Making Logistics as Easy as ABC
U.S. military honors Lockheed Martin for reducing costs, improving efficiency of supply chains
Logistics basically means managing the movement of resources from point A to point B and sometimes point C.
It sounds simple, but for an organization as big as the U.S. Department of Defense, there’s nothing easy about it. If logistics are done right, no one thinks about it. If done wrong, they can waste a tremendous amount of time and money.
Lockheed Martin’s Global Supply Chain Services understands logistics and people are noticing.
In September, Lockheed Martin received the Secretary of Defense’s 2012 Component Level Performance Based Logistic Award for saving the Air Force more than $3.8 million annually. The company manages the supply chain of more than 96,000 parts for the Air Force’s maintenance depots, reducing costs by maintaining an average part availability rate of 99.77 that ensures timely delivery of orders.
Lockheed Martin offers a broad range of services, including supplying parts for both structural and consumable equipment and a certified vendor program. It provides program management, engineering, component repair and overhaul services for land, sea and air-based equipment for the military and 55 international and commercial customers. With expertise in design and implementing sophisticated systems, Lockheed Martin has technology, logistics, warehousing and transportation resources to support the entire supply chain.
The Defense Logistics Agency (DLA) recently awarded Lockheed Martin a six-year contract worth up to $415 million to provide spare parts for various Army, Navy and Air Force aircraft, including the C-130, F-16, P-3, F-35, U-2 and others. Since 2009, Lockheed Martin has helped the DLA manage the program.
“Since 2009, we have been able to achieve more than 16 percent cost savings through streamlining our spare parts procurement,” said Thomas Sampson of the DLA. “We selected Lockheed Martin for this six year agreement because of their commitment to meeting the DLA’s goals of 50 percent reduction in production-lead time and 100 percent on-time delivery, and to continuing to look for ways to save in material cost.”
This achievement led the DLA to honor Lockheed Martin with an additional recognition in October – the Recognized Cost Cutter Award.
Posted on January 10, 2013