HEAVY LIFTING


SFC Jean Lacroix, 10th Sustainment Brigade ground movement NCO-in-charge, supervises a fork- lift operator as he repositions a container June 26 at Bagram Airfield, Afghanistan. AMC’s Supply Chain Transformation Team developed a supply chain strategy and a human capital strategy to mitigate supply chain risks such as excess inventory, ineffective and inefficient inventory manage- ment practices and inaccurately forecasting demand for spare parts. (Photo by SFC Luis Saavedra, 10th Sustainment Brigade Public Affairs)


analysis and integration of supply chain management processes.


Since 2005, the U.S. Government Accountability Office (GAO) has said that DOD’s supply chain management is a “high risk” area needing transforma- tion. Most recently, a 2013 GAO report mentioned problems with excess inven- tory, ineffective and inefficient inventory management practices and inaccurately forecasting demand for spare parts. In response to the report, AMC created a Supply Chain Transformation Team that developed a supply chain strategy and a human capital strategy to mitigate those risks. Tese strategies will help to increase supply chain efficiencies, enhance key skills and improve com- munication within the workforce and throughout the supply chain. Te trans- formation team has made substantial


progress toward these goals with efforts in sales and operations planning, stra- tegic sourcing and supplier relationship management, demand planning and metrics.


SALES AND OPERATIONS PLANNING Te life-cycle management commands, which include the U.S. Army Aviation and Missile Command, Communica- tions and Electronics Command, Joint Munitions Command,


S&OP allows


the key stakeholders— and TACOM


Life Cycle Management Command, are participating in AMC’s sales and opera- tions planning (S&OP) process. Te goal is to leverage best practices from industry to integrate individual business processes (i.e., demand planning, sup- ply planning and resource balancing) in areas of enterprise-level decision-making on supply chain management.


from the item managers to weapon system directors all the way up to the logistics center directors and senior leaders at AMC—to collaborate and review metrics from financial projec- tions, forecasted demand plans and supply execution plans at the individual item level or aggregate levels for weapon systems and commodities. Te reports from the Enterprise Sales and Opera- tions Planning Tool (ESOPT) help to illustrate aggregate demand and supply plans for entire weapon systems and to evaluate the feasibility and, eventually, the performance of those plans.


Each month, in place of the old “due diligence”


reviews, each life-cycle


management command holds S&OP internal reviews in preparation for the management business review with


ASC.ARMY.MIL 35


LOGISTICS


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