The Defense Logistics Agency (DLA) Energy is being restructured to align the primary-level field activity under the Enterprise Business System (EBS) Energy Convergence supply chain.
The reorganization is directed by General Order 05-12, signed by DLA Vice Director Edward Case in June 2012. “Our new organizational construct is designed to strengthen relationships with our customers and suppliers, and better align us with the underlying business processes at the core of DLA’s EBS, a SAP-based Enterprise Resource Planning environment,” said DLA Energy Deputy Commander Michael Scott.
The EBS program modernizes and refines the Agency’s supply chain management capabilities by replacing aging technology legacy systems, improving customer support and providing better access to DLA’s portfolio of business systems and processes.
“This particular re-org is a part of a much bigger and broader initiative for DLA Energy personnel that can be summed up as ‘EBS Energy Convergence,’” explained Michael Broderick, Director, DLA Energy Business Process Support Directorate. “We in DLA Energy are converging with EBS.”
DLA Energy is the last of DLA’s six primary-level field activities to enter into the Enterprise Business solution and energy convergence effort.
The reorganization transforms the enterprise into a left, customer-facing structure, and a right, supplier-facing structure, in sync with the core tenets of Business Systems Modernization, the precursor of EBS, Broderick explained. “The rationale is to have very specific organizations that would have very specific focus on the key elements of DLA’s overall business,” he said.
In addition to the inherent structural composition of the new organizational design, it has been proven that those organizations who structure themselves in alignment to the underlying business processes of the specific ERP have the greatest chance for optimal success, Scott explained. “Our new organizational construct has been specifically tailored to align with the DLA EBS environment, to generate an optimal transition to the new ERP environment,” he said.
The first release for Energy Convergence was Oct. 24, 2011. For this release, DLA Energy moved all of its non-petroleum business units to EBS, using the functionality that exists in EBS, plus what eProcurement adds to the system, Broderick explained.
The Energy Convergence release involved about 340 people within DLA Energy who work with procurement, order management, inventory management, finance, technical/quality and planning. The General Order creates the positions of director of the Procurement Process Support directorate; director of the Business Process Support directorate; director of the Supplier Operations directorate and the director of the Customer Operations directorate to be established and aligned under the DLA Energy commander.
DLA Energy’s Supplier Operations Director, Gabby Earhardt, explained that once the new EBS system is finally in place and there are demand planners on the customer side feeding the demand signal to the acquisition side (of supplier operations), she expects there to be a better handoff than before.
The transition should be transparent to both the supplier and customer base, Earhardt said.
“Both should see a continuation of exceptional support from the DLA Energy team,” she said. “Our success has always been the result of solid communication and strong team work within the Energy team.”
The proposed December 2012 Rollout 1 involving DLA Energy Pacific was moved to June 2013 to ensure the adequacy of the test window for post-delivery code fixes, and to provide sufficient time for training. While sequestration has had an impact on training delivery and other EC activities, Rollout 2 is planned for Sept. 2013.
“It is an exciting time to be part of DLA Energy,” Scott emphasized. “Major transformational initiatives, such as Energy Convergence, will provide the systems and processes to further enhance our capabilities to execute our mission, and provide new and valuable skills to our workforce.”
EC AND AUDIT READINESS IN ACTION
EC Release 2 is going live in a series of five rollouts based on DLA Energy contracts associated with each rollout phase. Below is the EC release two-deployment schedule with a targeted completion date in April 2014 …
On June 1, 2013, Energy Convergence Release 2, Rollout 1 successfully deployed the Enterprise Business System to approximately 280 End Users supporting Alaska. Upon Rollout 1, petroleum inventory was established in EBS for the first time, and Alaska end ssers began using EBS to complete daily tasks. Per each subsequent rollout, associated inventory will continue to be established in EBS.
In conjunction with Rollout 1 deployment, customers and business partners (Defense Fuel Supply Points) were given the ability to place Customer-Direct Orders and DLA Inventory Resupply Requests (Into-Stock Orders) for Alaska DoDAAC(s) in the Enterprise External Business Portal this past May.
During Rollout 1
• Contracts were converted from legacy systems to EBS
• Customer-Direct Sales Orders and Into-Stock Orders began being placed via EEBP
• Delivery Orders were placed based off Customer-Direct Sales Orders placed in EEBP
• Moving Average Price (MAP) was updated in EBS for Energy materials
• FuelsManager® Defense (FMD) interfaces were enabled for DFSPs with initialized inventories, and balances established in EBS
• Receipts and invoices began being placed in Wide Area Workflow (WAWF)
• Sustainment teams deployed to Alaska and Hawaii, working with Regional personnel to assist in day-to-day operations under the new system
• Geographic-focused Supplier event(s)
• Geographic-focused Customer event(s)
DLA Energy employees supporting multiple geographic regions will continue using legacy systems and processes until those geographical regions transition into EBS during their designated rollout.
By Capt. William Terry, SC, USN; Deputy Director Customer Operations, DLA Energy