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The federal supply chain campaign plan

A Roadmap to High Performance

Overview

MAY 29, 2013

Federal agencies are under pressure to reduce costs between constricting budgets and expanding demand for services; agencies must find ways to improve performance while trimming expenditures. Accenture understands the challenges faced by federal agencies and has developed a supply chain campaign methodology that will create a “bottoms-up” approach to identify a strategic supply chain roadmap for the future.

The Supply Chain Campaign methodology takes an all-encompassing look at an agency’s supply chain from end to end and, through stakeholder feedback, identifies the strategic journey required for the future. Through initiatives identified by the Supply Chain Campaign, Accenture will work with an agency to identify and deliver solutions that focus on improving customer service, streamlining processes and increasing visibility at a lower overall enterprise cost. Our approach combines Accenture’s deep federal knowledge with leading best practices and lessons learned from previous efforts to transform an agency’s supply chain to become best-in-class.

The Supply Chain Campaign includes:

•  Initiative identification, measurement and sequencing/prioritization that support these goals

•  Initiative management, stakeholder alignment and final-state measurement to progress initiatives

•  Development of a blueprint for success that includes a five-year roadmap and strategy to lead your agency’s supply chain toward becoming world-class

•  Rapid goal setting, alignment and prioritization exercises (based upon Lean Six Sigma principles) to identify where an agency wants to be in the short, medium and long term

This brochure contains an actual agency’s Supply Chain Campaign that was customized and tailored to fit its needs. The campaign has set the tone for the next five years at the agency and will introduce and measure initiatives that will take the agency toward becoming best in class by 2017.

Background

The Supply Chain Campaign is the supply chain division’s transformation campaign plan to improve logistics operations to meet both the current and future business environments. It is an action-focused strategy that guides key logistics transformation initiatives to provide world-class, dependable, effective and efficient operations in support of the overall mission of the agency. The goals of this strategy are designed to support the overarching goals set by the agency. In addition, the Supply Chain Campaign aligns to the agency strategic objectives.

To be successful in the 21st century environment, logistics must operate with Improved Supply Chain Visibility, across Streamlined and Integrated Business Processes, by supporting Auditability, accountability, and Compliance, with Optimized Resources and Talent, while leveraging Integrated Technology. Combined, these five goals drive the future state of the division’s supply chain.

•  Integrated Technology
•  Optimize Resources and Talent
•  Streamline and Integrate Business Processes
•  Increase Auditability, Accountability and Compliance
•  Improve Supply Chain Visibility Across the Division’s Business Environment

Analysis

Supply Chain Control Towers Increase Visibility and Customer Service
The division’s supply chain is complex, with a customer base spread out across the globe. Visibility to where the product is, when it will arrive at a destination, and customer demand and requirements are needed to provide better customer service and support the overall division mission.

Inventory Optimization and Demand Planning Balance Inventory Costs with Customer Service Levels
Inventory optimization and demand planning involve the ideal balancing of costs and benefits for the division. By partnering with customers to optimize inventory, the division can help to reduce the fixed costs of ordering, improve capacity, and reduce fluctuations in supply, demand and prices for the division.

Ensuring Goal and Initiative Success Through Performance Management
Incorporating performance management into the Supply Chain Campaign can help the division improve the execution of the campaign goals/initiatives, facilitate better and faster decision making and alert key stakeholders to potential issues.

Lean Six Sigma Can Build the Case for Change and Provide the Map Forward
By implementing Lean Six Sigma, the division can build awareness for why change is needed, the journey to be undertaken and what change will be created. This will allow division branches and leaders to be aligned and move efficiently toward standardized objectives.

Transportation Optimization Can Reduce Complexity and Expenses
The division manages the movement of goods being delivered both domestically and internationally. A structured approach to spend management (an example would include spend that the division controls, such as global freight) enables reduced costs and improved customer service.

Fleet Management and Vehicle Allocation Reduce Expenses and Improve Customer Service
Comprehensive Fleet Management can allow the division to realize its fleet reduction goals while maintaining or improving customer service levels. It can also provide the information and visibility necessary to enable the division to make complex fleet decisions.

Recommendations

The Supply Chain Campaign and the Blueprint for Success: The Way Forward
With integrated supply chain systems, Acquire to Retire, and Total Asset Management as foundations to align the division’s strategic undertakings in the future, the focus for the next five years will be on successfully defining and executing the Supply Chain Campaign goals and initiatives. In order to do so, the division will create a Blueprint for Success to create, document and prioritize the Supply Chain Campaign initiatives. The blueprint will also measure the current state, and undertake “quick win” initiatives that have limited complexity but create significant value for the division.

The Supply Chain Campaign Blueprint for Success not only provides the definition of the future state, it also serves as the roadmap by which the transformation is fully defined. By establishing a plan to achieve value for the division and its customers, the blueprint allows the division to manage the Supply Chain Campaign transformation and measures progress along the way.

The Blueprint for Success will drive pace through the sequencing and prioritization of initiatives. It ensures a common understanding of the future state, and measures progress throughout the transformation.