Addendum I (Enhance Army Logistics)

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Our logistics focus is on 360-degree readiness, completing the transformation effort, and funding and fielding logistics automation.  Building and sustaining combat power is paramount to the Army’s success.

While the Global War on Terrorism remains our top priority, we must also prepare for the Army’s next challenge.  Success requires a transformation of the Army’s structure and equipment while simultaneously conducting global operations.  Over five years of combat operations have taken a toll on Army equipment.  The Army Force Generation (ARFORGEN) process identifies equipment requirements and permits a complete corporate view of equipment readiness.  The reset program enables us to meet those requirements and quickly restore unit capability. Congress provided funding to continue this restoration process this year.  The Army’s Retrograde program also allows us to account for and redistribute millions of dollars in excess equipment to meet war fight requirements. 

We are building the force by ensuring Logistics Transformation keeps pace with Army Transformation.  The Army is providing commanders with transformed logistics organizations embedded in their formations for more responsive support.  Additionally, logistics headquarters are joint capable and provide singular theater-wide logistics command and control.  Finally, in order to improve home station and wartime accountability, we are developing and implementing an aggressive Logistics Automation Governance PlanLogistics Automation
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that enhances fielding modern logistics warfighting and business automation architecture and retires legacy systems in support of a modular force.

Our Soldiers and their equipment are deployed in more than 80 countries and must be sustained by our logistics systems.  A continuous 360-degree view of the readiness of units and equipment is essential to ensure combat effectiveness.  The Army implemented the ARFORGEN process to provide Combatant Commanders the forces needed to conduct operations.  Shortages still exist throughout the force.  Units must wait to receive their full authorizations at strategically programmed points within the ARFORGEN cycle.  Reset operations are designed to replace, repair, and modernize equipment and posture units for the next fight. The funding support Congress provided for FY 2007 helps the Army begin the reset process. Similar funding is required for a minimum of two to three years beyond the duration of the current conflict. We must also use retrograde equipment sourced from European unit re-structuring.  We cannot properly forecast and schedule resources to meet future requirements if we do not know the location and status of the assets we own. 

Our transformation efforts will focus on the both the Generating Force and the Operating Force.  We have accelerated momentum of the rapid but deliberate transformation of logistics.  It used to take five years to redesign a unit and convert to the new structure.  Since 2004, the Army has redesigned and activated three of four new Theater Sustainment Commands (TSC), five Expeditionary Sustainment Commands (ESC) and 11 Sustainment Brigades.  The 3rd, 4th, 10th, 45th, 82nd and 101st Sustainment Brigades have deployed under the new configuration.  The 316th, a reserve unit, will be the first ESC to deploy and provide command and control under this new concept.  The Army Sustainment Command (ASC), a subordinate unit of the Army Materiel Command (AMC), now serves as a U.S.-based Theater Support Command.

Our transformation efforts impact our business processes as well.  We are in the midst of a fundamental change in the Generating Force that deploys and sustains operational forces from the United States.  AMC will assume some installation supply and maintenance functions to streamline support.  The Army also realigned the Surface Deployment and Distribution Command (SDDC) under AMC to provide better service component support.  We are using Lean Six Sigma (LSS)Lean Six Sigma (LSS)
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as the primary tool to achieve our business transformation objectives.  In 2006, we focused on our highest priorities: equipment reset; retrograde and redistribution; requirements determination; financial accounting; in-transit visibility; and, policy development.  The process improvements we are targeting will significantly improve the Army’s logistics readiness and ensure our limited resources are applied effectively.

The Army must fully fund and field logistics automation capability or put the modular conversion efforts at risk.  Our objectives include implementing a Single Army Logistics Enterprise (SALE)Single Army Logistics Enterprise (SALE)
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, securing funding for logistics automation, and reducing redundant and stove-piped information technology investments. We have already reduced our logistics automation systems from 850 to 320.  We will continue to find efficiencies.  Our end state is a logistics systems with a seamless, integrated, end-to-end network that merges warfighter and business processes linked to joint, financial, and personnel systems.

Property accountabilityInitiatives to Improve Property Accountability
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is our most recent success story in the logistics automation area.  The Army placed a tremendous burden on commanders to track equipment during multiple deployments and turbulence created by ARFORGEN.  The Army has made tremendous strides by: 

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