility, and automated throughput help reduce time from requirement to delivery. At the same time, cold site warehouses provide additional surge depth, allowing DLA to quickly activate pre-positioned nodes in at-risk or emerging theaters. The Warehouse Execution System enables floor-level adaptability, shifting workflows as mission priorities change. With Common User Logistics Transportation (CULT) supporting movement within theater and USTRANSCOM executing lift into theater, DLA Distribution’s ability to surge is dependent on tight coordination with strategic partners. Together, these capabilities form a responsive, resilient network; structured not for simplicity but for adaptability under pressure.

c. Targeted Stock Positioning – Streamlining for Readiness

            In modern military operations, sustainment is not just about speed – it is about positioning. Material located too far from the fight risks arriving too late to matter. The early stages of the Ukraine conflict highlighted this reality, where pre-positioned materiel and rapid resupply proved critical to sustaining U.S. forces supporting the NATO Response Force.^[14] Targeted stock positioning transforms distribution from a reactive supply chain into a proactive force multiplier, directly shaping the tempo and effectiveness of operations.

As part of DLA Distribution’s modernization strategy, stock positioning efforts are aligning material with mission. Instead of storing inventory based on legacy habits or convenience, DLA is deliberately placing high-demand parts near the points of need. This approach reduces lead times, minimizes excess handling, and drives down distribution costs – efficiencies that directly support warfighter readiness and deliver value back to the Services. All while retaining the structural depth required to adjust positioning as operational priorities shift.

At locations like DLA Distribution Red River, this concept is already being executed as part of a network-wide effort to align stock with readiness requirements. At Red River, high-demand parts for tracked Army vehicles are strategically positioned to support Red River Army Depot (RRAD), a key site for ground combat systems sustainment. Instead of relying on long-distance shipments, maintainers have immediate access to critical repair parts, accelerating depot repair cycles and improving platform availability.^[15] Red River’s role demonstrates how tactical execution across the network supports enterprise-level objectives.

Simultaneously, low-demand and inactive materiel is being consolidated at locations like San Joaquin, freeing up space and reducing unnecessary movements. This effort supports DoD’s Warehouse Utilization (WU) initiative and allows DLA to reclaim capacity from commercial off-site storage.^[16] The result is a more agile and predictable supply chain – one capable of scaling to meet operational demand while maintaining support to depot-level maintenance across the Services.

Conclusion: Modernizing for Readiness

DLA Distribution’s modernization is not about technology for its own sake. It is about building a distribution network that can operate under pressure and deliver when it matters most. From workforce transformation and data-informed decision-making to warehouse automation and network optimization, every initiative is designed to improve responsiveness, increase visibility, and support readiness in contested environments.

This effort is not isolated. It is nested within the broader Department of Defense strategy and directly supports the Joint Force’s ability to campaign globally. It also reinforces the logistics architecture that underpins power projection.

The agency depends on USTRANSCOM for strategic lift, on theater-managed Common User Logistics Transportation (CULT) for in-theater movement, and on close coordination with the Services to position and move the right materiel at the right time. But integration cannot be assumed. It must be built through shared systems, shared visibility, and consistent communication. The success of this modernization effort hinges not just on DLA’s capabilities, but on how well we connect them to the broader joint logistics enterprise. To deliver under pressure, we must over-communicate in planning, over-coordinate in execution, and align efforts with a common understanding of risk, timing, and operational demand.

Looking ahead, modernization is about more than sustaining the current mission. It is about posturing for the next one. That future will demand more from the logistics enterprise: faster decisions, deeper visibility, and greater resilience under stress. To meet that challenge, DLA must continue working closely with the Services and Combatant Commands to pursue adjacent opportunities and shared investments.

At the heart of this transformation is a deliberate acceptance of complexity – not as a burden to be avoided, but as a design principle that enables adaptability. DLA is not simplifying its mission. It is engineering a distribution network capable of thriving in contested, unpredictable environments. That blueprint is the foundation for resilience – and for readiness.