The supply distribution cycle The supply distribution cycle that we wish to reduce is 120 days in length. It begins with the preparation of a requisition in the oversea command and ends with the delivery of the requisitioned supplies to that command (chart 1). The "slices" of this cycle are shown in terms of "days" along the route of flow of requisitions or movement of supplies. The first 40 days of the cycle is ordering time and does not directly involve supplies in the pipeline. The last 80 days of the cycle is processing and shipping time during which a roughly corresponding number of "days of supply" are committed to, or moving in, the pipeline. A reduction in the first part of the cycle will make for a more responsive supply service; a reduction in the last part of the cycle will improve the service and reduce the quantities of supplies required to fill the pipeline. The air-shipment time is shown on the bottom of the chart. Using this method of shipment, and using emergency ordering and processing procedures, we have placed small quantities of items with front-line troops in Korea in as little as 17 days after those items were requisitioned. Supplies in the pipeline Chart 2 gives a better idea of the quantities of supplies in transit and in the oversea command. It is plotted in terms of "days of supply" for the command served. About 30 days of supply in zone of the interior depots is committed to the pipeline, i. e., it has been dropped from the depots' availability record and is being processed for shipment or is awaiting call to the port. Other supplies in the pipeline include approximately 20 days on rail and at the zone of the interior port and about 30 days on the water and at the oversea port. The Far East Command and the European Command have "requisitioning objectives" for general supplies which equal 180 days of supply for the respective command. The requisitioning objective is comprised of— (a) A "stockage objective" equal to 60 days of supply (30 days "safety level" and 30 days "operating level"). (b) An "order and shipping time" of 120 days (the distribution cycle). For illustration purposes, chart 2 pictures a time when half of the supplies held under the 30-day operating level have been expended, and shows only 15 days of supply remaining under this level as available for issue or a total of 45 days of supply left in the theater. Improving oversea stock control procedures The Army is converting oversea depots to an improved system of stock control. The new system is a mechanized one which allows for the maintenance of up-to-date information on the status of all depot stocks, and for the accumulation of "issue experience" as a byproduct of the accounting job. The important point here is that the study of levels in relation to issue experience is made easy by bringing the transaction information out of the accounting file and summarizing it in a form convenient for review and analysis. Stock status reports A supply status reporting system has been developed to bring stock status and transaction information to each level of management, from the depot at the end of the supply pipeline to the central stock control point in the continental United States. The data itemized under "Depot C" or chart 3 is the maximum amount of information which we could economically bring from oversea depots while they were operating with the old stock control system. The Far East Command and the European Command have reached a stage in conversion to the improved stock control system which permits the use of, and the submission of, more comprehensive information-that shown as "Depots B" data. The use of recent local-issue experience at the theater stock control point (such as the one you will see at Giessen, Germany) to compute the item quantitative "requisitioning objective" is a major improvement in the stock management operation. This process results in a realistic base from which to requisition-allowing for stocks to be held to a minmium without risking shortages. This data itemized under "Depots A" on this chart represents our ultimate goal with reference to bringing stock status and experience information into central stock control points. SUPPLYING MARINE CORPS Mr. ROBACK. Do you supply all the Marine Corps' operations? Commander FALLIS. The Army, as I understand, provides logistical support for all personnel in Korea. I don't have direct knowledge as to who supports the Marines. Mr. ROBACK. Do you have facilities for Marine Corps supply? Captain BRUMBY. The Marine ground troops are logistically suppoted by the Army. The materials for the fleet Marines are supplied through COMNAVFE, through Navy channels. For the Marine Air Force, there again they have their logistical support items from the Army in Korea just the same as any other service; but the ammunition is supplied by the Navy through their air wing and ground troops. Commander FALLIS. We have aviation support of the Marines in Korea. Chairman Bonner then ended the conference and thanked all the military personnel present for their cooperation and assistance.) TOKYO, JAPAN-EXHIBIT 1 DEPARTMENT OF THE ARMY-OVERSEAS SUPPLY MANAGEMENT A general outline of the Army supply management improvement program in oversea commands and logistical missions of the specific agencies in the Far East and Europe to be visited by the Intergovernmental Relations Subcommittee of the House Committee on Expenditures in the Executive Departments STATEMENT OF LT. COL. J. G. COATS, DISTRIBUTION BRANCH, SUPPLY DIVISION, OFFICE, AC OF S, G-4, GSUSA 1. INTRODUCTION The purpose of this brief is to outline for the subcommittee the Army program for increasing the effectiveness of management of suppies in oversea commands and to give the committee some background on the agencies and activities that you plan to visit during your tour through the Far East and Europe. Where appropriate, the functions of the