Engineered Support Systems, Inc.
2001 Annual Report Table of Contents
   

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              Focusing on Homeland Security
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Focused logistics, a key operational concept in the Department of Defense’s full spectrum dominance strategy, relies in large part on electronic communications capabilities. As defined by the DoD:

“Focused logistics is the ability to provide the right personnel, equipment and supplies in the right place, at the right time, and in the right quantity. This will be made possible through a real-time, Web-based information system providing total asset visibility as part of a common relevant operational picture, effectively linking the operator and logistician across services and support agencies.”
     Engineered Support is leading the way in developing online capabilities to support the military’s logistics initiatives – services that represent substantial organic revenue growth opportunities in future years.

ESSIbuy.com
Our ESSIbuy.com division, launched in 2001 as “The Warfighters’ One Stop Logistics Shop,” offers a full complement of military logistic support services accessed via the Internet and a secure Web site. This electronic storefront enables military users to access training, operating and maintenance manuals online; troubleshoot company-manufactured equipment and systems; orderspare and replacement parts; and obtain warranty services and a wide array of other technical support.
     Using ESSIbuy.com, the company’s military customers now benefit from greater speed and accuracy, as well as reduced inventory investment and the elimination of multi-level purchasing costs previously incurred. Today, military personnel in the field have real-time access to troubleshoot company-supplied equipment, isolate the problem, order necessary replacement parts and pay with a credit card preauthorized for use within the system. And equally important, information from our online system greatly enhances the military’s life cycle management capabilities.


     As the military increasingly shifts logistics support to suppliers, ESSIbuy.com represents an exciting opportunity to become much more than a manufacturer and to further develop the maintenance and supply side of our business. Since its February 2001 launch, approximately 1,000 orders have been quoted and filled through the electronic storefront, and we expect that number to grow dramatically in 2002.

Interactive Electronic Technical Manuals (IETM)
Engineered Support is at the forefront in the conversion of cumbersome paper technical manuals into fully interactive electronic technical manuals (IETM). Using proprietary technology, we can replace commonly outdated paper manuals with continually updated IETMs that are easily accessible on the Web or via CD-ROM – reducing cargo space, simplifying operations and improving military deployment.
     The IETM system also includes an integrated ordering process that uses a “point-and click” capability to help eliminate transcription errors that can result in the ordering of incorrect parts.
     The U.S. Navy is currently using our IETMs on the High-Powered Offload to CASS automatic testing equipment on air-craft carriers, and we have developed IETMs on both the Tunner 60-K Aircraft Cargo Loader and our new 3-kilowatt Tactical Quiet Generator.
     Eventually, we foresee using “smart” technology to imbed prognostic and diagnostic data into our equipment; then through the use of IETMs, the equipment will tell the user when a part is wearing out or when maintenance is required. These types of innovations will greatly reduce military logistics support costs while improving overall operational readiness.

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