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66th Annual NDTA Forum & Expo | Exploring New Frontiers – New Opportunities
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The Aeroscraft: the 21st
Century Air Vehicle
Military Logistics Readiness:
A Logistics Roadmap for
the New American Military
Vietnam Messages from
a Forgotten Troopship
The Lean, Green, Supply
Chain Machine
September 2012
FEATURES
September 2012 • Vol 68, No. 5
the aeroscraft
the 21st Century Air Vehicle
8
By Gen William Tuttle, USA (Ret.)
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LTG Ken Wykle, USA (Ret.)
Editor
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Military logistics readiness
A Logistics Roadmap for the New American Military
12
By Jeff Tucker
Vietnam Messages from a18
Forgotten Troopship
By Art Beltrone
THE LEAN, GREEN, SUPPLY CHAIN MACHINE
By Anne Remien and Linda G. Tresslar
28
corporate profile32
TOTEM Ocean Trailer Express
By Glemious Jackson-Chatters
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T
Military Logistics
Readiness
he United States
ered or strained. Among
Military leads the
other reasons for concern,
world. From enthe DTCI operator is not
listed basic training to
bound by the same SDDC
our prestigious military
regulatory requirements
academies, America crefor freight that binds
ates the best trained men
DOD service providers,
even for shipments going
and women and arms
in and out of the same basthem with state-of-thees. It is difficult to quanart weaponry. Global
tify whether or not DTCI
conflicts,
hemispheric
saved money from what
policy shifts, and budget
could otherwise be purcutbacks define the next
chased from the market.
generation for our miliBy Jeff Tucker, CEO, Tucker Company Worldwide
tary. Unfortunately, our
Despite the best intenCONUS logistics protions, DTCI simply must
gram known as DTCI falls short of statewas initiated several years ago by Pentagon
be replaced. One need only hear the sarof-the-art. SDDC and the warfighter need
logisticians. Many agree that a DTCI procastic comments from active duty or civila better program.
gram based on an IT platform could have
ian personnel when DTCI is mentioned in
At the 2012 SDDC Training Symvastly strengthened SDDC’s toolbox. Untheir offices, or the crowd murmurs when
posium, senior military logistics leaders
fortunately, DOD chose a different path,
it is mentioned in larger, open national
informed soldiers and industry that our
outsourcing the IT and logistics managelogistics forums and training sessions.
new military has new challenges ahead,
ment itself—which is one of the most
It is no surprise that, experienced trafrequiring industry to be swift, nimble,
fundamental and primal strengths of any
fic managers, as well as both the civilian
and highly responsive to the warfighter’s
military, SDDC, active duty traffic manand active duty leaders who championed
needs. Also earlier this year, the Joint
agers, and civilian traffic managers.
DTCI—have retired or moved on from
Staff ’s Director of Logistics described the
Many agree that the program has cregovernment service, draining DOD’s exmilitary logistics system as “strained” as a
ated otherwise preventable delays, added
pertise in this core function. This is an art
result of 10 years of war.
procedures, and wastes of time for both
form DOD can’t afford to lose.
However, no one is directly addressing
civilian and active duty traffic managers.
However, all is not lost. Industry partthe elephant in the room—DTCI, also
In addition, DTCI has contributed to
ners are prepared to be proactive, anticiknown as DTC, short for Defense Translower morale within some TMOs, as critipate SDDC’s needs, and deliver the kind
portation Coordination Initiative. DTCI
cal service provider relationships were sevof service, cooperation, and cost savings
A Logistics Roadmap for
the New American Military
12 |
Defense Transportation Journal
|
september 2012
our military deserves. It can be done, but
it must start with replacing the DTCI
program with a better system.
Our new military’s success requires logistics readiness and capabilities that leverage the transportation marketplace to
benefit DOD, and use available technology as “weapons” in the fight. This achieves
three key objectives: 1) returning control
over logistics to our military leaders; 2)
placing military leaders in direct comThis was an advantage even the
biggest commercial businesses didn’t
possess, then or now—a nearly perfect
and open market, one where 600-900
approved vendors could compete
openly against one another, even
seeing one another’s prices.
munication with their industry service
provider partners; and 3) providing military leaders with the reporting tools and
information, oversight, and commercial
insights required to fight, defend and deliver. Success in these areas will empower
our world’s best military to set a new and
very high standard for logistics readiness,
response, and expertise. However, if success of this kind is to be achieved, a new
logistics model must be deployed.
When it adopted DTCI, the DOD
leadership gave away SDDC’s and USTRANSCOM’s single largest competitive
advantage in the area of logistics. This was
an advantage even the biggest commercial
businesses didn’t possess, then or now—
a nearly perfect and open market, one
where 600-900 approved vendors could
compete openly against one another, even
seeing one another’s prices. This drove up
competition and drove down costs. When
DTCI shut off that valve, it was like applying a tourniquet to a perfectly good
leg. It’s time to remove the tourniquet,
strengthen SDDC operations, and bring
control of a vital resource back into the
hands of the world’s greatest logisticians.
