DAVENPORT, Iowa -- As the Army reduces funding, Logistics Readiness Center directors discussed ways to operate more efficiently at the second annual LRC Symposium at the Radisson Hotel, here, Dec. 15 -- 16.
LRCs are organizations tasked to provide logistical services and supplies across the Army. More than 70 LRCs provide food services, transportation, maintenance, retail distribution, ammunition issuances, and shipping services for Soldiers worldwide. More than half of the LRC directors attended the symposium, along with ASC brigade commanders.
Maj. Gen. Kevin O'Connell, commanding general, U.S. Army Sustainment Command, opened the symposium. He said that the number one priority for Gen. Mark Milley, Chief of Staff of the Army, is readiness, which is particularly significant for LRCs.
"We know how important LRCs are, and your customers know how important they are," he said. "They know how much they rely on what you do everyday to enable them to train, deploy, and accomplish their missions."
As the Army has downsized, LRCs have been challenged to reduce their costs while maintaining high operational capabilities.
"The issues are known and they resonate at the highest levels," said O'Connell.
"We are getting the mission done, but we don't have enough people, we don't have enough money, to get it done to the degree that the customer expects, what the customer wants, and in some cases what the customer needs," he said. "That's another reason we are here -- to work through that resourcing piece."
The LRCs are big business for the Army. According to Cheryl Vincent, interim director, G-8 (Resource Management), the operating budget for the LRCs is about $1 billion annually.
The command reports that in fiscal 2015, the LRCs served about 82.4 million meals; issued 10.6 million gallons of bulk fuel; opened and closed 263,687 work orders; and processed hand receipts worth another $1.6 billion.
The command also reported that last year the LRCs conducted over 3 million transactions at Clothing Issuance Facilities and Clothing Initial Issue Points; conducted 88,311 issuances at Ammunition Supply Points; coordinated 361,434 household goods shipment orders; and managed 23,548 government non-tactical vehicles.
Carrie Heishmann, a representative from the Office of the Assistant to the Chief of Staff for Installation Management in the Pentagon, also briefed during the conference. She said that while budgets have been declining, the Installation Services Report continues to show that the LRCs keep finding ways to maintain operational readiness.
The ISR is a management tool that shows leaders in the Pentagon the operational status of each military installation. She said that the LRCs have reported green statuses across the board.
ASC's financial projections indicate that these "all green" statuses will be more difficult to achieve in the future, however.
Vincent gave a briefing about the financial outlook for ASC and the LRCs specifically. She said this year will be challenging as it is unlikely ASC will receive mid-year financial support like the command has in the past.
Joe Schulz, deputy director, Installation Logistics Division, said that the LRCs are going to have to reduce costs in order to meet fiscal 2017 funding projections.
"The hard work ahead of us now is setting the conditions for us to live within our means in FY17 and beyond," he said.
Schulz said that cuts in LRC food service operations would need to occur to minimize risks in services that directly impact readiness.
While Schulz was only making a recommendation, several LRC directors agreed that many of the 181 LRC dining facilities open today are underutilized.
"If we don't get significant reductions and efficiencies in food service operations, then we'll have to get them somewhere else, or the Army will have to increase funding to logistics," Schulz said.
Schulz also suggested other ways to reduce costs, but he emphasized the need to assess and mitigate the risks to the mission associated with each reduction.
Throughout the discussion, primary concerns revolved mainly around personnel shortages.
Col. Richard Menhart, commander, 406th Army Field Support Brigade, said the push to do more with less is challenging for his LRCs. The 406th has 26 LRCs spanning the eastern Unites States.
"As the war has drawn down, our missions haven't gone down. Our operation tempo is just as fast or even faster than it was four or five years ago, but our personnel numbers have gone way down," he said.
"We are asking our people to do more, more overtime -- late evenings and Saturdays ... We're putting a toll on our workforce," he said.
Vincent said that because ASC service provider for other military commands, the situation can be complex.
"The expectation out there for our customers is that we will continue to support them," she said. "The challenge is changing their expectation level." Otherwise, she said, the LRCs will keep being pressured to provide services that they cannot afford.
She said that communications about managing expectations will occur at much higher levels than ASC.
"It's partnering, it's communication -- it's all of us coming together," she said referring to ASC and the other commands in the Army that rely on ASC logistics services.
O'Connell promised he will address these issues at higher levels.
"The status quo is unaffordable in our fiscal environment, and we have to acknowledge that," he said. "This is not an ASC problem, this is an Army problem, and it's a very complex problem."
"I want you to know that this stuff is in the command channel," he later said, outlining the various meetings he said he plans to attend across the Army to address the issue.
Despite the fiscal concerns, O'Connell encouraged attendees not to be worried.
"It is working, I don't want you to be frustrated at your level that nobody hears your issues," he said. "What I want you to do is focus on the mission, focus on the customer, and let my staff … worry about the resourcing part -- easier said than done -- I know you are in a tough position."
O'Connell also encouraged the LRC directors to continue to be positive leaders.
"We need that positive leadership, and the things that go along with a positive command climate out in the workforce … you have done a phenomenal job," he said. "We will get through this."
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