The Korean Defense Logistics Agency is a procurement agency. The Agency supplies the Nation 's military services and several civilian agencies with the critical resources they need to accomplish their worldwide missions. KDLA provides wide-ranging logistical support for peacetime and wartime operations, as well as for emergency preparedness and humanitarian missions. In doing so, it faces the challenge of maintaining a high degree of customer service at minimum cost.
Current situation
What can be done to add values? And at the same time, what can be done to reduce the length of procurement from surprise demand increases to qualitatively improve customer support?
KDLA’s supply chains include Aviation, Land and Maritime, Troop Support, and …show more content…
One of the reasons is due to environmental conditions, such as the involvement in the Middle East. Many of the non-stock items and National Stock Numbers (NSNs) are being requisitioned in order to perform unanticipated overhaul and repair procedures. The fastener industry in recent years has undergone significant mergers and consolidates. As a result, the market place has created fewer manufactures. The fasteners ' industry went into a serious downtown at that time, yet, the demand for fasteners is now greater than ever. The demand is greatly exceeding the production capabilities of the limited remaining manufacturing fastener industry. This increasing demand and limited manufacturers of fasteners is affecting all users of fasteners productions and is currently another issue that the Aviation Detachment is facing. Commercial demands for the parts we procure are growing exponentially. In an article regarding Boeing 787 production and growing demand for fasteners, Scott Strode, a Boeing employee who heads the 787 product stated that, “The fasteners are a bigger challenge that we anticipated. They are being ordered into an industry that is already running at a high level of capacity and it is challenging [2].” The Fastener manufacturers are receiving three to five times the number of orders they received two years ago. The quoted lead times from fastener manufacturers far exceed …show more content…
Sungnam is the location that currently handles the forecasting phase for the NSNs (items). After the forecasting phase, each location manages different NSNs (items) to procure. Re-structuring the organization will create total ownership of the NSNs (items) among each location. By creating ownership of these NSNs (items) will create accountability for the whole procurement process. In the current process, Sungnam has very little accountability. Sungnam is, in most cases, forecasting items for the next year or two. Sungnam is not seeing the current data and trends of how the customer expecting the orders or how they are ordering the items. The re-structure will also improve how each location manages the items. KDLA uses JDA software, which interacts with EBS for predicting forecasting of supply needed for the Warfighters. JDA software uses an algorithm of history of the item, such as how many we purchased the previous two years, how many orders for this item at each depot throughout the world, how much stock on hand is left at each depot, and the mission essential locations. There are two type of order for KDLA, Demand Planners handles stock buys and Customer Account Specialist (CAS) customer direct. Both Demand Planners and CAS are responsible for reviewing and analyzing JDA’s and EBS’s decisions based on analytics. Some items have not been
Current situation
What can be done to add values? And at the same time, what can be done to reduce the length of procurement from surprise demand increases to qualitatively improve customer support?
KDLA’s supply chains include Aviation, Land and Maritime, Troop Support, and …show more content…
One of the reasons is due to environmental conditions, such as the involvement in the Middle East. Many of the non-stock items and National Stock Numbers (NSNs) are being requisitioned in order to perform unanticipated overhaul and repair procedures. The fastener industry in recent years has undergone significant mergers and consolidates. As a result, the market place has created fewer manufactures. The fasteners ' industry went into a serious downtown at that time, yet, the demand for fasteners is now greater than ever. The demand is greatly exceeding the production capabilities of the limited remaining manufacturing fastener industry. This increasing demand and limited manufacturers of fasteners is affecting all users of fasteners productions and is currently another issue that the Aviation Detachment is facing. Commercial demands for the parts we procure are growing exponentially. In an article regarding Boeing 787 production and growing demand for fasteners, Scott Strode, a Boeing employee who heads the 787 product stated that, “The fasteners are a bigger challenge that we anticipated. They are being ordered into an industry that is already running at a high level of capacity and it is challenging [2].” The Fastener manufacturers are receiving three to five times the number of orders they received two years ago. The quoted lead times from fastener manufacturers far exceed …show more content…
Sungnam is the location that currently handles the forecasting phase for the NSNs (items). After the forecasting phase, each location manages different NSNs (items) to procure. Re-structuring the organization will create total ownership of the NSNs (items) among each location. By creating ownership of these NSNs (items) will create accountability for the whole procurement process. In the current process, Sungnam has very little accountability. Sungnam is, in most cases, forecasting items for the next year or two. Sungnam is not seeing the current data and trends of how the customer expecting the orders or how they are ordering the items. The re-structure will also improve how each location manages the items. KDLA uses JDA software, which interacts with EBS for predicting forecasting of supply needed for the Warfighters. JDA software uses an algorithm of history of the item, such as how many we purchased the previous two years, how many orders for this item at each depot throughout the world, how much stock on hand is left at each depot, and the mission essential locations. There are two type of order for KDLA, Demand Planners handles stock buys and Customer Account Specialist (CAS) customer direct. Both Demand Planners and CAS are responsible for reviewing and analyzing JDA’s and EBS’s decisions based on analytics. Some items have not been