Government Contractor Shipping just got easier with DLAs First Destination
Transportation and Packaging Initiative, an
enterprise-wide initiative to reduce acquisition costs for eligible
procurements and gain other efficiencies by leveraging the government’s
negotiating clout and inherent economies of scale within targeted supply
The movement of material from suppliers to the first military depot or
direct to military customer, is about to change from
FOB destination to FOB origin. Slated to begin with solicitations
and awards in late October 2013, FDTPI requires the removal of
transportation related cost from contractor bids. Contractors only need
to be concerned with quoting
the associated costs of manufacturing their products.
by the October roll out will be those labeled as Class IX material as well as some
Class IV and VII
materials to CONUS destinations. The FDTPI project entails the implementation of
transportation and packaging concepts approved by DLA leadership that
will transform the DLA business model in the manner in which supplies
are transported and packaged.
First destination shipments from suppliers
to DLA include transportation and military standard (MIL-STD) packaging
costs which are “bundled” into the acquisition price of the materiel,
obscuring the real cost of the products.
Transportation and Packaging Initiative will unbundle first-destination
freight (FDT) and packaging (FDP) costs from the acquisition price of
new-procurement materiel and utilize government personnel or contracted
services to provide freight and/or MIL-STD packaging more efficiently
than is possible by many DLA suppliers.
Geography will no
longer play a part in a DLA contractor's opportunities to be a competitive
bidders. The drawdown of troops from Afghanistan signals a reduction of
necessary parts and supplies to our troops. Contractors who utilize this
change in transportation terms and find additional avenues for cutting
cost will find their reward in additional business opportunities. In
these uncertain budgetary times, DLA is challenged to decrease costs and at
the same time are challenged with increasing support to troops, in both the U.S. and abroad. Taking control of
the Supply Chain
allows for better in transit visibility (ITV), improves receiving dock
productivity, and reduces safety stock requirements. In transit
opportunities to consolidate by loading fewer, fuller trucks which increases effectiveness and reduces
the carbon footprint.
Before you submit
that competitive bid (minus the cost of transportation), you will need to
Log In and subscribe to the
Vendor Shipment Module (VSM).
VSM is the vehicle
by which you will notify our transportation team experts that your
shipment is ready for pick up.
No matter the size or weight, VSM will
assess the information you provide, assign the carrier best suited for
the shipment and notify you of the carrier choice. At that time, VSM
will allow you to access your own contract information in order to print
a commercial bill of lading, military shipping labels, packing slip,
address labels and small parcel carrier labels.
Classes of Supply
Class I - Food,
rations, and water
Class III - Petroleum, oils, and lubricants
IV - Fortification and barrier materials
Class V -
- Personal Items
Class VII - Major End Items
Class VIII - Medical supplies, minimal amounts
Class IX - Repair Parts
Class X - Miscellaneous supplies