WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
DLA Troop Support
Medical Supply Chain Mr. Roy Dillard
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
1
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Agenda • Medical Supply Chain Overview • Electronic Catalog (ECAT) Opportunities • Medical/Surgical Distribution & Pricing Agreement (DAPA) • Medical Equipment Opportunities
• Questions & Answers
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
2
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Federal Medical Landscape • DLA purchases nearly $5B in medical materiel annually for DoD and other Federal Agencies… We actively work to make future purchases grow • Federal, DoD and DLA Acquisition Regulations and Policies require a “fair & reasonable” determination on prices for all items we purchase • DLA’s mission environment is becoming more cost constrained… requiring us to be more efficient • Opportunities to do business with DLA Troop Support Medical – Electronic Catalog (ECAT) – Distribution & Pricing Agreements – Medical Equipment WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
3
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Where Medical Fits in the DLA Enterprise
Land & Maritime $4.0B
Distribution $1.5B Other $1.0B
Pharmaceutical Prime Vendor 65% $3,056,225,414
Aviation $4.1B
DLA Troop Support $14.5B
C&T $2.5B
Electronic Catalog 3%
C&E $2.7B
$160,285,039
Medical $4.7B
$337,790,427
Traditional Pharmaceutical 6%
Subsistence $4.8B
Energy $12.9B
$504,297,805 $261,747,360
Defense Logistics Agency Breakout by Center
$362,395,135
Traditional Medical/Surgical 8% Medical Supply Chain generates 11% of DLA sales with 1.3% its people Capital Equipment 7%
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
Medical/Surgical Prime Vendor 11%
WORKFORCE DEVELOPMENT
4
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Our Focus
Every Day • • • • •
Every Crisis
Health care economics The business of health care The cost of medical materiel Reliable “next day” support Business intelligence
• • • •
Ready on day one Varied missions & requirements Resupply & sustainment Control commercial & industrial materiel • Situational awareness
Vision: To provide an integrated and responsive system of choice for providing consistent quality medical materiel support for health care providers to perform their patient care mission WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
5
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Medical Customers / Items
6 4 2 0
Customers: 8900+ Orders: 75,000 annually Items: stocked 500 PV 370,000 ECAT 1M
Billions $3.9 $4.1
FY06
FY07
Sales $4.2
$4.5
$4.7
FY08
FY09
FY10
FY11 Forecast
$4.597B
The Big Picture Inventory 500 250
$254
$277
FY06
FY07
Personnel / Vendors
Millions $343
$300
$256
FY08
FY09
FY10
0
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
Employees (auth):
315 civilian 10 military
Suppliers:
1,200
WORKFORCE DEVELOPMENT
6
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Medical
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
7
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Medical Customer Operations Organization
DMLSS Christopher Falls, Acting Nora Steigerwalt, Actg Deputy
EA Program MAJ Jason Fairbanks
Operational Customer Facing COL Alex Zotomayor
Institutional Customer Facing Vacant V: Tillock
Field Agency/Operational Jacqueline Basquill
North Institutional Region James Grugan
Operating Forces Support (matrixed)
Support Division Yvonne Poplawski
Collective Customer Facing Maj Xavier Bruce, Acting
Collective Medical Customers Vacant V: Fowler
South Institutional Region Randall Owens
Collective Customers FMS Vacant
West Institutional Region LT Howard Wright
Installation Support Vacant
ACRONYMS: WARFIGHTER SUPPORT ENHANCEMENT DMLSS:Defense Medical Logistics Standard Support
STEWARDSHIP EXCELLENCE
Resolution Kevin Echelberger Technical Maryann Bickel, Actg
WORKFORCE DEVELOPMENT
8
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Medical Supplier Operations Organization
Pharmaceutical Mftr/Distributor CDR J. Peloquin
Medical/Surgical Prime Vendor Steve Bollendorf
Medical/Surgical Mftr/Distributor Roslyn Rogers
Capital Equipment Andrew Wechter
Manufacturer Steven Duda
Contracting & Support Maryann DiMeo
Dressing, Tools & Instruments Theresa Rucci
Diagnostic X-Ray David Johns
Hospital Equipment Donna Raday
Technical/Quality Support Maj A. Hamilothoris
DAPA & Product Support Thomas Drew
Surgical Inst, Dev & Readiness Albert Gatica
Turnkey Donna Kennedy
Hospital Supplies A.M. O’Brien-Dennen
Distributor Anna Podlas
Price Verification & Standardization William Woltjen
Kitting Christine Dalton
Critical Care Robert Zalewski
Laboratory & Dental Equipment John Wolstenholme
Pharmaceutical Prime Vendor Paul Vasquez
ECAT Roy Dillard
SMSG Readiness John Gagliardi
Contracting Patrick Quigley
Dental & Optical Maciej Okulicz-Kozaryn
Medical Contingency Contracting Michael Medora
Pricing & Support Aggie Reitano, Actg
Manufacturer Direct Eileen Motta
SMSG Vacant
WARFIGHTER SUPPORT ENHANCEMENT
Hospital Supply Robbin Durie
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
9
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Our Top FY10 Customers by Service Air Force
Army USAMMA Brooke AMC Madigan AMC W Reed Womack AMC Darnell AMC Ft Belvoir Ft Bliss Ft Gordan 3rd HQ HHC Tripler AMC Ft Campbell Ft Benning USAMMCE
$217M $90M $78M $70M $67M $57M $50M $47M $41M $40M $38M $36M $36M $34M
Total Army
$1.674B
Lackland AFB Wright Patterson AFB AFMLO Travis AFB-Grant MC KELLYUSA USAF Academy Keesler AFB Eglin AFB Scott AFB Nellis AFB MacDill AFB Patrick AFB Langley AFB Elmendorf AFB Luke AFB Maxwell AFB
