Weathering the ERP storm

When the armed services need to transport cargo over the open

ocean they turn to the Military Sealift Command. The Navy also relies on MSC to refuel and resupply ships. To fulfill these missions, MSC must administer its own fleet of 140 ships and contract with commercial firms to provide others. It must be able to pay its 3,500 civilian mariners competitive wages, and manage another 3,500 civilian and military employees all over the world. In recent years, the combination of these and other factors has made it difficult for MSC to manage its operating costs efficiently.

"We have a very complex business," says Bill Savitsky, MSCs comptroller.

It's critical that MSC keep its costs under control because, as a working capital fund agency, it gets no appropriations from Congress. MSC relies solely upon the income created by charging military commands for the sealift services they use. If those commands are not satisfied, they can contract outside MSC for these services. As a result, MSC officials are always looking for ways to cut operating costs while ensuring the same or better service.