Transforming U.S. Army Supply Chains: Strategies for Management Innovation

This text offers a practical approach for understanding the U.S. Army’s
extremely complex global logistics system, widely acknowledged as one
of the largest in the world. The focus is on inventory management policy
where prescriptions are illuminated through the prism of an enterprise
supply chain analysis. Although Army aviation logistics examples are
emphasized throughout, the fundamental issues and potential solutions
are broadly applicable to other large-scale military and industrial supply
chains as well. Following a summary of recent trends for background
and context, a multistage conceptual model of the logistics structure is
presented to segment and guide the effort. This multistage model is used
to systematically analyze major organizational components of the supply
chain, diagnose structural, disorders and prescribe solutions. Integration
challenges are addressed using cost-benefit perspectives, which incorporate
supply chain objectives of efficiency, resilience, and effectiveness.
The design and evaluation section proposes an “analytical architecture”
consisting of four complementary modeling approaches, collectively
referred to as “dynamic strategic logistics planning,” to enable a coordinated,
enterprise approach for U.S. Army Logistics Transformation. An
organizational construct is presented for an “engine for innovation” to
accelerate and sustain continual improvement for Army logistics and supply
chain management—a “Center for Innovation in Logistics Systems.”
Finally, strategic management challenges associated with enterprise integration
and transformational change are addressed: organizational design;
management information and decision support systems; strategic alignment
for a learning organization; and workforce considerations including
human capital investment needs. The text concludes with a relevant
historical vignette and closes with a summary of expected benefits.

Features
Logically structured using an operations research (OR) approach with an
enterprise analytical framework, the text introduces, describes, and applies
the new concept of “management innovation as a strategic technology.”
Cutting-edge supply chain theory, powerful analytical methods, and
innovative strategic planning and management concepts are applied to
this seemingly intractable national security resource challenge which has
remained on the U.S. Government Accountability Office’s (GAO) “highrisk”
list for two decades now.
Benefits
The text simplifies a very complex, “large-scale” system to enable clarity,
provide insight, and guide understanding through analysis, synthesis
(integration), design, and evaluation. In order to fully capitalize on
advances in information technology (IT), the complementary power
of modeling, simulation, and rigorous analysis for dramatic performance
improvement is demonstrated. The text provides an “analytical
architecture”—a comprehensive road map—to sustain continuous performance
improvement, relate budget and investment levels to current
and future capability outcomes, and create and sustain a learning organization
for the U.S. Army’s complex, global supply chain enterprise.