Lockheed Martin Partners With Michelin to Manage Supply Chain for U.S. Air Force and Army Aircraft Tires

Filed in archive Partnerships on January 10, 2007

Lockheed Martin will manage the logistics and warehousing for all tires used on U.S. Air Force and Army aircraft around the world, supporting tire manufacturer and prime contractor Michelin Aircraft Tire Company, LLC.

According to PR Newswire, the Defense Logistics Agency on Jan. 3 awarded a $368 million performance- based logistics contract to Michelin to privatize the production and logistics for its aircraft tires. With options exercised the contract is valued at $700 million over 10 years. Lockheed Martin's role as a subcontractor to Michelin, which is valued at approximately 15 percent of the contract value, includes demand forecasting, inventory management, warehousing and transportation. Michelin and Lockheed Martin have provided similar services to the U.S. Navy for its aircraft tires since 2001.

"Lockheed Martin and Michelin are committed to providing the same outstanding support to the U.S. Air Force that we are currently providing to the U.S. Navy," said Dan Schultz, vice president for operations and global sustainment for Lockheed Martin's Maritime Systems and Sensors business unit. "Lockheed Martin is a world leader in supply chain management and we will use that expertise to deliver anytime, anywhere in support of the Air Force."

Lockheed Martin will manage the U.S. Air Force's global supply chain from its lifetime support command center in Moorestown. Logistics analysts in the command center forecast requirements, process orders, monitor warehouse operations, track shipments and operate a 24/7 call center with Lockheed Martin's SCM+(TM) supply chain management system. SCM+(TM) is designed to coordinate complex and time-sensitive relationships among suppliers, distributors and customers to achieve cost-effective, on-time delivery. With SCM+(TM), management is performed on an exceptions basis with more than 95% of orders processed without human intervention.