Understanding the Role of the Defense Logistics Agency in Supply Chain

The Department of Defense is made up of over two dozen distinct and unique agencies that provide dozens of different services for the overall task of supporting military units and the overall military fighting force. The military runs on almost innumerable resources and relies on the efficient organization of supplies and planning to meet its objectives in combat. 

The Defense Logistics Agency is perhaps one of the least known agencies in this matrix, even though they are a responsible party for the successful maritime and wartime planning. 

Overview of the Defense Logistics Agency (DLA)

The Defense Logistics Agency (DLA) is a combat support agency within the United States Department of Defense (DoD) tasked with managing the global defense supply chain. This agency offers logistical support to military services, combatant commands, and allied nations. The mission of the DLA is to "Drive and sustain Warfighter readiness by delivering unmatched global support as the Nation’s Logistics Combat Support Agency." With a workforce of approximately 25,000 employees, the DLA is organized into multiple supply chains, contracting for materials and services across various military classes of supply.

What does this actually mean in practical terms?

The Defense Logistics Agency is one of the key federal agencies tasked with procuring all kinds of different supplies. The Defense Logistics Agency handles all flight publications for the entire combined air forces of the military. This is tens of thousands of flight pubs getting sent out every few weeks.

But this is just a tiny fraction of what the Defense Logistics Agency provides other federal agencies, the Navy, the Air Force, and the Army to name a few. 

History and Evolution

Established on January 1, 1977, the Defense Logistics Agency resulted from the consolidation of several defense supply agencies. Over time, its responsibilities have grown to include managing the nation’s stockpile of strategic materials and providing support to contingency operations. The DLA has continually reorganized and streamlined its operations to enhance support to warfighters more effectively and efficiently. Additionally, the agency has played a role in relief efforts following natural disasters especially hurricanes. 

As the landscape of warfare changed, so did the Defense Logistics Agency. Moving medical supplies, parts, and personnel is a huge undertaking and it is imperative that government acquisition is on point to establish the programs, transportation, and transfer protocols. 

As we draw deeper into the 21st Century and warfare inevitably changes shapes again, logistics will remain the cornerstone of effective warfighting strategies and the federal agencies that make logistics happen are just as important as the warfighters themselves. Without food, guns, bullets, and parts there are no warfighters. 

Organization and Structure

Headquartered at Fort Belvoir, Virginia, the DLA maintains a global presence with operations in over 100 countries. It is divided into multiple supply chains, covering subsistence, clothing and textiles, bulk petroleum and other energy products, construction material and equipment, and repair parts for land, sea, and air systems. The DLA operates numerous offices across the United States and internationally, including DLA Distribution, DLA Energy, and DLA Aviation. A director leads the agency, overseeing its operations and ensuring the fulfillment of its mission.

But what do they do?

DLA Aviation is a huge element of the Defense Logistics Agency, managing parts and logistical support for the Air Force, Army, Navy, Marine Corps, and Coast Guard aviation assets. And let me tell you, this is a lot of aircraft. DLA Aviation sources the parts, negotiates contracts, and so much more for aviation units across the globe. From CONUS postings in the middle of the U.S., to the farthest reaches of the AOR, DLA establishes logistics and supply for military aviation. 

DLA Energy is particularly important in the grand scheme of the military. The stark reality is that the military runs on gas. Without fuel, everything comes to a standstill. DLA Energy not only focuses on the procurement of energy assets and delivering them, but they also guarantee and determine the annual cost per gallon of bulk fuels. This is used to insulate military fuel providers from the standard market ups and downs that are so prevalent in the civilian fuel markets. 

Finally, the DLA director has an enormously important job and role in the overall function of the military when you break it down. They are responsible for millions (maybe tens of millions) or procurements, shipments, and contracts annually. The directories responsible for strategic planning, resource management, and the overall support of the DoD. 

Logistics Support and Services

The DLA provides logistics support to military services, encompassing supply chain management, inventory management, and transportation. It manages the defense supply chain from procurement to disposal, offering support to military services, the Department of Defense, and other government agencies. The agency's logistics support involves activities such as demand forecasting, procurement, inventory management, and distribution. Furthermore, the DLA provides acquisition and technical support to military services and other federal agencies.

It is hard to overstate how big of a job this is and how important it is. The military is the most technically advanced and technically dependent organization in the world, and maybe that has ever existed. The Air Force alone operates a fleet of around 5,000 aircraft; the Army is only marginally smaller with about 4,400. The DLA is tasked with sourcing contracts for these, sourcing parts for these, and providing fuel for these. It is a thankless job a lot of the time, but the almost 14,000 U.S. military aircraft are basically grounded without them. 

Challenges and Opportunities

Managing the global defense supply chain presents challenges for the DLA, including ensuring the availability of the right products to support military operations. The agency must balance the need for efficiency and effectiveness with security and accountability. Opportunities exist for the DLA to leverage advanced technology to enhance the efficiency and effectiveness of its logistics operations. Additionally, the agency can work on improving relationships with small businesses and other suppliers to optimize value for its expenditures, which are significant.

But, for all of the challenges mentioned, there are also ample opportunities. The DLA mission also entails supporting small businesses. Small business is a core tenant of repair parts procurement since a lot of the suppliers are not giant corporations, but are instead Mom ‘N Pop shops that specialize in niche parts.

The Defense Logistics Agency is committed to fostering relationships with small businesses. By engaging with small business owners, the DLA provides and ensures a diverse base of suppliers. Why? In a word, innovation. More competitors helps keep the procurement process fresh and productive. The DLA's Office of Small Business Programs is dedicated to identifying and promoting opportunities for small businesses, ensuring they have a fair chance to compete for contracts.

The Small Business Administration’s Role

The Small Business Administration is a collaborative entity that works alongside the DLA to promote small businesses. The SBA offers support by offering support, resources, guidance, and training to small businesses who want to get into the space. Procurement is a complex process that is tough to get into for small businesses that don’t have the time and resources to commit to the legal hoops and regulatory requirements. 

By working together, the SBA and DLA facilitate the growth and development of small businesses, enabling them to expand their capabilities, create jobs, and drive innovation within the defense sector. A collaborative effort between the SBA and DLA strengthens the supply chain and adds to the economic vitality of small businesses. When these grow stronger, the defense industry as a whole grows stronger. More innovation=money saved, time saved, resources saved, or all of the above.

That is one of the main reasons why you should call Greenwood Aerospace about procurement: we are procurement professionals with over four decades of experience navigating the frameworks of the DLA, the DoD, and scores of other governmental agencies. 

Parting Thoughts

The Defense Logistics Agency plays a vital role in supporting military services, ensuring they have the necessary supplies and equipment for their operations. The agency’s logistics support and services are crucial to the success of military operations, and its management of the global defense supply chain is critical to national security. The global battlefield will continue to evolve and change, but so will the DLA to make sure logistics remain stronger than ever. 

Greenwood Aerospace is committed to the mission of logistics, supply chains, and parts procurement. Give us a call at 580-762-2580 to learn more, or start a quote now!