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Dispatcher Treatment of Equipment Parts Procurement Lead Time Estimates Along Supply/Service Routes

3/24/2016

5 Comments

 
DoD processes designed to estimate procurement lead times for fleet equipment parts have been reviewed, concluding that major process deficits exist in this critical area impacting all aspects of operational readiness & fiscal discipline. Specifically, errors in procurement lead time estimates are due to problems such as miscoding connections between late deliveries & future delivery times, deficits in lead time records & input errors, estimates not reflective of improvements made in actual lead times & use of standard default processes instead of new work order schedule info that may have been obtainable.

Situational fleet equipment parts dispatch at DoD must change to meet new requirements of supply route contract quote processes covering  planning of all fleet equipment parts evaluation of logistics activities involved in procurement lead time estimates.  New DoD initiatives will reduce lead times by allowing for streamlined & simplified procurement of items on contracts-- 1) allows DoD to get increased work order schedule info receipt from suppliers, 2) enables DoD to leverage influence in interactions w/ suppliers & 3) empowers DoD to strategically target key items to ensure their availability from suppliers.

The ability of work order schedules tasked by dispatchers to meet operational requirements—system adaptability— will impact fleet equipment parts type & size availability. The procurement lead time estimates of supply route contract quotes involves the time between when new fleet equipment parts types & sizes are tasked and when the cache is received & available at installations for deployment. Administrative lead time is the time interval from the initiation of a procurement action to the contract quote, while supplier capacity process lead time is the interval from the contract quote to delivery of the items.

Fleet equipment parts procurement lead time estimation processes serve an integrating function, which tunes & coordinates all supply route contract quote activities. DoD decision-makers must increasingly direct attention to improving procurement lead time estimation services, which bring important, quantifiable benefits. Well-functioning fleet equipment part supply route contracts become important in several respects: 1) Increasing work order schedule programme impact, 2) Enhancing quality of deployments & 3) Improving cost effectiveness leading to increased operational readiness.

To determine the resources needed to scale up to the requirements of surge contingency scenarios, dispatchers first need to assess what expected costs are uncovered by estimates of procurement route lead times at different levels of the logistics system. When determining supply route contract quotes, dispatchers should consider the costs of maintaining supplier capacity, fleet equipment parts deployment, as well as the cost of the operation itself; determining what share of these costs each installation will request for mission requirements that cannot be compromised.

Key to situations where demand for fleet equipment parts inventory deployment increases, procurement lead time estimates need to be flexible enough to respond to increases in the quantities & ratios of different types &sizes of fleet equipment parts that will move through the logistics system. This may mean increasing the frequency of installation investments in supply route contract quotes to avoid work order schedule deficits when the operational requirements of surge contingency scenarios increase. What essential logistics line items do procurement lead time summary reports contain for several types of work order schedule items? 1) Fleet equipment parts type & size availability, & 2) Equipment consumption routing patterns for surge contingency scenario operations by installation.
 
Procurement lead time estimate summary reports are used to move all essential logistics line items for fleet equipment parts type & size availability at specific time periods determined by the supply route contract quote system between installations. If procurement lead time estimates are to be collected, dispatchers are required to know what work order schedule info to collect and how frequently to collect it, and consider what work order schedule info must be on hand to answer supplier capacity inquiry requests & make informed decisions: 1) How long will current fleet equipment part types & sizes last? 2) is there a requirement to deploy from higher to lower levels of the procurement pipeline? 3) At what installations is demand highest & are more resources required? 4) Is there a requirement to adjust the pipeline to account for bottlenecks that could occur if DoD has to search for required documents & work order schedule info, potentially delaying the procurement of items in supply route contract quote determination processes?

Installations may report several components of fleet Equipment parts contract quote control systems; Dispatchers report answers to following questions in submitting procurement lead time estimate reports: 1) How much fleet equipment parts do installations keep in house? 2) How often do installations participate in supply route contract quote determination? 3) What is the lowest quantity of fleet equipment parts installations want to have before the next supply route contract quote frequency period? 4) How much supplier capacity do installations have access to at any one time and does this change over time? 5) Is the installation regularly tasked with meeting demands of surge contingency scenarios & 6) Do installations have any fiscal or other constraints when participating in supply route contract quote determinations, such as limited types & sizes of fleet equipment parts to deploy?

Progress made by DoD in reducing lead times is varied b/c utilisation of different combinations of new & continued initiatives/actions is not consistent. Initiatives/actions generally fall into three specific areas of focus: 1) Streamlining internal administrative work order schedule processes, 2) Improving oversight of supply route patterns & 3) Maintaining frequent dialogue with suppliers in order to adequately address capacity constraints. Without actions by DoD to review & revise techniques/inputs in use to calculate lead time estimates that could lead to outcomes more precisely reflective of actual experiences, DoD will continue to obligate funds earlier/later than necessary resulting in misdirected delivery of items.
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