Logistics & Supply Management

Supply Chain Management


Supply Chain Management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores so that merchandise is produced and distributed in the right quantities, to the right location, and at the right time, in order to minimize system-wide cost while satisfying service level requirements. [1]


Website: DoD Manual 4140.01 “DoD Supply Chain Materiel Management Procedures”


In the acquisition process, supply chain management requires Program Managers to collaborate with users (e.g., the force providers, the Combatant Commands, and the DoD Components of those commands) to determine optimal logistics strategies tailored to meet the users’ needs and expectations and should produce a Performance-Based Agreement codifying the negotiated user requirements and performance expectations. [2]


A few topics in the Acquisition Process that address supply chain management are:


Note: The May 23, 2003 DoD 4140.1R DoD Supply Chain Materiel Management Regulation was recently canceled and replaced by a new eleven-volume (11) series of DoD manuals entitled “DoD Manual 4140.01 DoD Supply Chain Materiel Management Procedures”.


Note: On Sept. 19, 2018, the U.S. Department of Defense (DoD) issued a corrected Class Deviation 2018-O0020, to remove the sunset provision in DFARS 239.73, “Requirements for Information Relating to Supply Chain Risk,” that was due to expire on Sept. 30, 2018. The deviation is effective immediately. This new deviation implements Section 881 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019. Section 881 made the requirements for supply chain risk management under DFARS 239.73 permanent by placing its authority under a statute (10 U.S.C. § 2239a). This reauthorization reflects the continual efforts by Congress and the DoD to increase oversight on contractors’ supply chain and use risk management as a metric for contract performance.


AcqLinks and References:

Updated: 10/5/2018