NEW CUMBERLAND, Pa. –
Warehouse Utilization program managers from the Defense Logistics Agency Logistics Operations directorate hosted a technology demonstration at DLA Distribution Susquehanna, bringing together stakeholders from across the War Department to showcase advances in logistic agility through modernizing warehouse management Jan. 7.
“The challenge that we have across the Department of War today is that we don’t have good visibility on our inventory storage locations,” said Lee Dvonch, Warehouse Utilization program manager, DLA Logistics Operations. “DLA has taken the lead in instituting these warehouse utilization tools that will allow us to get visibility into our warehouse spaces and associated costs so we can utilize our space more efficiently and be able to fill new requirements more effectively.”
To enhance warehouse management in accordance with the Government Accountability Office report published June 21, 2017, titled “Supply Chain Management: DOD Could More Efficiently Use Its Distribution Centers” and the National Defense Authorization Acts for fiscal years 2021, 2023, and 2025, the DOW, through the Office of the Assistant Secretary of War for Sustainment, has been directed to implement a Warehouse Utilization defense reform, with DLA serving as the program lead to pilot and integrate technology solutions throughout the military services.
“DLA has instituted pilot programs to develop and implement these technologies that we’re sharing with all of the services as they’re starting to pilot their programs,” Dvonch said. “We’re sharing our best practices, lessons learned and helping the services understand what they need to do to set up successful programs of their own so we can scale this across the entire department.”
In the morning demonstration session, participants observed a three-part toolkit. They first looked at a lidar backpack, which captures a 3D model of the warehouse as an operator walks through the aisles. This data is then processed by an artificial intelligence application, "AutoCap," which converts the 3D models into actionable metrics on storage capacity and utilization. Finally, the data flows to the "InSite" dashboard, an enterprise tool hosted on the DOW multi-domain, enterprise-wide data analytics and AI platform, making the information available to operators and senior leaders alike to support proactive supply chain planning.
The demonstration also featured the new Automated Cycle Counting pilot program. This system leverages Radio Frequency Identification technology to automate inventory management, a traditionally manual and time-consuming process.
The process begins by seamlessly integrating RFID tags with both incoming and existing stock, a step that adds seconds to current workflows and ensures every item is digitally tracked. A versatile scanning system then takes over, using everything from autonomous nightly scans and passive tracking on material handling equipment to portals and handheld devices. This continuous data stream feeds an AI platform that delivers actionable insights, enabling staff to correct discrepancies, locate missing items and gain a comprehensive, depot-wide view of inventory. This allows for focused tracking of high-priority assets and reduces write-offs by providing clear, data-driven analysis.
“Today, our storage operators are spending a lot of time with manual processes to understand what material is on hand and to reconcile discrepancies as they appear. But tomorrow, their time is going to be feed up as we’re bringing technology to the table to empower the workforce,” said Sarah Pavlak, warehouse utilization program lead, military services, contract support. “They have the skill, they have the talent, and we’re helping them free up their time through this technology so they can focus on what really matters.”
This system is currently in its second phase of real-world deployment at an active warehouse at DLA Distribution Corpus Christi, Texas, with live inventory. To date, over 420 locations, prioritized by the highest-value items, have been tagged. The on-site team is rigorously testing the system under real material flow and operational constraints to observe performance and make necessary adjustments, ensuring it is tailored to the unique demands of a distribution center environment.
“The technology we’re utilizing in the Warehouse Utilization program has developed rapidly in the last several years, and it’s becoming more robust and enables many time-saving mechanisms by automating some of those non-value added functions, such as searching for lost inventory or conducting manual inventory counts,” Dvonch said. “We’re able to take this existing technology and apply it to DOW-specific use cases. We’ve got a unique mission with unique requirements, and we’ve developed this technology for utilization in all of our different warehouse requirement scenarios.”
The Warehouse Utilization program ties into broader DLA strategic initiatives and dovetails the DLA Distribution digital transformation strategy, directly expanding the benefits of Warehouse Management System capabilities.
“The Warehouse Utilization program directly supports the DLA Director’s posture initiative by ensuring that we have the necessary inventory stored in appropriate locations where it’s closest to the point of need,” Dvonch said. “The program also aligns with the precision imperative to make sure we’re accurately accounting for that inventory and supporting inventory management requirements across the department in the most effective and efficient way possible.”
Approximately 40 representatives from all of the military services, the General Services Administration and the Office of the Under Secretary of Defense for Acquisition and Sustainment attended the demonstration.
"By bringing together representatives from all military services and government agencies, we created a powerful collaborative environment to share best practices and lessons learned,” Dvonch said. “The feedback and ideas gathered are critical for developing a cohesive future roadmap and enhancing our technology to solve the real-world problems our distribution centers face today."