The U.S. Department of Defense (DoD) logistics mission is to ensure readiness and sustainability across the spectrum of military operations by providing responsive and cost-effective support. DoD’s supply chain is critical in determining outcomes on the battlefield. DoD needs to develop a supply chain management (SCM) strategy to enhance the delivery of goods and services to consumers in an efficient and cost-effective manner, as indicated in the DoD Logistics Strategic Plan for fiscal year 2000 (U.S. DoD, 1999). To support the future DoD logistics vision, DoD’s component organization, Defense Logistics Agency (DLA), has taken the initiative to utilize supplier relationship management (SRM) to improve its SCM process. DLA is DoD’s largest combat support agency. It has nearly 22,000 personnel and provides the largest logistics support operation worldwide. DLA has eight supply chains that manage 5.2 million items, and processes a daily average of 54,000 requisitions and 8,200 contract award actions. DLA supports over 1,400 weapon systems and controls $94.1 billion worth of inventory. DLA’s mission to provide best-value logistics and contract management support continues into the 21st century. Analyzing DLA can draw conclusions on how the entire DoD can improve SCM processes by using the same tactics as DLA. The strategic tools used to meet DLA’s mission will continue to change as it implements commercial practices, reengineers business processes, teams with supplier business partners, and competitively sources agency functions. Also, DLA’s transformation process model will leverage DLA and commercial strengths to best support DoD’s Joint Vision 2010 and future war-fighting concepts and requirements. DLA’s ability to integrate the supply chain will be an added-value contribution to DoD. Initiatives, such as corporate contracts, long-term contracts, competitive sourcing, and joint ventures are some of the tools DLA will use to achieve supply chain integration.
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