Maelstrom
Challenge
The challenge was to reduce turn-around time and increase availability of consumable parts to the Norwegian Defense Logistics Organization (NDLO). Their process of procuring and maintaining aircraft consumables was slow and bureaucratic. NDLO was not utilizing best commercial practices and lacked resources.

Derco Solution
Derco addressed the challenge by creating a PBL solution for spares and kits. The PBL solution provides a weekly inventory report of over 200 consumables. In addition, Derco developed forecasting models to establish reorder points and stock levels.

Results
Spare backorders were reduced by 80 percent and kit backorders were reduced by 92 percent.

Key Performance Indicator
There has been a substantial reduction in backorders; Derco/NDLO PBL solution produced a decrease in average daily backorders from 2.5 to .51.

Kiwi-Direct
Challenge
The challenge was to reduce turn-around time and increase availability of consumable parts and repairable items for the Royal New Zealand Air Force (RNZAF).

Derco Solution
Derco addressed the challenge by creating a PBL solution for spare parts. The PBL solution provides a weekly inventory report of over 400 consumables and repairables. Derco also developed forecasting models based on consumption and safety stock requirements. Additionally, Derco manages all aspects of the supply chain.

Results
After just nine months of exceptional performance, the RNZAF expanded the program from the initial 400 parts to 2,600 parts.

Key Performance Indicator
There has been a 15 percent reduction of on-hand inventory and there have been no backorders.

Safe-Direct
Challenge: Safe Direct represents our first Performance Based Logistics contract with an international commercial entity. Like all commercial entities, inventory overhead is a critical measurement and therefore our biggest challenge is to provide the most streamline, efficient, supply chain as possible. 

Derco Solution
Derco meet the challenge with Vendor Managed Inventory, which automated the order fulfillment process.

Results
Derco's solution reduced inventory, backorders, increased parts availability, and reduced overall turn-around times on depot maintenance. 

Key Performance Indicator
There has been a reduction in backorders and an improvement in parts availability at point of use.

CCAD
Challenge
To restructure component and structures repair and overhaul sustainment.

Derco Solution
Derco’s solution is to provide support of components and structures repair and overhaul sustainment. Derco also provides material planning, warehousing, kitting, shipping, and perform quality measures in support of the program. Derco develops forecasting based on production schedules, historical usage data, and MTBF analysis.

Results
The solution resulted in a reduction of turn-around time of components through repair facilities.

Key Performance Indicators
In less than one year, backorders were reduced by more than 85 percent.