NAVSUP Reform Update

By Charla Fridley, Reform Management Office Lead, NAVSUP Headquarters

Last year NAVSUP launched our reform in reaction to the Department of Defense-wide call to action from Secretary of Defense, James N. Mattis, aimed at increasing readiness and lethality. The environment is changing and NAVSUP needs to reform in two ways to continue to meet the fleet’s needs. First, there are increased customer demands and a need to increase our capabilities to serve them. Second, the environment has seen advances in digital customer service and elevated technological capabilities. The reform will enhance our unique capabilities, which allow us to be best positioned to support our customer, as the Navy’s leader for supply chain management.

We interviewed and surveyed our customers across all levels to understand concerns, pain points, and how to partner in the most efficient ways. We used this input to develop our reform focus areas.

Structurally, the reform program is broken into five core pillars that are focused on essential areas for change, and four enablers, which span all core pillars to support and drive change throughout NAVSUP.

These core pillars are:

  1. Responsive Contracting–designed to increase the speed and productivity of contracting
  2. Forecasting–focused on enhancing predictions and use of forecasts to improve speed and reliability
  3. Customer Presence – redefining how we partner with our customers
  4. Strategic Supplier Management–increasing long term arrangements and relationships with suppliers to improve supplier performance
  5. Integrated Logistics–focusing on the end-to-end visibility and control for last mile fulfillment

Four enablers support these pillars:

  1. Digital Accelerator–digital tools
  2. Enabling New Era Workforce–enhancing the workforce to enable, support, and sustain reform efforts
  3. Audit–transparent processes and results
  4. Driving Reform–communicating and facilitating the change

The NAVSUP reform effort is seeing significant value and results last year. In Contracting, pilots focused on implementing a cross-functional pod structure to speed the efforts of planners, buyers, and technicians and get material on contract to be repaired faster. In this structure, these new pods are able to elevate roadblocks and find solutions to get customers their parts when needed.

In their first month of work, the Digital Accelerator team built a minimum viable product (MVP) to support the pods. The app lets pod members complete a digital purchase request checklist for a clean requirement that is passed to buyers to start the process of getting material on contract. The result has been an increase in clean contracting requirements as a result of pod usage of the new tool. Application updates are in process and continue to be rolled out to support additional functionality.

In Readiness Recovery, teams have been setting up a new operating cadence and deploying tools in the F/A-18 Integrated Weapon System Team to reduce the number of items that degrade fleet readiness. Planners own the process by engaging suppliers and holding them accountable for improving their performance. The efforts resulted in improved get well dates by eight months for the F/A-18 servo cylinder, which had been holding down 28 aircraft.

To improve Forecasting, planners developed a streamlined planner override policy to standardize the process for when planners override system data, to result in more accurate forecasts. The policy updated nearly 300 overrides which will increase accuracy. Cycle time nodes that were missing from the Navy ERP planning engine were identified by another pilot. Adding this additional repair time will result in more timely repairs and increased fill rates.

We will continue the momentum of reform by expanding our Customer Presence pilot to improve communications and transparency with our customers, increasing efforts focused on supplier engagement, and supporting cross functional teaming across the Enterprise to support the end-to-end supply chain process. Looking ahead to the first quarter of calendar year 2019, pre-work is underway so that the final pillars, Integrated Logistics and Enabling New Era Workforce, can kick off in January.

Winter 2019

To see a brief summary of NAVSUP reform program’s five value pillars, visit: https://www.youtube.com/watch?v=2iNNMSKAAy8