Navy Kicks Off Naval Sustainment System Supply

Top Navy leaders met Oct. 19 at the Pentagon to kick off Naval Sustainment System (NSS)- Supply, ushering in a transformative approach to aligning and managing supply chains differently via an integrated, strategic methodology to boost Navy readiness. Vice Chief of Naval Operations (VCNO) Adm. William Lescher welcomed the steering group, which included representation from multiple Navy commands along with Commander, Naval Supply Systems Command (NAVSUP) Rear Adm. Peter Stamatopoulos, who will lead NSS-Supply going forward.

The group provides direction and oversight to the NSS initiative, an integrated approach to improving targeted areas of operation with the goal of increasing sustainability and readiness by applying commercial best practices, process improvements, governance and oversight to maximize efficiencies within available means.

“To create the supply chain performance we need, it’s imperative that we align and manage supply chains differently, no longer accepting uncoordinated and fragmented decision-making,” said Lescher.

201006-N-NJ919-1191 PHILIPPINE SEA (Oct. 6, 2020) Sailors assigned to the forward-deployed amphibious assault ship USS America (LHA 6) conduct flight operations during a replenishment-at-sea. America, flagship of the America Expeditionary Strike Group, assigned to Amphibious Squadron 11, along with the 31st Marine Expeditionary Unit, is operating in the U.S. 7th Fleet area of responsibility to enhance interoperability with allies and partners and serve as a ready response force to defend peace and stability in the Indo-Pacific region. (U.S. Navy photo by Mass Communication Specialist 3rd Class Walter Estrada)

Stamatopoulos briefed his NSS-Supply vision to develop a strategic scale framework to create the supply chain performance the Navy needs not only to fight tonight, but also for the future fight.

“Leveraging lessons learned from other Navy performance initiatives, particularly NSS-Aviation, we benchmarked the Navy against best-in-class industrial companies, which also sustain globally deployed equipment and operate complex supply chains,” Stamatopoulos said. “The commercial benchmarks have revealed gaps in Navy business functions and opportunities for improvement. We can close these gaps through better orchestration, integration and synchronization across the supply chains.”

Stamatopoulos went on to say, “Our commercial benchmarks highlighted the need for a single metric that quantifies the supply chains’ value generated profit in commercial industry, readiness in Navy context–per dollar invested. This is a fundamental shift in evaluating our supply system. The figure of merit quantifies supply effectiveness through the value of readiness per dollar invested. We will use this measurement to drive smarter decision-making and better trade-offs when allocating scarce resources.”

Supply chains in the 21st century are increasingly global, interconnected, and intensely competitive. Stamatopoulos aims to incorporate expert leadership, engagement, and alignment from a whole-of-Navy approach to initiate a multi-year journey, which focuses on pursuing an increase in organic repair; achieving better-than-industry time to move parts; managing cash in new ways to maximize readiness; expanding competition with suppliers while deepening supplier partnerships; increasing predictability; and integrating existing supply chain resources toward a common goal.

“NSS-SUPPLY is a new approach– a cross-domain ‘mission partner’ approach to coordinate and integrate our supply chains end to end,” Stamatopoulos said. “We will take control of our supply chains and, as a leadership team, set the strategic conditions required for mission performance.”

“NSS-Supply is fundamentally about driving substantially improved performance across the entire Navy using the lever of high performing supply chains. This work requires strong leadership and broad, aggressive, engagement and support across the Navy,” said Lescher.

The steering group will meet periodically to define wins, evaluate metrics, and seek areas
of improvement.