Should the Army Implement Prime Vendor for Class IX Repair Parts?

As the U.S. Army logistics community implements the revolution in military logistics RML in support of Joint Vision 2010 and Army Vision 2010 the focus in the repair parts arena must be on managing information and distribution instead of inventory managing suppliers not supplies buying response time instead of inventory and managing the integration of logistics capability versus owning logistics capability. This monograph examines the feasibility of leveraging the successes of other prime vendor programs as well as commercial business practices to develop a prime vendor program for class IX repair parts. Through a review of the history of military logistics and four prime vendor programs currently in place or under development a class IX repair parts prime vendor framework will be developed. An analysis of this framework, applying the lessons learned from the prime vendor programs reviewed and commercial industry inventory management and materiel distribution business practices, will determine the viability of developing a prime vendor program for class IX repair parts. Development of a prime vendor program for class IX repair parts is feasible. Every benefit defined under the Defense Logistics Agency DLA Prime Vendor Program is achievable. The layering of repair parts at multiple echelons will be eliminated. Inventory, inventory management, and transportation costs will shift from the government to the prime vendor. The experiences of private industry will be leveraged. Finally, DoD will achieve significant annual savings and revolutionize support at the wholesale level.