DLA/FedEx premium service effects on defense distribution inventories and shipments

Abstract

This research reviews and evaluates the FedExâ s Premium Service Program currently being used by DLA customers. The research will examine some of the benefits and costs of this co-locating of DOD warehousing and shipping operation managed by a commercial express transportation carrier. The research will view the possible benefits gained through commercial inventory and transportation practices by partnering a third party logistics service with the Defense Transportation System. DLA and FedEx have formed a partnership called DLA Premium Service. Premium Service is the only DoD warehousing operation that is co-located with and managed by a commercial express transportation carrier at FedEx main transportation hub. Premium Service System allows users to position materials in the Memphis facility for expedited delivery to the required destinations worldwide. All items are guaranteed, under contract, to be delivered to their continental U.S. (CONUS) destination within 24 hours and within 48 hours to outside of CONUS (OCONUS) to the major airports serviced by FedEx. Items will be delivered to the OCONUS final destination 24 hours of release from customs holding area at the airport. The service provides advance notification to streamline customs requirements of all OCONUS shipments.