It is said that amateurs study tactics, while professionals study logistics. Analysts study procurement, because this is where the decisions are taken that affect both the range of thinkable tactics, and the logistics infrastructure that underpins them. Hence the importance of programs like the USA’s newly-launched Defense Transportation Coordination Initiative (DTCI).
At present, the US Department of Defense’s shippers in the continental US (CONUS) are handled by individual depots, bases, and other locations. Each location independently selects the transportation modes, level of service, and transportation providers they need, and so multiple information systems are employed to execute and manage shipment activity. There is no centralized planning, coordination, or control. The system works, because each shipment is managed. Is it as efficient as it could be? No.
Hence DTCI, which is focused on increasing operational effectiveness, while simultaneously obtaining efficiencies by reducing cycle times, and using best practices such as increased consolidations / load optimization and modal conversions. The premise is for DoD to competitively award a long-term contract with a world-class transportation coordinator/coordinator(s) that will help it achieve these goals, leveraging current commercial capabilities and proven practices save up to 20% as it manages, consolidates, and optimizes freight movements. In the business world, this growing trend is called 3rd Party Logistics (3PL).
The DTCI contract has a multiple phased implementation approach – which DID describes below in our Spotlight article, along with the program’s history & issues faced, the recent announcement of a winning team, the known competitors, and a collection of useful reference resources…
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