C5MI partnered with DLA as the key delivery engine for the first SAP S/4HANA system in the DoW, now live across DLA’s entire CONUS and OCONUS distribution network and delivering measurable return on investment for the warfighter. The milestone marks the culmination of a six-year transformation, from initial MVP deployment through full decommissioning of the legacy system, positioning DLA on a fully modernized SAP platform ready for AI with accurate, trusted data.
Reston, VA – August 24, 2026: C5MI, a certified SAP partner and leader in digital transformation and supply chain innovation, announced today that the Defense Logistics Agency (DLA), in partnership with C5MI, has achieved Full Operational Capability (FOC) of its SAP S/4HANA Warehouse Management System (WMS), now live at all 113 sites across the globe. The milestone marks the largest SAP S/4HANA FOC deployment in the history of the Department of War (DoW) and the culmination of the first SAP S/4HANA system ever fielded within the DoW.
Delivered in partnership among DLA, SAP, NS2, and C5MI as the key delivery engine, the program replaced DLA’s decades-old legacy Distribution Standard System with a modern, cloud-based SAP S/4HANA system. That system now powers warehouse and distribution operations for tens of thousands of DLA employees and users, who manage more than five million items and tens of billions of dollars in inventory in support of America’s warfighters.
“Full Operational Capability across DLA is more than a technology milestone. It proves that government and industry, working as one team, can modernize at the speed the mission demands,” said Don Young, Chief Executive Officer at C5MI. “DLA has set the standard for SAP modernization in the Department of War, and C5MI is honored to have partnered with SAP as the delivery engine behind it.”
Program Milestones
- First in the DoW: C5MI completed the first SAP S/4HANA migration in the Department of War in half the expected time, establishing the scalable model the department now references.
- Fastest S/4 migration: C5MI completed the fastest SAP S/4 migration in the federal government, in just 32 weeks.
- Record-setting pace: From initial go-live to FOC, the team executed one of the most ambitious and rapidly deployed SAP modernization efforts in DoW history, sustaining a wave-based deployment cadence across every DLA distribution region. This approach avoided change requests and gave DLA full transparency into the program.
- Milestone-based delivery: C5MI structured the engagement around milestone-based payments, reflecting its practice of getting paid only after delivering committed results. The structure ties payment directly to proven outcomes, reflecting C5MI’s commitment to delivering on its word.
- Largest single-site go-live: The team completed the largest single-site go-live at Defense Distribution Susquehanna, Pennsylvania (DDSP), DLA’s highest-volume distribution hub, in February 2026.
- Global reach: 113 sites now operate worldwide, spanning CONUS and OCONUS distribution centers, industrial support activities, and disposition services sites.
- Enterprise scale: Tens of thousands of trained users now execute millions of warehouse transactions annually across a $46 billion-plus global supply chain.
Return on Investment for the Government and the Warfighter
The FOC milestone delivers measurable value for taxpayers and the mission:
- Legacy cost elimination: Retiring the legacy Distribution Standard System removes millions of dollars in sustainment costs and eliminates the end-of-service-life risk that threatened global distribution operations.
- Audit-ready inventory accuracy: Real-time, serialized visibility into inventory location, movement, and delivery strengthens auditability and financial accountability across DLA’s multibillion-dollar inventory.
- Faster material to the warfighter: Reduced order cycle times and improved order accuracy get parts and supplies to the point of need faster, including in contested logistics environments.
- Operational efficiency: The new platform has cut system defects by 50 percent compared with the legacy baseline and has improved warehouse space utilization and lines-per-hour productivity at deployed sites.
- Readiness at scale: A simplified data model, unified business processes, and advanced analytics let DLA manage its global supply chain more effectively and ensure warfighters receive the materiel they need, when they need it, even in the most hostile conditions.
A Partnership Model for DoW Modernization
DLA, SAP, NS2, and C5MI achieved FOC through a deliberate, disciplined partnership. DLA provided mission ownership and change leadership through its WMS Task Force construct. SAP NS2 provided the secure S/4HANA platform. C5MI served as the key delivery engine, driving deployment execution, data migration, site readiness, training, and go-live support across all 113 sites. Together, the four organizations built a repeatable, scalable blueprint for ERP modernization that the Department of War is now studying.
“I couldn’t be prouder of the team that came together to deliver the WMS across DLA’s supply chain, successfully modernizing 113 centers over six years,” said Aaron Kirkham, Managing Director at C5MI. “This effort demonstrates what is possible when government and industry partner toward a shared mission. It demonstrates what is possible when government and industry partner toward a shared mission.”
About C5MI
Founded in 2017, C5MI is a certified SAP partner and leader in AI-driven digital transformations, solving complex logistics and supply chain challenges for the U.S. Federal Government and Fortune 200 companies. As an SAP Partner, C5MI delivers business process transformations that drive supply chain automation, efficiency, and sustainability. C5MI’s supply chain expertise, best-of-breed technology, best commercial practices, and repeatable delivery model ensure solutions deliver quantifiable ROI. Learn more at C5MI.com.
