Supply Chain Leadership for the Nation's Defense: "There is just us."

The Pentagon recently released its “National Defense Industrial Strategy,” a much-delayed reaction to the realization that America’s global military and economic leadership is at risk. The report’s first and most exigent priority among four is building “resilient supply chains.” The broad steps to do so are described, but the document fails to identify where the ultimate responsibility for this endeavor rests. And it’s not with the Pentagon.

A key scene from the movie “Zero Dark Thirty” helps to illustrate where the responsibility does lie. Midway through the 2012 film about the killing of Osama Bin Laden, a CIA deputy director pays a visit to his anti-terrorism team at the U.S. Embassy in Pakistan, ground zero for the war on terror at that time. After years of attempts to cripple the al-Qaeda terror cell with limited results, he delivers an impassioned, profanity-laden message to his as-yet feckless team in Islamabad:

“I want to make something absolutely clear. If you thought there was some secret cell somewhere, working al-Qaeda… then I want you to know that you’re wrong. This is it. There’s no working group coming to the rescue. There’s nobody else hidden away on some other floor… there is just us.”

And so it is with the supply chain that supports the defense industrial base. Those of us who contribute tend to look to D.C., to the Pentagon, and to major defense prime contractors; and we look to funding, and regulation, and process, to make things better for us. But as the CIA director says, there’s no working group coming to the rescue. To be sure, there’s a lot of the bureaucracy that’s working the issue, but with respect to that due diligence, the real answers reside with each and every small business that is a critical link of the supply chain. What are we doing to ensure innovation gets where it needs to go, when it needs to get there? Here are some things we can focus on to improve the supply chain:

? Look down the chain and ensure the soundness of those who supply your work. Not getting what you need? Work with them, or find new and/or additional suppliers

? Work relentlessly to improve your own response times and delivery dates up the chain. That should include innovative ways to deliver, from new technology or business partners, to improved training or hiring practices

? Know and adhere to your contracts’ terms and conditions (T&Cs). If there are some that don’t make sense (especially those that cause delays), work with your prime to change those terms; they are often template items that no one has reviewed in the context of your product or service. Be creative – perhaps someone else can hold your inventory, or alternate materials can be used

? Related to that, if you need additional resources to ensure you’re responsive to the supply chain, try to work that into your contract terms. You may be a subcontractor, but that doesn’t mean you can’t negotiate ways for your prime to help you meet their needs

? Do everything you can to reach 100% made in the U.S. for what you are delivering. The counterfeit parts problem remains a big one, and that’s one place to start

? Be cybersecure before you’re asked to be, and make sure those supplying you are also. It’s costly to be sure; it’s way more costly to put it off.

A resilient supply chain for the defense industrial base is the responsibility of those who oversee it; but achieving true leadership is ultimately the responsibility of those of us who are the links themselves. There’s nobody else hidden away on some other floor. There is just us.

Chip Laingen ~ 2024