FY2006 - FY2013
2 Defense Logistics Agency

DIRECTOR’S

MESSAGE

To All Members of the Defense Logistics Agency 

and Our Logistic Partners

Rapidly changing world events

have demonstrated the need to

hone our strategies to counter current and potential threats from

international terrorists, rising energy costs, and emerging geo-political conflicts. Logistics has been

changing to meet the needs of the

Global War on Terrorism, focused

logistics challenges inherent in the

re-shaping of the forces, and infrastructure envisioned in the

Quadrennial Defense Review and

the Base Realignment and Closure

(BRAC) Commission decisions.

DLA, too, must continually

adapt to meet the needs of the

force and to build alliances with

acquisition partners to deliver

logistics support more efficiently

and effectively. Toward our vision

of providing integrated logistics

solutions, DLA senior leaders

developed this Strategic Plan using

formal scenario planning to assess

the environment and project future

scenarios. We used a recognized

scenario planning model to assess

economic, political, technical,

environmental, and social factors.

We asked our customers what

logistics services they needed and

signed performance-based agreements with the military services.

Likewise, we consulted with our

acquisition partners and awarded

long-term contracts to be more

responsive through collaborative

product solutions and direct delivery.

The resulting DLA goals and

strategies in our revised Strategic

Plan are crafted to build capabilities (see next page) in support of

the DoD Risk Scorecard strategies. Key among those capabilities are Strategic Relationships

and Joint Integrated & Agile

Support. 

We have a rich history of collaborating toward joint solutions with

such esteemed partners as: the

United States Transportation

Command, Defense Information

Systems Agency, Defense

Contract Management Agency,

and the Defense Finance and

Accounting Service. As DLA

drives the strategies of this plan

toward integrated logistics solutions, our employed methodology

will be that of more cross-service

and defense agency collaboration

and partnerships. 

Our thirteen transformation initiatives outlined in our

Transformation Roadmap

(http://www.dla.mil/library/

DLATransRoadmap.pdf) promise

opportunities for greater integration, logistics visibility, responsiveness, and efficiency. (See also

the DLA Matrix to DoD Focused

Logistics Joint Functional Concept

Challenges Areas and Capabilities

and alignment to the DoD Risk

Scorecard on p. 10-11.)

I look forward to an exciting new

generation of DoD joint logistics!

Keith W. Lippert

Vice Admiral, SC, USN

Director 
3 Strategic Plan

KEY

SUCCESS

FACTORS

The Process

Strategic Relationships

Customer Relationship Management

Partner Alliance Development & 

Management

Joint, Integrated & Agile

Support

Agile Logistics Response

E2E Supply Chain Integration

Joint Interoperability

Business Enhancement

Business Intelligence 

Business Development

Venture Research & Investment

Organizational Leverage

Policy & Legislative Acumen 

and Influence

Information Dominance

Capability Leveraging

Talent Optimization

Financial Flexibility & Stewardship 

CAPABILITIES

REQUIRED

FOR FUTURE

SUCCESS

Defense Logistics Agency
4 Defense Logistics Agency

DLA GOALS

DLA VALUES

DLA VISION

DLA MISSION

GOAL 1: Provide responsive, integrated, best value supplies and

services consistently to our customers.

GOAL 2: Develop, institute, and continuously enhance the

internal processes required to deliver value-added

logistics solutions to the warfighter. 

GOAL 3: Ensure our workforce is diverse, enabled, and

empowered to deliver and sustain logistics excellence.

GOAL 4: Manage DLA resources for best customer value.

PEOPLE. . . Our greatest resource.

SERVICE. . . Our commitment to our customers.

EXCELLENCE. . . Quality in everything we do.

INNOVATION. . . Preparing to meet future needs.

TRUST. . . Our standard in every relationship.

Today and Tomorrow, Best Value Integrated Supply Chain

Solutions. . . Meeting the Needs of the Warfighter and Their

Supporters.

Right Item, Right Service, Right Place, 

Right Price, Right Time. . . Every Time.

To Provide Best Value Integrated Logistics Solutions to

America’s Armed Forces and Other Designated Customers. . .

in Peace and in War . . . Around the Clock, Around the World.

