Accenture wins major energy supply chain contract

The energy convergence program is designed to incorporate DLA's energy supply chain business into its enterprise resource planning architecture, which Accenture introduced in 2000 via the business systems modernization contract.
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By SCMR Staff
September 12, 2010 - SCMR Editorial

The U.S. Defense Logistics Agency (DLA) awarded Accenture 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

“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.



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More talking remains before the deal is done

Article Topics

News · Supply Chain · Accenture · Logistics · Plan · Source · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

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