Photo By Greg Wilson | The ARC DEFENDER delivers armored vehicles and equipment January 26, 2023, at the port...... read more read more
Greg Wilson, ASC Public Affairs
ROCK ISLAND ARSENAL, Ill. – In the intricate world of military logistics, few systems are as vital yet as little understood as Second Destination Transportation. This essential function ensures that equipment, supplies, and materiel reach their final operational destinations – often far beyond the initial point of delivery. At the heart of this effort is the U.S. Army Sustainment Command, headquartered at Rock Island Arsenal, Illinois, which orchestrates the movement of resources across the globe to support warfighter readiness.
SDT refers to the transport of military goods from a primary delivery point – such as a port, installation or depot – to a secondary location. These are multi-modal shipments that can go anywhere the Army has a footprint. SDT is a strategic logistics function that requires coordination across multiple commands and funding sources.
If SDT operations don’t function, said SDT Division Chief John Germanceri, “Overseas - OCONUS subsistence resupplies halt, OCONUS mail operations cease, OCONUS-bound repair parts do not get delivered, overseas merchandise is no longer available at post exchanges, critical clothing and individual equipment is not available for deploying Soldiers, global ammo supply points do not get restocked, and the Army's regionally aligned readiness and modernization efforts are diminished.”
Soldiers need food, supplies and ammunition. Without regular deliveries, Soldiers can’t do what they are trained to do.
The Army relies heavily on commercial carriers to move equipment, supplies and personnel, and has since its inception 250 years ago. Those carriers, of course, expect payment for their services.
For instance, when the Army receives a shipment of vehicles from a manufacturer, that’s considered the first destination. Those vehicles could be transported to any number of locations, depending on the contract the Army has with the supplier. Anywhere it goes after that is considered second destination as ASC initiates payment for that movement. So, if a shipment of ammunition, or even food, arrives at a U.S. destination and needs to be sent to an Army installation in Germany, then ASC, through SDT, pays for that second leg.
SDT has also been used in recent years to supply our allies and partners from existing U.S. military stocks.
In years past, tracking of thousands of materiel movements was done manually, using Excel spreadsheets. Real-time transparency about where the equipment was, and its movement costs, wasn’t possible. Keeping track of the costs was extremely difficult, and sometimes the Army would not be able to reconcile estimates with actual costs, occasionally resulting in overpayments.
In 2018, the Army realized the system being used couldn’t keep pace with shipping and payments like it needed to. It turned to ASC which, with Army guidance, developed SDT as a separate division under ASC’s Transportation Directorate.
“We are building this program while in flight, so to speak,” Germanceri said. “Essentially, this mission is happening and being executed daily, at the same time we are ‘building’ automation, implementing internal controls, establishing auditability, and creating rapid reconciliation to increase buying power to grow Army readiness.”
Central to the system is the Transportation Account Code. Each TAC is a four-character code linked to an account which identifies the funding source. It links transportation services to the appropriate funding source and ensures accountability for shipping costs.
The Third-Party Payment System and TAC sections consist of two teams. The TAC team creates, renews, and modifies over 6,000 active Army TACs, ensuring that every shipment is identified and properly tracked and funded. The TPPS team provides management and oversight of freight accounts, ensuring commercial vendors receive payments for services rendered to Army units. Both teams cross-train to work more efficiently.
“I have been with the SDT team from its initial introduction to ASC,” said Luther Kirby, the TPPS/TAC coordinator. “The program has continued to grow and mature over the years, and it has increased efficiencies, created transparency and provided us the tools to be better stewards of taxpayer money in execution of Army global transportation requirements.”
The Army currently pays commercial carriers through a freight payment service. The service provider covers the freight costs, and the Army reimburses the provider.
To bolster its logistics capabilities, ASC utilizes the Army Vantage program, a cloud-based analytics platform designed to identify and visualize data across the Army. The system uses advanced analytics and artificial intelligence to connect millions of data points into displays that support faster, smarter decision-making.
Germanceri said it speeds up the process for shipping requests, cuts down on paperwork and mistakes, and gives the team a clear view of everything—from the moment something ships to when it gets paid for. Plus, the SDT team has digital records that are ready for audits whenever needed.
When it comes to support operations, Army Vantage helps the SDT team keep tabs on shipments and supplies in real time across the Army’s network. That means commanders can spot and fix supply chain issues before they become bigger problems. It also makes the whole process more transparent by connecting shipping data directly to the funding behind it.
ASC uses SDT to enable rapid distribution of equipment and supplies to strategic locations. This maintains readiness by ensuring units receive the right materiel at the right time and place.
Whether it's forecasting demand with for supplies in a contested logistics environment or identifying underutilized assets in theater, SDT means that ASC can deliver precision sustainment at scale.
It’s more than just a transportation operation. It’s a strategic enabler. Whether moving armored vehicles to Europe or munitions to the Indo-Pacific arena, ASC’s use of SDT ensures that the Army can project power and sustain operations anywhere in the world.
| Date Taken: | 08.14.2025 |
| Date Posted: | 08.14.2025 14:58 |
| Story ID: | 545644 |
| Location: | US |
| Web Views: | 33 |
| Downloads: | 0 |
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