The Vendor Shipment Module (VSM) is a DLA enterprise-wide, web based system that supports shipping and tracking movements from DLA suppliers to DLA customers and DLA warehouses. VSM can be used to notify DLA that a Free On Board (FOB) Origin order is ready for pick up or DLA suppliers can access VSM Military Shipping Labels, packing lists, bill of ladings, correct destination addressing for both FOB Origin and FOB Destination orders, and much more.
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Role of US Transcom
Within the Department of War, the USTRANSCOM performs transportation for all military services. This includes DLA's transportation which is booked using agreements executed with USTRANSCOM.
If you are a small business in the trucking/transportation industry, you can reach out to the USTRANSCOM's Office of Small Business Programs (OSBP) .
In addition, if a transportation company aims to become registered as a carrier for the 3PL (third-party logistics), additional details and registration instructions are available via the Defense Freight Transportation Services (DFTS) contract (PDF).
If you are a Domestic Commercial Carrier that aims to learn more about hauling freight for the government, contact the FCRP:
- Freight Carrier Registration Program (FCRP)
The observation that many prime freight awards go to "freight brokers" who then subcontract to actual asset owners is accurate. This is primarily driven by how DLA manages freight through the Vendor Shipment Module (VSM) and overarching Department of War transportation contracts (e.g., USTRANSCOM).
Benefits of Utilizing VSM
Primary benefits for both small businesses using VSM for either FOB Origin or Destination Contracts:
- No charge to utilize VSM
- Accurate ship-to addressing
- Printed labels and transportation documents sourced from DLA contract information
Additional benefits for small businesses using VSM for FOB Origin Contracts include:
- VSM provides and pays for transportation via DLA contracted carriers
- Multiple supplier addresses/locations are supported
- Accurate ship-to addressing
- Email notification when shipping documents are ready to print/carrier pickup date
- Accurate on-time delivery scoring
VSM Registration
During supplier registration, DLA systems automatically transmit contract information directly into VSM. This data synchronization is driven by your Commercial and Government Entity (CAGE) code and determined by your contract's FOB Origin or Destination terms.
If the supplier is not registered prior to award, the contract will be available in VSM. However, awards missing from VSM can be manually populated by the supplier after VSM registration is complete.
Important: Small businesses should register each of their "ship from" addresses in VSM.
Transportation Routing Overview
VSM determines whether shipments will be routed small parcel or freight. In order to reduce transportation costs, VSM personnel will combine smaller freight shipments when destined to the same address and have the same priority level.
Small parcel items have the following characteristics:
- Weight & Dimensions: Weighs 150 lbs or less, with a maximum length of 108 inches and a combined length and girth not exceeding 165 inches.
- Approved Carriers: Can be dispatched via standard commercial express services, such as UPS or FedEx.
Less-than-Truckload (LTL) shipments are typically more than 150 lbs but less than 10,000 lbs.
A truckload (TL) is generally 10,000 lbs to 40,000 lbs.
Why Freight Brokers Hold Prime Awards vs. Asset Owners
The transportation dynamic depends heavily on the delivery terms of the procurement contract.
FOB Origin Overview and Process
FOB Origin is when the government arranges and pays for freight. DLA manages and pays transportation while the supplier enters the shipment details such as weight, pieces, and dimensions. On FOB Origin shipments, VSM prints all labels and transportation documents.
The process for when a DLA contract includes the terms FOB Origin:
- The material supplier logs into VSM (or for VSM web service users, systemically transfers data into VSM) to enter shipment data and request that transportation be arranged.
- In response, VSM will route the freight to a prime transportation provider.
- VSM then automatically routes this freight to a prime transportation provider. To manage massive, global freight volumes efficiently and ensure strict In-Transit Visibility (ITV), DLA utilizes large third-party logistics (3PL) providers (such as the Defense Freight Transportation Services - DFTS contract).
While these 3PLs act similarly to "freight brokers" at the prime level, their contracts require robust Small Business Subcontracting Plans. This ensures that the actual transportation execution is performed by small business asset owners, albeit as subcontractors.
This model provides the government with guaranteed capacity and a single point of accountability while still directing revenue to small trucking firms.
FOB Destination Overview and Process
FOB Destination is when the supplier/vendor arranges and pays for freight. The supplier enters shipment information and can also enter the carrier's name and tracking number to aid in receipting material. On FOB Destination, VSM provides the Military Shipping Label(s) and package or box labels.
When a DLA contract includes the terms FOB Destination, the material supplier is responsible for arranging the freight. The supplier uses VSM to confirm the delivery address and generate the required Military Shipping Labels (MSLs).
Many small business manufacturers choose to hire commercial freight brokers to manage their shipping logistics rather than soliciting individual owner-operators. In these instances, DLA does not dictate carrier selection; it is driven entirely by the commercial market choices of the prime supplier.
Future of VSM
VSM Fiori will replace/enhance the current VSM system expected at the end of FY26. VSM Fiori will:
- Be compatible with the DLA Warehouse Management System (WMS)
- Interface with the order process through to goods receipt
- Interface with accounts payable through to final payment
- Provide real-time status updates, increasing overall supply chain visibility
VSM Resources
DLA recognizes that navigating VSM and military shipping requirements can be complex. DLA provides several training resources to assist suppliers:
Contact VSM Support Staff (DLA Administered Contracts)
For direct assistance with VSM registration, processing shipments, or printing labels, contact a VSM Agent, Monday through Friday, from 0600 to 1700 EST.
Email: delivery@dla.mil