Contractors that support Defense Department logistics work hope
that the newest buzzword in their business, "supply chain integration,"
eventually will translate into real changes and real savings for
the Pentagon.
This was the message heard by Pentagon logisticians during a recent
conference on "supply chain management," which is a catch-all
word to describe the modern way of doing business.
It essentially refers to an organization's ability to communicate
electronically with its suppliers and to be able to see, at a glance,
what supplies are available and where.
Supply chain integration is made possible by the electronic business,
or e-business, and Internet revolution. Electronic data interchange
allows both the public and private sectors to make business transactions
online and ultimately reduce customer wait times, officials claim.
But the Defense Department's current system has shortfalls, they
say. Each of the services has its own individual logistics programs.
"Senior leaders in the services have clearly stated a need
for a Web-based strategy with simplified business processes, built
on modern information technology, if the [Defense Department] logistics
modernization objectives are to be met," said Charles Huber,
president of Huber Consultants International.
At a recent conference, hosted by the Association For Enterprise
Integration (AFEI), in Fairfax, Va., commercial suppliers offered
insight into supply chain management techniques and lessons they
have learned from them.