Supporting Our Troops

For organizations as large as the U.S. Army, finding a supply management system that fits is no simple task.

As Dwight D. Eisenhower once said, “you will not find it difficult to prove that battles, campaigns, and even wars have been lost because of logistics.” While the logistics he was referring to were primarily tactical, the logistics behind delivering and storing supplies have always been integral to wartime strategy as well.

It should come as no surprise that the military has a long and illustrious history of utilizing efficient (and often creatively resourceful) supply chains. Unlike commercial supply chains, however, these chains are not designed to maximize profit -- instead, they are intended to supply the maximum support to military units while creating the minimum burden for the taxpayer to shoulder.

Although formal supply chain management didn’t become a staple of the military supply system until the early 1980s, it has helped the military expand their system to include both suppliers and customers. For an operation as large as the U.S. Army, supply management isn’t simple. To ensure that everything ends up where and when it’s supposed to, the military has to engage with a litany of suppliers and sub-suppliers, constantly monitoring internal information and funds flow.

Supplying the DOD

According to the U.S. Army’s website, the Department of Defense’s (DOD) supply system involves “over 100,000 suppliers and uses over 2,000 existing systems to manage its inventory, valued at $92.6 billion in fiscal year 2015.” With so many moving parts, and such an urgent mission (especially during times of war), it’s no wonder the military needs a reliable supply chain management solution.

Outside of the usual products one might expect to see in a civilian supply chain (food, clothing, etc.) the military has two unique supply classifications -- controlled items (like currency, precious metals, and narcotics) and sensitive items, which include weapons and ammunition.

The DOD’s inventory management system is also a little different than that of its commercial counterparts. Since not stocking necessary supplies can have life-or-death consequences, the military has abandoned the commercial just-in-time model for a surplus of inventory, ensuring that the necessary provisions are always readily available.

Because the military supply chain is so complex, many suppliers are still in the early stages of their SMC optimization. Crane Army Ammunition Activity (CAAA for short) is one such supplier. Describing themselves as the “best producer and supplier of conventional munitions to the fighting ground, sea and air forces,” CAAA is still working to develop effective risk strategies, generate performance metrics, and much more, through the military’s Logistics Modernization Program. The initiative, which intends to replace the Commodity Command Standard System and the Standard Depot system, will hopefully unite inventory management and depot/arsenal operations into one cohesive program.