Data and AI Strategy in DLA
The Defense Logistics Agency (DLA) is navigating the complexities of budget constraints while simultaneously expanding its mission capabilities. With its fiscal 2026 budget request reflecting only a marginal increase over 2025, the agency faces nearly a $50 million cut from its 2024 budget. In response to these financial challenges, DLA has articulated three key priorities aimed at resource optimization and enhancing operational results.
During the Collider Industry Day event on September 3, DLA Director Army Lt. Gen. Mark Simerly emphasized their commitment to maintaining momentum in implementing the agency’s strategy, stating, “One year after we released our DLA strategy, we are not taking our feet off the gas. We are accelerating and building on our successes with an urgency to support innovation and mission excellence.” The three priorities identified are: setting the agency, setting the globe, and setting the supply chains.
Brad Bunn, DLA’s vice director, highlighted how these priorities build upon the four pillars of the agency’s 2025-2030 Strategic Plan: People, Posture, Precision, and Partnerships. Bunn noted the importance of these pillars, stating, “We see those as imperative for us to improve and work down some of the supply chain challenges we have as we support the joint force and prepare for potential conflict in the future.”
The first priority is focused on workforce transformation and enhancing employees’ proficiency in data utilization. With a workforce of approximately 24,000, predominantly civilians, DLA seeks to foster a culture where employees can operationalize data to improve efficiency. As Bunn points out, data has emerged as a fundamental aspect across various roles in the agency—from warehouse management to contracting and supply chain analysis. Ensuring that all personnel appreciate data’s potential will enhance their responsiveness to the needs of warfighters.
In alignment with this vision, Simerly underscores that boosting data fluency among employees and leveraging artificial intelligence (AI) are critical components of DLA’s digital strategy. Presently, DLA is advancing 56 AI models, driven by employee-generated use cases, which empower the agency to make informed, strategic decisions. This bottom-up approach, along with the emergence of “citizen developers,” illustrates DLA’s commitment to fostering technological skills within its workforce.
Beyond improving workforce capabilities, DLA aims to refine its forecasting and planning processes. Bunn highlights the significance of accurately anticipating customer requirements and proactively acquiring materials to mitigate risks. Effective demand forecasting, particularly regarding legacy systems where obsolescence poses challenges, could be transformative for the agency, reducing back orders and ensuring timely repairs for essential equipment.
The second priority emphasizes empowering logistics operations globally and adopting a forward-leaning approach, especially in the Indo-Pacific region. As a combat support entity, DLA must ensure that the Joint Force is equipped with essential materials and capabilities, thus enhancing overall readiness and resilience in strategic operations.
Lastly, the focus on supply chain modernization is imperative to streamline DLA’s disparate systems, which currently hinder the effective application of AI tools and predictive analytics. Bunn articulates the need for a unified digital infrastructure, which provides a comprehensive view of supply chains, from production to deployment, while safeguarding against cyber threats and other risks. Initiating this integration will bolster inventory management and enhance customer service, aligning DLA with advanced logistics practices akin to those seen in commercial sectors.
Overall, DLA is uniquely positioned to leverage data and AI as vital components in navigating financial constraints while enhancing supply chain efficiency and effectiveness. Its commitment to employee training in data operations and strategic utilization of AI exemplifies a forward-thinking approach essential for modern defense logistics.