Fleet Supply Policy Council (FSPC) Update

March 8, 2014
VIRIN: 140308-N-ZZ219-1956
  In December 2013, the Fleet Supply Policy Council (FSPC) met for the quarterly update to the FSPC leadership.  This was the first meeting under the new Chief of Supply Corps, RADM Jonathan Yuen.  Here is a synopsis of those endeavors.   Naval Air Station (NAS) Supply Support Alignment.  Following the September 2013 data collection phase completion, the team is now fully engaged in the analysis phase.  Initial data analysis revealed four possible courses of action to include:  re-alignment of major functions under one organization; focused re-alignment to areas where efficiencies/standardization can be gained; development of an overarching memorandum of agreement (MOA) and secondary agreements across stakeholder functions; and lastly, leaving existing structures unchanged.  The team will continue to analyze the data, present findings and recommended solutions to the core team through early spring 2014.  Core team review and COA analysis will focus on improving synergies and alignment across Fleet Logistics Centers (FLCs), air stations and air wings.  The target completion of the analysis phase is January 31st, with the final recommendations slated for late spring 2014.  Excess Navy Working Capital Fund Material.  Continuing to make incredible progress, the team is focused on both excess materials ashore (with a primary emphasis on NAS inventories ashore) and the Navy Working Capital Fund (NWCF) excess inventories afloat. 
  • Ashore:  The team established a site metric goal of 10 percent for the maximum allowed excess inventory.  The team instituted metrics and is monitoring progress of the efforts underway to source requirements.  The team is also redistributing material to fill other allowances or move material to Defense Logistics Agency (DLA) Defense Depot.  The team developed and implemented processes to redistribute inventory or dispose of it as appropriate.  Regional Supply Office Norfolk completed the redistribution of its excess material and currently has less than 2 percent of its excess material on hand.  As of January 1st, with the exception of NAS North Island, all air stations will use the Navy Enterprise Resource Planning (ERP) to source low priority requirements unless they are conducting the redistribution process.  Naval Air Field (NAF) Washington completed its redistribution test samples and will complete its redistribution in January 2014.  NAS Oceana is currently in the process of completing its redistribution test samples.  It is anticipated that NAS Point Mugu and NAS Lemoore will begin to test their redistribution process in the January – February 2014 time frame.  These new processes provide the necessary capabilities for all sites to reach the 10 percent goal and to redistribute inventory as it makes sense.  The team also validated sourcing logic within ERP to ensure we are able to source to these available inventories as appropriate.  Since March 2013, the NAS excess NWCF inventories filled over $320 million worth of requisitions. 
  • Afloat:  The team validated the process for identification and disposition of excess afloat NWCF material.    In FY13, 88 offloads were completed, redistributing more than $137 million in inventory and an additional 15 offloads have been completed in this FY.  The team found no significant gaps or issues with current process; however, visibility of excess for NWCF item managers could be improved. The team is working with NAVSUP HQ N5, Business Systems Center, and Weapon Systems Support (WSS) to establish a "dashboard" within Inform 21 that will provide metrics and specific National Stock Number (NSN) level excess data that may improve NSN level planning decisions going forward.  Stakeholders are working now to validate the data collection and metrics to provide useful decision tools to ensure accurate identification, visibility and use of excess inventories.
Material Positioning.  The material positioning effort is centered on developing policy and implementing processes.  The final instruction for this initiative was signed by RADM Heinrich in September 2013 (NAVSUP Instruction 4440.192, “Policy and Procedures for Forward Positioning of Naval Material at Locations Outside the Continental United States”), and addresses both these areas for NAVSUP material worldwide.  Based on the goals and objectives of the effort, board members agreed at the quarterly FSPC in December that the material positioning topic was functionally complete, but that regional positioning reviews will continue with the results briefed to FSPC leadership.  Work on the next material positioning review has already begun and will address new warehouse space – including segregated HAZMAT storage in the 5th Fleet.  Additionally, the team continues to work with the Defense Logistics Agency to reduce the Economic Movement Quantity threshold from $500 to zero.  This type of policy change has already proven effective in the Pacific region, and illustrates a willingness by both Navy and DLA leadership to redistribute a portion of existing worldwide inventories closer to the point of demand to reduce transportation costs and improve fleet readiness. Financial Improvement and Audit Readiness (FIAR):

Segment Lead Updates



Military Standard Requisitioning and Issue Procedures  (MILSTRIP) The MILSTRIP Management Assertion Letter and Assertion Summary Memo have been submitted to the Assistant Secretary of the Navy Financial Management and Comptroller for review, approval, and signature.  Once signed, the MILSTRIP Segment will have asserted 4-6 weeks early.
  Navy Working Capital Fund: Supply Management Existence and Completeness of Inventory Commenced Round I Discovery Testing on the East Coast (RSO Norfolk and USS KEARSARGE) in December 2013.  Although discovery was positive, we identified vulnerabilities with inventory balances.  Root causes are identified and NAVSUP began corrective action and inventory records clean-up.  Continuation of Round I Discovery Testing at West Coast locations begins in January 2014.
Transportation of Things Round I Testing for Navy Mail Bills was completed in December 2013and submitted to the Financial Management Office.  USTRANSCOM Over Ocean Bills Round I Testing commenced in December 2013. 
Priority Material Office (PMO) Alignment.  The PMO Alignment project is currently in the event phase.  During this phase the team developed a voice of the customer survey to solicit customer feedback and satisfaction levels regarding expediting support, response times and material delivery times. The surveys are expected to be completed by mid-February.  Global Distribution Supply Center, PMO and NAVSUP WSS sub-teams completed expediting value stream maps and data collection.  The maps and data are currently being briefed to the PMO project team for validation and accuracy.  The next step is to coordinate an onsite team meeting, expected to take place this March.  By Maj. William Slack Fleet Engagement, NAVSUP Headquarters