An official website of the United States government
A .mil website belongs to an official U.S. Department of Defense organization in the United States.
A lock (lock ) or https:// means you’ve safely connected to the .mil website. Share sensitive information only on official, secure websites.

News | July 17, 2026

Digital backbone emphasized in Fiscal 2027 Annual Guidance

By DLA Public Affairs

The Defense Logistics Agency’s newly released Annual Guidance for fiscal year 2027 outlines a push to modernize the agency by building a unified "digital backbone" while continuing to sustain global military operations.

The guidance from DLA Director Army Lt. Gen. Mark Simerly continues to prioritize setting the agency, setting supply chains, and setting the globe. It builds on the previous year’s priorities by framing the agency's transformation as a critical response to the current global landscape.

"This is a transformation of necessity, driven by a convergence of geopolitical instability, the relentless pace of current military operations, and critical fiscal realities," Simerly wrote in the guidance.

He emphasized the need to shift from legacy processes to high-impact performance to ensure every resource translates directly into military readiness.

Central to the fiscal 2027 strategy is the development of enterprisewide digital infrastructure. This multi-year effort is designed to enable greater supply chain visibility and predictive analytics aided by artificial intelligence.

"The foundation for today’s mission space is clear: a unified and flexible digital backbone connecting the DLA workforce and external stakeholders," Simerly said. "Transforming into a digital AI-powered organization is the key to unlocking end-to-end supply chain visibility, enabling predictive analytics, and empowering our people to best serve the warfighter."

The agency will continue measuring objectives and key results to gauge progress, aligning fiscal 2027 goals across six focus areas that form the digital backbone. These include establishing an authoritative data environment and reimagining core business processes with embedded AI.

The guidance details a dual-pronged approach of scaling successful programs and rapidly deploying new digital tools. To lead this effort, the agency has established a new Agency Transformation Center to synchronize modernization and drive business process re-engineering.

Simerly acknowledged the challenges ahead while expressing confidence in the DLA team.

"The road ahead will be demanding. It will require us to aggressively break down silos, embrace innovation, and make decisive, data-driven choices," he said. "It will require discipline, patience, and a shared commitment to the mission. I know that our team will rise to the challenge."

The Annual Guidance is available on the agency’s Strategic Plan 2025-2030 page.

Editor's Note: This article includes elements of AI-generated content, reviewed for accuracy by War Department employees.