NewStream Blog

The Importance of Flexibility in the Defense Supply Chain [Case Study]

Defense contract supply chain case studyNewStream Enterprises, LLC began providing kitting and distribution services as part of a government/defense contract for a large, on and off highway original equipment manufacturer (OEM) in 2008. Over the past eleven years, NewStream has shown extensive capacity and flexibility, developed standards and technologies, and upheld quality metrics set forth by the OEM and the United States Department of Defense (DoD), aiding in the success of the program for both parties.

In its infancy, the defense program required only 10,000 square feet of space. However, the program quickly grew in 2010.  Over a six month period, NewStream was able to flex its operations, showcasing its extensive capacity, to accommodate an additional 200,000 square feet in space and 200 personnel to help ship over 14,800 kits with no disruption to the OEM’s or DoD’s supply chain.

From procurement to distribution, NewStream managed the complete supply chain for this OEM, including the inspection process.  NewStream managed the inspection acceptance at origin with the Defense Contract Management Agency (DCMA) representative – an on-site first article inspection (FAI) audit at NewStream by the United States DoD, graded on a pass/fail basis.  To date, NewStream has passed 100% of its FAI audits.

Standards and technologies were developed 

Cross-Departmental Team Assembled

The NewStream Defense team, which included personnel from quality, procurement, account management, operations and production, was constructed to help streamline the transition from OEM management of the program to NewStream. 

Specific Packaging Instructions (SPIs)

This group created specific packaging instructions (SPIs) on behalf of the OEM, which were later used by the OEM in future request for proposal (RFP) templates. 

Mil-Spec Packaging Requirements

All packaging was created based off of military specifications (mil-spec), which included, but not limited to, internal and external engine rust preservation, long-life engine preservation, humidity controlled vacuum-sealed bags, and crating.

Technology drove supply chain efficiency for the program

ERP Software

NewStream utilized its own enterprise resource planning (ERP) software to manage the inventory, which was a blend of consignment and NewStream owned.  This highly customizable system stores OEM vendor information, including minimum order quantities (MOQs), bills of material (BOMs), lead times and pricing.

Wireless Landscape

To increase efficiencies for the program, NewStream developed a wireless landscape throughout its warehouse.  This landscape featured flexible work stations, giving the employees the ability to move about the warehouse as needed during the kitting process.  The work stations included access to a virtual database for work instructions, real time messaging and BOMs.

On-Time Delivery Excellence

While flexing to the OEM’s needs and developing technologies to increase efficiencies, NewStream boasted a 100% on time delivery rate for all defense contracts, each happening simultaneously at points -  to multiple ship-to locations with multiple delivery dates. Moreover, NewStream continues to be a cost competitive option for the OEM, consistently winning additional contracts based on competitive quotes and kitting expertise throughout the life of the program.

According to the OEM, “This team has a great attention to detail and exemplify a ‘can-do’ attitude with every project.  They are especially responsive to the needs of [the OEM and] the United States Government…which all ultimately support our warfighters serving at home and abroad.”

 

When it comes to understanding the specifications and urgency of military kitting, packaging and distribution, NewStream has the experience you need - on time and at a competitive price. While some companies may choose to perform these tasks in house, there are many benefits to outsourcing your defense/government packaging needs. Trust an experienced military packaging service provider like NewStream to take care of your defense supply chain needs so you can stay focused on your core competencies that make your company great. 

Tagged: Kitting, Government/Defense Packaging, Flexibility

Dec 31, 2019 9:23:39 AM