Energy is Defense Logistics Agency’s final supply chain serving U.S. military worldwide
RESTON, Va.; Sept. 7, 2010 – The U.S. Defense Logistics Agency (DLA) awarded Accenture (NYSE: ACN) a four-year, $73 million contract to integrate DLA’s energy supply chain into its enterprise business system (EBS) program. The energy convergence program is designed to incorporate DLA’s energy supply chain business into its enterprise resource planning (ERP) architecture, which Accenture introduced in 2000 via the business systems modernization (BSM) contract.
Under BSM, Accenture developed a SAP-based ERP architecture, replaced two of DLA’s major legacy systems, and integrated seven of DLA’s supply chains. In 2007, Accenture began work on EBS, bringing more efficient, effective and reliable supply chain support to the U.S. military services. Energy, which includes all fuel commodities and related business processes, is the eighth and final component of DLA’s supply chain system.
“Bringing energy into the EBS environment is DLA’s final step in achieving a leading-edge logistics system. We look forward to helping DLA and DESC continue providing for America’s armed forces through an efficient, reliable and speedy supply chain that meets the ever-changing needs of DLA’s customers,” said Lisa Mascolo, managing director, Accenture’s U.S. federal practice.
Working with both DLA EBS personnel and Defense Energy Support Center (DESC) fuels managers, the Accenture team will integrate a client-specific oil solution to meet DESC requirements. Accenture’s solution will streamline operations, integrate financial activities and reduce systems support cost. Additionally, it will provide DLA with total asset visibility and reduce customer wait times – a critical feature for military personnel worldwide. When the energy integration is complete, DLA will have added more than $18 billion in traceable items to its fully integrated logistics supply chain.
DLA provides 100 percent of food, fuel, medical supplies, clothing/textiles, construction and equipment to U.S. service men and women in 126 nations. The agency averages 54,000 requisitions and 8,000 contracts per day, and manages 520,000 shipments annually. EBS has enabled DLA to re-direct shipments in-flight, all within one system with real-time monitoring of the processes and transactions.
Accenture is a global management consulting, technology services and outsourcing company, with more than 190,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.58 billion for the fiscal year ended Aug. 31, 2009. Its home page is www.accenture.com.
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