Defense Department Outsources Tire Supply Management To Lockheed Martin
January 09, 2007 2:00 PM ET
TThey're not as sexy as Hellfire missiles, but you wouldn't want to land without them. That's why the Department of Defense will indirectly pay contractor Lockheed Martin up to $105 million over the next 10 years to help manage the supply of tires for military airplanes and helicopters around the world. <P> Under a subcontract award disclosed Tuesday, Lockheed Martin will implement and maintain a range of IT systems -- including demand forecasting and inventory management applications -- to help the U.S. Air Force and U.S. Army keep track of tires used on their aircraft. Lockheed Martin is supplying the services in partnership with Michelin Aircraft Tire. <P> Michelin is operating under a primary supply contract awarded Jan. 3 worth as much as $700 million. The contract made Michelin the Air Force and Army's primary tire provider. <P> Lockheed Martin will deploy a version of its SCM+ supply chain management system on behalf of the Air Force and Army to help Michelin fulfill the contract. It will manage the program from a command center in Moorestown, N.J., where logistics analysts will forecast tire requirements, process orders, monitor warehouse operations, and track shipments -- though Lockheed Martin says 95% of the orders will be processes without human intervention.
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