by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Maritime Logistics Community News : April 2014
30 MARITIME LOGISTICS COMMUNITY NEWSLETTER 2014 Ellram, Ogden (2007) outline that research has revealed that for many organisations, there is no connection between strategic intent and operational performance. They further outline that there is no correlation between strategic intent and performance or between strategic intent and measurement. Whilst there may be no correlation, these principles must interweave at a point, for there is a strong correlation between measurement and performance -- what gets measured, gets done! To provide examples of this principle, I will be utilising the contract in place between JLC and British Aerospace (BAE), where BAE have the contract to manage the warehousing and distribution centre on behalf of Defence at DNSDC Moorebank, and the DIDS contract between JLC and Toll Logistics for the transport of materiel. As I have described and outlined previously, the JLC network and DSC is a collaborative chain, with many organisations and steps along the way in providing materiel to the end customer. To illustrate the distribution process within Defence, it is important to describe the urgency and priority that demands are dispatched. Defence undertake a simple system of Urgency Notification Designators (UND) of A, B, C & D, with an UND-A taking utmost priority and an UND-D being a routine provision. When an UND-A requisition comes into DNSDC via MILIS, BAE under the current contract, have an allowable timeframe which in order to pick the item, and have it dispatched via Toll Logistics. Toll then have an allowable timeframe in which to have it delivered to the relevant area. These timeframes all fall under a measurable performance, or Key Performance Indicators (KPI), enabling the key strategy in Defence, that of the requirement and supply of materiel in order to keep Australia's Defensive platforms operational. What happens when this deliverable is not achieved? Often, items are dispatched from DNSDC to the end user that are out of test date, unserviceable or just plain incorrect. This has a flow on effect in that the item(s) ordered are required to be transported back, re-categorised or sent for repair, with another item dispatched, all the while increasing transport costs, whilst the afflicted system requiring the part(s) remain un-operational. So how do these items get dispatched unserviceable, out of test date or incorrectly? As previously mentioned, CM's and ADFLM's are responsible for the effective management of materiel in Defence. This includes ensuring those items requiring periodical tests are completed, or those requiring repair or refurbishment are conducted. BAE at DNSDC are responsible for the warehousing and distribution only. However; should it not be perceived that when dispatching a particular item that the in-service date or functionality of the item is checked correct prior to issue? Whilst it is not expected that those personnel responsible for the picking and packing are subject matter experts, a quick check on the item can alleviate the delays experienced when the item is required to be sent back and re-issued. Thus whilst performance is a tangible measurement, it clearly supports the statement that there is no connection between strategic intent and operational performance, nor is there any correlation between strategic intent and performance or between strategic intent and measurement Clearly there is a requirement for performance measurement in the DSC that cross pollinates across all organisations with respect to logistics supply. While BAE have KPIs on pick, package and supply and Toll for the delivery, the CM and ADFLM should be working collaboratively with BAE to ensure that materiel functionality is kept at an optimum level that in turn ensures that Defences' operational capability is able to be maintained. This then necessarily follows onto CRM across the Defence Logistic System as a whole. While each link in the SC is working interdependently, greater collaboration across JLC, BAE and DMO is required to ensure that the Defensive capability of the ADF is maintained, whilst at the same time ensuring that the Australian Government is provided the most economically sound SC that is value for money on a no win lo loss basis. Reference: 1 Stanley E. Fawcett, Lisa M. Ellram, Jeffrey A. Ogden, 2007, Supply Chain Management, From Vision to Implementation A Preferred Naval Supplier… DMK FOREST PRODUCTS 46-48 Chard Road, Brookvale NSW 2100 Suppliers of … • ALL TYPES OF PLYWOOD • • TREATED PLYWOOD • • MDF-MELAMINE & PLAIN • • FORMPLY – STRUCTURAL • Ph: 02 9938 4166 Fax: 02 9938 1480 PTY LTD