R 120101Z JAN 98 ZYB
FM CMC WASHINGTON DC//L//
TO ALMAR
INFO RUEADLA/DLA FT BELVOIR VA
RUEDBGA/DDSC RICHMOND VA
RUDIDLD/DDSC COLUMBUS OH
RUEDBGP/DISC PHILADELPHIA PA
RUEDBGP/DPSC PHILADELPHIA PA
RUEADLA/DFSC FT BELVOIR VA
BT
UNCLAS //N04400//
ALMAR 021/98
MSGID/GENADMIN/CMC LPP//
SUBJ/MATERIEL SUPPORT MANAGEMENT (MSM) POLICY//
REF/A/DOC/CMC/JUL95//
REF/B/DOC/CMC/08OCT97//
REF/C/DOC/MCO4400.195/12MAY97//
NARR/REF A IS THE COMMANDANT'S PLANNING GUIDANCE.  REF B IS THE
MARINE CORPS MASTER PLAN FOR THE 21ST CENTURY.  REF C IS THE PRIMARY
INVENTORY CONTROL ACTIVITY (PICA) ASSIGNMENT POLICY.//
POC/ELISE GABBARD/GM13/PRIPHN:426-1051/PRIFRQ:LPP-2/696-1052//
RMKS/1.  THIS ALMAR PROVIDES INTERIM POLICY REGARDING THE TRANSITION
FROM MATERIEL MANAGEMENT TO MSM.  MSM IS A LOGISTICS SUPPORT
PHILOSOPHY THAT FOCUSES THE WORKFORCE ON DEVELOPING TOOLS AND
PROCESSES THAT MONITOR AND/OR IMPROVE CUSTOMER SUPPORT FROM EXTERNAL
AGENCIES THAT MANAGE THE SUPPLY OR SERVICE SUPPORT CHAIN.  THE
CONCEPT IS IN CONCERT WITH REFS A THROUGH C, AND SUPPORTS THE
PRIORITIES OF PRECISION LOGISTICS.
2.  THE MARINE CORPS LOGISTICS COMMUNITY SHALL ESTABLISH AN OPERATING
ENVIRONMENT THAT WILL FACILITATE CHANGE, REDUCE FEAR OF FAILURE, AND
PRODUCE EXPECTED OPERATING RESULTS.  PROCESSES AND SYSTEMS WILL BE
DESIGNED TO MANAGE AND MONITOR THOSE WHO PROVIDE SUPPLIES AND
SERVICES TO MARINE CORPS WARFIGHTERS.  AN MSM CONFERENCE IS BEING
PLANNED FOR SPRING 98.  BROAD PARTICIPATION WILL BE REQUESTED, AND
AGENDA TOPICS WILL BE SOLICITED.  SPECIFIC CONCERNS REGARDING
IMPLEMENTATION OF THIS INTERIM POLICY WILL BE ADDRESSED IN THAT
FORUM.
3.  OUR GOAL IS TO MAINTAIN A HIGH READINESS STANDARD AND ACCOMPLISH
ASSIGNED MISSIONS AT MINIMAL COSTS.  PRICES PAID FOR SUPPLIES
AND SERVICES ARE ONLY ONE ELEMENT OF THE COST OF SUPPORT.  TOTAL
COSTS INCLUDE CIVILIAN AND MILITARY LABOR, PROCUREMENT COSTS,
TRANSPORTATION COSTS, INVENTORY STORAGE AND DISTRIBUTION COSTS, AND
FACILITIES MAINTENANCE COSTS INCLUDING UTILITIES, SECURITY, ETC.
4.  INHERENT IN MSM POLICY IS THE NEED TO REDUCE INFRASTRUCTURE AND
INVENTORIES OF INTERMEDIATE AND CONSUMER LEVEL SUPPLIES.  INVENTORIES
OF THESE SUPPLIES AND REPAIR PARTS WILL NOT BE RETAINED UNLESS THERE
IS A DIRECT RISK TO READINESS.  CURRENTLY, OUR CONSUMABLE LEVEL
INVENTORIES ARE DEMAND BASED.  EVERY EFFORT SHOULD BE EXERTED TO
STOCK ONLY THOSE CLASS IX ITEMS NECESSARY TO ENSURE OPTIMUM
EQUIPMENT READINESS.
5.  THE MARINE CORPS WILL UTILIZE TAILORED METHODS OF SUPPLY SUPPORT
AND REDUCE OR ELIMINATE INVENTORIES AS NEW SUPPORT METHODS ARE
IMPLEMENTED.