SMaRT LOGISTICS FOR THE NEW MILITARY
Here’s the good news: Regaining control
and improving logistics can be done relatively quickly. Everyone likes an appropriately named acronym, so we will call this,
“Strategic Military Readiness Technology”
14 |
Defense Transportation Journal
|
or “SMaRT.” SMaRT is designed to be
state-of-the-art; reduce the strain on DOD
logistics; squarely address our leaders’ stated needs for future logistics readiness; and
solve the most common SDDC & TMO
staff dilemmas. In sum, SMaRT will meet
our key military logistics objectives.
First Objective: Returning Control
Over Logistics to Our Military Leaders
The Oxford English Dictionary defines
logistics as “the branch of military science
relating to procuring, maintaining and
transporting material, personnel and facilities” (underscore added for emphasis).
Military historians and academic experts
to AA&E and household goods too.
SMaRT starts with good Transportation Management Software (TMS)
technology. TMS is the system that will
manage all shipment data overseen by
SDDC, carriers, brokers, rates, dispatching, risk management, and administration. TMS is the method SDDC, TMOs,
and commands, will use to interface
with all approved DOD providers. This
enables direct contact between military
commanders and TMOs and their vital
logistics partners. SMaRT is rounded out
by creating a public-private advisory body
that reviews non-classified performance
data and problems, to offer SDDC lead-
US Navy Logistics Specialist 3rd Class Cole Henry waits in a forklift as an MH-60S Seahawk helicopter delivers
cargo pallets during a vertical replenishment aboard the aircraft carrier USS Ronald Reagan (CVN 76) May 31,
2011. (US Navy photo by Mass Communication Specialist 3rd Class Dylan McCord/Released)
agree that logistics originated with early
militaries. The military’s primary objectives are providing for the defense of the
nation, and fighting and winning our
nation’s wars, but those capabilities are
impossible without finely tuned logistics
science and procurement providing them
the resources they need. Next to battle,
military logistics management is the most
primal function of any military. So why
have we unplugged the management of
this critical function from the military?
Military logistics management should be
in the hands of our military, and should be
controlled, refined, and used as effectively
as our weaponry. SMaRT empowers our
military leaders to be back in control of
their materials, their TMO staff around the
world, and their budget. It puts them in direct communication with providers. Best of
all, SMaRT enables these benefits to extend
september 2012
ers ideas for improvement. This body will
objectively analyze cost savings, and use
metrics to help measure achievement of
performance goals. As the saying goes,
what we measure we improve.
In the marketplace, there are ample
TMS providers with vast experience consolidating shipping data, optimizing loads,
and enabling shippers like DOD to reduce
expediting, lower overall costs, improve visibility, and provide interested parties with
reliable ETA (estimated time of arrival) information. For good reason, these systems
are often referred to as “control towers.”
The DOD should seek only “pure” providers of TMS, who are solely TMS programmers. DOD should expressly avoid
TMS providers that are owned or operated by transportation service providers.
This better ensures the TMS provider’s
focus is on unbiased, objective decision
making. TMS providers can work with
SDDC to design a multitude of standard
and custom reporting capabilities that
provide the insight they need to encourage positive change. For instance, SDDC
could have powerful tools like:
 A reduction in the number of freight
systems from three or more, to one.
 Populate the TMS with all qualified
DOD transportation service providers,
from brokers & 3PLs, to motor carriers.
 Establish rules to automatically prequalify, qualify, and perform required
administrative work on these providers,
including verifying DOT authority,
insurance, safety ratings, bond, and
other publicly available information.
Having
service providers upload
documents into the TMS, for SDDC
review and acceptance.
 TMS will turn off providers who lose
qualification immediately, so they
aren’t able to be assigned to loads.
 TMS can require shipment tracking
data, providing the visibility SDDC
desires and needs.
 TMOs can save transportation costs
and maximize opportunities for
consolidations, by entering shipment
data, like:
– earliest time available for pickup;
latest time available for pickup
– earliest delivery time; latest
possible delivery time
– number of pallet spaces; weight; etc.
These variables allow the TMS to optimize and consolidate (or not) shipments,
then offer them to service providers, and
confirm with TMOs the details.
One of the biggest complaints by TMOs
everywhere is the “lowest cost provider”
who never has an available truck. Every
TMO has a long list of offenders, but
not every TMO files complaints about
the wasted time, missed RDD, delayed
missions, and expedited costs to recover.
TMS can enable SDDC to place
rules around minimum performance
requirements for service providers and
maximum time allowable to (a) confirm
acceptance; and (b) get the shipment
loaded. Information is power. Providers
who perform can be rewarded with

more business, and providers who don’t
perform can be identified and avoided.
Second Objective:
Placing Military Leaders in Direct
Communication with
Industry Service Providers
USTRANSCOM and SDDC leaders and
TMOs alike describe the need for better
communication with transportation service providers. SMaRT removes the barriers that exist today, restores the unprecedented open marketplace DOD once
enjoyed, and allows DOD to communicate directly with its service providers in a
variety of ways, including: messages, bulletin boards, and pop-up reminders, or
critical messages at load acceptance. What
is more, such open contact allows leadership to encourage and providers to perform in the desired fashion with clearly
communicated performance metrics.
