# Conference highlights supply chain resiliency, modernization

/ Published May 4, 2023
RICHMOND, Va., 
The Defense Logistics Agency ensures the readiness and lethality of the nation’s armed forces in a complex environment that is constantly changing. Meeting these challenges requires agility, a commitment to modernization and working with industry partners, said the agency’s director.

“First and foremost, DLA is the nation's combat logistics support agency, which means we're very much in the mix when it comes to our nation's integrated deterrence strategy,” said Navy Vice Adm. Michelle Skubic at the DLA Supply Chain Alliance Conference and Exhibition held May 3-4 at the Greater Richmond Convention Center in Richmond, Virginia.

The conference focused on building resilient supply chains, revitalizing domestic manufacturing and fostering growth. 

DLA is working with other Defense Department agencies to stay responsive and enable the military services as well as federal partners and allies, Skubic said.

In fiscal 2023, DLA obligated over $48 billion in contracts for goods and services. The agency awards between 9,000 and 10,000 contracts every day, 94% of which are automated.

“We rely heavily on our partnerships with industry to provide the support needed to maintain warfighter readiness,” Skubic said.

DLA is continually transforming to support the National Defense Strategy and build a resilient joint force ecosystem, she added. Part of that effort includes modernizing the agency’s business systems and processes.

“We, like so many in this room, want to continue to leverage more sophisticated applications of artificial intelligence, machine learning and robotics in our procurement process as well as other processes,” she said.

The Warehouse Management System is one example of DLA’s modernization and will provide better asset visibility while allowing the agency to become more auditable.

“WMS ensures we know what we have, where it is and what condition it’s in, which is so crucial in supporting our warfighters every day,” she said.

DLA’s whole-of-government support has grown steadily over the last 20 years, she added. After the earthquake that hit Turkey and Syria in February, the agency quickly provided humanitarian assistance and disaster relief because needs were recognized before they were tasked.

“We are the go-to for the State Department, for [the U.S. Agency for International Development], and for our allies and partners when it comes to necessary support in the humanitarian assistance/disaster relief space,” Skubic said.

DLA also plans logistics support for annual hurricane and forest fire seasons by working with the Federal Emergency Management Agency and U.S. Forest Service. And during the COVID-19 pandemic, DLA provided $6 billion in lifesaving supplies.

In the face of a shrinking defense industrial base that has numerous challenges, Skubic said DLA is determined to work with its partners to provide the best support possible.

Of the agency’s roughly 9,000 suppliers, about 7,000 are small businesses, Skubic said, adding that there’s been a 22% decline in DLA’s small business partnerships since 2016.

“That trend has our attention,” she said.

Despite challenges like inflation, economic instability, supply chain disruptions and labor shortages, DLA is still faring better than others in retaining small businesses, Skubic continued. In fact, DLA exceeded its small business goal for the 10th consecutive year in fiscal 2022 and topped its 3% goal in the historically underutilized business zone category for the second consecutive year.

DLA was also named Agency of the Year in February by the National 8(a) Association and National HUBZone Council for supporting small businesses.

Open communication with industry is critical, Skubic said. Data from DLA’s recent supplier survey showed the agency is losing small business suppliers at about half the rate of the rest of DOD and less than the rest of the federal government.

“While we’re not calling that a success, we are just glad to see that there are so many staying with us. We hope to appeal to an even greater industrial base. We want to be a partner of choice for those considering supporting the military and our mission,” Skubic said.

The agency saw drops in its survey ratings for timeliness and timely resolutions, while its highest-ranking factor was trustworthiness. Businesses that conducted over $10 million with DLA, non-profits companies and service providers were more positive in their responses. Small businesses were more critical.

“It’s imperative that we on the DLA side do all we can to retain the existing industry partners that want to keep doing business with us,” she said.

She recommended that businesses that want to start working with the federal government reach out to one of the more than 95 APEX Accelerator centers, which offer free support to small businesses looking to compete for federal, state and local government contracts.

DLA remains committed to being as transparent as possible with its industry partners, she added.

“We must work as a team; and good teammates are open, transparent and fair-minded in dealing with one another,” she said. “The importance of our partnership has never been more evident than now, as we support various changing missions.”