REENGINEERING THE DEPARTMENT OF DEFENSE FREIGHT PAYMENT PROCESS: A WIN-WIN FOR DEPARTMENT OF DEFENSE AND ITS VENDORS

The U.S. Department of Defense (DoD) reengineered defense transportation documentation and financial processes to overcome problems of inefficiency and high cost, using an Internet-based freight payment system. The system also has been used to improve transportation processes such as traffic management. The Board of Directors followed a five-step procedure in reengineering: organize for change using modal teams and the Board of Directors; establish mutual objectives; document the as-is processes and their costs; define the to-be concept; and conduct prototype tests. PowerTrack, an electronic-business solution introduced by U.S. Bank in 1998, is an Internet-based freight payment service. A major benefit to the PowerTrack approach is that it enables carriers to process DoD invoices like their commercial account invoices. The system also allows better management and improvement of transportation processes. One of the early pilots for PowerTrack was at the Defense Depot Susquehanna in Pennsylvania. PowerTrack enabled a new way of traffic management at Susquehanna that is being deployed throughout the DoD over the next year. While the technology of PowerTrack was a key enabler of improvement within the world of DoD transportation, more important was the partnership forged among shipper, carrier, and payment organizations.

  • Corporate Authors:

    Council of Logistics Management

    2805 Butterfield Road, Suite 200
    Oak Brook, IL  United States  60523
  • Authors:
    • Bridges, M
    • Estevez, A
  • Conference:
  • Publication Date: 1999

Language

  • English

Media Info

  • Pagination: p. 303-310

Subject/Index Terms

Filing Info

  • Accession Number: 00788918
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 13 2000 12:00AM