Defense Logistics Agency
5 Strategic Plan

GOAL

CUSTOMER1

C1– Implement a comprehensive Customer Relationship

Management Program by FY07. (J-4)

C2 – Ensure that DLA developed integrated strategies and

collaborative support plans are institutionalized in logistics

operations plans by FY07. (J-4/J-3)

C3a – Evaluate and implement high return-on-investment

opportunities to re-allocate customer-facing resources to

target customer sites by FY07. (J-4/J-3)

C3b – Negotiate and successfully implement performancebased agreements with Combatant commanders

(COCOMs) by FY07. (J-4/J-3)

PROVIDE RESPONSIVE, INTEGRATED, BEST VALUE SUPPLIES

AND SERVICES CONSISTENTLY TO OUR CUSTOMERS

C1 – Engage existing and

potential customers deliberately by executing a comprehensive Customer

Relationship Management

strategy.

C2 – Translate customer

needs into actionable information to support the development of logistics solutions

that maximize readiness and

combat power.

C3 - Deliver consistently on

customer requirements and

expectations.

Objectives 

Strategies

DLA is focused on providing responsive, integrated, best-value supplies and services consistently to our customers, and

are committed to achieving a sustained customer satisfaction rating of 90%, and fullfilling 100% of our PerformanceBased Agreement terms.

As a Combat Support Agency, the DLA mission is to provide logistics support to the warfighter.

DLA’s first and most important goal concerns the outcome for our customer. The strategies and

objectives under this goal communicate how DLA will improve customer service and the level of

service we have targeted to deliver. DLA aims for logistics excellence.
IP1a – Complete the implementation of supply chain business

process alignment by FY08. (J-3)

IP2a – Develop and implement 30 strategic arrangements (i.e.,

Supply Chain Alliances, and Performance-Based Logistics

partnerships) by FY11. (J-3)

IP2b – Develop and deploy a comprehensive Supplier

Relationship Management strategy by FY07 to integrate customer requirements into contractual and alliance relationships

required of our suppliers. (J-3)

IP2c – Implement the Defense Transportation Coordination

Initiative by FY08. (J-3)

IP3a – Reduce costs through public/private competitions maintaining equal or better mission performance by FY11. (J-3)

IP3b – Develop a program for continuous product and reliability improvements as a follow-on to reengineering efforts by

FY11. (J-3)

IP1 – Align and execute internal

processes by supply chain to provide value-added logistics solutions to the warfighter.

IP2 – Leverage industry capabilities to provide world class

support to the warfighter at the

lowest possible cost.

IP3 – Adopt, institutionalize,

and continuously improve best

business practices to improve

quality and speed and to reduce

cycle time and costs.

IP4 – Grow the business by providing/integrating logistics services and leveraging DLA capabilities to meet warfighter

requirements.

IP5 – Design, implement, and

sustain a best value enterprise

IT environment.

IP6 – Positively influence legislation, policy, regulations, and

directives affecting DLA’s logistics mission.

IP7 – Improve management of

DLA’s current and future real

property.

IP8 – Manage customer relationships.

6 Defense Logistics Agency

DEVELOP, INSTITUTE, AND CONSISTENTLY ENHANCE THE

INTERNAL PROCESSES REQUIRED TO DELIVER VALUE- ADDED LOGISTICS SOLUTIONS TO THE WARFIGHTER

GOAL

INTERNAL

PROCESS 2

Objectives 

Strategies

This internal process goal results in strategies for improved market knowledge, customer and supplier accessibility, and collaboration. Supply chain management practices provide the set of tools to manage our internal processes. Our focus on the objectives for supply chain management and information technology (IT)

investments performance provide the supporting performance targets to achieve this goal.
IP3c – Implement LEAN/Six Sigma to reengineer internal

processes to reduce cycle time, costs and/or variability, and/or

to improve the quality of outcomes for targeted

processes/value streams by FY08. (J-3)

IP3d – Implement an initial comprehensive enterprise-wide

“dashboard” that leverages various sources to display timely

business intelligence, including E2E logistics visibility, by the

end of FY07, and refine it as related enablers mature through

FY10. (J-6)

IP4a – Become DoD’s Enterprise Integrated Data Environment

(EIDE) lead for logistics data interoperability by FY06. (J-6)

IP4b – Pursue designation as DoD’s Executive Agent for logistics information by 2006. (J-6)

IP4c – Provide value-added logistics products and services that

generate increased sales (e.g., kitting, integrated services, etc.)

by FY11. (J-3/J-4)

IP4d – Implement the National Inventory Management

Strategy (NIMS) by FY11. (J-3)

IP5a – Define and implement a structured process to sustain

awareness of, and facilitate business process utilization of, new

“quick win” commercial IT capabilities by the end of FY06.

