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Defense Department Outsources Tire Supply Management To Lockheed Martin

Lockheed Martin will implement a range of IT systems -- including demand forecasting and inventory management applications -- to help the military keep track of tires used on their aircraft.
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.

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.

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.

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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