Comments on: DTCI Contract awarded to … http://at-scm.com/index.php/2007/08/29/supply-chain-management/dtci-contract-awarded-to/ Fri, 18 Nov 2011 11:55:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: (Chris) Jacob Abraham http://at-scm.com/index.php/2007/08/29/supply-chain-management/dtci-contract-awarded-to/comment-page-1/#comment-1129 (Chris) Jacob Abraham Wed, 29 Aug 2007 21:47:45 +0000 http://at-scm.com/index.php/2007/08/29/supply-chain-management/dtci-contract-awarded-to/#comment-1129 Joe, From the article that you linked to <a href=http://www.defenseindustrydaily.com/brac-leads-to-62b-privatization-contract-for-dla-03273 rel="nofollow">BRAC Leads to $6.2B Privatization Contract for DLA</a>, it isn't clear that SAIC could play the coordinator role. The article mentions that <i>Defense Supply Center Richmond has issued a CMP contract worth up to $6.2 billion for chemicals and packaged petroleum, oils and lubricants.</i> and further that the award went to SAIC. However, the scope of the DTCI in just Phase 1 is the total logistics operations of eighteen DLA facilities. That coordinator role is qualitatively different than the management of DSCR. As the article goes on to mention, <i>This will include demand forecasting, order processing, procurement, inventory management, quality control, environmental compliance, hazardous materials management, storage, packaging, worldwide distribution, obsolescence management, data management and customer support services. To that end, the firm will use a suite of existing proprietary software they've developed called the SAIC Integrated Logistics Toolset; it includes forecasting, inventory, modeling, and other required functions for managing integrated supply chain contracts.</i> In my opinion, this would be local optimization of this distribution facility in terms of inventory, forecasting, fulfillment etc and they will be measured on such metrics. However, The DTCI coordinator will most likely be measured on how DSCR (if it is going to be within its scope) is intergrated into the CONUS logistics network. That's why I'd argue that these two activities are qualitatively different, both in scale and scope. Hence my skepticism about whether SAIC could play the coordinator role for team UPS. In fact, I would hazard a guess that UPS might be in a stronger position to play this role with its recent acquisitions but that is about the limit of what an outsider like me can tell. The proof of the pudding will be in the eating - Con-Way has a hell of a job to do and it might be quite a challenge to do what they propose to do on a real time basis. I appreciate your comments and welcome more of them!! Chris Joe,
From the article that you linked to BRAC Leads to $6.2B Privatization Contract for DLA, it isn’t clear that SAIC could play the coordinator role. The article mentions that
Defense Supply Center Richmond has issued a CMP contract worth up to $6.2 billion for chemicals and packaged petroleum, oils and lubricants.
and further that the award went to SAIC.
However, the scope of the DTCI in just Phase 1 is the total logistics operations of eighteen DLA facilities. That coordinator role is qualitatively different than the management of DSCR.

As the article goes on to mention,
This will include demand forecasting, order processing, procurement, inventory management, quality control, environmental compliance, hazardous materials management, storage, packaging, worldwide distribution, obsolescence management, data management and customer support services. To that end, the firm will use a suite of existing proprietary software they’ve developed called the SAIC Integrated Logistics Toolset; it includes forecasting, inventory, modeling, and other required functions for managing integrated supply chain contracts.

In my opinion, this would be local optimization of this distribution facility in terms of inventory, forecasting, fulfillment etc and they will be measured on such metrics.

However, The DTCI coordinator will most likely be measured on how DSCR (if it is going to be within its scope) is intergrated into the CONUS logistics network. That’s why I’d argue that these two activities are qualitatively different, both in scale and scope. Hence my skepticism about whether SAIC could play the coordinator role for team UPS. In fact, I would hazard a guess that UPS might be in a stronger position to play this role with its recent acquisitions but that is about the limit of what an outsider like me can tell.

The proof of the pudding will be in the eating – Con-Way has a hell of a job to do and it might be quite a challenge to do what they propose to do on a real time basis.

I appreciate your comments and welcome more of them!!

Chris

]]> By: Joe Katzman http://at-scm.com/index.php/2007/08/29/supply-chain-management/dtci-contract-awarded-to/comment-page-1/#comment-1128 Joe Katzman Wed, 29 Aug 2007 19:28:40 +0000 http://at-scm.com/index.php/2007/08/29/supply-chain-management/dtci-contract-awarded-to/#comment-1128 SAIC could indeed play the coordinator role for team UPS; as DID notes, they have carved out a significant outsourced defense logistics position in partnership with the DLA. See: http://www.defenseindustrydaily.com/brac-leads-to-62b-privatization-contract-for-dla-03273/ SAIC could indeed play the coordinator role for team UPS; as DID notes, they have carved out a significant outsourced defense logistics position in partnership with the DLA. See:

http://www.defenseindustrydaily.com/brac-leads-to-62b-privatization-contract-for-dla-03273/

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