(J-6)

IP5b – Complete the IT transformational systems portfolio. (J6)

1. Complete the implementation of the Business Systems

Modernization (BSM) solution to replace the Standard

Automated Materiel Management System (SAMMS) replacement by the end of FY06. (J-6/J-3)

2. Provide a future architecture and enable engineered

business processes throughout DLA through the implementation of additional complementary modernized business systems, including Customer Relationship Management,

Distribution Planning and Management System, Integrated

Data Environment, BSM Energy, Product Data Management

Initiative, and Reutilization Modernization Program by the end

of FY09. (J-6/J-3)

IP5c – Complete the IT infrastructure modernization portfolio.

(J-6)

1. Improve operational readiness, efficiency and effectiveness while reducing IT total ownership cost by 10%

through the implementation of enterprise-wide IT infrastructure initiatives by the end of FY06. (J-6)

2. Capitalize on the enterprise-wide “Operationalization”

of IT at DLA to enhance performance and constrain cost

through Centers of Excellence and other refinements. Balance

the resultant savings with an assessment of requirements to

sustain the full IT systems portfolio and resolve overall related

savings of requirements by mid-FY06 for consideration in

PBR 08. (J-6)

3. Create and maintain a secure operating data environment for DLA systems, networks, and web sites by ensuring

95% are certified and accredited in compliance with DoD

Instruction 8500.1 Information Assurance by the end of FY06.

(J-6)

IP5d – Initiate enhancement plans for logistics information

executive agency in FY07 (contingent on EA designation). (J6)

IP5e – By the end of FY09, define and initiate post-IT systems

transformation and post-IT infrastructure modernization

actions that will enable the next generation of DLA business

processes. (This will include, but not be limited to, nearerterm efforts to enhance the deployability of the Distribution

Standard System (DSS) and to commence an assessment of the

possible replacement of DSS.) (J-6)

IP5f – Complete the implementation of eWorkplace as DLA’s

primary internal collaboration tool and knowledge repository

by the end of FY07. (J-6/J-1)

IP5g – Implement EIDE by FY11. (J-6)

IP6a – Proactively engage customers/OSD/Congress. (DL/DG)

IP6b – Respond timely (as appropriate) to Congressional

inquiries. (DL)

IP6c – Identify appropriate legislative proposals and submit

during the annual legislative cycle. (DG)

IP7a – Improve Agency facilities sustainment from 46%

(FY05) to 100% by FY09. (DES-I)

IP7b – Improve facilities re-capitalization rates from 102

years (FY05) to 67 years by FY09. (DES-I) 

IP8a – Partner with military services on two pilot studies

demonstrating use of DLA Products and services to meet customer Environmental Management System objectives by

FY09. (DES)

IP8b – Assist the customer in meeting environmental objectives by achieving a 25% increase in offerings of products and

services by FY11. (DES, J-3/J-4)

IP8c – Assist the customer in meeting environmental objectives by achieving a 25% increase in the revenues of DLA

environmental products and services by FY11. (DES, J-4/J-3)
8 Defense Logistics Agency

LG1a – Implement a comprehensive succession development program by FY09. (J-1)

LG1b – Implement an integrated automated competency assessment and learning management system for guiding DLA’s training

plan and budget decisions by FY09. (J-1/J-6)

LG1c – Develop and implement a performance-based recruitment

strategy with defined goals and measures by FY07. (J-1).

LG1d – Develop the ability to make data-driven human capital

decisions by FY08. (J-1)

LG1e – Prepare the DLA workforce for implementation of the

National Security Personnel System (NSPS) by FY08. (J-1)

LG2a – Achieve the 75th percentile or better on the 12 indices of

the Denison Culture Model by FY11. (J-1)

LG2b – Fully implement a multi-source feedback tool that measures leadership effectiveness in modeling the desired culture traits,

as measured by the Denison Multi-Source Feedback tool by FY11.

(J-1)

LG2c – Develop and adopt a common approach to change management by FY07. (J-1)

LG2d – Develop and deploy an enterprise organizational alignment

capability to support transformation by FY-07). (J-1)

LG3a – Improve employee satisfaction on the Climate Survey to

85% or better by FY09. (J-1)

LG3b – Improve overall Hispanic representation from 4.6% to

10.7% by FY11. (DO/J-1)

LG3c – Achieve representation of people with targeted disabilities

to 3% of DLA workforce by FY11. (DO/J-1)

LG3d – Achieve representation of all EEO groups at the mid and

high grades by FY11. (DO/J-1)

LG3e – Improve safety and security, and influence workforce

health and wellness by reducing lost work days 75% from the 2002

baseline; increasing certified police, fire, and emergency personnel

from 48% to 90%; and, raising MWR health and wellness participation from 20% to 50% by FY09. (DES)

ENSURE OUR WORKFORCE IS DIVERSE, ENABLED, AND EMPOW- EREDTO DELIVERAND SUSTAIN LOGISTICS EXCELLENCE

LG1 – Deliver the proper

knowledge and skills to meet

DLA commitments to our customers.

LG2 – Achieve a corporate culture that has strength in mission, adaptability, consistency,

and involvement.

LG3 – Provide a quality work

environment.

GOAL

L

G

EARNING AND

ROWTH 3

Objectives

Strategies

DLA’s success depends on its human capital. This goal focuses on the strategic management of our human capital. Our

workforce must be properly staffed, possess the right competencies, and use knowledge-based skills for DLA to successfully perform its mission. DLA must nurture and sustain a high-performing workforce, ensuring that no skill gaps exist in our

mission-critical occupations. This goal encompasses investing in the workforce and implementing a strategy to retain and

sustain a highly skilled and competent workforce. We foster a positive work experience by promoting equal opportunity,

providing and maintaining a safe work environment, fostering self-respect, valuing individual and team contributions, and

taking pride in our workforce diversity. 
9 Strategic Plan

F1a – Develop and implement program, budget and pricing strategies for supply chains by September 2008. (J8/J-3) 

F2a – Decrease DLA’s non-energy cost recovery rate,

based on the cost of operations to 11.9% by FY11. (J-8)

F2b – Ensure DLA’s energy non-product cost per barrel

will not exceed $8.93 by FY11. (J-8)

F2c – Ensure DLA’s distribution composite unit cost rate

will not exceed $24.65 per line by FY11. (J-8)

F2d – Program 100% of the initiatives in the Program

Objectives Memorandum that support strategic plan objectives for each Future Year Defense Program (FYDP). (J-8)

F3a – Develop and implement the automated systems,

business processes, and controls needed to comply with

Federal accounting and system requirements, and demonstrate that DLA is ready for an audit of its financial statements by FY08. (J-8/J-6)

MANAGE DLA RESOURCES FOR BEST CUSTOMER VALUE

F1 – Resource DLA’s operational strategies.

F2 – Minimize total supply

chain costs.

F3 – Demonstrate stewardship

and foster stakeholder trust.

GOAL

FINANCE 4

Strategies

Objectives

Focusing on the financial goal will sustain the strong financial discipline required to ensure effective

financial planning and management in DLA. The strategies and objectives associated with this goal

allow DLA to provide best value to DLA customers. Accurate forecasts strengthen DLA’s ability to

project and support requirements and plan for the resources needed. Better supply chain cost

decisions result in better management of our resources. DLA’s ability to demonstrate audit readiness

in FY08 will provide assurance to DLA management and stakeholders that our financial management systems produce relevant, reliable, and timely information.
10 Defense Logistics Agency

CHALLENGE AREAS AND CAPABILITIES

DLA INITIATIVES MATRIX TO DOD FOCUSED

LOGISTICS JOINT FUNCTIONAL CONCEPT

DLA INITIATIVE

Customer Relationship Management

(CRM)

Supplier Relationship Management (SRM)

Business Systems Modernization (BSM)

BSM – Energy (Business Systems

Modernization Energy – BSM E) 

Distribution Planning & Management

System (DPMS)

Integrated Data 

Environment (IDE)

National Inventory Management 

System (NIMS)

Product Data Management Initiative

(PDMI)

Global Stock Positioning (GSP)

Executive Agent (EA)

Workforce Transformation (WT)

Reutilization Modernization Program

(RMP) 

Base Realignment and Closure (BRAC)

FL CHALLENGEAREAS

Agile Sustainment; Joint Theater Logistics

Management

Agile Sustainment; Joint Deployment/ Rapid

Distribution; Force Health Protection

Agile Sustainment; Joint Deployment/ Rapid

Distribution; Operational Engineering;

Multinational Logistics; Information Fusion

Agile Sustainment; Joint Deployment/ Rapid

Distribution; Joint Theater Logistics

Management; Multinational Logistics;

Information Fusion. 

Agile Sustainment; Joint Deployment/ Rapid

Distribution; Operational Engineering;

Multinational Logistics; Information Fusion;

Joint Theater Logistics Management

Agile Sustainment; Joint Deployment/Rapid

Distribution; Multinational Logistics; Force

Health Protection; Information Fusion; Joint

Theater Logistics Management

Agile Sustainment; Joint Deployment/ Rapid

Distribution; Multinational Logistics; Joint

Theater Logistics Management 

Agile Sustainment; Joint Deployment/ Rapid

Distribution; Multinational Logistics

Agile Sustainment; Joint/Deployment/ Rapid

Distribution; Multinational Logistics; Joint

Theater Logistics Management 

Agile Sustainment; Joint Deployment/ Rapid

Distribution; Operational Engineering; Joint

Theater Logistics Management 

Agile Sustainment; Joint/ Deployment/Rapid

Distribution; Multinational Logistics; Force

Health Protection; Logistics Information Fusion;

Joint Theater Logistics Management

Agile Sustainment; Multinational Logistics;

Information Fusion; Joint Theater Logistics

Management

Agile Sustainment; Joint/ Deployment/Rapid

Distribution; Multinational Logistics; Joint

Theater Logistics Management

FL CAPABILITIES

Integrated cross-service logistics: COCOM decision

support and visibility; full collaboration across the

Services/DoD

Flexible industrial base; tailored sustainment; precision

tactical re-supply; interoperability across services; civilian collaboration; integration of EA, CLS and host

nation support

Net-centric; real-time E2E pipeline control; interoperable source data; availability of quality data; actionable

information; rapid access to logistics information; rapid

access to integrated operational view; requisition visibility

Integrated cross-service logistics: COCOM decision

support and visibility; full collaboration across the

Services/DoD

Robust infrastructure for mobility; world-wide sustainment assets; force reconstitution; integrated distribution

processes

Net-centric; real-time E2E pipeline control; interoperable source data; availability of quality data; actionable

information; rapid access to logistics information; rapid

access to integrated operational view; requisition visibility

Flexible industrial base; tailored sustainment; precision

tactical re-supply; interoperability across services; civilian collaboration; integration of EA, CLS and host

nation support

Flexible industrial base; tailored sustainment; precision

tactical re-supply; interoperability across services; civilian collaboration; integration of EA, CLS and host

nation support

Robust infrastructure for mobility; world-wide sustainment assets; force reconstitution; integrated distribution

processes

Flexible industrial base; tailored sustainment; precision

tactical re-supply; interoperability across services;

civilian collaboration; integration of EA, CLS and host

nation support

Supports all capabilities. 

Integrated cross-service logistics: COCOM decision

support and visibility; full collaboration across the services/DoD 

Flexible industrial base; tailored sustainment; precision

tactical re-supply; interoperability across services
DLA ALIGNMENT TO DOD RISK SCORECARD

FORCE MANAGEMENT RISK

OPERATIONAL RISK

INSTITUTIONAL RISK

FUTURE CHALLENGES RISK

11 Strategic Plan

Ensure Sustainable Military Tempo

and Maintain workforce satisfaction 

LG2 – Achieve a culture strong in

mission, adaptablity, consistency, and

involvement 

LG3 – Provide a Quality Work

Environment

Forces Employed Consistently

According to Strategic Priorities? 

C1 – Engage Existing & Potential

Customers Deliberately 

Improve Readiness and Quality of

Key Facilities

IP1 – Align & Execute Internal

Processes by Supply Chain 

Define & Develop transformational

Capabilities

IP5 – Design, Implement & Sustain a

best Value Enterprise IT Environment

IP6 – Positively Influence Legislation,

Policy, Regs & Directives 

IP8 – Manage Customer Relationships

Shape the Force of the

Future 

Forces Postured to

Succeed?

C2 – Translate Customer

Needs into Actionable

Information

Realign Support to the

Warfighter

IP4 – Grow the Business

IP8 – Manage Customer

Relationships 

Define Skills &

Competencies for the

Future 

LG1 – Deliver the Proper

Knowledge & Skills 

LG2 – Achieve a culture

strong in mission, adaptablity,

consistency, and involvement

LG3 – Provide a Quality

Work Environment 

Maintain Reasonable Force

Costs 

Forces Currently Ready?

C3 – Deliver Consistently on Customer

Requirements/

Expectations 

Manage Overhead &

Indirect Costs 

F2 – Minimize Total

Supply Chain Costs 

IP7 – Improve Mgmt of

DLA’s Current & Future

Real Property

Drive Innovative Joint

Operations

Maintain a Quality Force

Do We Have the Right Forces

Available?

Drive Financial Management &

Acquisition Excellence 

F1 – Resource DLA’s

Operational Strategies

F3 – Demonstrate Stewardship 

IP2 – Leverage Industry

Capabilities 

IP3 – Institutionalize Best

Business Practices for

Efficiency/Effectiveness 

Develop More Effective

Organizations
Defense Logistics Agency

8725 John J. Kingman Road, Suite 2651

Fort Belvoir, Virginia 22060-6221

http://www.dla.mil

December 2005

BALANCED SCORECARD

STRATEGY MAP