Direct Vendor Delivery Challenges Within The Department Of Defense: Potential Cost Savings Beyond $ Millions!
Abstract
The Department of Defense (DOD) on occasion emulated commercial sectors best business practices to be more efficient and to save money. In 1990, Congress tasked the DOD to use commercial sectors best practice for cost-savings. The DOD incorporated Direct Vendor Delivery (DVD) into its supply chain processes. Several audits since 1990 revealed that there was potential for millions of dollars in cost-savings but DVD also cost the DOD millions of dollars and manpower. In addition to cost, the audits disclosed that DOD faced other challenges due to DVD such as marking and labeling, packaging and documentation. Although delays in shipment of cargo due to policies and procedures not being followed seemed to be the problem, initial review of audits suggested additional potential causes of DVD challenges existed. All DVD audits were one-of-a-kind where each addressed only to a particular profession within the supply chain. Each segment of the challenges was never connected as a whole to be presented to the supply chain community at the Office of the Secretary of Defense level. The purpose of this research paper is to use the case study framework to provide a consolidated report of all DVD challenges contained in the audits by conducting a review. Through critical analysis of each audit, this paper will identify additional challenges, provide potential root causes and present recommended actions.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2017
- Accession Number
- AD1054558
Entities
People
- Darrell Khine
Organizations
- Air Command and Staff College