Direct Communications:
Advisory Body
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www.ndtahq.com | 15
oversight, and then lost most of the interaction with service providers. SMaRT
relinks DOD with its service provider
partners directly. Future SDDC leaders
will be speaking directly to hundreds of
small, medium, and large carriers, as well
as third party logistics companies, whose
collective capabilities dwarf those of any
single company.
SMaRT establishes an advisory body
of military and service provider leadership that meets periodically to review
key performance indicators. This enables
DOD logistics leadership to gain valuable
insight into how to solve certain performance issues, and enables DOD leadership to communicate clearly to service
providers about where, when, and how it
can best utilize providers in the coming
months. It delivers a variety of the best
minds to DOD’s doorstep—not just the
ideas of one voice.
NDTA, which is an established publicprivate organization, might be a perfect
vehicle or template for this advisory body.
Regardless, thoughtful design should go
into planning the advisory body. The service provider side should be a balance of
executives from small, medium, and large
brokers and carriers, and maybe trade association representatives. This ensures a
richly expert forum.
Direct Communications:
Pricing & Service Parameter Controls
As stated earlier, before DTCI, DOD
service providers had various ways to see
competitors’ rates. It was an unbelievably
powerful tool to obtain the best available
pricing. SMaRT would allow service providers to compete for more business by
lowering prices. SMaRT also improves
DTCI by capturing every acceptance or refusal, giving the Department of Defense a
crystal clear picture of the reliability of each
service provider. So, if a provider wants to
drop 10 cents per mile to become the first
called provider, it better accept the loads
tendered, or risk certain loss of credibility,
dropping off certain routing lists, or even
being disqualified as a vendor entirely.
Direct Communications:
Urgent Messages
Whether it is a national state of alert, a
regional weather development, a change
in conditions at a particular base, an
acute security threat, or a variety of other
16 |
Defense Transportation Journal
|
issues, there are many occasions when it
is essential for DOD leadership to communicate directly with service providers at a moment’s notice. As described
earlier, SMaRT’s TMS enables the Deparatment of Defense to instantly communicate with service providers through
a variety of techniques. A unified single
database of service providers, with the
ability to broadcast to the universe of
active service providers, or any sub-set,
makes for extremely efficient and effective communications.
pickups among service providers. In this
example, the SDDC could show the TMO
his/her performance data vs. his/her peers;
SDDC, and maybe even the base commander, could see the performance measured against peers—each offering encouragement or influencing change.
Intelligent and thoughtful metrics can
be selected from a virtually endless variety
to work together with the Advisory Body
and military leadership to improve performance, and provide a forum for feedback.
SUMMARY
Third Priority: Empower DOD
Leadership with Effective Reporting Tools
SMaRT proposes a state-of-the-art, standalone TMS, and an advisory body of the
The New American Military demands the
world’s best logistics platform, and productive collaboration between military
and commercial logistics experts. Success
NDTA, which is an established public-private organization, might be a perfect
vehicle or template for this advisory body. Regardless, thoughtful design should go
into planning the advisory body. The service provider side should be a balance of
executives from small, medium, and large brokers and carriers, and maybe trade
association representatives. This ensures a richly expert forum.
best minds in commercial logistics to continually collaborate with DOD leadership
on commercial and defense best practices,
elevating the New American Military Logistics to greater heights.
Critical to improvements and cost reduction are solid reporting capabilities.
Most TMS providers have dozens of
metrics to measure their providers’ performances, and those of the shipper too.
Transportation relationships aren’t onesided, and challenges may arise from the
performance of the provider or the shipper, depending on circumstances.
To illustrate the power that TMS visibility can give SDDC, here’s just one
example. At first glance, a base may have
higher than average truckload and expedited costs. Closer review by SDDC staff
of key metrics may find it has nothing to
do with freight prices, but everything to do
with the TMO entering shipment data at
the last minute. This reduces the number
of providers available to compete for the
load and may force expedited service. Data
shows this in many ways, such as: average
hours of advance notice; average number
of pallets per truck; breakdown of LTL,
truckload, expedited, air freight vs. region
vs. country; and higher than average late
september 2012
requires the DOD to take back control
of its most primal function—logistics—
then use the considerable leverage it has
to obtain a solid TMS that will enable
DOD to communicate directly with,
manage, and measure, its service providers, maximizing its leverage in the marketplace. Doing so will meet the stated goals
of military logistics leadership, reduce
transportation budgets, solve decadesold problems, and vastly improve DOD’s
control and visibility over its materials.
That’s SMaRT. DTJ
Jeffrey G. Tucker is CEO of Tucker Company Worldwide, and CEO and co-founder
of QualifiedCarriers.com. Tucker Company
Worldwide is a proud service provider to
the SDDC, DOD, GSA and other agencies of the Federal Government. Mr. Tucker
is Treasurer of the Transportation Intermediaries Association, the largest trade association of brokers and forwarders; and a
Sustaining Member of NDTA. This commentary is an expression of his professional
opinion on the matter of military freight,
and is offered with the utmost respect and
admiration for the men and women of our
military, USTRANSCOM and SDDC.