Accenture to add Energy Supply to DLA ERP Business System

Accenture, a technology consulting and outsourcing company, has been contracted to provide integration of energy supply chain network with the Defence Logistics Agency’s (DLA) Enterprise Business System (EBS), which is part of its ERP business solution implementation, the Business Systems Modernisation (BSM).

According to Accenture, the contract is worth US$ 73 million and has a time frame of four years to complete. This particular deal between Accenture and DLA has come about in the beginning of September 2010, although Accenture has been involved in the BSM ERP business software implementation from the year 2000.

Let’s take a look at the DLA, it ERP Business System Modernisation and implementing ERP for DLA.

DLA and Supply Chain Network for US Military

The Defence Logistics Agency (DLA) is a component of the Department of Defence. The DLA is in charge of logistics management for the United States (US) Department of Defence (DOD), supporting the US military worldwide. Supply chain network management is done by DLA for food, fuels or energy, construction material, medical supplies and clothing for US military. The DLA also supplies spare parts for some US weapons systems. Due to presence of US military operations worldwide, the DLA has its presence in 126 countries.

The critical business function of the DLA is supply chain network management or material management for the US military. DLA’s business functions also include distribution of supplies, energy or fuel services which involve purchase of fuel and information services such as cataloguing of materials.

The need for DLA ERP Business Software Implementation in DLA

Till the year 2000, the DLA was using obsolete and outdated Cobol systems for managing its supply chain network. This collection of software systems was a product of the 1970s and was no longer supported by the software and hardware manufacturing business. The DLA legacy system mainly comprised of two systems - Standard Automated Material Management System (SAMMS) and the Defence Integrated Subsistence Management System (DISMS).

Some of the functions performed by the older systems were inventory control and requisition processing. It was found that the older systems were not suited for current day efficiency, were outdated, had software code that was difficult to maintain and lacked real-time data access.

The Department of Defence (DOD) wanted its associated agencies to modernise their systems including DLA’s Supply Chain Management (SCM) systems. In a document entitled, “21st Century Logistics” and “Joint Vision 2020”, the DOD wanted a “real-time web-based information system” so that logistics managers as well as field commanders could access all data. In effect, the DOD wanted web ERP or ERP business software solution to be implemented by all agencies.

DLA also highlighted cost-effectiveness and higher efficiency as a reason to modernise its legacy systems and implement Enterprise Resource Planning systems for its SCM.

A Commercial Off-The Shelf (COTS) network or web based ERP solution was envisaged by the DLA not only to reengineer its logistics systems, but also to modernise the supply chain network business process.

DLA wanted to unify all the different legacy systems into a comprehensive ERP business architecture. This was done via the Business Systems Modernisation (BSM) ERP process that was started in the year 2000.

ERP Business Software for BSM

The DLA BSM program encompassed the selection of an ERP vendor according to different criteria and implementing ERP. The ERP applications would be used to revamp business processes, decrease customer wait times and overall increase efficiency cost-effectively.

The DLA wanted that the new COTS ERP business software should lead to lesser operating costs of the system. Some features that the DLA were looking for in their BSM ERP business software include:

Real time access to a unified database
Periodic technical and functional upgradation
Integrated logistics or supply chain network management such as inventory control, vendor/supplier web interface and customer management.

Implementing ERP was to begin from year 2000. The BSM ERP business software implementation was to be extended to distribution ERP and for cataloging in 2005 – 2006.

Among ERP companies, Accenture was given the contract for implementing ERP for BSM by DLA in the year 2000.

Accenture Implements ERP Solution for DLA’s BSM

Accenture started the ERP solution to BSM in 2001, at a time when US needed a better logistics management system due to increased US military activity. ERP systems have a suite of ERP business applications, which are used to unify all the data and array of process business organizations possess. A single ERP solution would encapsulate a common relational database and business processes, making it a comprehensive system.

In its implementation for BSM SCM management, Accenture reengineered the legacy systems such as SAMMS by providing an ERP business solution based on SAP. According to Accenture, it overhauled two legacy systems of DLA. A number of DLA supply chains were integrated.

By December 2006, the BSM was functional and was considered an effective, comprehensive supply chain network management ERP solution.

In April 2007, Accenture won the contract for Enterprise Business Systems (EBS) business systems integration and maintenance. The EBS further modernized the BMS supply chain system with the goals of enhancing customer service and reach to DLA’s ERP business systems.

Latest ERP Business System - Energy Supply Management Integration

The EBS has the Energy Convergence (EC) project as its component. The EC project aims for the ERP integration of energy commodity management (fuels) with the DLA ERP system.

The BSM is said to have evolved into a top comprehensive, effective ERP business solution for the DLA.

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