Total Air Force
WARFIGHTER SUPPORT ENHANCEMENT
Navy $95M $69M $53M $41M $40M $37M $32M $30M $27M $26M $25M $18M $18M $18M $15M $ 14M
$921M
DoD Other
Portsmouth NMC San Diego NMC Bethesda Nat’l NMC Nav Med Log Com Pensacola NH Jacksonville NH Camp Pendleton NH Camp Lejeune NH Great Lakes NHC Bremerton NH Okinawa NH Newport NHC
Total Navy
$99M $91M $65M $39M $36M $34M $32M $29M $22M $20M $17M $14M
Express Scripts St. John Hospital Martins Point
Total DoD Other
$1.095B $22M $15M
$1.170B
Non-DoD HHS NIH Pharm $35M HHS NIH Material MGMT $17M Dept of VA $3M
Total Non-DoD Other $69M
$683M
Marine Corps Quantico Camp Lejeune
$18M $16M
Total Marine Corps
$83M
Coast Guard
$7M
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
10
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Logistics Support Strategies Peace Time
Surge
Sustainment
• Prime Vendor • Service Stock Warstopper Funded • Depot • Vendor Managed Contingency Contracts • Direct Vendor Delivery Inventory PLUS • Corporate Exigency Contracts (CEC) (Service owned) • Electronic Data • Vendor Managed Inventory (DLA owned) • Prime Vendor Surge Interface • Prime Vendor WRM
PLUS
Desert Storm
Warstopper funding a key enabler
New Acquisition 92%
Opportunity for improvement!
Depot Stock 8% WARFIGHTER SUPPORT ENHANCEMENT
New Acquisition
Today Contingency Contracts 30%
New Acquisition 39%
STEWARDSHIP EXCELLENCE
Prime Vendor 15% Depot Stock 9% Prime Vendor Surge 7%
WORKFORCE DEVELOPMENT
11
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
What We Want to Leave You With • Integrated systems solutions • Commercial supply chain integration best practices • Forging partnerships with critical suppliers, customers, and other Federal stakeholders • Demonstrating that commercial solutions are successful in contingency and humanitarian relief support Tomorrow’s vision… Smaller, more efficient, leveraged with best business practices WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
12
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Medical Logistics Program Support Medical / Surgical
Pharmaceuticals
Every day… Every crisis
Capital Equipment WARFIGHTER SUPPORT ENHANCEMENT
Readiness STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
13
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
Electronic Catalog (ECAT) Program Mr. Roy Dillard
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
14
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Electronic Catalog (ECAT) • An Internet solution using the latest electronic commerce technology for ordering, receiving, management and bill payment of medical devices and supplies • Covers commodities not covered by Pharmaceutical and Med/Surg prime vendors
• Emulates best commercial business practices • Web-based ordering
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
15
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Product Lines Program
Contracts
Items
18
98.3k
8
374.3k
Optical
14
8.6k
Equipment
38
17.7k
Allied Joint Venture
1
45.4k
Manufacturer Direct
3
7.8k
66
19.1k
Dental
Laboratory
Contingency
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
16
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Electronic Catalog (ECAT) http://www.DMMonline.com
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
17
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Electronic Catalog (ECAT)
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
18
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
ECAT Program Features • Multiple catalog ordering – Online comparison shopping for best value – Customer selects product and vendor • • • •
Price Delivery Past performance Physician’s preference
• Suppliers deliver direct to customers • Potential 5-year contracts – Base year with four 1-year options WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
19
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Additional ECAT Program Features • Transmits orders 24/7 • Vendor acknowledgment • DLA Troop Support pays vendor 15 days after receipt or invoice • On-line status
• Direct CONUS delivery • Direct OCONUS delivery on most
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
20
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Customer & Supplier Benefits • Customer benefits – – – – –
Stable pricing for all customers based on usage B2B e-Business operating system interface Customers pay as they consume product Electronic commerce solution to local manual purchase activity Robust search engines
• Supplier benefits – – – – –
One focal point for contract administration Paperless operation = reduced administrative costs Electronic published catalog pricing ECAT available to all Federal Agencies worldwide (DoD, IHS, NIH, etc.) No fee to vendor to use ECAT
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
21
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
ECAT Program Growth $Millions
300 250
Sales FY09… $224M FY10… $264M
200 150 100 50
0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
22
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Future Solicitations
Hospital Equipment
1QFY12
Laboratory Supplies & Ancillary Services
1QFY12
Dental Supplies & Dental Lab Services
2QFY12
Other sole source and services
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
TBD (FY12)
WORKFORCE DEVELOPMENT
23
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Electronic Catalog Points of Contact If you are interested in submitting a proposal under the ECAT Program, please contact…
POC
Phone No.
Email
Roy Dillard
(215) 737-2296
[email protected]
Eileen Motta
(215) 737-2480
[email protected]
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
24
25
