We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Navy's performance-based logistics experience offers lessons for the private sector
inbound

Navy's performance-based logistics experience offers lessons for the private sector

October 26, 2012
Steve Geary
No Comments

As commander of the Naval Supply Systems Command, Rear Admiral Mark Heinrich must deliver supply chain support for "America's Away Team" around the world. With more than 100 ships typically under way at any time, the stakes are high and "mission execution is key," Heinrich said in a session on performance-based logistics at the Council of Supply Chain Management Professionals' 2012 Annual Global Conference.

Speaking directly to the budget challenges the U.S. military faces today, he said, "We know that with better relationships with our suppliers, we can perform in a more cost-wise manner."

Heinrich then offered logistics and supply chain managers advice on building relationships with suppliers based on the Navy's experience. Just three examples:

  • Suppliers' return on assets is a critical parameter, which implies that buyers must carefully consider the term of a contract. "Too short, and companies can't invest. Too long, and you drive out competition."
  • Alignment is about behavior, and that means wielding both the carrot and the stick. The big carrot buyers can use: creating an opportunity for suppliers to make more money if they deliver greater value. An effective "stick" is to break apart a bundle of business activities and have the supplier compete for the now separate services.
  • Consistent and transparent governance is important, but the buyer should be careful not to "over-torque" oversight. Insight can easily stray toward intrusion, Heinrich said.
  • Related Articles

    thanks for the MREs

    widen the scope for smart site selection

    The coronavirus and China. The logistics threat is closer than you think.

Stevegeary epub
Steve Geary is adjunct faculty at the University of Tennessee's Haaslam College of Business and is a lecturer at The Gordon Institute at Tufts University. He is the President of the Supply Chain Visions family of companies, consultancies that work across the government sector. Steve is a contributing editor at DC Velocity, and editor-at-large for CSCMP's Supply Chain Quarterly.

Recent Articles by Steve Geary

Did you consider?

Play Chess, not Checkers

Nothing is certain.

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • A look into the future of robotics

  • A primer on warehouse robots

  • Exotec Skypod System Adopted by Gap Inc. to Optimize Returns Process

  • Roadrunner Freight bolsters LTL capabilities with $50 million in new backing

  • Truck driver availability tightens to three-year low, ACT says

Now Playing on DCV-TV

B56eecf1 4687 42a4 865e c3f3223925f7

How serious are you about controlling your freight costs?

DCV-TV 4: Viewer Contributed
If you’ve been feeling like your freight budget is under attack, you’re in good company! Whether you’re looking at the ocean, parcel, LTL, truckload, or air markets, capacity is tight and prices are soaring.RELATED RESOURCES:Rapid AssessmentVisit our websiteSubscribe to our YouTube Channel

FEATURED WHITE PAPERS

  • Special Report: Supply Chain Trends in Retail & Consumer Goods

  • Fortify Your Operational Resilience

  • Cold Storage Automation: Leveraging Advanced Technologies to Meet Increasing Demand

  • The modern warehouse: Maximizing productivity and capacity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing