United States Marine Corps
USMC LOGCOM IT Assessment and Implementation
Challenge
MARCORLOGCOM’s IT function provides services and support for MARCORLOGCOM as well as the broader Marine Corps logistics enterprise. For years, MARCORLOGCOM IT was faced with poor service levels, low customer satisfaction, and a lack of comprehensive strategic planning, while also facing budget cuts.
Collaborative Approach
KP Partners, as part of its joint venture, KP Aminad JV, helped MARCORLOGCOM conduct a comprehensive assessment for the IT function, covering organizational issues, strategic planning, and business processes. As part of the assessment, the team identified issues/risks, mitigation strategies, and recommendations. The team also assisted with the implementation of recommendations. Specific areas of focus included:
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Activity-Based Costing
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Backlog Tracking
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Competency Management
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Contract Restructuring
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Customer Engagement
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Enterprise Governance
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Metrics & Accountability
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Organizational Restructuring
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Portfolio Modernization Strategy and Roadmap
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Portfolio Roles & Responsibilities
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Project Prioritization
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Process Improvement
Driving Change
Our support identified and implemented cost reduction of ~35% across the IT function, provided the IT function with the ability to absorb 15% budget cuts with no effect on service levels, and helped to increase project throughput, employee engagement, and customer satisfaction.
USMC LOGCOM Consolidated Storage Program (CSP) Transformation
Challenge
The CSP program, part of the Marine Force Storage Command (MFSC) under MARCORLOGCOM, is responsible for managing and storing Class II equipment on behalf of Marine units. Although providing Class II management services for a number of years, the program had immature technology, highly inefficient processes, and a poor reputation across the Marine Corps.
Collaborative Approach
KP Partners, as part of its joint ventures, KP Aminad JV and KPA Advisors JV, has helped CSP assess its operations, technology, processes, inventory management practices, and growth strategy. The team has conducted a comprehensive review of the program, identified improvement opportunities, and supported implementation of key initiatives, including, but not limited to:
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Active-Duty Expansion
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Centralized Funding and Management
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Cost-to-Serve Analysis
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CSP Dashboard Development
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Customer Feedback Strategy
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Digital Storefront Implementation
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Inventory Divestment
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Governance Board Standup
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Operating Hours Optimization
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Process Re-engineering
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Repeat Return Mitigation Strategy
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Return Policy Development
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Queue Management Implementation
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Warehouse Barcoding
Driving Change
Our support has identified cost reduction of ~25% across the CSP program and supported expansion to other Marine Corps units. Furthermore, the team has helped to introduce new technology, improve business processes, improve Marine experience, and improve customer satisfaction.
USMC LOGCOM SS&D Transformation
Challenge
MARCORLOGCOM, through its subordinate command Marine Depot Maintenance Command (MDMC), manages depot support inventories on behalf of the Marine Corps in Albany, GA and Barstow, CA. As part of Base Realignment and Closure (BRAC) 2005, Congress directed all military services, including the Marine Corps to transfer responsibilities for Supply, Storage and Distribution (SS&D) functions in support of depot support inventories to DLA, but the Marine Corps has remained out of compliance with BRAC 2005. This has resulted in scrutiny from Congress, the Office of the Secretary of Defense (OSD) and the Government Accountability Office (GAO), which published a high-visibility 2016 report highlighting USMC’s non-compliance with BRAC 2005.
Collaborative Approach
KP Partners, as part of its joint venture, KP Aminad JV, followed a comprehensive approach to assist MARCORLOGCOM with the transformation and transition including, but not limited to:
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Supporting SS&D transition, including cost analysis, negotiation, performance metrics monitoring, and requirements documentation
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Tracking DLA IT implementation progress and ability to support SS&D go-live, including requirements gathering , systems design upgrades, and statistical analysis
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Leading inventory rationalization and shift of inventory to DLA
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Executing detailed implementation plan for process roll-out, support implementation of “to-be” processes, support continual improvement of “to-be” processes
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Developing and updating change management strategy execute change management strategy for all implementation activity, support strategic communications, track change management progress
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Providing oversight of working groups and track implementation progress, monitor and update performance metrics and DLA targets.
Driving Change
Our support has been critical for MARCORLOGCOM in implementing process changes in partnership with DLA. This has led to annual savings of $23M across MARCORLOGCOM’s two repair facilities.
USMC MARFORRES ELMS Implementation
Challenge
Marine Forces Reserve (MARFORRES) has been using the Global Combat Support System –Marine Corps (GCSS-MC) as it’s system of record for all military equipment including Individual Combat Clothing Equipment (ICCE); however, the system was implemented without the functionality to perform the issue and recovery of ICCE or maintain warehousing accountability by location. On the other hand, active-duty components have been utilizing the implement the Enterprise Logistics Management System (ELMS) as it is a system of record specifically designed for warehousing, provides ICCE and location management capabilities, and is a requirement to be a customer of the Consolidated Storage Program (CSP). As MARFORRES also seeks to join the CSP, it has moved forward with implementing DPAS-WM across its 150+ locations
Collaborative Approach
KP Partners, as part of its joint venture, KP Aminad JV, is leading the implementation and rollout of ELMS across the MARFORRES enterprise. Support includes, but is not limited to:
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Providing ELMS Warehouse Office role certified train-the-trainer personnel and services capable of training of MARFORRES supply personnel dispersed over locations nation-wide
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Supporting 100% of the data conversion for data cuts from any legacy records or systems each warehouse uses to support MARFORRES activities
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Developing and managing the implementation schedule for the 269 MARFORRES warehouses across the 150+ geographic locations
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Developing a Business Rules Narrative (BRN) as a user manual for the ELMS processes that support MARFORRES activities
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Creating, operating, and training MARFORRES personnel to operate a MARFORRES ELMS helpdesk that fields phone calls and email communication to assist users experiencing operational or systemic issues
Driving Change
Our support is instrumental in rolling out ELMS and training supply personnel across many locations within MARFORRES. As ELMS is implemented, it will help MARFORRES with greater centralized visibility and management of ICCE across its 269 warehouses in 150+ locations and fill further allow the command to outsource its equipment storage and management to the CSP.
USMC LOGCOM Working Capital Fund Evaluation
Challenge
Over the past decade+, MARCORLOGCOM’s Supply Maintenance Activity Group (SMAG) Working Capital Fund (WCF) account had been accumulating significant cash, despite policy dictating that it should have a net operating result of as close to zero as possible.
Collaborative Approach
KP Partners, as part of its joint venture, KP Aminad JV, developed a comprehensive forensic accounting business case analysis based on an approach that included, but was not limited to:
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Conducting a root cause analysis at the transaction level to determine deficiencies, if any, in the rate-setting process
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Developing a comprehensive business case analysis that identified proposed process and account changes and implementation recommendations
Driving Change
Our analysis identified the root causes for the cash accumulation. We determined that issues in the rate-setting process for SMAG’s cost recovery rate led to consistently high rates over the decade-long period prior to the business case analysis. Our proposed process and account changes set the stage to eliminate the rate inflation, including usage of new technology (e.g., Navy ERP integration) and new workload management tools (e.g., a rate-setting tool that automated cost recovery rate calculations and eliminated human error).