First Destination Transportation and Packaging Initiative (FDTPI)

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 chains.

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.

Products affected 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.

First Destination 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 visibility offers 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
ClassII - Clothing
Class III - Petroleum, oils, and lubricants
Class IV - Fortification and barrier materials
Class V - Ammunition
Class VI - Personal Items
Class VII - Major End Items
Class VIII - Medical supplies, minimal amounts
Class IX - Repair Parts
Class X - Miscellaneous supplies

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