   A.  THE MARINE CORPS WILL LEVERAGE DEFENSE LOGISTICS AGENCY'S
(DLA'S) AND THE PRIVATE SECTORS CONTRACTUAL INSTRUMENTS AND TAILORED
METHODS OF SUPPLY SUPPORT FOR ALL CONSUMABLE ITEMS OF SUPPLY.  PRIME
VENDOR, VIRTUAL PRIME VENDOR, VENDOR MANAGED INVENTORY, DIRECT VENDOR
DELIVERY, ETC., ARE SOME OF THE SUPPLY SUPPORT METHODS CURRENTLY USED
UNDER THE DLA UMBRELLA.  THE MARINE CORPS WILL ALSO CONSIDER THE USE
OF DIRECT VENDOR AND CONTRACTOR LOGISTICS SUPPORT MAINTENANCE
CONCEPTS TO REDUCE INVENTORY LEVELS AND ORDER SHIP TIME/REPAIR CYCLE
TIME.
   B.  DLA'S TAILORED LOGISTICS SUPPORT METHODS PROVIDE THE
POTENTIAL FOR INCORPORATING ITEMS FOR WHICH DLA IS NOT THE INTEGRATED
MATERIEL MANAGER (IMM).  DECISIONS TO INCLUDE OR EXCLUDE THESE ITEMS
WILL BE MADE IN COORDINATION WITH DLA.  IN EITHER EVENT, IT WILL BE
THE RESPONSIBILITY OF THE SOURCE OF SUPPLY TO CONTRACT FOR SUPPORT
THAT WILL MINIMIZE MARINE CORPS INVENTORY, REDUCE COSTS, AND PROVIDE
RESPONSIBLE SUPPLY SUPPORT.
   C.  WHEN USMC WEAPONS SYSTEM READINESS OR PERFORMANCE OBJECTIVES
ARE JEOPARDIZED BY LACK OF RESPONSIVENESS BY THE SOURCE OF SUPPLY,
I.E., PARTS ON BACKORDER, THE MARINE CORPS WILL SEEK TO SOURCE
SUPPORT ELSEWHERE.  PURCHASES OF SUCH PARTS WILL BE REPORTED TO THE
IMM IN ORDER TO MAINTAIN ACCURATE DEMAND RECORDS.
6.  RESPONSIBILITY FOR IMPLEMENTATION OF MSM IS AS FOLLOWS:
   A.  DC/S (I&L) WILL:
       (1) LEAD MSM CONCEPT IMPLEMENTATION.
       (2) PROVIDE OVERSIGHT AND DIRECTION TO ALL MARINE CORPS
ACTIVITIES TO ASSURE COMPLIANCE WITH THE MSM POLICY.
   B.  COMMARCORSYSCOM WILL:
       (1) INCORPORATE THE MSM CONCEPT INTO INTEGRATED LOGISTICS
SUPPORT PLANS
       (2) ENSURE CONTRACTS FOR ACQUISITION OF EQUIPMENT AND INITIAL
ISSUE PROVISIONING SUPPLIES INCLUDE MSM POLICY.
   C.  COMMARCORLOGBASES WILL:
       (1) INCORPORATE MSM INTO PLANS/OPERATIONS AND DEVELOP
AUTOMATED PROCESSES AND PROCEDURES TO CHAMPION MARINE CORPS CUSTOMER
BACK ORDERS THAT ARE REGISTERED WITH DLA AND OTHER SERVICE PICA'S
THAT SUPPORT FIELDED WEAPON SYSTEMS.
       (2) ENSURE THAT LOGISTICS SUPPORT OF DEPOT MAINTENANCE
ACTIVITIES AND THE MARITIME PREPOSITIONING SHIPS PROGRAM IS
CONSISTENT WITH MSM POLICY.
   D.  CG MCCDC WILL:
       (1) PROVIDE MSM CONCEPT EDUCATION TO PERSONNEL INVOLVED IN
DETERMINATION OF EQUIPMENT REQUIREMENTS AND REPLACEMENT FACTORS.
       (2) INTEGRATE THE MSM CONCEPT INTO FORMAL TRAINING PROGRAMS.
   E.  ALL COMMANDERS WILL ENSURE COMPLIANCE WITH MSM POLICY.
7.  DLA IS CURRENTLY SUPPORTING NUMEROUS TAILORED SUPPORT INITIATIVES
FOR MARINE CORPS ACTIVITIES.  BEFORE MAKING INITIAL CONTACT WITH DLA
HEADQUARTERS OR A DLA INVENTORY CONTROL POINT REGARDING A NEW
INITIATIVE, COORDINATION WITH HQMC (I&L) IS REQUIRED.  ALL ONGOING
AND NEW INITIATIVES RELATING TO THE MSM CONCEPT WILL BE REPORTED TO
HQMC (LPP-2), ELISE GABBARD,GABBARDE@HQI.USMC.MIL, FOR OVERSIGHT AND
COORDINATION.
8.  THE POLICY IN THIS ALMAR IS APPLICABLE TO THE RESERVES.
9.  THE POLICY IN THIS ALMAR IS EFFECTIVE IMMEDIATELY.//
BT