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    NAVSUP FLCSD San Diego warehouse team recoups $3.6 million in excess inventory into NWCF

    NAVSUP FLCSD leadership explore the warehouse at Naval Base Ventura County on July 18, 2023.

    Photo By Tristan Pavlik | NAVSUP FLCSD leadership explore the warehouse at Naval Base Ventura County on July 18,...... read more read more



    Story by Tristan Pavlik 

    NAVSUP FLC San Diego

    The NAVSUP FLC San Diego employees at Naval Base Ventura County Port Hueneme recently completed a massive project utilizing the Navy's Smart Offload process resulting in $3.6 million in material offered to NAVSUP for capitalization into the Navy Working Capital Fund (NWCF). In a span of four months, the team has issued 3,500 referrals valued at $902k.

    "The project began during a routine site familiarization tour. As we discussed warehouse utilization and inventory management, we saw an opportunity to capitalize on the stored excess material. After researching the requirements, we proposed a comprehensive strategy to Naval Facilities Engineering Command (NAVFAC) Expeditionary Warfare Center (EXWC),” explained NAVSUP FLC San Diego Commanding Officer Capt. Cory Schemm. “The results would yield increased fleet readiness and enhanced warehouse capacity, all while capitalizing material to generate future NWCF sales and fulfill Fleet requirements. This is a win for current readiness, auditability, NWCF cash position and future readiness as these sales enable NWCF to procure future requirements.”

    In 2020, NAVSUP FLCSD Site Port Hueneme assumed warehousing and inventory responsibilities for $53 million in NAVFAC EXWC project stock. Simultaneously, the Department of Defense Warehouse Utilization initiative had just recently kicked off, triggering the evaluation of warehouse storage capacity utilization across the armed forces. As a result of these developments, NAVSUP FLCSD has successfully streamlined its operations, and with the other stakeholders, like EXWC, they have significantly reduced its footprint in the NAVSUP FLCSD warehouses.

    As this was the first time capitalizing end-use material at Site Port Hueneme, NAVSUP FLCSD employees collaborated with stakeholders from various organizations, including NAVSUP Weapon Systems Support, NAVSUP, and EXWC to develop the appropriate framework.

    With guidance in hand, employees worked together diligently to initiate the Smart Offload and successfully capitalize the material into an established plant at Port Hueneme.

    "The team at NAVSUP FLC San Diego Site Port Hueneme has both the warehouse space and the necessary expertise to process excess material," explained Robert Medina, NAVSUP FLC San Diego Ventura Site Director. “Between the team's comprehensive inventory knowledge and the strong partnership with the NAVSUP WSS Smart Offload Team, this process has demonstrated our commitment to supply chain excellence.”

    NAVSUP WSS used the Smart Offload process to evaluate the material. The program identified different categories of excess material and Fleet demand; it then determined whether they would be sufficient candidates for future sales. Once finished, the Smart Offload Team provided guidance to transfer the material to into NAVSUP FLC San Diego.

    Of the initial $30 million from EXWC’s excess inventory at Naval Base Ventura County, the Smart Offload identified approximately 10 percent ($3.6 million) of material with valid demand to be capitalized. The Smart Offload material was capitalized into an existing working capital fund plant already managed by FLCSD Site Port Hueneme.

    Once the Smart Offload was processed, NAVSUP WSS integrated the material into the auto sourcing chains and supply system; this allowed authorized customers, like the USS Essex (LHD-2) or USS Anchorage (LPD-23) and others, to access the capitalized material.

    "A significant portion of the capitalized material was previously backordered and unavailable in the supply system, but now, as the material is processed, it becomes instantly available to any NWCF activity with a backordered requirement,” explained Medina.

    As NAVSUP FLC San Diego manages the material on-site, once issued, the team can quickly package it for shipment, thus making it available for immediate issue.

    The transfer of EXWC material has allowed NAVSUP FLCSD to consolidate warehouse items and optimize space.

    “Every day, the team processes, packages, and ships material, creating space to support the warfighter and upcoming projects. As a result, NAVSUP FLC San Diego Site Port Hueneme has become the second busiest NWCF plant on the west coast," Medina said proudly, reflecting on recently published reports from the Regional Transportation Office data.



    Date Taken: 08.02.2023
    Date Posted: 08.02.2023 19:27
    Story ID: 450569
    Location: PORT HUENEME, CA, US

    Web Views: 492
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