installations to be visited will be related, in this brief, to the oversea supply management improvement program. II. OVERSEA SUPPLY MANAGEMENT IMPROVEMENT PROGRAM At the present time we are about midway in a long-range, well-planned program designed to increase the effectiveness of management of supplies in, and moving to, oversea commands. This improvement is being accomplished by strengthening the control of stocks in oversea commands and by shortening the distribution cycle for movement of supplies to those commands. Our objectives are to provide the oversea theater a more responsive supply service and effect an advancement in economy of operation of the supply system. Economy of operation will obtain through reducing the amounts of supplies required to be stocked in oversea areas and to fill the pipeline extending to those areas. Strengthening the control of stocks in oversea commands allows for a reduction in the quantities of supplies required to be held within those commands-specifically by applying all assets held in a theater against the "stockage objective" of that theater and by basing the computation of theater "stockage objectives" on recent local-issue experience for each item. By reducing the distribution cycle for movement of supplies to oversea commands, we will effect some reduction in the quantities of supplies required to fill the pipeline extending to those commands. We are developing a higher degree of efficiency in our supply operation by designing our system to furnish effective supply service while operating on minimum pipeline and stockage objectives. We believe the new system will meet the needs of our expanding forces, and do so with fewer supplies in the system. The supply distribution cycle The supply distribution cycle that we wish to reduce is 120 days in length. It begins with the preparation of a requisition in the oversea command and ends with the delivery of the requisitioned supplies to that command (chart 1). The "slices" of this cycle are shown in terms of "days" along the route of flow of requisitions or movement of supplies. The first 40 days of the cycle is ordering time and does not directly involve supplies in the pipeline. The last 80 days of the cycle is processing and shipping time during which a roughly corresponding number of "days of supply" are committed to, or moving in, the pipeline. A reduction in the first part of the cycle will make for a more responsive supply service; a reduction in the last part of the cycle will improve the service and reduce the quantities of supplies required to fill the pipeline. The air-shipment time is shown on the bottom of the chart. Using this method of shipment, and using emergency ordering and processing procedures, we have placed small quantities of items with front-line troops in Korea in as little as 17 days after those items were requisitioned. Supplies in the pipeline Chart 2 gives a better idea of the quantities of supplies in transit and in the oversea command. It is plotted in terms of "days of supply" for the command served. About 30 days of supply in zone of the interior depots is committed to the pipeline, i. e., it has been dropped from the depots' availability record and is being processed for shipment or is awaiting call to the port. Other supplies in the pipeline include approximately 20 days on rail and at the zone of the interior port and about 30 days on the water and at the oversea port. The Far East Command and the European Command have "requisitioning objectives" for general supplies which equal 180 days of supply for the respective command. The requisitioning objective is comprised of— (a) A "stockage objective" equal to 60 days of supply (30 days "safety level" and 30 days "operating level"). (b) An "order and shipping time" of 120 days (the distribution cycle). For illustration purposes, chart 2 pictures a time when half of the supplies held under the 30-day operating level have been expended, and shows only 15 days of supply remaining under this level as available for issue or a total of 45 days of supply left in the theater. Improving oversea stock control procedures The Army is converting oversea depots to an improved system of stock control. The new system is a mechanized one which allows for the maintenance of up-to-date information on the status of all depot stocks, and for the accumulation of "issue experience" as a byproduct of the accounting job. The important point here is that the study of levels in relation to issue experience is made easy by bringing the transaction information out of the accounting file and summarizing it in a form convenient for review and analysis. Stock status reports A supply status reporting system has been developed to bring stock status and transaction information to each level of management, from the depot at the end of the supply pipeline to the central stock control point in the continental United States. The data itemized under "Depot C" or chart 3 is the maximum amount of information which we could economically bring from oversea depots while they were operating with the old stock control system. The Far East Command and the European Command have reached a stage in conversion to the improved stock control system which permits the use of, and the submission of, more comprehensive information-that shown as "Depots B" data. The use of recent local-issue experience at the theater stock control point (such as the one you will see at Giessen, Germany) to compute the item quantitative "requisitioning objective" is a major improvement in the stock management operation. This process results in a realistic base from which to requisition—allowing for stocks to be held to a minmium without risking shortages. This data itemized under "Depots A" on this chart represents our ultimate goal with reference to bringing stock status and experience information into central stock control points. |